national treasury presentation
DESCRIPTION
National Treasury Presentation. Market Sounding – Rolling out broadband infrastructure in SA WIRELESS ACCESS PROVIDERS’ ASSOCIATION . Presented by: Christopher Geerdts, WAPA Chairperson Sumaiyah Makda, WAPA Regulatory Advisor Jabulani Vilakazi , WAPA Member . ABOUT WAPA. - PowerPoint PPT PresentationTRANSCRIPT
National Treasury Presentation
Market Sounding – Rolling out broadband infrastructure in SA
WIRELESS ACCESS PROVIDERS’ ASSOCIATION
Presented by: Christopher Geerdts, WAPA Chairperson Sumaiyah Makda, WAPA Regulatory Advisor Jabulani Vilakazi, WAPA Member
ABOUT WAPA
• Formed in 2006 • Non-profit organisation • Further interests of wireless access providers• Facilitates self-regulation of the outdoor fixed
wireless and indoor nomadic wireless industries
ABOUT WAPA • 131 members & growing fast
• Majority of members: infrastructure providers – Build, expand and maintain their own wireless
networks
ABOUT WAPA
• Average WAPA member: SMME providing extensive coverage in rural areas where there is no cost-effective alternative access means
• Track record of price reduction and service innovation in the provision of broadband services in areas where larger operators will not go
An example of an area serviced by a WAPA member – where incumbent operators fear to tread
2011 CENSUS
• Approximately 80 000 subscribers, including broadband and voice
• Free or discounted services – More than 150 hospitals and clinics – Approximately 550 schools
• BBBEE Rating within Levels 1 to 4 – approximately 50% of WAPA members
• Employ around 1 000 people • Collective turnover: R160 million per annum • More than 6 000 hotspots
COVERAGE MAP
COVERAGE MAP
Coverage in rural areas
WHAT DOES WAPA DO?
EXTENDING WIRELESS ACCESS COVERAGE IN SOUTH AFRICA
• Estimate that there may be as many as 500 SMME Wireless access providers over and above WAPA members
• Huge growth in the industry, despite – Legal and regulatory constraints – Lack of access to licensed spectrum
EXTENDING WIRELESS ACCESS COVERAGE IN SOUTH AFRICA
• Interaction with fixed-line incumbents – agreement on how WAPA members will extend coverage into rural areas
• Promotes model of community-based SMMEs covering small areas and interconnecting with each other – Achieves ubiquitous coverage – Fosters job creation, skills transfer – Deepens broadband penetration
EXTENDING WIRELESS ACCESS COVERAGE IN SOUTH AFRICA
• Provision of access where – There is no alternative
• especially marginalised communities– Current providers have defaulted
• eg after frequent copper theft– Rollout is too slow
• including many urban areas– Customers simply choose alternatives
• based on innovation, pricing, quality of service, customer responsiveness, or more personalised attention
• So do not have to be a large incumbent to make a difference!
CONSTRAINTS
Growth in the industry occurring despite policy, legal and regulatory constraints • Inability to use licensed spectrum for access
services – a long-standing challenge met with innovative use
of licence-exempt spectrum and investment in future technologies such as tv white spaces
• Lack of national wholesale networks providing bandwidth at cost-plus pricing
• Regulatory environment – makes no
allowances for SMMEs and does not incentivise their operations
• Weak regulator – not able to stand up to the incumbents
• Difficulties in obtaining rights of way and high sites
• No enforced framework for co-ordinating infrastructure builds and infrastructure sharing
CONSTRAINTS
Incumbent operators are prickly about sharing infrastructure
UNIVERSAL BROADBAND BY 2020
• WAPA members and providers who fit the WAPA profile are a key ingredient in deepening broadband access
• Costing of national broadband network – should take into account existence of community-based providers
• Business case for rural service provision does exist! Even in the absence of subsidies.
UNIVERSAL BROADBAND BY 2020
• Licence-exempt spectrum is where innovation happens – evidenced by the WiFi explosion (billion+ devices shipped in 2011)
• Bottom-up Model allowing local communities to build and operate networks which service such communities – done according to blueprint to ensure interoperability
WAPA thanks the National Treasury for the invitation to address it, and offers WAPA’s support for future endeavours
