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DEPARTMENT: COMMUNICATIONS
REPUBLIC OF SOUTH AFRICA

Private Bag X860, Pretoria, 0001, Tel. +27 12 427 8086 Fax: +27 12 427 8026
Enquiries: donovan @ doc.gov.za
URL: http://www.doc.gov.za

POLICY ANNOUNCEMENT BY THE MINISTER OF COMMUNICATIONS, DR IVY MATSEPE-CASABURRI
2 SEPTEMBER 2004

In the past 10 years we have concentrated on reducing the disparity between the rural and the urban areas of our country and eliminating the inequities of our society inherited from the apartheid era. In doing so, we have worked at increasing teledensity and growing the ICT sector of our economy through a process of managed liberalization that we provided for in the Telecommunications Act.

In his State of the Nation Address in May of this year, the President emphasized the need to lower the cost of doing business in South Africa. He also charged us with creating a globally competitive telecommunications sector address the challenges of the 2nd economy.

To meet these challenges, the Information Communications Technology sector needs further change so that South Africa has:

We concluded the market study required by the Telecommunications Act No 103 of 1996 as amended, in December of last year. Arising from the study is a number of recommendations that address the following three main areas:

Accordingly, I am announcing a number of policy decisions and a date from which these decisions will come into effect as provided for in the Act.

These provisions are the first of a number of policy interventions designed to further accelerate growth in the sector, remove constraints for such growth, reduce the cost of telecommunications and facilitate appropriate interventions in the 2nd economy.

These provisions are sequential activities in the managed liberalisation of the ICT sector and cover the following areas:

Further policy announcements will be made in October of this year as I indicated in my budget Vote in May. These announcements will address the issue of service-based licences to be operational by May 2005; the remaining Under-serviced Area Licences, the Second National Operator, the Convergence Bill and the ICT BEE Charter.

ICT is an input sector that contributes considerably to the growth of the country and the closing of the gap between the 1st and 2nd economies.

In the past decade we concentrated on addressing historical imbalances. Within the next decade we expect to have a world class ICT sector that contributes to stimulating development in our country.

We trust that these provisions will play a meaningful role in that regard.


ISSUED BY THE MINISTRY OF COMMUNICATIONS
399 DUNCAN STREET
HATFIELD, PRETORIA 0001
2 September 2004

FOR INFORMATION CONTACT DONOVAN CLOETE ON 083 417 6106