Fixed portability on horizon
Speaking as part of a panel discussion at the launch of Corporate Research Foundation’s annual Top ICTe Companies for 2006, Neotel’s executive head of strategy Angus Hay said that fixed number portability would be effective immediately with the launch of its consumer services.
Hay says Neotel is working tirelessly to build its network in preparation for launching other services.
The panel discussion revolved around topics ranging from recently introduced mobile number portability to high telecommunications prices, and included representatives from Neotel, Vodacom, Sentech and iBurst.
Virgin Mobile and Cell C have engaged in aggressive marketing campaigns to encourage customers to port to their networks, while the big guns, Vodacom and MTN, have in turn stepped up their advertising, to convince people to stay, or in fact, come across to them.
But, Vodacom’s commercial director Peter Matlare said so far the biggest beneficiaries of number portability had been the advertising agencies and media companies.
Long-term trend
Asked about the perceived high mobile tariffs, Matlare said tariffs had already come down and would continue to do so as part of a long-term trend.
But, it was uncertain at what rate they would come down.
On the issue of cost, Hay said the reality was that real competition drove down costs and this could only really come about once there was competition at the infrastructure level: "Once that changes, this will drive rates down right up the value chain."
Hay said South Africa had roughly 250 000 broadband connections – depending on how one counts this – compared to the 250m broadband lines, excluding 3G, in the rest of the world; showing just how out of kilter the country was.
But, this was starting to change, and would continue to do so as the Electronic Communications Act was implemented, Hay said.
Sentech executive for digital services Frans Lindeque said new technologies would also have a major impact on lowering prices going forward.
Has to pay Telkom’s high rates
Hay reiterated that Neotel hoped to see the unbundling of the local loop – the copper that connects homes and offices to the network backbone – but there was a lot that could be done in the meantime.
Firstly, Hay said there was a complete lack of wholesale regulation; some form of price control at the wholesale level in order to level the playing fields.
Hay said some form of wholesale regulation was the norm in many other countries where there was a dominant operator like Telkom is in the South African market.
Neotel also wants to see competition in international bandwidth.
Despite being the biggest shareholder in the SAT-3 undersea cable through its shareholder Tata, Neotel has no landing rights in South Africa, and so has to pay Telkom’s high rates.
‘It is a national asset’
Telkom’s contract to manage the cable comes up for review next year. Hay said the structure of SAT-3 was a historical one and was protected under international law.
The key going forward would be to ensure competition through more undersea cable infrastructure, he said.
Lindeque said it had been forced to gain access to SAT-3 through T-Systems: "It is a national asset. We shouldn’t have had the kind of battle that we had to gain access."
Panel chairperson Arthur Goldstuck, the CEO of research organisation World Wide Worx, likened 2006 in significance on the telecoms front to 1994, with the introduction of cell phones.
But, writing in the foreword to the Top ICTe Companies book, Goldstuck said: "Our greatest danger, however, is indulging in ‘triumphalism’ – puffing our chests at our great achievements, while ignoring the gaps and challenges that have been left in the wake of our progress."
Corporate Research Foundation voted MTN, Vodacom and EOH Holdings the top three listed ICTe companies of 2006 (Vodacom is itself not listed, but 50% owned by Telkom and Vodafone) based on macro criteria like financial stability, success and innovation, as well as micro criteria including the corporate culture, strategy, human resources and financial structure.
Microsoft, SAP Africa and HP South Africa came tops in the foreign listed companies category, while Axiz, M-Web and Arivia.kom were voted the top three unlisted ICTe companies.
Loading ...