1presentation to pcoc convergence bill hearings wireless business solutions (pty) ltd (wbs) oral...

Presentation to PCoC1

Convergence Bill Hearings

Wireless Business Solutions (Pty) Ltd (WBS) Oral Presentation to the Portfolio Committee on

CommunicationsPresented by: Mark Headbush: Executive Chairman

And Mbulelo Ncetezo: Head Legal and Regulatory Affairs

10th August 2005


Introduction

• WBS would like to thank the Portfolio Committee for the opportunity to engage in this policymaking exercise

• We will cover the following areas:

– Preamble

– Background on WBS

– Comments on the Bill


Preamble

• WBS welcomes the introduction of this Bill for the following reasons:– It gives credibility to the policy-makers’ intention to liberalise the

telecoms industry in the RSA– It seeks to level the playing field– It’s generic approach leads to fewer pigeon-holes and thus less

confusion– The introduction of class licences will lighten the administrative

burden on the Regulator whilst facilitating the application process

– It encourages technical and service neutrality

• However, we note its silence on minimum set-aside shareholding for HDGs in major new licences


Background on WBS• Licensed in 1996 in terms of the Telecoms Act #103 of 1996 to build

and operate a National Mobile Data Telecommunications Network• 60% Black-owned, 90% Black-managed• Amongst other things the licence entitles WBS to:

– Provide the last mile to the subscriber– Convey any message by means of this line– Interconnect with all other licensed telecoms operators

• The network topology is cellular in nature and operates in the 1800Mhz and 400MHz bands

• The narrowband network serves the National Lottery company, Uthingo, covering 95% of the population

• The broadband network currently covers parts of Gauteng, KZN and the WC offering wireless internet services at 1000kbps – aiming to for a comprehensive national population coverage


Comments on the Bill

• “Communications network”– Our understanding is that this refers to the actual

telecommunications infrastructure, like the one WBS operates.– Since one needs a licence to rollout such a network we feel

there should be a definition for a communications network licensee

– This will be in line with the definition of a telecommunications network services licensee. This would be similar to the service provided by WBS to Uthingo ito data and the general public ito of the wireless broadband internet access (iBurst).


Comments

• “Existing licensees”– This is a very appropriate definition as it forms

the basis for the conversion process outlined in s85 of the Bill

– We appreciate the flexibility displayed where the currently licensed and non-licensed(s84 (1) and (2)) infrastructure and telecoms service operators will be regarded as ‘deemed operators’.


Comments• s33 Co-ordination of frequencies

– This should not be left to licensees where there are dominant players who have a significant market power

– Icasa should be responsible for the coordination of frequencies in consultation with the stakeholders

• s42 (8) – Whilst this section rightfully prohibits exclusivity arrangements it

stops short of declaring the SFOC (landing station in particular) and the international gateways as essential facilities

– S42 (3) (a) requires that the Authority should prescribe communications facilities whereas the definition of communications facilities does that – the Authority should rather declare essential facilities and then review the list periodically


Comments• s43 (5)(b)(i) and (ii) : We agree with this provision as it might be

beneficial for small operators like us• s63

– The role of the competition commission vis-à-vis that of ICASA ito competition issues is not adequately clarified

– Having said that WBS believes that ICASA cannot be completely excluded from the adjudication of competition matters in the communications industry

• s65 – We agree with the notion that all communication service licensees and

communications network service licensees should be catered for in the numbering plan

– ICASA should also consider IP addresses for packet-switched networks


Comments

• s83 – WBS agrees with this, however, there should

be there should be a comprehensive business plan for the USF (in consultation with stakeholders)

– Some schools cannot even afford e-rated internet broadband services despite the fact that we waive connection fees and offer the modems gratis


s84 Transitional provisions• WBS welcomes this section as it will ensure that there

will be no disruption of services• We believe that this phase should be used to create a

smooth transition from the old order to the new one• During this phase the Authority is supposed to have

prescribed the manner in which applications should be made

• That should clarify which type of licences each existing licensee should apply for – eg. WBS expects at least four licences viz., communications network services, communications service, application services and radio frequency spectrum


s85 Licence conversion• We don’t believe that a period of 12 months for this

process is realistic– Mobile data networks, radio trunking and asset tracking are just

some of the services that were never brought into the fold ito the Telecomms Act – 9 years

• In compiling the notice on the process to be followed we expect the Authority to consult with the existing licensees – this will be time consuming

• On submission of a written notice to surrender a licence the new dispensation should come into effect (s84(5))

• The authority will have to deploy sufficient and appropriate resources (human, financial and time) – we hope the ICASA Bill will see to that.


In Conclusion

• A smooth and prompt promulgation of this Act can only have positive spin-offs for South Africa

• The introduction of fair competition and protection of smaller operators will lead to more affordability and availability of communications services

• The only threat is the Local Loop – if it is not unbundled then the Act will fall short of the desired results

• We hope that the next few months will be characterised by co-operation amongst all stakeholders and that narrow personal interests will have no place


Thank You

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