1. Infrastructure, Competition, Investment, Rural & Urban Divide
01 November 2016
Puleng Kwele

2. SA Telecoms industry timeline: 1991 - 2010
SA Telecoms Timeline: The SA telecoms market began liberalising in the early 1990s, but only began to gain momentum through legislative / regulatory and commercial / competitive developments in the second half of the 2000s. Source: SA Telecoms & Broadband Timeline, edited by Africa Analysis & Broadband Infraco
November 2008 Certainty that VANS can build independent network infrastructure.
2005: new Electronic Communications Act
Prescriptive about Market studies to be conducted by regulator
2008: Altech wins ‘right to self-provision’ case against ICASA; opens up infrastructure competition market
2009: Telkom disinvests in Vodacom. BBI is awarded limited ECNS licence.
2010: SA broadband policy draft
2006/2007: Neotel (SNO) licensed monopoly.
1991:
Telkom Corporatised
1997: Telkom granted 5-year exclusivity on
1996: SA Telecommunications Act (amended)
1990
1995
2000
2005
2010
2012
1993/1994: Vodacom and MTN licensed & operational
2001: 3rd mobile licence awarded to Cell C
2002:iBurst Spectrum licences 1787 – 1803 MHz spectrum licenced
2007: iBurst GSM 1800 spectrum licence received in 2007
2010: Launch of 8ta – 4th mobile operator.
1998: iBurst Initially Licensed by ICASA

3. SA Telecoms industry timeline : 2010 to 2016 “Generic” Market structure & regulatory events
Supreme Court of Appeal finds in favour of Mobile Telephone Networks (Pty) Ltd v SMI Trading CC in terms extra lease payments , S22 ECA
Fast track deployment
FTTH deployment by various entry operators
Vumatel, Waterfall Access Networks, Frogfoot, Fibrehoods, MFN, TTConnect
Multisource announces 4G network
Govt sells its 13.91% stake in Vodacom to the PIC
Competition Tribunal fines Telkom R449m for abusing market position.
Encourage Competition
Cell C sells towers to ATC – Carrier Neutral Open Access Facilities
2011
2013
2015
2010
2012
2014
2016
SA broadband policy draft
Open Access WACS launch, to the market
National Development Plan.
Supreme Court of Appeal – rules in favour of Dark Fibre Africa versus the Msunduzi Municipality, 14 October 2014.
ECNS Licence Rights ito Sections 22 of the ECA of 2005.
Cabinet approves National Integrated ICT Policy White Paper
PRASA & Vodacom announce fibre lease deal
Blue Label acquires 45% of Cell C
Cabinet approves the SA Connect Policy
Competition Tribunal approves the R2.6bn merger deal between BCX &  Telkom. 3
Telkom launches Openserve
Source: Africa Analysis & Broadband Infraco

4. Industry Value Chain - Providers
International
National Long Distance
Metro
Access
Fibre based: Multiple
uncoordinated networks,
Duplication,
Not open access
No Policy Action
Avoid unnecessary duplication
Access to Municipal
Infrastructure not regulated
Duplication
Wireless: Only 6 have access
Consideration of required SLA’s
Diversity, Redundancy
Consideration of required SLA’s
Diversity, Redundancy
Imp[act on roads infrastructure
and environment
Regulator/Ministry
List of deemed open access networks – (Case Studies) carrier neutral tower companies, data centres, co-builds like WACS
and the NLD
Develop regulation on cost based pricing – aka COACAM
Regulated national roaming to MVNO – Cell C/ Virgin, MTN/ Telkom
Develop a framework for RAN sharing – (LLU, 2010 Stadia
Develop open access regulations
ECA Amendment
Review definition of essential facilities
License wireless open access network
Establish National Radio Frequeny Planning
Establish Spectrum Directorate
Slide 4

5. The Spectrum/ The funders & Owners-
Multisource/ IBurst
Government
39, 8%
PIC
13,9 %+3,6%
GEPF 15, 91%
Vodacom Eyethu
Zakhele 2.0
CellSAF 25%
Royal Bafokeng
BBBEE partners

6. The Funders Expected returns
Match instrument to risk and purpose- Short term vs Long term
Track record-
Credit worthiness – Collateral
etc
Commercial Banks
DFI
Local and International
Government
Policy enablement BBBEE
Shareholders PE

7. Requirements to deliver SA Connect
Reflection Moment: Enforcing Inclusion
Requirements to deliver SA Connect
5. Final SA Connect Implementation Plan
Consolidate and include stakeholder inputs
Adopt “SA CONNECT: IMPLEMENTATION 2030”
2015
2030 Q2
2015 Q1
6. Implement
Performance targets
Monitor & evaluate
Continuous review
3. Adopt Principle of Leveraging Existing infrastructure
Economies of scale
Source: ITU Standardisation Working Group, 2014 Plenipotentiary
4. Drive Digital Readiness Pillar through Provincial Alignment
Solicit Inputs and comments, analyze
1. Master ICT Infrastructure Plan
Technical Design & Planning
2. Open Access Industry Standardization
Gazette open access definitions and standards.
The process to deliver "SA Connect“
4 November 2014
DBN ICC

8. SOC Collaboration and cooperation
Integrated ICT infrastructure Roll Out
Leveraging Existing Infrastructure
Broadband Policy
National Broadband
Network
NDP
SOC Collaboration and cooperation
National e-strategy
(Infrastructure)

9. Inclusion and exclusion2G
533 sec
(120 kbps) 3G
213 sec
(300 kbps)
3.5 G
16 sec
(4 Mbps, 5 MHz)
(8 Mbps,10 MHz
DC-HSPA)
3.75 G
8 sec
LTE (4G)
2.1 sec
(30 Mbps, 20 MHz)
LTE-A
0.6 sec
(100 Mbps)

10. Plan to execute