Telkom comments on LLU uncertainty
Local Loop Unbundling (LLU) is seen by many as a potential saviour to the poor state of fixed line broadband and ADSL in South Africa, but according to Dr. Richard Majoor from Telkom, this is only a pipe dream.
Majoor, the executive of technical regulations at Telkom, said at the 2010 SATNAC conference that LLU might introduce competition, but it won’t solve the problem of faster and wider broadband Internet access in South Africa.
Increased competition from LLU can impact Telkom’s profitability, and the company today confirmed that the two most pressing regulatory pressures facing Telkom currently are spectrum fees and Local Loop Unbundling.
Telkom said the risk that LLU poses to their profitability is dependent upon the form and details of implementation that will be imposed by ICASA, neither of which are known at this point in time.
“In addition, Telkom is not the same company it was when LLU was first considered and the market has changed significantly, particularly access technology,” Telkom said in a press statement.
“Telkom has analysed various LLU options, and will continue to engage with key stakeholders.”
Loading ...