POLICY DIRECTIONS ON UNIVERSAL SERVICE FUND AND HUMAN RESOURCES FUND

MEDIA STATEMENT

THURSDAY 20 FEBRUARY 1997

The Minister for Posts, Telecommunications and Broadcasting, Jay Naidoo, on Friday, issued two policy directions on Telkom's contribution to the Universal Service Fund and the Human Resource Fund, in terms of section 67 and 86 of the Telecommunications Act.

The policy direction on the Universal Service Agency requires Telkom SA (Ltd) to contribute not more than R10 million a year to the Fund. The amount will be adjusted annually for inflation, taking into account any increase in the Consumer Price Index in the immediate preceding calendar year as published by the Central Statistical Services.

The policy direction on the Human Resource Fund requires Telkom to contribute not more than R5 million a year. This amount will also be adjusted annually for inflation, taking into account any increase in the Consumer Price Index as published by the Central Statistical Services.

The Telecommunications Act requires all telecommunications licence holders to contribute towards the achievement of universal service goals and the development of human resources and skills in the sector.

The Universal Service Fund will be utilised exclusively for the payment of subsidies to assist needy persons towards the cost of the provision of telecommunications services and also to communities not adequately served by telecommunications services.

The Human Resources Fund will be utilised exclusively to promote the development of adequately skilled people at all levels of the telecommunications sector.

Contribution to these funds was agreed to by telecommunications sector stakeholders in the drafting of the White Paper on Telecommunications as passed in March 1996 and subsequently given legal expression by the Telecommunications Act of 1996.

The idea of Ministerial policy directions is in line with other independent regulatory authorities, established within representative democracies. They also serve to distinguish those issues that are considered policy matters, which vest with the Ministry as opposed to regulatory issues.

For further information please contact Connie Molusi (021) 462-1632 or 082 552 1939