electronic communications amendment bill - ellipsis.co.za · [add disclaimer text in slide master...

Electronic Communications Amendment Bill

7 March 2018

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Key Focus Areas on ECA Bill:

Government Objectives

Positives of the Bill

Problematic Areas of the Bill

Proposed Solution

Conclusion

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MTN has strong 2G & 3G Population Coverage across South Africa:

2G Coverage97.5% 3G Coverage in urban and

rural Areas

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MTN’s LTE Population Coverage across South Africa:

75% LTE Coverage in urban and rural areas, continuous

roll out over the next few years

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MTN and the Government have the same Aspirations:

Economic Growth and Job Creation:

• Slow economic growth in last 4 years

• Renewed sense of growth in 2018 – “New Dawn,New Beginning, Ramaphoria”

Radical Economic Transformation:

• MTN is one of the most empowered organizations

• Currently Level 4 BBBEE Status

• R7.2bn spent with 51% BO Entities (Over 3Years)

• R12.7bn spent with 30% BWO entities (Over 3Years)

• R3.3bn spent with SMME’s (Over 3 Years)

Digital Industrial Revolution Commission:

• MTN welcomes SONA announcement to includeprivate sector and civil society in managingrapidly changing ICT opportunities

• 4th Industrial Revolution requires significantinvestment both in infrastructure and services

• MTN aims to contribute towards preparation

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Positives of the Bill:

The inclusion of Rapid Deployment:

• Will boost infrastructure development incities and rural areas

• New technologies (5G) will require massivedeployment of infrastructure for SA toremain competitive

• Unblock current infrastructure bottleneck ina number of provinces

Focus on consumer protection and Quality ofService:

• More choice of product and services thatdrive variety and competition

• Best network rating that has beenindependently tested and verified

• Quality of Service depends on networkinvestment - more than+ R30B invested byMTN in the last 3 years

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Re- Monopolization of infrastructure

Cost Based Access- Disincentivesinvestment

Expropriation of Property &Constitutional issues if promulgatedin the current form

Goes against the main goals of theNDP

Bill is vague and ambiguous

Problematic Areas of the Bill:

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Proposed Solution- Hybrid Model:

Hybrid Model:

• Proposed Model for the Implementation of WOANto include:

• Support for the sustainability of WOAN - bypurchasing up to 30% of capacity by theindustry

• Sufficient (but not all) Spectrum allocatedto WOAN

• Uncertainty over modalities of the WOAN mustbe clarified

• Balance between service based competition andinfrastructure based competition endorsed - Whowill invest if only service based competition?

• No monopolization of Spectrum

• Alternatively, balance of costs and benefits ofthe radical proposals should be done if currentBill to remain

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Conclusion:

ECA Bill will not achieve Government’s Objectives:

• It does not incentivize investment• No economic growth

Co-existence between the existing operators and WOAN (Hybrid Model) is a solution -

• Hybrid Model is aimed at promoting both service-based and infrastructure based competition

This will enable the Bill to deliver on:• Economic transformation;• Meaningful participation in economy;

and• Expanding access to rural and

underserviced areas

Time is a key factor in resolving the impasse on the Bill as per Mining Charter:

• Lack of frequency in a current competitive market with continuous customer demand is detrimental to development objectives

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Relevant Quotations:

NDP (Stream spectrum allocation…pages 192-193):“Spectrum policy should favour competition, but incumbents should not be excluded from gaining access to bands needed for expansion or to apply new technologies. In line with global trends, spectrum licences should be technology-neutral so that they can be adapted to meet rapidly changing technological developments without high regulatory costs.”

SONA statements:“Our prosperity as a nation depends on our ability to take full advantage of rapid technological change.

This means that we urgently need to develop our capabilities in the areas of science, technology and innovation.

We will soon establish a Digital Industrial Revolution Commission, which will include the private sector and civil society, to ensure that our country is in a position to seize the opportunities and manage the challenges of rapid advances in information and communication technology.

The drive towards the digital industrial revolution will be underpinned by the availability of efficient networks.

We will finalise our engagements with the telecommunications industry and other stakeholders to ensure that the allocation of spectrum reduces barriers to entry, promotes competition and reduces the cost to consumers.”

Thank you

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