Mwakabaga, Msiza and Marwala5th International Confernence on Open Access1 Local Loop Unbundling: A Way for Societies to Benefit from ICT by Teddy Mwakabaga, Ishmael Msiza and Tshilidzi Marwala School of Electrical & Information Eng. School of Electrical and Information Engineering University of the Witwatersrand, Johannesburg 5 th International Conference on Open Access Paradise Holiday Resort, Bagamoyo, Tanzania November 2007

Mwakabaga, Msiza and Marwala5th International Confernence on Open Access2 Agenda Introduction LLU and ICT Services –Affordability –Innovations –Awaking sleeping giants A way forward Summary & Conclusions

Definition Is a regulatory process of allowing multiple locally- and national telecommunications operators to make use of connections from the telephone exchange central office to the customers premises. (Wikipedia definition). Is a process that covers a series of regulatory offers that is aimed at fairly providing newly entrant operators with access to the local loop in a competitive environment. Chitamu & Mwakabaga5th International Confernence on Open Access3

LLU Technical Overview Chitamu & Mwakabaga5th International Confernence on Open Access4

LLU Structures Full unbundling –Operator has access to low and frequency bands Line sharing –One operator occupies one frequency band and the remaining frequency band is taken by another. Bitstream access –Operators provide broadband services as ISPs. Chitamu & Mwakabaga5th International Confernence on Open Access5

6 LLU and ICT Services How Societies Benefit ? Mwakabaga, Msiza and Marwala

New Entrants Roll Chitamu & Mwakabaga5th International Confernence on Open Access7 New innovative solutions Affordable access Customers have more choice Number portability Quality services Reaching under serviced areas Alternative technologies

Africans World Contribution Chitamu & Mwakabaga5th International Confernence on Open Access8 Source: 2007 World Information Society Report: ITU

Incumbents Roll Chitamu & Mwakabaga5th International Confernence on Open Access9 Full participation in the process Close relationship with new entrants More customers focus Subscribers New entrants Facilitate access to the local loop High speed backbone network

A Meeting Point Chitamu & Mwakabaga5th International Confernence on Open Access10

5th International Confernence on Open Access11 A Good Picture Mwakabaga, Msiza and Marwala

5th International Confernence on Open Access12 LLU Challenges Regulatory challenges –Implementation and disputes –Incumbents involvement –New entrants demands and promises New entrants –Obtaining information from incumbents Incumbents –Seen new entrants as parasites –Handling subscribers database Mwakabaga, Msiza and Marwala

Success of LLU Depends on –A regulatory framework that supports LLU –Cooperation between incumbent and new entrants under regulated environment –Regulators convincing muscle Chitamu & Mwakabaga5th International Confernence on Open Access13

5th International Confernence on Open Access14 Good Results Mwakabaga, Msiza and Marwala

Expectations Chitamu & Mwakabaga5th International Confernence on Open Access15 More opportunities for new entrants to deliver More broadband services More affordable services through competition Innovations with affordable open access Lower telecommunication prices A wider choice of ICT infrastructure Enhances countrys economical growth Employment opportunities

Thank You. Chitamu & Mwakabaga5th International Confernence on Open Access16

Chitamu & Mwakabaga5th International Confernence on Open Access17

Background to Broadband Technologies DSL familyDownstreamUpstreamLine supportLoop pair ADSL1-6Mbit/s16-640Kbit/s Baseband + Telephony One copper pair HDSL2Mbit/s No baseband telephony Two copper pair VDSL13-52Mbit/s Mbit/Baseband + Telephony Only over short copper loops < 500m DSL – Digital Subscriber Line ADSL – Asymmetric DSL HDSL – High bit rate DSL VDSL – Very high bit rate DSL

Strategic Issues (1/10) Interference –xDSL services over twisted pairs involves the utilisation of bandwidths much higher than would otherwise be used for voice –Existing xDSL services should not degrade the performance of additional xDSL services –Certain xDSL services can cause more interference –Telkom SA decides to increase of optical fibre to customer access network – hinders deployment of xDSL which require uninterrupted copper

Strategic Issues (2/10) Interference – insuring minimum performance benchmarks –The regulator will need to produce a spectrum management guidance, which insures that the quality of service is not degraded. –The regulator will also be responsible for the development of technical codes of practice in relation to the deployment of services in the county. –The incumbent may be required to produce (to regulator) plans for the already deployed xDSL services. –The incumbent also may be required to show how deployed xDSL services are going to be managed in the unbundled competitive environment. –Specifications in relation to the copper pairs used by the incumbent should also be available to the regulator.

Strategic Issues (3/10) Technical incompatibility –What might technically hinder service delivery is Unavailability of good copper network in some areas

Strategic Issues (4/10) What needs to be provided and known with the regulator The quality of the incumbents copper network, this includes –Any problems that are known in the duct system, –Age of the copper pairs –The material that the loop is made of –Loading coils and other devices on the loop. The length of copper from the local exchange to customer premises. –Distances of more that 3-5 KM can be a problem The incumbents plan to upgrade its network –extending fibre beyond the local exchange towards the customer premises.

Strategic Issues (5/10) Provisioning –A process - new entrants orders LLU services from incumbent to connect end user premises to its own network Provisioning process –Forecasting New entrants required to forecast their anticipated requirements Forecasting may be given in specified time period and updated on a rolling basis. Understand the consequences for the new entrant –Underforecasting (demand exceeds forecast) –Overforecasting (forecasts exceed demand) –Ordering Detailing the main steps and timeframes In under serviced areas, what is the process to be followed to insure the construction of new pairs for the local loop. –Charges In cases such as rejection or cancellation of orders

Strategic Issues (6/10) Collocation – key issues to be considered –The claim by the incumbent that there is no space in the relevant exchange –The application of overly onerous technical requirements on the competitors equipment as opposed to the equipment located by the incumbent itself –The requirement by the incumbent that the competitor take a minimum amount of space or that the incumbent have caged collocation as opposed to cageless collocation –The requirement that a competitor cannot interconnect with other competitors within the exchange or that if the two do interconnect the interconnections must be purchased from the incumbent

Strategic Issues (7/10) Collocation – key issues to be considered –Discriminatory security measures –The allocation of all site preparation costs to the first competitor regardless of whether all costs are attributable to that competitor –Failure to allow collocation in adjacent buildings –Lack of provision of information on space availability –If new collocation arrangements have to be negotiated, can that be done in the multi-lateral forum or bi-laterally –What is the provisioning lead-time on getting collocation space in an exchange building and what are the main steps?

Strategic Issues (8/10) Cutover –A process of moving customers line from the incumbent network to new entrant line Cutover plan – should clarify the following issues –The maximum timeframe for the cutover is to occur –Hours during which cutovers will usually be organized –There will be out of hours charges by the incumbent. –The co-ordination mechanisms between the incumbents technicians and the new entrants technicians –Reversal procedures for failure to activate service on the new entrants network –Minimum cancellation notice for the cutover process to take place

Strategic Issues (9/10) Local number portability –T he relationship between the ULL ordering process and the LNP process needs to be known –Charges among operators involved need to be known Fault detection and repair –Fault reporting and repair process between the incumbents and new entrants need to be outlined –Who is responsible for receiving end user fault reports –How does the incumbent prioritize fault reports –What if repair deadlines are not met

Strategic Issues (10/10) Fault detection repair –The process depends on whether the competitive carrier has Control of the entire loop or It is sharing the loop with the incumbent –Where the incumbent is required to have contact with the new entrants customer to repair a particular fault What are the processes for co-ordination between the two parties and the customer How to ensure that the incumbent will not use the information to try and win back the customer or to disparage the new entrant