Lesley Stones
10 January 2008
Johannesburg — A CASH-STRAPPED agency designed to take telecommunications into poor and rural areas has been criticised for spending R281000 on an advertorial in a British Airways in-flight magazine.
The Universal Service and Access Agency of SA often complains that the government gives it too little money to take voice and data services to everyone. Yet it spent € 29000 on an article and advert in the December to January edition of Highlife.
The initiative was proposed to the executive committee by Ricky Naidoo, its head of corporate service, and the bill was authorised by CEO James Theledi.
"The agency complains about a lack of funding but it's gone out of its way to advertise with an international organisation like British Airways, so which audience is it addressing?" said a source close to the agency. "The audience it is supposed to address are the underserved people of SA, and which of them are on a British Airways flight?"
The source also complained that a short interview with Theledi did not cover universal service, but focused on the need to cut the cost and increase the speed of broadband internet access used by wealthier citizens.
The agency yesterday said it was disappointed by the criticism, as the source had not lodged any concerns with the internal auditor, the CEO's office or the audit committee.
The decision to advertise in Highlife was based on its wish to tell an international audience and industry stakeholders about its efforts to provide services to all South Africans, including those in poor and rural areas. That would help it forge partnerships with equipment suppliers and other technology companies that could help it meet that goal.
As part of the advert, Theledi also had an opportunity to talk about technologies and how the agency would contribute to the success of the 2010 World Cup.
"The possibilities that have been provided through this advertorial are enormous and are definitely value for money," the agency said. The advertorial reached a global audience of
4-million in a month, and since the magazine covered both December and January it reached a potential audience of more than 8-million.
"The allegation that it was a waste of money was unfounded, as the process of changing negative perceptions about the agency was neither fruitless nor wasteful," the agency said.
The agency had asked South African Airways (SAA) what a similar profile would cost in its Sawubona magazine. SAA could have done it for R74845 -- less than a third of the British Airways price -- but would have reached only 584000 people , Naidoo said.
The agency was created to ensure that every citizen has access to telecommunications services by spending cash that the operators contribute to the Universal Service Fund.
Operators contribute 0,2% of their annual revenue, but the treasury is giving the agency only a fraction of that due to its previous inability to spend the cash wisely.
The levy raised R151m last year, but the agency received R31m. This year it has created a budget R32m of the R180m that the industry will contribute.
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