The Viability of Under-Serviced Area
Date
2011-04-13
Authors
HAO, LI
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Abstract
In 2001, Under-Serviced Area Licence (USAL) policy was introduced in South Africa.
The basic objective and requirement of USAL policy is that all Private Telecom
Operators (PTOs) should increase telecommunication penetration rate in their areas of
operation by building and developing their own telecommunication network and
providing acess for those who do not have access to Information and Communication
Technologies (ICT). In South Africa, while government has spent a lot of money and
time to implement USAL policy, it does not appear that the first group of USALs have
been successful.
The purpose of this research is to analyse the factors affecting the USAL policy, and to
suggest possible ways that both private and public sectors can undertake to improve
the effectiveness of USAL policy as well as the viability of USAL policy in South
Africa. A qualitative research approach was used and semi-structured interviews were
conducted to collect data. Eight persons from policy-making level, USAL business,
and academic institutions were interviewed. Besides semi-structured interviews, a
literature review was used to obtain secondary data in order to address possible gaps
and the limitations of the interviews.
The research reveals the following key findings: (i) the lack of capability to implement
USAL; (ii) inadequate financial and infrastructural support from the state; (iii) a lack
of co-ordination among stakeholders in the public sector, private sector, policy-makers,
analysts and USAL business owners; and (iv) lack of co-operation within the private
sector. The research also makes recommendations to strengthen USAL policy and
suggests possible further research.
Description
MM - P&DM
Keywords
Under-serviced area licences, Telecommunications