Development, Universal Access and Governance in South Africa CPSR Symposium: One Planet, One Net - The Public Interest in Internet Governance Boston, 10th - 11th October 1998. Tracy Cohen, Part-time lecturer Telecommunications Law, Wits Law School Assistant to Council, SATRA The views expressed do not necessarily represent the views of SATRA, its Council or any of its employees. 1 Areas of focus Context and Vitals Definitions: Universal Service v. Universal Access Universal Access in South Africa Poverty Telecommunications Teledensity Internet Penetration on the Continent Governance Policy and Legislation Role of the Regulator Issues 2 South Africa 3 Definitions - Dedicated service v. reasonable access Universal Service 3 Components - Availability, Affordability, Accessibility -ITU “affordable, access to basic voice telephony or its equivalent for all those reasonably requesting it, regardless of where they live.” - Oftel Universal Access all of the above, BUT communal and within a reasonable distance Definition depends on the nature of the market Definition informed by technical, social, political considerations e.g. RDP 4 Universal Access in South Africa Poverty 36% of all households below the HSL HSL = R1050/month ($180) • Poorest 20% hh (27% pop) <3% total income • Richest 20% hh (3% pop) >65% total income Telecommunications Teledensity • • • • 2.8 million residential lines 1.5 million business lines 28 000 farm lines 90 000 Public Pay Phones National average = 9 • Richer areas = 50 • Poorer areas = 0.001 5 The Phone Gap 6 In Summary 8.7 million households in SA 2.8 million have telephones 55% of the 2.8 million are in white households 5.9 million households have no phones 2.1 million households have NO ACCESS to a telephone within 5km’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 Universal access requires regulation aimed at balancing economic growth and social/policy objectives History, Policy and legislation - Telecommunications Act No. 103 of 1996 State institutions supporting universal access SATRA • The public interest - Telkom v Internet Service Providers Association, 1997 The Universal Service Agency • Lifespan - 5 years • Universal Service Fund - Section 59 • Administered by the USA subject to the control of SATRA Department of Communications • Multimedia Projects/ Public Access Projects 11 A nation’s wealth is correlated with its telecom infrastructure Source: Formus SA Internet Host Computers - Jan 1995 10,000,000 USA Norw ay Finland 1,000,000 Denm ark South Africa Hong Kong Poland New Zealand Portugal Singapore Israel Czech Rep Hungary Iceland Ireland Slovenia Greece Chile Slovakia Malaysia Estonia 100,000 10,000 1,000 100 10 Costa Rica Latvia Luxem bourg Ecuador Lithuania Bulgaria 1 $1,000 UK Germ any Netherlands Sw itzerland Austria Belgium Spain Korea, S Taiw an Brazil Mexico Russian Fed Turkey Thailand Argentina Ukraine Kuw ait Peru Uruguay Macau Moldavia Guinea Canada France Japan Italy Rom ania Jam aica Cyprus Zam bia Tunesia Nicaragua Zim babw e Panam a Arm enia Fiji Australia Sw eden India $10,000 Indonesia Egypt Puerto Rico Iran Algeria Venezuela Philippines Colom bia Kazakhstan Belarus Azerbaijan China Saudi Arabia $100,000 $1,000,000 $10,000,000 1993 GNP ($M) 12 Issues Infrastructure Sub-Saharan Africa teledensity - <1 in 200 Analogue, unreliable network, urban concentration Affordability and Costs Services - basic or advanced Sustainability Social Economic Infrastructural Priorities Literacy and Language Hegemony Software solutions 13 Conclusion Regime is irrelevant - other factors are the determinants. Socially positive role and purpose of regulation: State has a role in ensuring universal access (more so under the exclusivity model?) USF Ceiling of R20 Million/year must be raised - post exclusivity Public/private sector partnerships will be vital to success International and regional co-operation is crucial Degree of success correlates proportionately to degree of sufficient political will, systematic planning and coordination 14 Contact Details E-mail: Cohet@satra.gov.za Post: SATRA, Private Bag X1, Marlboro, Sandton, 2063, South Africa Tel: 27-11-321-8384 15 Useful Sites http://www.satra.org.za/ http://www3.wn.apc.org/africa/mj.htm http://www.sangonet.org.za/ http://wn.apc.org/technology/ http://demiurge.wn.apc.org/africa/projects.htm http://www.doc.org.za/ http://www.telecom98.co.za/ http://www.sas.upenn.edu/African_Studies/AS.html 16 17 Snapshot - SA Industry Structure Telkom Future fixed line providers Mobile Cellular Vodacom, MTN, 3rd and 4th? PTNs - Transnet and Eskom Mobile Data, Radio Trunking, VANS - including ISPs 18 Governance = Regulation? Fact: Government involvement in the creation and extension of services Regulation aims to achieve: the delivery of basic services acceptable ranges and quality of services fair competition facilitate economic growth and global competitiveness Regulation is aimed at balancing economic growth and social/policy objectives Universal Access requires regulation 19 24 Months Ago… 20 Africa - Continental Connectivity Indicators - Source: Mike Jensen, AISI 46/54 Countries and territories in Africa have Internet access in the Capital cities 6 Countries have plans for full Internet access in the capital cities 2 Countries remain without plans for full Internet access 7 Countries have only one full public access ISP after 12 months 11 Countries have local ISPs or POPs in some secondary towns 10 Countries have local dial-up Internet access nationwide 21 Comparatively Speaking… Source: Mike Jensen, AISI 22