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

2. 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

3. 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

4. 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

5. 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.

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

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