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Telecommunications expert warns against excessive regulation

21 March 2007 News

Telecommmunications monopolies across the globe have been undermined by deregulation and new electronic technologies, but independent regulatory bodies still have an important role to play when it comes to the threat to privacy.

That is the view of telecommunications expert, Dr Hudson Janisch, who has lectured across the world including Canada, China and Australia, and was inducted into Canada's Telecommunications Hall of Fame in October 2005. Cape Town-born Janisch was back in his home town to conduct a three-day course on the topic as part of the UCT law faculty's Professional Education Project.

Regarding regulation of the telecoms industry, Janisch said it was vital that such regulation be impartial and warned against government intervention as this could scare away potential investors.

"It is essential to have an impartial and independent regulator in place. This is why the debate over the ICASA Amendment Bill was so important. There will be a perceived conflict of interest which will discourage new investment in telecom if the Minister is seen as displacing ICASA as an independent regulator," he said.

The belated licensing of a second national carrier is an exciting and positive development, because competition in the telecommunications industry is very desirable in South Africa to open up the market to full competition, Janisch said.

Telecom monopolies around the world had been undermined by new electronic technologies which had lowered the cost of entry and made competition possible, he said. "A current example of a highly disruptive technology is voice over the Internet (VoIP) which makes competition more readily possible, even in local service previously considered the last bastion of monopoly."

Cellphone technology had also had a massive positive impact on the industry particularly in developing countries. "Mobile wireless is hugely positive for developing countries as long as they do not discourage it by excessive taxation. Wireless technology is a breakthrough and provides a far less expensive way to provide service in developing countries. It allows them to leapfrog over wireline networks and enter the information society directly without having to build out a copper wire network," he said.

By and large, this technological revolution was benign in that it made new services more readily available and did not threaten, but enhanced, the achievement of universal access. "The only negative is the substantial threat to privacy presented by new information technology and this is something governments must address," Dr Janisch said.

The course at UCT conducted by Dr Janisch in March was a focused introduction to South African telecommunications law and regulation, and looked at this in relation to a technologically changing world in which the lines between 'domestic,' 'international' and 'comparative' issues in telecommunications are rapidly dissolving as new international rules and comparative developments have a direct impact on domestic policies. This means a purely domestic-centred approach to telecommunications law and policy is no longer tenable.

Through case studies the course illustrated how various countries have sought to regulate the telecommunications industry, and it also looked at the role of the World Trade Organization and the International Telecommunications Union. It examined the uniquely African experiences and the role of telecoms and its regulation in developing countries.

For more information contact Irena Wasserfall, +27 (0)21 650 5621, [email protected]





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