https://www.engineeringnews.co.za

Questions emerge over the extension of local loop unbundling to wireless

Photo by Bloomberg

Photo by Duane Daws

18th February 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

Font size: - +

Mobile operators on Tuesday criticised the Independent Communication Authority of South Africa’s (Icasa’s) extension of local loop unbundling (LLU) to wireless and fibre access without it having unpacked the decision in the same detailed framework afforded the copper unbundling debate.

This emerged during an Icasa-led workshop on wholesale access under Chapter 8 of the Electronic Communications Act (ECA) aimed at delving into stakeholders’ positions, in particular, with regard to the framework, model terms and conditions of the agreement section of the draft Bitstream and Shared/Full Loop regulations.

Telecommunications giant Vodacom on Tuesday questioned the lack of detail on the proposed wireless and fibre unbundling, including the disadvantages and advantages, calling for a Chapter 10 market review.

“We do not have the benefit of common understanding [when compared with the process of the proposed copper unbundling] of what is meant by wireless and fibre LLU,” a spokesperson said at the workshop, which had replaced previously scheduled public hearings on the regulations, as Icasa moved to repeal the draft and produce another version of the hotly debated proposed regulations.

The draft Bitstream and Shared/Full Loop regulations, published in September last year for public comment, reinforced Icasa’s views that LLU would not only be applied to the copper twisted-pair local loop, but extend to “all forms” of local loop and that incumbent fixed-line operator Telkom would not be the only Electronic Communications Network Service licensee expected to make its facilities available to other licensees.

“This changes the emphasis and the dynamics of the discussion on the subject significantly,” Icasa pointed out, adding that “any form” of local loop extended to fibre or wireless access.

The August 24, 2012, Complaints and Compliance Committee ruling affirmed that “the local loop is indeed an electronic communications facility” and that Telkom is obliged to provide access under nondiscriminatory conditions in terms of Chapter 8 of the ECA and the electronic communications facilities leasing regulations.

“The ruling merely upholds the provisions of the ECA. Although this represents a specific ruling between two parties, its impact applies to all licensees, therefore, supporting the authority’s original position in the findings note [published] in Government Notice 889 of 2011,” Icasa stated.

However, Vodacom said the findings note on the Icasa framework for introducing LLU, released in December, distinctly conceded that access to LLU referred to the traditional fixed network, not access to mobile or fixed wireless.

Icasa previously stated that the framework was not intended to financially harm any operator and the network owner had the right to set a reasonable price to ensure the sustainability of its networks and future investment commitments.

Vodacom averred that “it is difficult” to submit a response to the regulations on “such little information”.

The telecommunications company called for withdrawal of the regulations as the process was flawed, suggesting that Icasa rather focus on unbundling the copper infrastructure while performing a wireless LLU market review.

While Neotel was not adverse to a debate on the “vague” aspects of wireless unbundling, GM for strategic business development Angus Hay believed that the matter was a distraction from the unbundling of copper LLU, which the industry had been mulling “for the past decade”.

MTN agreed that the complexity of the proposed wireless LLU required the technical details to be hashed out.

BENEFICIAL TO INCUMBENT
Meanwhile, Hay said, despite Telkom’s views that allowing competitors access to its ‘last mile’ would be detrimental, LLU would actually benefit the incumbent operator, as it would allow the leasing of facilities with operators able to overlay their own, newer generation technologies to boost efficiencies.

The unbundling of copper would also prevent the unnecessary roll-out of duplicate infrastructure and enable the more effective use of the current infrastructure, while stimulating competition.

Hay pointed out that the lack of LLU had constrained South Africa, allowing the nation to slide in terms of broadband development.

Further, the pace of development and investment in the infrastructure had been dependent on the incumbent.

While the copper network would not benefit rural regions, it would enable operators to boost broadband services in secondary towns and regions surrounding metropolitan areas.

“Most metros are not the problem, as operators have built their own networks over major regions, such as Sandton,” Hay explained, noting that LLU in such regions was not required.

A Cell C representative said it was unreasonable for Telkom to deny access to the aging infrastructure, despite initially injecting capital expenditure to develop the network.

Access would enable operators to install their own technologies into stranded assets and exchanges, for example, and move forward with the country's broadband ambitions.

POTENTIAL TRIAL
Cell C believed that LLU should move ahead speedily, suggesting the roll-out of trial projects using a staggered approach for both copper and wireless LLU.

South Africa’s third-largest operator, which was “keen to tap into Telkom’s abandoned rural exchanges", suggested copper LLU be rolled out in one region to establish a working foundation, with all operators partnering.

The object was then to repeat the process with wireless LLU in another region, using it as a test base to formulate the best approach.

Icasa planned to establish a working group to study the viability of such projects, with Neotel, Internet Solutions, Telkom, Broadband Infraco and Cell C on Tuesday volunteering for the task.

Edited by Creamer Media Reporter

Comments

Showroom

Stewarts & Lloyds
Stewarts & Lloyds

Stewarts & Lloyds today supplies steel and tube, pipe and fittings, valves, pumps, irrigation, fencing, profiling and roofing products. The cash...

VISIT SHOWROOM 
GreaseMax
GreaseMax

GreaseMax is a chemically operated automatic lubricator.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.075 0.129s - 157pq - 2rq
Subscribe Now