EMPOWERING THE ICT SECTOR FOR CHANGE WOAN FORUM COLLOQUIUM EMPOWERING THE ICT SECTOR FOR CHANGE

WOAN FORUM Brings together parties committed to the realisation of the WOAN Brings together SMMEs, Women, Youth, Labour, Entrepreneurs, Research, ICT companies, Licensed operators Aim is to bring about the best policy and regulatory conditions for the birth, sustainability and growth of the WOAN A platform to facilitate a convergence of ideas A platform for constructive and extensive inputs into current processes

WOAN FORUM A voluntary grouping of entities WOAN Forum has held 2 public consultation and colloquia on Open Access and the WOAN WOAN FORUM supports the introduction of the Amendment Bill To address the digital divide and growing gap between those with access to quality broadband and those without Focus on changing the market structure - dominated by 2 companies Focus on competition and access to critical infrastructure-extremely high barriers to entry Focus on Services based competition- allows for innovation and lowering of costs

WHY SUPPORT THE WOAN Practical, concrete proposal to address the many failures of the ICT sector Opens up the sector in a significant and meaningful way for new entrants, SMMEs, licensed entities, Women, Youth and the historically excluded ICTs provide a new growth path for the SA economy Societal transformation and modernisation of government services impossible without universal and accessible platforms and services The world is moving towards shared economies underpinning the 4th IR Critical Resources like the Spectrum are not enough to be individually exploited

WOAN Forum Presentation The necessity for an all encompassing widespread network of networks All sectors of the economy adopting ICTs to innovate, improve manufacturing and productivity The ICT sector as a whole adopting mobility as fundamental component of services anywhere, everywhere and anytime- the mobile ecosystem prevents only two companies dominating the value chain Current arrangements, ownership and domination by a few players stifling the SA economy as a whole. The ICT White Paper correctly identified this as the real bottleneck stifling the ICT sector and other sectors of the economy.

WOAN FORUM Presentation ECA Amendment Bill is a welcome development within the holistic framework of policy development and implementation Existing system has failed and produced the current system that warranted a review, produced a heated national discussion between 2 incumbents and the rest of society Existing policy and regulatory environment will not permit an entry of a new player- less advantaged, participating in defined segments of the market only and not protected from predatory behaviour of dominant players Policy decision-----legislation------regulations----implementation through licensing

Current Market structure Highly concentrated- 2 players controlling over 80% of the market Extremely high barriers to entry- infrastructure and spectrum Inadequate competition- limits accessibility Networks focussed on urban areas

Critical Factors for the success of the Woan White Paper outlines regulatory conditions that will open the sector to new entrants Open Access Policy and Principles – many users coexisting on same infrastructure and using same spectrum bands Effective Access to competitor infrastructure – unbundling and facilities sharing and fair service level agreements – all networks Vertically integrated companies to stop discrimination and a principle of account and logical separation to be considered

Critical Success Factors Asymmetrical regulation – WOAN is a new entrant Success depends on pro-competition framework Bill imposes obligations on the WOAN- cost based pricing, roll-out obligations Licensing of the WOAN prior to release of the spectrum to existing players Access to existing spectrum Open Access to existing MNO infrastructure at reasonable and transparent costs Access to state owned assets including buildings, high sites, ducts Uptake commitment from existing MNOs Upfront commitment of the State to use the WOAN for its broadband needs Use of finance instruments (Digital Fund) to support locally based service providers to provide services to Government

Pro-competition framework Entities that control critical limited national resources coupled with market power must be regulated effectively- not different from state monopolies of the past Market power in relevant infrastructure market Controls essential facilities Network constitutes 25% of the market Has scarce national resources for exclusive use. ICASA to publish a list of such deemed entities soon after the White Paper is published

Pro-Competition Framework Levelling of the playing field- dominance means more than potential dominance Cost based pricing Minister will require the regulator to develop regulations on cost based pricing Active sharing of infrastructure Mandated sharing of the existing infrastructure, through the WOAN, logical answer to current arrangements

Pro-Competition Framework Licensing of the Spectrum to current players opaque No Framework for Auction of limited national, natural resources No guidelines to ensure an even playing field between small and dominant companies Policy Outcomes in terms of maximizing use of public resources A policy direction that all dominant players must get the spectrum No direction or parameters to ICASA to manage the many conflicting public objectives

Fair Distribution of the Spectrum Spectrum drives mobile businesses and fair distribution of it is paramount in levelling the playing field All IMT spectrum already allocated to existing players to exploit, re-farm and derive benefits from it Totality of proposed spectrum to the WOAN is a fraction of percentage of total spectrum allocated to competitors- compare apples to apples No study to understand real future needs of existing players – Spectrum trading, national roaming agreements, deployment of infrastructure Model based on their dominance- no attempt to change

Spectrum auction will not achieve policy goals Will entrench existing dominant players Give first mover advantage to existing MNOs Will raise financial barriers to enter the ICT market Will drive up costs to communicate Cost of auction will be passed on to consumers

4G or 5G Policy Direction predicated on 4G IMT Spectrum WOAN given till 2021 to establish its network Incumbents expected to lease facilities for 3 Years 2019 ITU Focussed on 5G Study advocates similar parameters in licensing the 5G Spectrum – once advantaged always empowered 4G Lifespan approaching the end No sustainable business based on legacy networks

THANK YOU Tsholo@hopetech.co.za Envirf@convergencepartners.com WOAN FORUM THANK YOU Tsholo@hopetech.co.za Envirf@convergencepartners.com