1Presentation to PCoC Convergence Bill Hearings Wireless Business Solutions (Pty) Ltd (WBS) Oral Presentation to the Portfolio Committee on Communications Presented by: Mark Headbush: Executive Chairman And Mbulelo Ncetezo: Head Legal and Regulatory Affairs 10 th August 2005

2Presentation to PCoC Introduction WBS would like to thank the Portfolio Committee for the opportunity to engage in this policymaking exercise We will cover the following areas: –Preamble –Background on WBS –Comments on the Bill

3Presentation to PCoC Preamble WBS welcomes the introduction of this Bill for the following reasons: –It gives credibility to the policy-makers’ intention to liberalise the telecoms industry in the RSA –It seeks to level the playing field –It’s generic approach leads to fewer pigeon-holes and thus less confusion –The introduction of class licences will lighten the administrative burden on the Regulator whilst facilitating the application process –It encourages technical and service neutrality However, we note its silence on minimum set-aside shareholding for HDGs in major new licences

4Presentation to PCoC Background on WBS Licensed in 1996 in terms of the Telecoms Act #103 of 1996 to build and operate a National Mobile Data Telecommunications Network 60% Black-owned, 90% Black-managed Amongst other things the licence entitles WBS to: –Provide the last mile to the subscriber –Convey any message by means of this line –Interconnect with all other licensed telecoms operators The network topology is cellular in nature and operates in the 1800Mhz and 400MHz bands The narrowband network serves the National Lottery company, Uthingo, covering 95% of the population The broadband network currently covers parts of Gauteng, KZN and the WC offering wireless internet services at 1000kbps – aiming to for a comprehensive national population coverage

5Presentation to PCoC Comments on the Bill “Communications network” –Our understanding is that this refers to the actual telecommunications infrastructure, like the one WBS operates. –Since one needs a licence to rollout such a network we feel there should be a definition for a communications network licensee –This will be in line with the definition of a telecommunications network services licensee. This would be similar to the service provided by WBS to Uthingo ito data and the general public ito of the wireless broadband internet access (iBurst).

6Presentation to PCoC Comments “Existing licensees” –This is a very appropriate definition as it forms the basis for the conversion process outlined in s85 of the Bill –We appreciate the flexibility displayed where the currently licensed and non-licensed(s84 (1) and (2)) infrastructure and telecoms service operators will be regarded as ‘deemed operators’.

7Presentation to PCoC Comments s33 Co-ordination of frequencies –This should not be left to licensees where there are dominant players who have a significant market power –Icasa should be responsible for the coordination of frequencies in consultation with the stakeholders s42 (8) –Whilst this section rightfully prohibits exclusivity arrangements it stops short of declaring the SFOC (landing station in particular) and the international gateways as essential facilities –S42 (3) (a) requires that the Authority should prescribe communications facilities whereas the definition of communications facilities does that – the Authority should rather declare essential facilities and then review the list periodically

8Presentation to PCoC Comments s43 (5)(b)(i) and (ii) : We agree with this provision as it might be beneficial for small operators like us s63 –The role of the competition commission vis-à-vis that of ICASA ito competition issues is not adequately clarified –Having said that WBS believes that ICASA cannot be completely excluded from the adjudication of competition matters in the communications industry s65 –We agree with the notion that all communication service licensees and communications network service licensees should be catered for in the numbering plan –ICASA should also consider IP addresses for packet-switched networks

9Presentation to PCoC Comments s83 –WBS agrees with this, however, there should be there should be a comprehensive business plan for the USF (in consultation with stakeholders) –Some schools cannot even afford e-rated internet broadband services despite the fact that we waive connection fees and offer the modems gratis

10Presentation to PCoC s84 Transitional provisions WBS welcomes this section as it will ensure that there will be no disruption of services We believe that this phase should be used to create a smooth transition from the old order to the new one During this phase the Authority is supposed to have prescribed the manner in which applications should be made That should clarify which type of licences each existing licensee should apply for – eg. WBS expects at least four licences viz., communications network services, communications service, application services and radio frequency spectrum

11Presentation to PCoC s85 Licence conversion We don’t believe that a period of 12 months for this process is realistic –Mobile data networks, radio trunking and asset tracking are just some of the services that were never brought into the fold ito the Telecomms Act – 9 years In compiling the notice on the process to be followed we expect the Authority to consult with the existing licensees – this will be time consuming On submission of a written notice to surrender a licence the new dispensation should come into effect (s84(5)) The authority will have to deploy sufficient and appropriate resources (human, financial and time) – we hope the ICASA Bill will see to that.

12Presentation to PCoC In Conclusion A smooth and prompt promulgation of this Act can only have positive spin-offs for South Africa The introduction of fair competition and protection of smaller operators will lead to more affordability and availability of communications services The only threat is the Local Loop – if it is not unbundled then the Act will fall short of the desired results We hope that the next few months will be characterised by co-operation amongst all stakeholders and that narrow personal interests will have no place

13Presentation to PCoC Thank You