1. MWEB SUBMISSION ON THE CONVERGENCE BILL

2. Does it cure the limitations imposed on VANS by the 1996 Telecoms Act?
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. Ministerial influence. Inadequate protection from abuses of dominance.
WHAT MEASURE DO YOU USE?
Ministerial influence.
Inadequate protection from abuses of dominance.
Under resourced regulator. R

4. Since September 04 – uncertainty. CB removes uncertainty – but
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. Never clear – moving target
DEFINITION OF VANS
Never clear – moving target
Communication service licences /application service
Are applications a subset of services?

7. Are they limited to providing applications only.
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. , hosting, security.

8. VANS uniquely vulnerable – no frequency or network service.
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. Service licencees excluded from Ch 7.
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
CAPE TOWN
GAUTENG
Telephone User
Telephone User

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

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

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