Development Universal Access and Governance in South Africa

Development, Universal Access and Governance in South Africa z CPSR Symposium: One Planet, One Net - The Public Interest in Internet Governance Boston, 10 th - 11 th October 1998. z Tracy Cohen, Part-time lecturer z Telecommunications Law, Wits Law School z Assistant to Council, SATRA x The views expressed do not necessarily represent the views of SATRA, its Council or any of its employees. 1

Areas of focus z Context and Vitals z Definitions: Universal Service v. Universal Access z Universal Access in South Africa y Poverty y Telecommunications Teledensity y Internet Penetration on the Continent z Governance y Policy and Legislation y Role of the Regulator z Issues 2

South Africa 3

Definitions - Dedicated service v. reasonable access z Universal Service z 3 Components - Availability, Affordability, Accessibility -ITU x “affordable, access to basic voice telephony or its equivalent for all those reasonably requesting it, regardless of where they live. ” - Oftel z Universal Access xall of the above, BUT communal and within a reasonable distance z Definition depends on the nature of the market z Definition informed by technical, social, political considerations e. g. RDP 4

Universal Access in South Africa z Poverty y 36% of all households below the HSL y HSL = R 1050/month ($180) • Poorest 20% hh (27% pop) <3% total income • Richest 20% hh (3% pop) >65% total income z Telecommunications Teledensity • • 2. 8 million residential lines 1. 5 million business lines 28 000 farm lines 90 000 Public Pay Phones y National average = 9 • Richer areas = 50 • Poorer areas = 0. 001 5

The Phone Gap 6

In Summary z 8. 7 million households in SA z 2. 8 million have telephones z 55% of the 2. 8 million are in white households z 5. 9 million households have no phones z 2. 1 million households have NO ACCESS to a telephone within 5 km’s of their home 7

SA - ISP Industry Structure 8

Internet in Africa Source: Mike Jensen, AISI 9

Cost Comparative Source: Mike Jensen, AISI 10

The role of Governance in delivering Universal Access in SA z Universal access requires regulation aimed at balancing economic growth and social/policy objectives z History, Policy and legislation - Telecommunications Act No. 103 of 1996 z State institutions supporting universal access y SATRA • The public interest - Telkom v Internet Service Providers Association, 1997 y The Universal Service Agency • Lifespan - 5 years • Universal Service Fund - Section 59 • Administered by the USA subject to the control of SATRA y Department of Communications • Multimedia Projects/ Public Access Projects 11

A nation’s wealth is correlated with its telecom infrastructure Source: Formus SA 12

Issues z Infrastructure x. Sub-Saharan Africa teledensity - <1 in 200 x. Analogue, unreliable network, urban concentration z Affordability and Costs z Services - basic or advanced z Sustainability x. Social x. Economic z Infrastructural Priorities z Literacy and Language Hegemony y Software solutions 13

Conclusion z Regime is irrelevant - other factors are the determinants. z Socially positive role and purpose of regulation: y State has a role in ensuring universal access (more so under the exclusivity model? ) y USF Ceiling of R 20 Million/year must be raised - post exclusivity z Public/private sector partnerships will be vital to success z International and regional co-operation is crucial z Degree of success correlates proportionately to degree of sufficient political will, systematic planning and coordination 14

Contact Details z. E-mail: Cohet@satra. gov. za z. Post: SATRA, Private Bag X 1, Marlboro, Sandton, 2063, South Africa z. Tel: 27 -11 -321 -8384 15

Useful Sites z http: //www. satra. org. za/ z http: //www 3. wn. apc. org/africa/mj. htm z http: //www. sangonet. org. za/ z http: //wn. apc. org/technology/ z http: //demiurge. wn. apc. org/africa/projects. htm z http: //www. doc. org. za/ z http: //www. telecom 98. co. za/ z http: //www. sas. upenn. edu/African_Studies/AS. html 16

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Snapshot - SA Industry Structure Telkom Future fixed line providers Mobile Cellular Vodacom, MTN, 3 rd and 4 th? PTNs - Transnet and Eskom Mobile Data, Radio Trunking, VANS - including ISPs 18

Governance = Regulation? z Fact: Government involvement in the creation and extension of services z Regulation aims to achieve: y the delivery of basic services y acceptable ranges and quality of services y fair competition y facilitate economic growth and global competitiveness z Regulation is aimed at balancing economic growth and social/policy objectives z Universal Access requires regulation 19

24 Months Ago… 20

Africa - Continental Connectivity Indicators - Source: Mike Jensen, AISI z 46/54 Countries and territories in Africa have Internet access in the Capital cities z 6 Countries have plans for full Internet access in the capital cities z 2 Countries remain without plans for full Internet access z 7 Countries have only one full public access ISP after 12 months z 11 Countries have local ISPs or POPs in some secondary towns z 10 Countries have local dial-up Internet access nationwide 21

Comparatively Speaking… Source: Mike Jensen, AISI 22