Telecoms11.07.2014

Don’t fall for Icasa’s changing LLU story

Local Loop Unbundling (LLU) – the regulatory intervention which aims at giving many service providers access to Telkom’s last mile infrastructure to offer broadband services – is seen by many people as a way to improve South Africa’s broadband access.

However, the poor performance of the Department of Communications (DoC) and the Independent Communications Authority of South Africa (Icasa) has resulted in massive delays in the process.

The local loop unbundling process, which started in 2007 and was supposed to be concluded by November 2011, is still dragging on.

In the latest turn of events, Icasa said that LLU is still on its radar screen as part of the “Reduce the Cost to Communicate Strategy”.

“Icasa intends to continue with the project in the 2014/15 financial year. Details will be made available once the Icasa Strategy and Annual Performance Plan has been presented to and approved by Parliament,” the regulator added.

What is striking is that the regulator has now removed all strict deadlines associated with LLU – an ominous sign.

How the LLU story changed over the years

With all the hearings, discussion documents, and press briefings it can be difficult to remember what actually needs to be achieved with LLU: other operators getting access to Telkom’s last mile infrastructure.

The DoC and Icasa’s performance should therefore be measured against a single outcome: can other operators offer services using Telkom’s last mile infrastructure?

Here is how the LLU story and deadlines changed over the last 7 years:

May 2007: LLU should be urgently completed and implemented by 2011
June 2007: All LLU mechanisms will be in place by end of 2007
June 2007: Telkom to start giving access to its copper infrastructure by January 2008
November 2010: The local loop to be unbundled by November 2011
January 2011: Icasa will publish its final LLU regulations by November 2011
November 2011: Icasa says findings documents about LLU shows they met their deadline
August 2013: It may be a while before any more LLU progress is made
July 2014 – Icasa intends to continue with the LLU project in the 2014/15 financial year

So, two and a half years after LLU was supposed to be implemented, the regulator said that it continues to work on the project without any deadlines.

LLU deadlines and misses

It is crucial to look at the various local loop unbundling deadlines, and whether Icasa met these deadlines.

May 2007 – Communications minister Ivy Matsepe-Casaburri – Unbundling process in South Africa should be urgently completed and implemented by 2011.
Deadline: Not met

Mid-2007 – LLU committee chairman Tshilidzi Marwala – By the end of 2007 all the mechanisms will be in place for Telkom to open up the local loop to rivals. Telkom to start giving rivals access to its copper infrastructure by January 2008.
Deadline: Not met

November 2010 – Communications minister Roy Padayachie – “The unbundling of the local loop remains a critical and important intervention. In this regard we will work closely with Icasa to ensure that the local loop is unbundled by November 2011.”
Deadline: Not met

January 2011 – Icasa councillor Thabo Makhakhe – Icasa will publish its final LLU regulations by November 2011.
Deadline: Not met

November 2011 – Icasa LLU document – Icasa will engage with industry to reduce the price of Telkom’s IPConnect (IPC) service from 31 March 2012.
Deadline: Met

November 2011 – Icasa LLU document – Icasa will engage with industry to ensure true bitstream product is introduced by 1 November 2012
Deadline – Not met

June 2013 – Icasa GM Pieter Grootes – Icasa has set a new deadline for the publication of Local Loop Unbundling (LLU) regulations: 4 March 2014.
Deadline – Not met