Matsepe-Casaburri's legacy

One of the prime reasons for the state creating Broadband Infraco was that it would [supposedly] break the monopoly Telkom has on providing infrastructure and wholesale services. Broadband Infraco would also take over some of the assets that were originally earmarked for second national operator Neotel, namely those from the Eskom-owned Easitel and Transnet-owned Transtel.

Neotel stated before Parliament the creation of Broadband Infraco would impact its business case. However, the two entities have since established a close working relationship with Neotel having a five year contract to market Broadand Infraco's services.

SHOOT: Why does the state need to create an organ to break a monopoly it perpetuated, and do so by flouting its own legislation, speedtracking the license process etc? Why not just leave it to the market to fill this gap? Because people in government are profiteering off the artificial market conditions they have manipulated into place, conditions that have hurt and constrained this industry for many years.

clipped from www.itweb.co.za [ Cape Town | ITWeb, 16 March 2009 ] - Public hearings over the licence conditions for Broadband Infraco will probably provoke a storm of protest from industry, if the state-owned entity does not stick to its original mandate, sources say. Today, communications regulator Independent Communications Authority of SA (ICASA) published its “invitation to apply” (ITA) for Broadband Infraco to apply for its licence. This follows a policy directive issued by communications minister Ivy Matsepe-Casaburri, in February. In her policy directive, Matsepe-Casaburri urged ICASA to grant Broadband Infraco a licence as quickly as possible. It is mandated to expand the availability and affordability of access to electronic communications, including, but not limited to, underdeveloped and under-serviced areas. Matsepe-Casaburri also urged ICASA to forego the public hearings process as required by the EC Act because of the urgency “...so as to allow it to play its role in the economy...”