{"id":128,"date":"2007-05-29T09:45:06","date_gmt":"2007-05-29T07:45:06","guid":{"rendered":""},"modified":"2012-11-14T14:53:36","modified_gmt":"2012-11-14T12:53:36","slug":"fixed-line-rivalry-from-next-year","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/telecoms\/128-fixed-line-rivalry-from-next-year.html","title":{"rendered":"Fixed-line rivalry from next year"},"content":{"rendered":"<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">The local loop unbundling committee established by Communications Minister Ivy Matsepe-Casaburri to make recommendations on the unbundling process handed over its report to her on Friday. <\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">Matsepe-Casaburri announced in her budget vote speech last week that the unbundling process should be implemented urgently by the Independent Communications Authority of SA and completed by 2011.<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">Local loop unbundling means that multiple competitors to Telkom will be able to use its infrastructure linking the end of a subscriber\u2019s telephone to the local exchange for broadband or voice services. Consumers will be able to choose their own service provider for one or both of these services.<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">The aim would be to encourage competition to lower the cost of telecommunications and increase the number and quality of services.<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">\u201cIt is our view that the process should happen as soon as possible,\u201d Tshilidzi Marwala, chairman of the local loop unbundling committee, said. \u201cWe believe that by the end of this year all the mechanisms will be in place.\u201d<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">Marwala conceded that the Independent Communications Authority of SA (Icasa), which has to create the regulatory framework for the unbundling, considered a four-year time frame as \u201coverly optimistic\u201d. But Marwala said SA would be able to learn from the experience and mistakes of other countries to achieve the unbundling in record time.<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">SA was not far behind the rest of the world and was one of the few countries in the southern hemisphere to undergo the process, he said.<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">Matsepe-Casaburri has directed Icasa to undertake the unbundling process on an urgent basis to ensure that it is implemented by 2011. <\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">It is estimated the unbundling will increase the R80bn fixed-line telecommunications market about 25% to 50% and reduce telecommunication costs 30%- 70%.<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">Marwala said that before the unbundling could proceed, Icasa would have to establish the regulatory environment within which it could take place to ensure the new licensed entrants gained competitive access to Telkom\u2019s infrastructure. <\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">The authority would have to regulate the price charged by Telkom for access to the infrastructure, and implement carrier preselection so customers can choose their service providers. It would also have to regulate access by outside operators to the exchanges and the maintenance of the local loop.<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">Guidelines for how the authority should proceed with the unbundling process were published in the Government Gazette on Friday. Calls were also made for public comment on the committee\u2019s recommendations.<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">The committee has recommended a hybrid mix of unbundling models depending on socioeconomic context, for example rural or urban environments. The options would range from full unbundling, where Telkom owned the infrastructure used by multiple operators; line sharing, where Telkom only provided voice services; and bitstream or wholesale access.<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><span style=\"font-size: small;\">The committee\u2019s report \u2014 available on the communication department\u2019s website today \u2014 also recommends that Telkom establish a new facilities and services management entity on the basis of Icasa guidelines should the full unbundling model be adopted.<\/span><\/span><\/p>\n<p><span style=\"color: #333333; font-family: Verdana; font-size: small;\"><a href=\"http:\/\/mybroadband.co.za\/vb\/showthread.php?t=76526\">Comments<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>About 80% of the telephone local loop should be unbundled in about four years time, with the first introduction of competition possibly taking place next year, an expert committee has stated.<\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-128","post","type-post","status-publish","format-standard","hentry","category-telecoms"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/128"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=128"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/128\/revisions"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}