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The Convergence Bill: Addressing Telecommunication Limitations in South Africa

Explore the impact of the Convergence Bill on VANS, addressing limitations from the 1996 Telecoms Act and self-provision challenges. Delve into definitions of VANS, competition, and interconnection guidelines, and analyze the influence on the traditional POTS network. Understand the need for regulatory intervention in a market dominated by a few players to prevent further setbacks for SA Inc.

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The Convergence Bill: Addressing Telecommunication Limitations in South Africa

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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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