Vodacom and Telkom: briefing
Communications and Digital Technologies
08 September 1999
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COMMUNICATIONS PORTFOLIO COMMITTEE Documents handed out: The Chairperson's Comments on Vodacom There will be speculations on what lies behind this major growth of the wireless segment but the majority of our people are still without basic telephony. The gap between those who have a fixed Telkom line, a mobile phone and those who have no dial tone is a major concern, we must ways to narrow this gap The introduction of a new cellular entrant demonstrates the confidence that South Africa has in the growth of the cellular market. However, we should be concern about the competitive environment in which this new entrant is going to be introduced. We need to ask ourselves if there is a need for intervention or are negotiations sufficient to regulate the entry of the new operator? SATRA should be able to provide answers on the steps that were taken to facilitate the entry of the new cellular player. The introduction of competition and the availability of more services often lead to the dropping of prices, which is of great benefit to the consumer. However, the operators must inform the consumer about pricing and the products that are available for the potential subscriber to make informed choices. These issues are important to protect consumers and ensure that there is no anti- competitive behaviour by operators. Policy and regulation must assist to maintain a high standard of services and to measure the performance of various service providers. There is a need to protect consumers and subscribers from unfair practices and low quality of services. Many operators and service providers have call centres that service customers. On average complaints are speedily addressed, however there are serious problems regarding the quality of services, especially the drop-calls, sound quality and the accuracy of the billing. South Africa needs a strong consumer culture were consumers of services are aware of their rights, their complaints are speedily addressed and there is greater customer satisfaction. Vodacom presentation Questions by committee members Dr Gajjar said that cellphone rates are governed to a certain extent by the Telecommunications Act of 1996. From a competitive view tariffs will decrease, but the quality of service will not decrease. There has already been a decrease in price by Vodacom to prepare for competition with the third cellular phone operator. MP (ANC) asked why Vodacom only focused on historically white universities, and overlooked the black universities. Dr Gajjar said that Vodacom is now working closely with the Departments of Health, Safety and Security, as well as Communications. This will enable Vodacom to reach out to other institutions. The chairperson adjourned the meeting.
8 September 1999
VODACOM: BRIEFING
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