South Africa’s Internet Service Providers\u2019 Association (ISPA) has written to the Independent Communications Authority of SA (Icasa), highlighting the authority’s failure to finalise regulations governing the implementation of the e-rate.<\/p>\n
ISPA says the failure is\u00a0disincentivising the provision of discounted services to schools and other qualifying institutions.<\/p>\n
ISPA’s request to Icasa required clarity from the authority “regarding the current status of implementation of the e-rate as contemplated in section 73 of the Electronic Communications Act 36 of 2005 (\u201cthe ECA\u201d)”. No response from Icasa has been received.<\/p>\n
First proposed under the Telecommunications Act of 1996, the concept of an e-rate was floated as a way to help achieve universal telecoms access and facilitate education by requiring ISPs to provide Internet access to schools at 50% of the commercial rate.<\/p>\n
More recently the legislative framework for the e-rate was amended by the Electronic Communications Amendment Act 1 of 2014, which broadened the scope of application of the discount to private schools.<\/p>\n
Icasa has stated that it intends to complete its review of the 2009 e-rate regulations, which it recognised did not provide for the relationship between retail and wholesale levels of the service provision value chain.<\/p>\n
It published notice of its intention to revise the 2009 e-rate Regulations on 7 December 2009 and public hearings in this regard were held in March 2010.<\/p>\n
This exercise has not, however, been completed and the 2009 e-rate regulations remain in force.<\/p>\n
Furthermore, there is no mention of the proposed e-rate review in Icasa’s current Strategic Plan.<\/p>\n
“We are still stuck with no reference to upstream providers giving the downstream provider 50% discount,\u201d said one ISPA member.<\/p>\n
\u201cWith today\u2019s prices, margins have been chopped to remain competitive making 50% totally unrealistic.\u201d<\/p>\n
“I think the e-rate should be scrapped as many ISPs are doing their best to provide services to schools and making their own decisions around a sustainable service. The reality is that schools are getting discounts in spite of the e-rate,” the ISP said.<\/p>\n
There is a common perception that the e-rate must be offered by ISPs, says Dominic Cull, ISPA regulatory advisor, when, in fact, no regulatory framework exists to do so.<\/p>\n
“Icasa is aware of the absence of a regulatory framework to prescribe the manner of e-rate implementation, yet it carries on requiring licensees to file annual reports relating to their implementation of the e-rate,\u201d said Cull.<\/p>\n
\u201cAt the same time the e-rate is regularly held up in Parliament as an ongoing success: it isn\u2019t.”<\/p>\n
ISPA has called on Icasa\u00a0to urgently clarify its position on\u00a0the e-rate.<\/p>\n
Cull said\u00a0that if the e-rate is to be persisted with then it must be recognised that, as things stand, the e-rate actually disincentivises discounted service provision – with the possible exception of vertically-integrated incumbent operators.<\/p>\n
\u201cThe current uncertainty serves nobody\u2019s interests,\u201d said\u00a0Cull.<\/p>\n
You must demand uncapped mobile data: ISPA<\/strong><\/a><\/p>\n