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MWEB SUBMISSION ON THE CONVERGENCE BILL

MWEB SUBMISSION ON THE CONVERGENCE BILL. WHAT MEASURE DO YOU USE?. Does it cure the limitations imposed on VANS by the 1996 Telecoms Act? No self provision of facilities No voice/ No right to interconnect with all the other licencees. R. WHAT MEASURE DO YOU USE?. Ministerial influence.

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MWEB SUBMISSION ON THE CONVERGENCE BILL

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  1. MWEB SUBMISSION ON THE CONVERGENCE BILL

  2. WHAT MEASURE DO YOU USE? • Does it cure the limitations imposed on VANS by the 1996 Telecoms Act? • No self provision of facilities • No voice/ No right to interconnect with all the other licencees R

  3. WHAT MEASURE DO YOU USE? • Ministerial influence. • Inadequate protection from abuses of dominance. • Under resourced regulator. R

  4. SELF PROVISION • Since September 04 – uncertainty. • CB removes uncertainty – but • No application for network services until date set by Minister

  5. SELF PROVISION • Policy choice – VANS limited to service based rather than facilities based competition. • Two major issues • No road map for increasing facilities based competition • Facilities leasing regulation

  6. DEFINITION OF VANS • Never clear – moving target • Communication service licences /application service • Are applications a subset of services?

  7. DEFINITION OF VANS • No attempts to license other types of communication services e.g. multimedia • Are they limited to providing applications only. • Widens the licensing net e.g. e-mail, hosting, security.

  8. COMPETITION • VANS uniquely vulnerable – no frequency or network service. • Special rules for access, interconnection and leasing required. • Network licences with SMP must lease facilities and interconnect at LRIC

  9. COMPETITION • Access to essential facilities at LRIC (under sea cable) • Adequate accounting separation. • Combination of ex ante (eg. bundling) and ex post regulation • Additional licence terms during the conversion process.

  10. INTERCONNECTION • Service licencees excluded from Ch 7. • Section 43 of Telecoms Act requires PSTS to interconnect with VANS. • EU directive – general obligation on all players to interconnect.

  11. INTERCONNECTION • Peculiar – current draft of interconnection guidelines contradict Ch 7. • VANS have right to interconnect. • Can interconnect with Telkom at LRIC. • Vodacom/MTN???

  12. THE TRADITIONAL POTS NETWORK Telephone User Telephone User Telephone User Telephone User POTS 021-555-5555 011-999-9999 CAPE TOWN GAUTENG Telephone User Telephone User

  13. STATUS QUO Telephone User POTS Telephone User Telephone User 021-555-5555 011-999-9999

  14. POTS versus DATA Telephone User POTS Telephone User Telephone User 021-555-5555 011-999-9999 myWireless

  15. EFFECT OF THE CB Telephone User POTS Telephone User Telephone User 021-555-5555 011-999-9999 myWireless OTHER

  16. CONCLUSION • Telecoms market dominated by 3 players. • High disparities in market power. • No more artificial distinction between voice/data. • ICASA’s performance will determine success/failure. • Cannot allow continuation of status quo – SA Inc. will fall further behind. • Decisive intervention needed in markets with limited competition.

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