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Icasa proposes reduction to network operators’ universal access obligations

29th November 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The Independent Communications Authority of South Africa (Icasa) on Friday published, for public comment, the draft amendments to the universal service and access obligations (USAOs) of telecommunications service providers.

The amendments were aimed at fast-tracking the meeting of certain obligations, dealing with inefficiencies within the current regulatory framework and eliminating irrelevant targets.

This formed part of Icasa’s ambitions to ensure network operators contributed to universal access, particularly in rural regions, while still meeting the targets within a set period.

The authority currently imposed USAOs on Cell C, Vodacom, MTN, Neotel, Sentech and Wireless Business Solutions (WBS) as part of their spectrum and Electronic Communications Network Service licences.

The draft amendment proposed that licensees continue providing Internet access, computers, servers, printers and other local area network-related equipment to public schools.

The three major mobile operators were currently each tasked with providing Internet access to 5 000 public schools and 140 Institutions of People with Disabilities (IPWDs), as well as 1 400 terminal equipment units to associated IPWDs within five years, for the allocation of third-generation spectrum.

But, at the time of the 2010 Icasa review, Vodacom had connected only 703 schools, MTN 593 and Cell C 83.

Neotel, which was tasked with providing Internet access to 2 500 public schools and further education and training (FET) colleges, as well as 2 500 rural public clinics and hospitals, had only connected 50 FETs and two public schools at the time of the review.

WBS, which had been responsible for the roll-out of Internet connectivity at 1 000 rural schools, had surpassed its target at 1 800.

Sentech had only connected 103 rural public schools, well short of the 5 000 target within five years, as stipulated by the legacy USAO.

The new amendments would reduce the number of public schools to be connected.

Operators that were tasked with rolling out connectivity to 5 000 schools within five years, would, according to the amendments, now be required to connect only 1 500 schools within that time period.

Those that had been required to connect 2 500 schools within five years, would now have leeway to provide Internet connectivity for 750 schools during that timeframe.

However, each licensee would be required to connect more than 300 schools during the 2013/14 financial year.

Operators were also currently obligated to provide 125 000 handsets for the allocation 1 800 MHz, with Cell C, MTN and Vodacom handing out 26 666, 25 068 and 26 667 handsets respectively to the South African Police Service and the Department of Health during the 2010 FIFA World Cup.

This “irrelevant” obligation was removed in the new amendments.

The draft amendment further proposed the removal of the Sim-card distribution obligations, which had not been implemented.

Cell C, MTN and Vodacom were required to provide 2.5-million Sim cards to underserviced regions for the allocation of 1 800 MHz spectrum. This had, so far, not been achieved.

The distribution of community service telephones (CSTs) was the only obligation that was fully completed, with Cell C meeting the required target of 52 000 CSTs and MTN and Vodacom surpassing their targets, with a distribution of 75 000 and 188 000 CSTs respectively.

Icasa started reviewing the USAOs in 2008/9, when an external consultant was appointed and tasked with an international benchmarking exercise, while taking into account adopted approaches in implementing the obligations.

Stakeholders had 21 days from the date of gazette, November 27, to submit their views on the amendments to the USAOs of service providers.

Edited by Creamer Media Reporter

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