ISPA doubts LLU deadline
MyBroadband recently reported that Government’s Local Loop Unbundling (LLU) deadline of November 2011 is widely seen as overly ambitious, and that it is unlikely to materialize unless there are strict deadlines in place with associated penalties for missing these deadlines.
The Internet Service Providers’ Association of South Africa (ISPA) welcomed the news that the Independent Communications Authority of South Africa (ICASA) has taken a number of positive steps towards drafting regulations for local loop unbundling, but is also skeptical about the November 2011 deadline.
ISPA said that despite the fact that it is not confident that the LLU process will be completed by 2011, it remains supportive of the informal initiatives which ICASA had undertaken to date. “It has been useful in dealing with some of the information asymmetries as between Telkom on the one hand and ICASA and new entrants on the other,” ISPA said.
“ISPA is, in any event, of the view that the 2011 deadline initially mooted by the Department of Communications probably underestimated the challenges facing ICASA in implementing LLU, particularly when viewed against the continued lack of political will to provide ICASA with the resources and capacity it needs to function effectively.”
Vox Telecom Chairman Tony van Marken said in 2007 that a timetable for the LLU process should be published with strict deadlines and penalties, something which ISPA supports. “While ISPA appreciates the complexities we believe that finalising LLU is critical to lowering barriers to entry into the market and lowering the cost of communication as experienced by consumers,” ISPA said.
“ISPA has a great deal of experience of the measures which Telkom takes to protect the inefficiencies in its network and service provision and is of the view that without substantial penalties and effective enforcement there will be little progress in enabling consumer choice in fixed line services. “
ISPA said that it is not certain when consumers and industry players can expect real local loop unbundling progress to start. “This is really dependent on when ICASA begins in earnest to design and implement a wholesale pricing structure,” said ISPA.
According to ISPA initiatives such as LLU and CPS (Carrier Select / Carrier Pre-select) are of limited use in enabling competition in the absence of ICASA completing the work it is required to do under the ECA which deals with competition and wholesale pricing remedies. “We are led to understand that the Regulator will shortly be making further announcements in this regard and would urge it to act as swiftly as possible,” ISPA concluded.
Local Loop Unbundling discussion
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