CUASA NEWSLETTER
April/May, 2003
Kekana's Telkom move bad for business, consumer
 

Telkom's reported replacement of group executive for regulatory and public policy, Victor Moche, with the current Chairman of Parliament's communications portfolio committee, Nkenke Kekana, is likely to wield unhealthy legislative and lobbying influence in favour of the monopoly, the Communications Users Association of South Africa warned this week.

"We respect an individual's right to work for whomever they choose, however, we do question the wisdom of a key political figure moving directly into the private sector in a role such as this," says CUASA's Ray Webber. "This is not a good move for competition in South Africa as it is possible that Kekana's contacts within government and the portfolio committee will wield tremendous influence on regulatory and policy issues in favour of the monopoly," he says.

Telkom's CEO, Sizwe Nxasana, announced the move last month, commenting that Kekana "brings a wealth of experience in telecommunications policy and regulation to his new position at Telkom and will help ensure that Telkom maximises shareholder value and maintains its leadership positions." Nxasana's statement openly admits that Kekana's new role as head of regulatory and public policy would include dealing with issues that relate to the interpretation and implementation of the Telkom License, regulations and the Telecommunications Act.

Commenting on Telkom's move, the International Telecommunications Users Group's Ewan Sutherland said that in these circumstances, the international norm would be for a quarantine period to be established. "There was a famous case of Martin Bangemann, who was European Commissioner for the Information Society. He had hardly left office when Telefonica de Espana announced he was to join their board. The resulting public outcry resulted in a delay being imposed and he never did join Telefonica," he says.

Sutherland said he suspects that even in the US, the Senate would view such a move as odd, and that clearly it should be opposed. He also questioned how long Kekana had known about his move, as this could raise "severe doubts" about his decision-making in previous months, even years.

"It's generally understood in the telecommunications industry that one of Victor Moche's key roles at Telkom has been to influence the political leadership so as to receive favourable policy, regulatory and legislative results for the monopoly. There is nothing uncommon about this kind of lobbying, but we think that Moche has always been an 'outsider' in his attempts to curry favour with government and so-called 'independent' committees," says Webber. "Kekana has been involved in the information and communication sector for the past 20 years, has been a member of parliament since 1994, and has participated in the formulation of major telecommunications and broadcasting legislation. Perhaps most importantly, since 1999 he has served as the chairperson of the Communications portfolio committee in the National Assembly. As a result, he is, in real terms, an 'insider' with way too much political influence in his new role at Telkom. This situation is likely to unbalance an often fragile relationship between Telkom and its corporate and consumer clients," he says.

"Furthermore, in his capacity as the Chairman of Parliament's communications portfolio committee, Kekana has hosted many public hearings on communications issues. CUASA and other organisations dedicated to the protection of business and consumers from unrepentant monopolies such as Telkom have been obliged to open their cards to him in terms of their goals, policy and strategy. Now we find that, in essence, the referee in the telecommunications playing field has been 'bought' by the opposing team. And it doesn't matter if the referee is replaced, because Kekana is likely to have the political power and influence to sway their decisions anyway.

"How much longer must business and consumers suffer before government wakes up and recognises Telkom's dirty tricks for what they really are? What must happen in our country for government in general and the communications minister in particular to cease dilly-dallying around the SNO process and implement real competition for the good of South Africa? Once again we call for real competition in the sector - competition that will enable general development, and open doors to new and existing business and much-needed employment for South Africans," says Webber.

 
Telkom service levy difficult to manage
Telkom's introduction of a levy to be charged when its technicians are called out to attend to a fault that resides in the customer's private equipment and not the Telkom network, is likely to be difficult to police and implement, according to the Communications Users Associtation's Ray Webber.

New findings, judgements and announcements
New proceedings
Pending proceedings - comments due
Pending Proceedings - outcome awaited
 
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