If an operator really wanted to control the environment they would build their own network and lock everyone out.
VodaCon HAVE done this in the past, but it doesn't help them in any way now, and going forward. Yes in the past it helped, with it's duopoly status with MTN, nobody could compete. However, technology has evolved drastically, and continues to evolve, becoming cheaper, and there is plenty more competition on all levels, for both infrastructure and telecoms services (Cell C, 8.ta, Neotel, Infraco, Fibreco, Telkom, ECN, Altech, Naspers, and many others). So you can't really LOCK anyone out of the competition anymore. The regulatory environment, price of technology and convergence doesn't allow for it anymore.
To suggest giving the control away to a third party is going the other way and if you think about it that is exactly how LLU would work best. A body independent of the network operators, running the common network and leasing services to them, i.e. anyone can access the LL.
It's not about giving control away. It's about leveling the playing field. VodaCon doesn't want to incur the huge cost of maintaining it's own network anymore, as it now has to compete with Cell C and 8.ta from an Operator point of view, as well as Infraco, FibreCo, DFA, Neotel, Cell C, 8.ta, etc. from an infrastructure point of view. Previously, it had a cozy relationship with MTN and a relatively equal playing field, as both operators had to lease infrastructure from Telkom.
However, all the new operators are obviously more efficient, due to being smaller, nimbler, not constrained to long term contracts (with Telkom for e.g.), and are able to leapfrog VodaCon in terms of technology (fibre, microwave, satellite, HSPA, data centers, switching technology, billing + admin systems, and whole lot more). These operators would all be deploying new tech, while VodaCon would have to be replacing old tech with new tech, which is way more costly, as it involves a transition phase, dual illumination, migration, call it what you want.
So VodaCon thought, Hey, with all this competition, on all fronts, we're going to get screwed. Lets push for a single network to serve the entire country, that way the playing fields will be leveled, and all our network costs will be equal. But seeing as we ARE the largest network, with the most coverage, we will be the ones to gain the most, as we'll have the best leverage to sell our network + infrastructure (towers + backhaul) to a 3rd party.
Problem is, Cell C and Lars were the ones with better vision and more innovative thinking, and they beat you guys to it. While Vodacon were still figuring out what to do about the drop in interconnect rates, RICA, and Cell C's HSPA+ network, and running to the ASA about 4G and 4Gs and other squabbles, Cell C had a clear vision of what they needed to do, and implemented it quickly and with much foresight, by selling off their infrastructure to ATC. I'm sure the VodaCon boardrooms must have been a really interesting place to be in at that time.
Just because a network operator proposed a new idea does not automatically make it evil?
Normally yes. But with VodaCon, you have to be skeptical. You have to first assume that VodaCrap are in it purely for their own interests. History has shown us that VodaCon doesn't care about the consumer, and is always trying to squash the competition. Also, it was competition that forced VodaCon's hand to respond with price cuts (which are/were meagre), and not VodaCon's intention to reward customers. Remember VodaCon has been posting billions in profit for the last 20 odd years, and have used these funds to expand into the rest of Africa, while giving nothing back to the consumer. Seems like VodaCon is the new Telskum.
Let me flip it around; How would you take scarce resource and ensure everyone of the 500 license holders can get access to it? How would you implement LLU on both copper and wireless?
I'd go with the plan proposed by VodaCon. But as explained earlier, VodaCon's reasons are not because they wish to share this scarce resource with others. IIRC, ICASA have been talking about giving the much wanted digital dividend spectrum to
new players like MWEB, IS, Altech and Naspers. VodaCon are scared of this (and rightfully so), and that's why they are pushing for open access to all. Rather share it with everyone (and come up with other strategies to muscle out the newer, smaller guys), then have nothing at all and worse still, have to compete against it.
And answer this; How would you ensure under-serviced areas get access to broadband? Would you be willing to pay a premium to fund it? Because that's how it works, the money's got to come from somewhere. What do you think it'll cost to cover the country with LTE? You can round it off to the nearest R10B.
I'd also go with VodaCon's proposal, as it makes the most sense, and is the most cost effective. But again, Vodacon's reasons for proposing this are not purely because they care dearly about servicing the under-serviced (and rightfully so, Vodacon is there to make a profit for its shareholders, not to be a charity). This is just a small side argument that Vodacon is making a big noise about, to get government and ICASA to buy into the idea that this proposal will help to service the poorer, rural, under-serviced areas where most of our governments voters are, an idea that our government will rejoice at, no doubt. And no doubt, it WILL help to improve service in the poorer rural areas where nobody wants to go. But this is not the reason that VodaCon is pushing the proposal for.
BTW, which prices have gone up?
Read the following thread:
http://mybroadband.co.za/vb/showthr...-reduces-prepaid-data-prices-(24-August-2011). If you do the maths properly, you'll see that pricing on the high end packages have actually gone up by a few rands/cents per MB. Also, by changing package sizes, users are forced to go with a higher package which costs more (but might be cheaper per MB), in order to get the same/higher data allocation (as nobody wants to reduce their data usage).
To summarise, I don't buy into this farce that VodaCon wants a shared national network for the reasons mentioned: to allow access to many more players on equal footing, to bring in more competition, and to service the under-serviced. If this were the case, VodaCon would not have been the corporate bully that it is. A few examples of corporate bullying: dramatically raising interconnect rates when Cell C launched, going after Gogga Mobile and other smaller operators, pricing Corporate APN's well above retail prices, refusing to compete with MTN, and in fact running a mutually beneficial cartel.
VodaCon are scared of losing out on the valuable digital dividend, and would rather share it, then compete against it.