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Today, 14 March 2001, Cabinet approved key policy decisions that will form the framework for the finalisation of telecommunications policy directions.

During the Cabinet meeting the Minister of Communications, Dr Ivy Matsepe-Casaburri, presented proposed policy decisions based on recommendations and submissions from the ICT industry, the public, the policy advisors and stakeholders who attended the telecommunications policy colloquium held in February 2001.

The proposed policy decisions focused on the following areas:

* Bridging the digital divide;
* Lowering input costs;
* Universal service and access; human resource development;
* Black economic empowerment; stable and predictable regulatory regime;
* Domestic and foreign direct investment.

Cabinet approved the introduction of managed liberalisation in the telecommunications sector to ensure that it contributes to the development of the new economy, development and economic growth in general.

Telecommunications policy directions will emanate from these key policy decisions by Cabinet and will be gazetted by 23 March 2001 for public comment.

Key policy decisions taken by Cabinet include:

1. MARKET STRUCTURE

1.1 A full second national operator (SNO) to be licensed to provide international, national and local services.

1.2 The SNO would be allowed to use Telkom's infrastructure for a period not exceeding three years to enable competition and benefit the consumer. This arrangement will also allow the SNO to develop its own infrastructure and facilities.

1.3 At least one additional full service licence be introduced within five years.

1.4 Sentech's licence be extended to provide international long distance telephone services and multimedia services.

1.5 After four years, the market should be assessed to determine the viability of licensing additional operators.

2.FIXED-MOBILE CONVERGENCE

2.1 The incumbent (Telkom) and the SNO be licensed for fixed-mobile services and that licensing be technology neutral, subject to spectrum limitations.

3. 1800 MHZ SPECTRUM

3.1 The 1800 MHz spectrum should be allocated fairly among all operators (Telkom, Vodacom, MTN, Cell C and the SNO) for an appropriate fee.

4. Third Generation Spectrum (3G)

4.1 3G licences be offered to all operators (Telkom, Vodacom, MTN, Cell C and the SNO) for an appropriate fee.

5. EMPOWERMENT

5.1 All major licences should have up to 30% set aside for the purposes of black economic empowerment. Mechanisms supporting broader participation through retail should be allowed.

6. UNDER-SERVICED AREAS

6.1 In under-serviced areas where telephone penetration is very low, the Minister will be allowed to grant licences to small and medium enterprises (SMMEs) and co-operatives.

7. ICASA

7.1 The institutional, human resources and financial capacity of ICASA be strengthened to enable ICASA to maximise the delivery of effective regulatory services.

Contact: Robert Nkuna on 082 887 6874

Issued by the Ministry of Communications, 14 March 2001