1. Submission on the Telecommunications Amendment Bill 65 of 2001
Transtel
Submission on the Telecommunications Amendment Bill 65 of 2001
25 September 2001
Parliamentary Portfolio Committee on Communications

2. Presentation Outline
Sectoral Policy Reform and links with National Strategic Objectives
Comments on the Amendment Bill
General Remarks

3. LINKAGES TO NATIONAL OBJECTIVES
RDP (1994)
GEAR (1996)
NFA (1996)
IMCC (1999)
• Meeting basic needs
Developing human
Resources
• Democratising State
and society
• Improving the quality
of life
• Budget reform
• Fiscal deficit
reduction
• Stable currency
• Limit inflation
• Tax incentives
• Funding of skills
• Infrastructure
investment
•Economic
growth and
Employment
• Meeting basic
needs
• Reduce state
debt
• Finance
•growth
• Mobilise private
capital
• Wider
participation
• Attract FDI
• BEE
• Globalisation
SECTORAL
OBJECTIVES
Telecoms White Paper (1995)
• Promote universal service
• Attract FDI
• Promote increased competition
• Needs of disabled
• Promote stability
• Encourage BEE, women and SMMEs
Source: BMI-TechKnowledge 2001

4. Comments on the Telecommunications Amendment Bill
Fixed-mobile
We fully support the spirit behind which fixed-mobile has been included as part of PSTS offerings
We’ve presented a definition of fixed-mobile in our submission that we feel captures the essence and intent of what fixed-mobile means
Number portability
Essential that it be introduced sooner to ensure empowerment of consumer
Cost of changing numbers by SMMEs and SOHOs will make it difficult for them to switch to the SNO
Interim mechanism of number retention (large corporates can retain their blocks of numbers upon churning) can be implemented
Carrier pre-selection
Carrier pre-selection will bring to SA consumers real choice in the selection of international carrier
Carrier pre-selection on a call-by-call basis will help increase branding of SNO

5. Comments on the Telecommunications Amendment Bill (cont’d)
3G licences
Wording of section on third generation spectrum licencing needs streamlining
Enough time to get it right
May want to coordinate its introduction with E-commerce legislation because of the convergence of the two
Spectrum and other fees should be commensurate with licence rights
Servitudes and wayleaves
Critical to the maximisation value of SOEs going into the SNO
Exclusive access to PSTS servitude/wayleave rights of SOEs (Transnet, Eskom, SARCC) by Transtel and ESI~TEL, guarantees value for SOEs in SNO
Extent of Transnet and SARCC’s railways combined with Eskom’s electricity grid, increases SNOs time to market by at least 18 months
Environmental point of view, SOEs servitudes/wayleaves minimise the extent to which SNO would have to dig up the earth to lay infrastructure

6. Comments on the Telecommunications Amendment Bill (cont’d)
Lease of Telkom facilities by the SNO
This will help SNO prioritise roll-out of its network
Leasing of facilities will need to be on a non-discriminatory, transparent and fair basis
Leasing of facilities should also include quality of service obligations
No need for statutory time limit – parties should be allowed to negotiate own terms and conditions subject to ICASA’s approval
Symmetrical licensing terms
It is not uncommon to legislate in a manner condusive to competition
To this end, Bill should maintain ICASA’s discretion by allowing it to issue regulations that enable competition: Rate Regime (no price-cap on SNO); USOs proportionate to size of SNO’s network and financial ability; Numbering Plan – introduction of number portability
Fees for 1800 MHz spectrum
Spectrum and other fees should be commensurate with licence rights

7. Comments on the Telecommunications Amendment Bill (cont’d)
Multimedia definition
Essential for definition to include the term uni-directional as such term pertains to broadcasting
This will clarify that any multi-media operator that cannot carry traffic directly to its customers will have to do so via the network of fixed line operator
Interconnection agreements
May not be prudent for fixed line operators to negotiate framework of interconnection agreements for SMMEs without SMMEs having been licensed and having made input into process
Self provision of facilities
In terms of section 44(7), a licensed operator should have to seek facilities from both fixed line operators before being able to self-provide

8. Comments on the Telecommunications Amendment Bill (cont’d)
Local loop unbundling
It would be beneficial to allow ICASA to determine the basis upon which LLU should be introduced, ie in respect of reasonableness within Telkom’s network
Funding of ICASA
Critical to increasing regulatory certainty and thereby investor confidence in the sector and the country’s overall commitment to market liberalisation
Transtel supports a small levy being given by operators to fund ICASA similar to the mandatory contribution to the USA

9. General Remarks
Amendment Bill sets the right framework for managed liberalisation
One additional national operator
Full service licence
Fixed-mobility to increase cellular phone penetration by making more affordable
Technology neutrality to allow operators to deploy appropriate network infrastructure
Amendment Bill looks to the future
Seeks to licence additional service based operator in 2005
Licensing of SMMEs will increase telecommunications take-up in the country