Deputy Speaker, the ANC and the Portfolio Committee on Communications welcome the statement by the Minister of Communications that a voluntary agreement on reducing mobile termination or interconnection rates has been reached among all the mobile and telecoms operators in the country.
The Minister has achieved in four months what the Independent Communications Authority of South Africa, Icasa, failed to do in four years. This interim measure is an encouraging and positive development. Parliament must appreciate the significance of this voluntary step by the mobile and telecoms industry and it must recognise the leadership offered by the Ministry of Communications.
We are also heartened by the news that some mobile operators have indicated that they are going to introduce specific relief measures through promotional offers to cash-strapped consumers in December. This, together with the reduction in interconnection rates by March 2010, will ultimately benefit virtually every citizen in our country, as it will become cheaper next year to communicate using cellphones and home telephones. We must acknowledge that these voluntary initiatives by mobile and fixed line operators have placed the interest of the public before profits. This is precisely what the committee had championed in September this year, when it adopted a resolution calling on the mobile operators to drop the interconnection rates with effect from 1 November 2005 to R0,60 per minute during peak times. The committee further called for interconnection rates to be reduced by R0,15 annually for each successive year until 2012. We were absolutely clear that interconnection rates are excessive and not in the best interest of the public. This high cost of mobile and fixed telecommunications has impacted adversely on the South African economy and negatively on our citizens, particularly the poor and marginalised.
Today, some might legitimately ask the question: Has the committee achieved all that it had set out to do in its resolution? That is not the real issue; the fact is that ours is a proposal for consideration by mobile and telecoms industries and other stakeholders in civil society. It was meant to stimulate a robust and hearty debate and it was aimed at educating consumers and galvanising them to support the call for a reduction in telecommunication costs in our country. In fact, during our public hearings in October, almost all the written and oral submissions made supported the call for reductions in interconnection and retail rates. The only question up for debate was the extent of the reduction and the speed with which it was to be effected.
We are more than satisfied that for the first time in almost a decade, there is now a tangible and positive reaction from the industry to government's call for a reduction in telecommunication costs. The demand for reductions of mobile and telecommunication costs has been on the agenda for a number of years. For example, former President Thabo Mbeki said in his 2007 state of the nation address:
With regard to communications, I'm pleased to announce that the Department of Communications together with the mobile telephone companies and Telkom are finalising plans to address call termination rates this year for the benefit of the consumers.
It is now a matter of history that no agreement was concluded in that year. This issue was again raised by President Zuma in his state of the nation address on 3 June 2009, when he said, "overall we will ensure that the cost of telecommunications is reduced through the projects underway to expand broadband capacity". There can be no doubt that progress has now been made.
There is an outstanding issue that I wish to touch on briefly. The committee supports the idea of a glide path to progressively reduce interconnection rates over a period of time. Such an approach will help to balance the competing objectives of the affordability of mobile and telecommunication services to the public with the principle of fair profitability of private companies. On this question, our view is that the glide path should perhaps be determined by Icasa and not the industry itself. Any final decision on the glide path by the industry alone might convey a negative perception that the industry is again acting in its own interest. The actual decreases in interconnection rates and the timeframes of the glide path should rightfully be determined through an Icasa-led process based on empirical data rather than through an arbitrary process managed by the industry itself.
I must point out that a major responsibility now rests on the shoulders of Icasa. In the past it had not succeeded in reducing interconnection rates. It lacked clarity of purpose and confidence to act decisively. Icasa now needs to act with courage, efficiency and professionalism. It must duly follow the steps set out in chapter 10 of the Electronic Communications Act and issue final regulations on interconnection rates.
All outstanding issues, the question of a flat rate; asymmetrical rates; the timeframe for a glide path and the rate by which interconnection rates are to be reduced over the next few years must be determined by Icasa based on its research. We are aware that it is not the responsibility of Parliament to intervene on these issues. It is strictly the remit of Icasa. It must do its job and its actions must inspire confidence in the sector.
Finally, I'd like to thank all political parties for the nonpartisan approach they adopted on this issue. In dealing with Icasa and the approach to the mobile operators, I think it was quite clear that we worked as a united front and on a nonpartisan basis because that was in the public interest. It is a very important step to co-operate to advance the interest of our citizens. Thank you very much. [Applause.]
Debate concluded.