Communications minister Solly Malatsi will find it tough convincing the nation that his policy directive, which seeks to relax BEE requirements in the telecommunications space, is not custom-made for Elon Musk’s internet company Starlink.
Malatsi’s proposed policy directive instructs the industry regulator Icasa to allow for an equity programme in the highly regulated industry, instead of the current 30% BEE requirement. The announcement has already been met by a strong pushback from within the GNU, the telecoms industry players and interested groups.
Malatsi says the reforms are necessary to encourage investment, including strategic infrastructure investment, and innovation in the communications sector, to promote competition within the ICT sector and to promote, facilitate and harmonise the achievement of the objectives of law. Which is well and good.
The only problem is the timing of Malatsi’s announcement, which happened two days after President Cyril Ramaphosa met with Musk’s buddy, Donald Trump, in the White House. Even though Malatsi’s party, the DA, has long been campaigning for the relaxation of BEE requirements the optics are bad because this decision does not seem to have been taken because there is a need for policy change, but rather because of pressure from Musk’s powerful friends in Washington.
Had this been done long before Musk and Trump decided to exert pressure on SA by making several false allegations about the country, we would not be suspicious of the government’s intentions.
SA cannot afford to compromise its principles. So, rules cannot be changed to suit one company at the expense of existing players in the industry. Big telecoms such as MTN, Vodacom and Telkom pay massive taxes in this country and have created thousands of jobs over the years.
The government also has a duty to protect current industry players by making sure that opening up the industry does not result in the saturation of the sector, which may result in the collapse of businesses that employ thousands of people.
As much as we need new investment in the industry that could help people in rural villages gain access to the internet, the process must be fair. Policy changes must be introduced when needed – and not when the country is under external pressure. Proper channels must be followed if such a need has been identified.
Malatsi should not take shortcuts in introducing his reforms, as this would lead to protracted litigation, which may even delay the introduction of the new technology. Malatsi must follow all the steps. Parliament must be involved, and the industry be allowed to participate in the discussion about the implications of the proposed policy changes.
SOWETAN SAYS | SA can't compromise its own policies
Image: Supplied
Communications minister Solly Malatsi will find it tough convincing the nation that his policy directive, which seeks to relax BEE requirements in the telecommunications space, is not custom-made for Elon Musk’s internet company Starlink.
Malatsi’s proposed policy directive instructs the industry regulator Icasa to allow for an equity programme in the highly regulated industry, instead of the current 30% BEE requirement. The announcement has already been met by a strong pushback from within the GNU, the telecoms industry players and interested groups.
Malatsi says the reforms are necessary to encourage investment, including strategic infrastructure investment, and innovation in the communications sector, to promote competition within the ICT sector and to promote, facilitate and harmonise the achievement of the objectives of law. Which is well and good.
The only problem is the timing of Malatsi’s announcement, which happened two days after President Cyril Ramaphosa met with Musk’s buddy, Donald Trump, in the White House. Even though Malatsi’s party, the DA, has long been campaigning for the relaxation of BEE requirements the optics are bad because this decision does not seem to have been taken because there is a need for policy change, but rather because of pressure from Musk’s powerful friends in Washington.
Had this been done long before Musk and Trump decided to exert pressure on SA by making several false allegations about the country, we would not be suspicious of the government’s intentions.
SA cannot afford to compromise its principles. So, rules cannot be changed to suit one company at the expense of existing players in the industry. Big telecoms such as MTN, Vodacom and Telkom pay massive taxes in this country and have created thousands of jobs over the years.
The government also has a duty to protect current industry players by making sure that opening up the industry does not result in the saturation of the sector, which may result in the collapse of businesses that employ thousands of people.
As much as we need new investment in the industry that could help people in rural villages gain access to the internet, the process must be fair. Policy changes must be introduced when needed – and not when the country is under external pressure. Proper channels must be followed if such a need has been identified.
Malatsi should not take shortcuts in introducing his reforms, as this would lead to protracted litigation, which may even delay the introduction of the new technology. Malatsi must follow all the steps. Parliament must be involved, and the industry be allowed to participate in the discussion about the implications of the proposed policy changes.
Minister Solly Malatsi issues ICT directives relaxing BEE laws
Musk might sidestep BEE requirements
SOWETAN SAYS | SA not for sale at any cost
Minister Solly Malatsi pushes for TikTok to pay SA content creators
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos