Comments on: SA politicians play a dangerous game

By: Wayne Ma

Wayne Ma — Tue, 13 Oct 2009 13:42:50 +0000

India does nto allow dual listing but South Africa does. It is India that is way behind SA in terms of openness so the right decision was made.

By: Editor

Editor — Thu, 08 Oct 2009 09:39:19 +0000

Hi Thato,

Thank you for correcting me on the Section 64 limitation. I had thought it was an Icasa regulation when it came to pay-TV operators. My error.

Perhaps (I’m far from convinced) there’s some merit in debating foreign ownership of free-to-air terrestrial broadcasters. But I don’t see why the same rule is applied to pay-TV operators.

Rgds,
Duncan

By: Thato

Thato — Thu, 08 Oct 2009 09:28:22 +0000

Mr McLeod. Firstly, it is important that we attribute the correct facts to the correct persons. The 20% Foreign ownership limitation you refer to applies to all commercial broadcasters, and not just pay-tv operators. Secondly, the limitation is imposed by section 64 of the Electronic Communications Act and not ICASA regulations. Thirdly, that Limitation is not a recent development and was there since IBA Act days.
In essence, the rationale for the limitation was that in broadcasting, one needs to avoid the influx or undue influence of foreign views on the SOuth African audience, particularly given the importance of Media, specifically broadcasting, in shaping those ideas and contributing to the rebuilding of a prosperous South Africa. It is arguable that a foreign broadcaster would be concerned with achieving South Africas stated policy goals or objectives in putting together its service.

But coming back to Telecoms, there isn’t a regulatory imposed limitation on the foreign ownership. There’s two statutory limitations though, first being the requirement that no less than 30% must be owned by HDI’s and the second being the provisions of the BBBEE Act and applicable codes, in the absence of the ICT charter.

To discredit the protectionist approach without considering all the facts whilst making incorrect attributions for the sources of that strategy…..

By: Andy October (WirelessMonkey)

Andy October (WirelessMonkey) — Thu, 08 Oct 2009 06:32:12 +0000

Telecoms globally has become a national asset that should be managed by governments with the people in mind. We’ve already allowed the Vodacom/Vodafone deal. This should not mean that we’re now selling off all our assets. I’m in agreement with government to be more rational. The unions also have a very valid fear – mergers always result in cost-saving measures, which translates directly to job losses, something we simply cannot afford right now. There are already sufficient foreign players in our local market, and I therefore support a wait-and-see approach before deposing of more assets.