Leon Louw skewers planned changes to ICT law

Loading player...
Free Market Foundation executive director Leon Louw has skewered planned amendments to legislation that governs South Africa’s ICT sector, saying the Electronic Communications Amendment Bill, which will introduce a wholesale open-access network (Woan), will cause enormous damage to the industry.

Speaking to an audience in Johannesburg on Wednesday (click below to listen to the podcast), Louw blasted the idea of the Woan, saying that the only other country in the world that has attempted something similar is Rwanda -- and it has been a “disaster” for the East African nation. Prices are high, coverage poor and uptake low, he said.

In terms of the amendment bill, the South African government wants to reserve a big chunk of radio frequency spectrum for the Woan and to force commercial operators to buy capacity from the wholesale provider.

It even moots the idea of taking away existing spectrum allocated to operators such as Vodacom and MTN. If government attempts this, the operators are likely to challenge it on constitutional grounds.

In the presentation, Louw labelled government’s failure to allocate additional spectrum to commercial operators as “outrageous”.

“The bill is truly weird. Why would you want to uproot, destroy or eliminate one of South Africa’s biggest success stories, in fact the biggest success story of the new South Africa?” he asked.

Louw said it was a mistake for the mobile operators to try and forge a middle ground with government -- the so-called hybrid model where the operators will get spectrum in return for also supporting the Woan by buying capacity from the new company.

“They assumed trust and honour of the kind you get between businesses that you do not get with politicians. It’s a completely different world and they are babes in the wood and few of them know how to deal with the world of politics,” Louw said in response to a question from TechCentral. “Businesspeople are simply unaccustomed to this level of duplicity…”
6 Dec 2017 English South Africa Technology · Business

Other recent episodes

TCS | Maziv goes massive: CEO Dietlof Mare on Vumatel’s big roll-out plans

Maziv, the company that owns Vumatel and Dark Fibre Africa, plans to spend R12-billion over the next five years as its ramps its deployment of fibre infrastructure across South Africa. Poised for a big injection of cash and assets from Vodacom, which is buying a 30% co-controlling stake in the…
26 Aug 52 min

TCS+ | Arctic Wolf on cybersecurity in the age of AI

What does it really take to defend a business in an era of AI-driven attacks? In this episode of TechCentral’s TCS+ ,Clare Loveridge, vice president and GM for Europe, Middle East and Africa (Emea), and Johnny Ellis, senior director of Emea channel sales, both at Arctic Wolf, go beyond the…
25 Aug 33 min

TCS | The story behind Nedbank’s R1.65-billion iKhokha deal

Nedbank announced last week that it was acquiring Durban-based fintech iKhokha in a R1.65-billion deal that could signal the start of further consolidation in the payments industry in South Africa. Nedbank described the deal as a “significant milestone” in its strategy to target small and medium enterprises. iKhokha co-founder and…
22 Aug 26 min

TCS+ | Kinetic Skunk: fintechs risk cloud bill shock without proper planning

Fintechs choose cloud technologies in the hopes that the efficiency and scalability of cloud computing will give them a competitive advantage. But cloud adoption is no silver bullet. If done incorrectly, a migration to the cloud can cause costs to balloon instead of decreasing them, leading to frustration and even…
21 Aug 37 min

TCS | Alan Knott-Craig unveils Fibertime’s big bet on township fibre

Alan Knott-Craig’s new fibre internet business has been flying below the radar for some time now, but the serial telecommunications entrepreneur has finally unpacked his plans for the business. Speaking to the TechCentral Show this week, Knott-Craig – who has led a range of well-known tech businesses, including Mxit, World…
15 Aug 22 min