Infrastructure,
Competition,
Investment, Rural &
Urban Divide
01 November 2016
Puleng Kwele
SA Telecoms industry timeline: 1991 - 2010
SA Telecoms Timeline: The SA telecoms market began liberalising in the early 1990s, but only began to
gain momentum through legislative / regulatory and commercial / competitive developments in the second
half of the 2000s. Source: SA Telecoms & Broadband Timeline, edited by Africa Analysis & Broadband
Infraco
November
2008
Certainty that VANS can
build
independent
network
infrastructure.
2005: new
1991:
Telkom
Corporatis
ed
1996: SA
Telecommunic
ations Act
(amended)
1990
1993/1994:
Vodacom
and MTN
licensed &
operational
1997:
Telkom
granted 5year
exclusivity
on
1995
1998: iBurst
Initially
Licensed by
ICASA
Electronic
Communica
tions Act
Prescriptive
about
Market
studies to
be
conducted
by
regulator
2006/2007:
Neotel
(SNO)
licensed
monopoly.
2000
2001: 3rd
mobile
licence
awarded to
Cell C
2008: Altech
wins ‘right to
selfprovision’
case against
ICASA;
opens up
infrastructure
competition
market
2005
2002:iBurst
Spectrum
licences
1787 – 1803
MHz
spectrum
licenced
2009:
Telkom
disinvests in
Vodacom.
BBI is
awarded
limited
ECNS
licence.
2010
2007: iBurst
GSM 1800
spectrum
licence
received in
2007
2010: SA
broadband
policy draft
2012
2010:
Launch of
8ta – 4th
mobile
operator.
Slide 2
SA Telecoms industry timeline : 2010 to 2016
“Generic” Market structure & regulatory events
• Supreme Court of
Appeal finds in favour
of Mobile Telephone
Networks (Pty) Ltd v • Competition
• Cell C sells
SMI Trading CC in
Tribunal fines
towers to
terms extra lease
Telkom R449m for
ATC – Carrier payments , S22 ECA
abusing market
Neutral Open• Fast track
position.
Access
deployment
•
Encourage
Facilities
Competition
2011
2013
2010
• SA broadband
policy draft
FTTH deployment by
•
various entry
•
Govt
sells
its
operators
13.91% stake in
Vumatel, Waterfall
Vodacom to the PIC
Access Networks,
Frogfoot, Fibrehoods,
MFN, TTConnect
2012
•
•
3
Open Access
WACS launch,
to the market
National
Development
Plan.
Multisource
announces
4G network
2015
2014
• Supreme Court of
Appeal – rules in
favour of Dark
Fibre Africa versus
• Cabinet
the Msunduzi
•
approves the SA
Municipality, 14
Connect Policy
October 2014.
• ECNS Licence
Rights ito Sections
22 of the ECA of
2005.
2016
•
Cabinet
approves
National
Integrated ICT
Policy White
Competition
Paper
Tribunal
approves the • PRASA &
R2.6bn merger Vodacom
announce
deal between
BCX & Telkom. fibre lease
deal
• Blue Label
Telkom
launches
acquires 45%
Openserve
of Cell C
Source: Africa Analysis & Broadband Infraco
Slide 3
Industry Value Chain - Providers
International
No Policy Action
National Long Distance
Avoid unnecessary duplication
Metro
Access to Municipal
Infrastructure not regulated
Duplication
Access
Fibre based: Multiple
uncoordinated networks,
Duplication,
Not open access
Wireless: Only 6 have access
Consideration of required SLA’s Consideration of required SLA’s Imp[act on roads infrastructure
Diversity, Redundancy
Diversity, Redundancy
and environment
Regulator/Ministry
• List of deemed open access networks – (Case Studies) carrier neutral tower companies, data centres, co-builds like WACS
and the NLD
• Develop regulation on cost based pricing – aka COACAM
• Regulated national roaming to MVNO – Cell C/ Virgin, MTN/ Telkom
• Develop a framework for RAN sharing – (LLU, 2010 Stadia
• Develop open access regulations
• ECA Amendment
• Review definition of essential facilities
• License wireless open access network
• Establish National Radio Frequeny Planning
• Establish Spectrum Directorate
Slide 4
The Spectrum/ The funders & Owners-
Multisource/
IBurst
Government
39, 8%
PIC
13,9 %+3,6%
GEPF 15, 91%
Vodacom
Eyethu
Zakhele 2.0
CellSAF 25%
Royal
Bafokeng
BBBEE
partners
Slide 5
The Funders
• Expected returns
• Match instrument to risk
and purpose- Short term vs
Long term
etc
• Track record• Credit worthiness –
Collateral
Commercial
Banks
DFI
Local and
International
Shareholders
Government
Policy enablement
BBBEE
PE
Slide 6
Reflection Moment: Enforcing Inclusion
Requirements to deliver SA Connect
5. Final SA Connect
Implementation Plan
Consolidate and include
stakeholder inputs
Adopt “SA CONNECT:
IMPLEMENTATION 2030”
3. Adopt Principle of
Leveraging Existing
infrastructure
Source: ITU Standardisation Working
Group, 2014 Plenipotentiary
Economies of scale
1. Master ICT
Infrastructure Plan
Technical Design &
Planning
Q1
2015
Q1
2015
2015
2030
Q2
2015
Q2
2015
Q2
2015
2. Open Access
Industry
Standardization
Gazette open access
definitions and standards.
6. Implement
Performance targets
Monitor & evaluate
Continuous review
4. Drive Digital Readiness
Pillar through Provincial
Alignment
Solicit Inputs and comments,
analyze
The process to deliver "SA Connect“
4 November 2014
DBN ICC
Slide 7
Integrated ICT infrastructure Roll Out
Leveraging Existing Infrastructure
Broadband
Policy
National Broadband
Network
NDP
SOC
Collaboration and
cooperation
National e-strategy
(Infrastructure)
Slide 8
Slide 8
Inclusion and exclusion
2G
533 sec
(120 kbps)
3G
213 sec
(300 kbps)
3.5 G
16 sec
(4 Mbps, 5 MHz)
3.75 G
8 sec
(8 Mbps,10 MHz
DC-HSPA)
LTE (4G)
2.1 sec
(30 Mbps, 20 MHz)
LTE-A
0.6 sec
(100 Mbps)
Slide 9
Plan to execute
10