The Effectiveness of E-billing in Local Municipalities in South Africa - Essay Example

Several rural areas of the globe are confronted with a cycle of inadequate infrastructure, inefficient communication systems as well as poor policy implementation. Connectivity is a major concern in most rural development. Thus, the expansion of networks and teledensity are viewed as promising solutions in relation to rural development. Below arise the relevant literature on ee-billing and its effectiveness in the local setting of municipalities in South Africa.

E-billing is the electronic process of receiving bills by groups or individuals (Viscusi, 2009; par 2-4). As to the telecommunications marketplace, this indicates the ability to enhance customer payment times and lessen printing costs and shipping paper bills. It provides various benefits to consumers such as convenient distribution and navigation, in order to improve the analysis as well as cost reporting in business sectors. Several companies are adopting e-Billing solutions in file and contract management. Through e-Billing, customers better understand their manner of spending and how cost savings are made.

Tshwane is one municipality in South Africa with an approximate population is 2.2 million. Most parts of the municipality have low-income levels; 55% of the people are unemployed ages 18 – 65; 8.7% of inhabitants who are older than 15 are illiterate. classified as ‘illiterate’. Despite this fact, the leaders are pushing for the economic growth and development of the entire city and one example of achieving their goals is their involvement in the advanced information and communication technology system programs such as the Tshwane Global Digital Hub program. The city is envisioned to be the destination of communication and information technology-based business. However, the City of Tshwane recently has encountered a series of disruptions in water and sanitation, and other essential services like electricity (Tshwane.gov., 2009) Clr Subesh Pillay, responsible for Public Works and Infrastructure Development and a member of the Mayoral Committee expressed that the said problem is due to intimidation of some labor on strike.

According to the Council of Electronic Billing and Payment (2006), there are major barriers to the adoption of Electronic Invoice Presentment and Payment (EIPP) which covers e-billing and these are the Technical Aspects, Payments Involved, Business Practices, and Education. The technical aspects of EIPP are AR, AP, and billing systems integration, Payment/cash

management systems integration (cash management, paper/electronic, services), Supply chain

technology integration (such as procurement as well as and logistics systems). The security component includes Authentication of users, Encryption, digital certificates, Certification of

service providers, and Authorization. The Standards are equally important in EIPP. Under this are the Data content, Data transmission, Data format (OFX, XML, IFX, EDI, etc.),  Interoperability of EIPP solutions, and Biller identifications and Profiles. Another consideration in e-billing is the Payment allowed for the instruments. There must also be different options for payment, exceptions, INTERNET requirements, real-time settlement of payments, dispute resolution, international processing: Returns processing, Integration of payment capabilities with presentment, Remittance, processing and integration to funds transfer, legacy systems, Links to lock box and other bank services.

Tshwane is a neophyte in the implementation of the e-billing technology and its effectiveness in the business arena lies in the system administration and technical maintenance, which may be interlinked with other basic services like electrical services and communication technology facilities.