Telecommunications deregulation welcomed

Hymax Telecoms has welcomed the historic deregulation of the telecommunications industry in South Africa. "The long-anticipated move has opened up the industry", says COO, John van den Munckhof, "but serious players on the now-level playing field will have to wait for the Independent Communications Authority of SA (ICASA) to clarify the rules by which service providers should play."

"ICASA have a mammoth task on their hands, and one that is already controversial. Many people have high expectations of new opportunities for business but whether they will be met, particularly in the short-term, is still being debated," says van den Munckhof.

Van den Munckhof and Hymax chairman Neil Macdonald, who was MD at Symphony Telecom when the UK industry deregulated in 1998, agree that exciting times are ahead in the communications business. "We hope that President Thabo Mbeki's call for the costs of doing business in SA to be reduced, will be heeded, and that SMME's will be given the boost they need to become players in the market, thus boosting the economy in the long-term."

Macdonald maintains that the biggest impact deregulation will have in South Africa, will be on the price of telecommunications services. "In the short-term, deregulation will provide significantly cheaper calls for business and the choice of services and service providers will be much wider. However, this carries its own risks from the point of view of reliability of supplier, knowledge of the technologies needed, and the ability to support and service the client's telecoms needs. Clients need to ensure that they are dealing with reputable suppliers," he warns.