Regulatory Challenges in a Converging Environment

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Regulatory Challenges in a Converging Environment
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Agenda

• Factors affecting IP Networks
• Regulation in a Converging Market
• Opportunities for new entrants
• What clients are looking for
• How to bring it all together
• Clients Case Study
• Conclusion.

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Opening remarks
A fully competitive environment is necessary
in order to achieve significant growth and
downward pressure on prices. Ministry of
Communications at the forefront of deregulation
efforts with Electronic Communications
Act. Further steps to speed up deregulation
announced in recent budget speech.
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Background
SA regulatory environment under Telecoms Act of
1996 favoùred price cap regulation model - key
focus only on retail price regulation. Input
prices for bandwidth constrain businesses from
performing to their true potential. The sector
and the economy requires competitive telecom
prices in order to thrive and attain the stated
economic growth targets of 6.
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Factors Affecting IP Networks
Low retail prices
Increased FDI
Telecoms Act inhibitors
Affordable fixed line services
Efficient use of spectrum
Marketdynamicsand trends
Affordable mobile services
Effective mobile competition
Effective infrastructure competition
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Regulation in a Converging Market

• Licenses change from a vertical to horizontal
  structure

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NGN under the ECA
MPLS
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Opportunities for new entrants
Self-provisioning of facilities, including
licensing of certain qualifying VANs as network
infrastructure providers. Access at cost to
national and international facilities like SAT-3
and EASSy. Direct access and allocation of
broadband wireless frequency spectrum. Interconne
ction, number portability and carrier
pre-selection. Access to wholesale/cost pricing
on essential facilities. Access to the unbundled
local loop.
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What clients are looking for
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Bringing it all together
Security
Data
Voice
Video
Web
ConvergedNetwork
ConvergedNetwork
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Bringing it all together
mobile
PDA
desktop
phone
Converged Communications
ConvergedClient
ConvergedNetwork
ConvergedNetwork
ConvergedClient
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Client Case Study
VoIS Case Study Mr Price
Drivers Network refresh Cost saving Ease of
management Solution 750 site VPN Avaya IP
telephony VoIS service suite for call
termination Benefits Complete outsource of all
converged communications Homogeneous, outsourced
network Standardised telephony implementation 41
savings on voice spend
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Client Case Study
VoIS Case Study OKeeffe Swartz
Overview Outbound call centre of 500
agents Primarily cellular calls Still in POC
phase Drivers Cost saving, disintermediation of
Telkom, reliability Issues GSM networks unable
to provide network capacity locally for
LCRs Customer spending gt R2m per month via
Telkom at more than double LCR VoIP
pricing Telkom unable to provide last mile
connectivity IS Solution WiMax and WiNet links
into IS circumvent Telkom last mile Centralised
GSM termination circumvents GSM capacity issues
on site 52 saving on call termination
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Conclusion
Telecommunication costs that are higher than
their competitive level act as a tax on the
industry and a drag to the economy. The effect
of the Telecommunications Act was to tilt the
market in favour of the incumbent operators. The
ECA seeks to level the playing field by extending
new rights to players like ISPs who previously
were kept out of the mainstream of the
market. Whilst it will take time to completely
level the playing field, the ECA
certainly provides the platform for the necessary
intervention.
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