16th January, 2003
Ministry of Communications & Information Technology  


INDIA AND SOUTH AFRICA TO FURTHER EXPAND COOPERATION IN TELECOM AND ICT SECTORS

BOTH COUNTRIES EXTEND MoU IN TELECOMMUNICATIONS BY FIVE MORE YEARS

SHRI PRAMOD MAHAJAN MEETS SOUTH AFRICAN MINISTER FOR COMMUNICATIONS&IT


India and South Africa have agreed to further extend by five more years the Memorandum of Understanding (MoU) for cooperation in the field of Communications and Information Technology. The MoU in the field was signed between the two countries in the year 1998. The Union Minister of Parliamentary Affairs, Communications and Information Technology, Shri Pramod Mahajan who is currently leading a delegation to Egypt and South Africa comprising of Chief Whips of various political parties in Parliament, met the Minister of Communications and Information Technology, Ms. Ivy Matsepe Cassaburi at Johannesburg in South Africa yesterday with a view to strategise IT&Telecom relations between the two countries. During the meeting, both the countries also decided to devise an Action Plan for cooperation in the field of Telecommunications and put it in place before the visit of the South African President who is expected to visit India during the calendar year.

During his meeting with the South African counterpart, Shri Pramod Mahajan also discussed prospects of further expanding business partnerships between the Indian and South African entrepreneurs. The South African Minister for Communications and Information Technology, in particular, drew attention towards the paucity of manpower in their country and said that their country did not have the advanced institute of Information & Communications Technology (ICT) for training of personnel in their country. Another sector where their country felt ‘poor’ was the Broadcasting Sector and stated that they were looking forward for extended cooperation in the sectors. The South African Minister also mentioned that their country was eagerly looking forward for cooperation in the field of Space Technology in which India has made remarkable advances. Shri Pramod Mahajan assured that India would look into all aspects of the proposals that were putforth by South Africa.

Presently, South Africa is the 20th largest market for IT products and services worldwide and there are roughly 3,000 IT companies in South Africa. Much of the growth in the South African ICT sector is related to demand from the IT and Telecommunications sub-sector. In this context, Shri Pramod Mahajan said that Indian companies which already have significant presence in South Africa in the field of IT&Telecom, should come forward to explore new and alternative markets. Some of the Indian companies include: TCS, Infosys Technologies Ltd., IFLEX Solutions Ltd., TCIL, Modicom Solutions Pvt. Ltd., Siemens Information Systems Ltd and BPL Display Devices Ltd. Shri Mahajan’s visit and his meeting with South African Minister assumes special significance in the context of providing an ideal platform to harness opportunities in the domestic IT&Telecom markets.

Shri Pramod Mahajan also met Mr. Essopahad, Minister in the President’s Office of South Africa at Johannesburg yesterday. Both the Ministers had discussions in the field of Information & Communications Technology in general and said that they were looking forward for enhanced cooperation in the field of Telecommunications. It was felt that despite strong Indian presence, newer initiatives were required to diversify their market potential.

South Africa is the telecommunications leader on the African continent and it is the fastest growing sector of the economy. The cellular industry in South Africa is one of the fastest developing in the world. Since it started in mid-1994, it has grown to approximately 5 million subscribers in 2000. Growth has been mainly boosted by the introduction of pre-paid cellular services. Forecasts by the EMC World Cellular Database predict 14 million users in South Africa by 2003.

Both the countries have already identified areas for cooperation which include:- Outsourcing opportunities, networking products, IT solutions, highly specialised software for communications, value added services for communication platforms, e-commerce and internet, training in telecommunications, participation in joint projects, the joint development of new telecom technologies, software for Shipping and Power industry, geographical information systems, software for financial services and retailing sectors, IT enabled learning and systems integration. TCIL and ITI have been actively associated in areas of network expansion, turnkey projects and in providing new telecom products and solutions.

Currently, cooperation between India and South Africa are governed as per the Memorandum of Understanding which the two countries had entered in 1998. As per the MoU, both the countries had agreed to cooperate and develop training facilities to strengthen skilled manpower in the field of telecommunications including establishment of training institutions, exploration of opportunities for joint manufacturing and marketing and development of R&D capabilities. For the purpose, both the countries also agreed to establish a Joint Working Committee for achieving the objectives of the MoU.