Local Loop Unbundling: What should be achieved?
The Local Loop Unbundling (LLU) hearings kick off tomorrow (11 October 2011), with all of South Africa’s prominent telecoms players set to make oral presentations.
Here is what some of the most prominent players would like to see from the LLU process.
Solidarity
Trade Union Solidarity said that while they are not against development in the telecommunications industry, they are unsure whether the unbundling process as it is proposed will render enough benefits to end users to justify the potential job losses it could cause, especially amongst Telkom employees.
Vodacom
Vodacom said that they are looking forward to seeing the copper local loop unbundled as per international best practice.
“For LLU to be practically implemented, ICASA would ideally need to publish supplementary regulations to the Facilities Leasing Regulations, which address the process to be followed, service levels to be met by the access provider (Telkom), access to collocation space, electrical power etc,” said Vodacom.
“Additionally, we believe that ICASA should perform an audit of the copper local loop to determine its quality, availability in each exchange, location of exchanges etc.”
MWEB
Rudi Jansen
MWEB CEO Rudi Jansen said that it is exceptionally important for both the industry and the consumer that LLU is done correctly. This, said Jansen, could take some time.
“Pricing studies, for example, will form the cornerstone of the LLU process and the models that flow from this have to be correct. That does not happen overnight. So we do not expect that the process will result in a quick or easy fix for the challenges we sit with currently,” said Jansen.
Jansen suggested interim steps that will provide some relief in the short-term, while the full process unfolds. These steps include better wholesale solutions from the mobile operators, naked ADSL and far lower IPC costs.
Internet Solutions
Internet Solutions Executive for Carrier Services, Raj Wanniappa, said that they supports ICASA’s LLU process in as far as its intention of increasing competition.
Manniappa said that increased competition should decrease costs, improve access of broadband services to the underserved and generate business opportunities for alternative telco service providers both large organisations and SMMEs especially in rural areas.
“The process can also be used to highlight unfair business practices by the local incumbent carrier and open various mechanisms by which innovative service providers can leverage what has largely been a state-funded infrastructure asset in a more equitable manner,” said Wanniappa.
“Even if the LLU process does not result in full local loop unbundling, all the derivations thereof, like bit stream access, line sharing or sub-loop unbundling will still benefit corporates clients and consumers alike.”
Neotel
Neotel said they hope that ICASA will ensure that Telkom makes available to the South African market each of the four identified options for access to the local loop: Bitstream access, Shared loop unbundling, Full-loop unbundling and Sub-loop unbundling.
“This will result in more innovation, lower prices, increased broadband penetration among consumers and SMEs, more jobs and investment, and will facilitate new, facilities based entry,” said Neotel.
ISPA
The Internet Service Providers’ Association (ISPA) said that while they strongly support the regulatory process undertaken by ICASA to implement the policy decision to unbundle the local loop, they have limited expectations as regarding outcomes.
“Telkom has set out in very strong terms its intention to oppose the process – as is its right – and such opposition may well lead to significant delays as the constructive participation of the incumbent is critical to opening up competition on the wired local loop,” ISPA said.
“ISPA holds the view that regulatory interventions into both the wired and wireless local loops are justified solely on the basis of the current wholesale pricing practises of incumbent operators and will seek to emphasise this point during the public hearings.”
Cell C
Mothibi Ramusi, Cell C’s executive head of regulatory affairs, said that LLU provides an opportunity for Telkom to facilitate its enterprise and small business development initiative.
“It can be implemented using an outsourcing model to entrepreneurs and/or union members. This approach will provide Telkom with an opportunity to stay focussed on its core business, ‘infrastructure management’,” said Ramusi.
“Entrepreneurs will then be able to use the “last mile” to pump innovative services to citizens.”
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