State policy and technological change — the development of the South African telecommunications industry

Abstract This article begins by outlining the establishment, in 1958, of the telecommunications industry in South Africa. The role of the state, and particularly the military, is highlighted. The factors that allowed the industry to develop rapidly over the next two decades are explored. However, at the end of 1977, following major technological changes occurring within the international telecommunications industry, the South African Post Office decided in favour of digital telecommunications equipment. This had a number of adverse effects upon the local industry. The considerations underlying the decision in favour of digital technology and the subsequent choices that were made as to who precisely should manufacture digital telecommunications equipment locally and from where the technical know‐how required for local production should be obtained, are detailed. The focus here is on exchanges which are the heart of any telecommunications system and technically the most complex item. Finally, by way of conclusion, the problems that have beset the local telecommunications industry subsequent to the adoption of digital technology are briefly alluded to.