[ Johannesburg | ITWeb, 4 September 2006 ] - Government is waiting for the establishment of competitors in the telecoms market before lowering ADSL and Internet access prices, president Thabo Mbeki said at the Presidential International Advisory Council on Information Society and Development press briefing yesterday.

“We have not made much of a significant dent on the pricing of telecoms and broadband as we still need to build infrastructure and establish competition through the SNO [second national operator],” he said.
The cost of telecoms is still high, says president Thabo Mbeki. “Once this is done, we will be able to have broadband penetration throughout the country. At the moment though, the cost of telecoms is still high.”

Market observers expressed disappointment with the Independent Communications Authority of SA's new ADSL regulations, released last month. Contrary to expectations, the regulations did not specify a price ceiling for ADSL services or call for the introduction of a single price structure, based on an international pricing model. Thus SA's high ADSL prices remain unchanged.

Mbeki added that unbundling the local loop, as well as establishing competition, would help to lower prices in the future. However, he did not provide a timeframe or any set pricing targets that government may want to meet.

Communications minister Dr Ivy Matsepe-Casaburri, responding to questions about further planned statutory provisions to be enacted to aid price reduction, said: “People must be made aware of what the new Electronic Communications Act can do for them.

“We are always open to anything that can be done to make broadband affordable.”