Hon Chairperson, hon members and friends, the Select Committee on Labour and Public Enterprises passes the Electronic Communications Amendment Bill as introduced by the National Assembly unamended. It is necessary to pass the amendment to further create an enabling environment to roll out broadband access and bring down the costs of communication services in South Africa.
Notwithstanding the passing of the Electronic Communications Act of 2005, broadband costs in South Africa remain extremely high and the access severely limited. Hence, this community also recently passed the Broadband Infraco Bill to assist in lowering the costs and expanding access, thereby bridging the digital divide. In order for Infraco to become operational, the Bill stated that Infraco would obtain a deemed licence. Nevertheless, this contradicted the provisions of the Electronic Communications Act of 2005, in which licences can only be issued once the regulator, Icasa, issues an invitation to apply for a licence. Therefore, the most expeditious method was to amend the Electronic Communications Act of 2005 in order to licence Infraco.
The objects of the Bill are to amend the Electronic Communications Act of 2005 so as to empower the Minister of Communications to issue a policy direction and provide for matters connected therewith. It also provides an opportunity for government to make strategic interventions on infrastructure investments whenever it deems necessary.
Furthermore, it enables government to address some of the significant challenges such as reduction of cost to communicate by providing infrastructure at wholesale rates to operators; improving on government service delivery and supporting of Asgisa; linking Nepad broadband with Africa, Latin America and Europe; and providing the much needed band for strategic projects and consumers in general. The Bill provides a forward-looking legislative framework, which facilitates government's intervention in the ICT sector in line with the developmental state.
The key contents of the Bill is as follows: The long title was amended to empower the Minister of issue an additional policy direction; the preamble was amended to reflect the strategic intervention by government in the electronic communications sector in order to reduce the cost of communications; to reflect that the state intends to expand availability of access to the, ICT, on a wholesale basis at a cost-oriented rate in order to increase to communication services; and to amend the Electronic Communications Act of 2005 to facilitate the efficient licensing of public entities.
Infraco will initially be a full state-owned entity but might over time be sold off. We must just ensure, however, that Infraco meets its mandate of reducing the costs of broadband access and increasing communications services before we even consider selling it off. We must also be sure that Sentech and Infraco do not duplicate roles and infringe on each other's territory. The roles of the two must be very clearly stipulated.
Notwithstanding these concerns, the Select Committee On Labour and Public Enterprises feels confident that the Electronic Communications Amendment Bill will result in the ultimate reduction of broadband and communications costs thereby increasing access to these services. This will be good for investment, economic growth and development in South Africa. Hence, the NCOP passes this Bill, unamended, as introduced by the National Assembly. Thank you.
Debate concluded.
That concludes the debate and I shall now put the question in respect of the Third Order. The question is that the Bill be agreed to. In accordance with Rule 63 I shall first allow the political parties the opportunity to make their declaration of vote if they so wish. Is there any political party that wishes to do so? There is none. We shall now proceed to the voting on the question. Those in favour will say "Aye".
HON MEMBERS: Aye.
Those against will say "No".
HON MEMBERS: No.
The "ayes" have it. The majority of members have voted in favour. I therefore declare the Bill agreed to in terms of section 75 of the Constitution.
Bill accordingly agreed to in accordance with section 75 of the Constitution.