Pricing Telecoms Right

excellent article

fm said:
How do the remedies proposed relate to the Convergence Bill and Icasa Bill now before parliament?
barely - there looks likely to be some liberalisation at local or district municipality level as a result of the convergence bill...VANS and others will be able to get class licences to provide infrastructure at this level but there are restrictions where there is "significant economic or social impact"

fm said:
Are there provisions in them intended to unleash the lever of competition?
difficult - imho the basis is there it is more a question of how it is used;

fm said:
Can the huge task of unbundling the local loop and self-provisioning — by Vans and underserviced communities themselves — be done through policy directives alone?
yes, except for the fact that these have to come from the Minister

fm said:
Or is a fundamental new policy vision required to raise the sector to a level of efficiency required to grow the economy at 6% a year?
this is exactly what we should have been doing since it became apparent in 2002 that the managed liberalisation and extended telkom monopoly policy adopted in 1995 was an absolute failure

fm said:
And if these remedies are implemented, how will the beleaguered regulator be enabled to work? If adopted in its current form, the Icasa Bill will compound the structural conflict of interests faced by the ministry and undermine the regulator’s legitimacy
true...we want to use telecomms to push up GDP by 2% - not sure what that equates to but it is in the billions - but we cannot spare another R169 million to double ICASA's budget
 
dominic said:
true...we want to use telecomms to push up GDP by 2% - not sure what that equates to but it is in the billions - but we cannot spare another R169 million to double ICASA's budget
Is that rhetorical question?
 
certainly they do not deserve another cent. Fire ICASA and open up the marketplace. The chaos will sort itself out in a short span of time and we will end up with a truly competitive market that will cater exactly for our needs and might even anticipate developments instead of always dragging us to lower standards as Telkom has done throughout its lifespan, mainly with the assistance of ICASA, which has no guts to regulate Telkom but are always willing to stop smaller fry from operating musch needed and common services. Even when ICASA reached some sort of decision such as with the SNO, then the minister steps in and overules them in anyway. So get rid of them.
 
The Independent Communications Authority of SA (Icasa) has acknowledged it does not have the resources and powers needed to carry out effective retail and access regulation in relation to the dominant players

LOL, Very nice. ISPS must now go to the high court for any Telkom related issues as ICASA does not regulate "the dominant (Telkom) players". If government cannot do anything about Telekoms pricing, perhaps the courts can. Telkom will get very tired of constantly being taken to court.
 
ernstn said:
certainly they do not deserve another cent. Fire ICASA and open up the marketplace. The chaos will sort itself out in a short span of time and we will end up with a truly competitive market that will cater exactly for our needs and might even anticipate developments instead of always dragging us to lower standards as Telkom has done throughout its lifespan, mainly with the assistance of ICASA, which has no guts to regulate Telkom but are always willing to stop smaller fry from operating musch needed and common services. Even when ICASA reached some sort of decision such as with the SNO, then the minister steps in and overules them in anyway. So get rid of them.
i hear your frustration but don;t share your views

i think they should first be given a fair chance to actually do anything instead of trying to fight telkom with one hand tied behind their back and the other putting out the Minister's fires...for example at the time of the 2000/2001 rates review ICASA had an economic analysis staff of exactly three as against the huge resources of telkom...how do you achieve anything like that

for now i will go with that icasa has largely functioned as a diversion attempting to generate an image of a fairly regulated industry but i think there have been plenty of indications lately that their attitude is changing

as for doing away with them - do some comparative studies and see the role played by independent communications regulators throughout the planet...anarchy and industry self-regulation may sound doable in theory but i see it as survival of the biggest and fittest which is not helpful when the contestants in the ring are a 900 pound gorilla and a bunch of hamsters of varying sizes
 
ernstn said:
certainly they do not deserve another cent. Fire ICASA and open up the marketplace. The chaos will sort itself out in a short span of time and we will end up with a truly competitive market that will cater exactly for our needs and might even anticipate developments instead of always dragging us to lower standards as Telkom has done throughout its lifespan, mainly with the assistance of ICASA, which has no guts to regulate Telkom but are always willing to stop smaller fry from operating musch needed and common services. Even when ICASA reached some sort of decision such as with the SNO, then the minister steps in and overules them in anyway. So get rid of them.
Nice idea but can you give me an example of a country with a good telecommunications structure that doesnt have a regulator? (http://www.cellular-news.com/regulator/ will give you an idea how many countries there are with regulators) ICASA needs an arsenal of sanctions and more importantly the will to use them.

IMO a major problem is we seem to have a government that places the needs of business above that of the people. If this wasnt the case I wouldnt have any objection to who funds ICASA. But unfortunately the government seems intent on empowering themselves first.

@dominic – I wasnt sure if it was a statement or a question – thats all. :)
 
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ICASA is doing nothing with 169 Million Rands double it and they will do double nothing.
 
bwana v.5 said:
Nice idea but can you give me an example of a country with a good telecommunications structure that doesnt have a regulator? (http://www.cellular-news.com/regulator/ will give you an idea how many countries there are with regulators) ICASA needs an arsenal of sanctions and more importantly the will to use them.
finite moore's law for communications regulators - double in number every 5/6 years...afaik up to 132 last year

bwana v.5 said:
@dominic – I wasnt sure if it was a statement or a question – thats all. :)
what it was was a question without a question mark ;)
 
ICASA is unable to do its job because of Government interference through the DoC. And as stated in the article, they lack the resources to actually carry out the job they're supposed to be doing. Correct me if I'm wrong, but for most countries where the telecoms sector is booming and a regulator exists, these regulators are both TRULY independent from the government and they have enough resources to manage the sector. This is clearly not the case with ICASA.

To shoot down ICASA for its inability to manage our telecoms sector is not really a solution. We should be shooting down the government as they're the ones who are restricting ICASA from performing its duties. Until we see a massive withdrawal of the government from the Telecoms sector (with its shares in Telkom, Vodacom, etc...), nothing much will change. They're still enjoying the billions they're getting from these telecom companies while at the same time criticising them for their high prices. That defies logic.
 
Basically the goverment should put all its weight behind icasa , and not have a hand in both icasa and telkom , if wont fund icasa , because more funds mean it will hurt the goverment/telkom more . The goverment is trying to put and maintain a leash on both .

Solution , simple take the goverment's shares away from telkom , that way it has no interests in it other than those of the public , fund icasa more to give them some bite rather than just a bark , then the government really has the peoples interests in mind .
 
A typical local phone call of 1 minute uses 60*45kB = 2700kB at 60cents = 2.637MB. So for a gig of local telephone call (all 388.32 calls), would cost the consumer R232.99 per gig! So Telkom is shafting phone users as well as us. If typical teenagers can cost you so much, the consumers would surely force ICASA (I Can Always Sip Alcohol instead of actually working) to shut Telkom down
 
pimal3 said:
A typical local phone call of 1 minute uses 60*45kB = 2700kB at 60cents = 2.637MB. So for a gig of local telephone call (all 388.32 calls), would cost the consumer R232.99 per gig! So Telkom is shafting phone users as well as us. If typical teenagers can cost you so much, the consumers would surely force ICASA (I Can Always Sip Alcohol instead of actually working) to shut Telkom down
45KB/s? U sure?
 
That's what it worked out on my pc when I set my soundcard to "Telephony" setting and recorded one minute's worth of audio (2700 kB file). When I played the file back, it did sound very tinny (except for the absence of crackles).
 
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