An overview of interconnection, facilities leasing and numbering administration<br />Pieter Grootes<br />General Manager<b...
Contents<br />ICASA’s mandate<br />An overview of interconnection and facilities leasing<br />Numbering Administration<br ...
Mandate of ICASA<br />Vision:<br />To advance the building of a digital society. <br />Mission:<br />To ensure that all So...
interconnection and facilities leasing<br />Two rationale for interconnection:<br />Connectivity<br />Competition<br />Con...
INTERCONNECTION FOR CONNECTIVITY<br />Metcalfe’s Law: economic value of a network is thought to increase to the square of ...
INTERCONNECTION FOR COMPETITION<br />Objective: to support the new entrant by allowing it to use some of the services and ...
CALL TERMINATION MARKET REVIEW<br />ICASA has defined two markets:<br />Market 1: The market for wholesale voice call term...
Cost-based termination rates<br />8<br />Calculation Methodology<br /><ul><li>Fully Allocated Cost
Current Cost Accounting
Source: “COA/CAM” data</li></li></ul><li>termination rates in the Future<br />9<br />International Developments<br /><ul><...
SA model is already close to UK LRIC model</li></ul>> 80% reduction<br />ICASA to review rates in 2013/14<br />Everyone se...
Network roll-out & PASSIVE infrastructure<br />Greenfields network roll-out is costly<br />Sharing of infrastructure is be...
Numbering Administration<br />11<br />
Numbering allocation<br />12<br /><ul><li>087 no. use: Justify call pattern to earn Between ON termination rate
For now there will be no allocation of mobile numbers to those who do not already have a mobile number allocation</li></li...
Upcoming Regulatory initiatives<br />Introduction of the new numbering plan<br />Online application for numbers<br />Onlin...
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An overview of interconnection, facilities leasing and number administration - By Pieter Grootes

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An overview of interconnection, facilities leasing and number administration - By Pieter Grootes

  1. 1. An overview of interconnection, facilities leasing and numbering administration<br />Pieter Grootes<br />General Manager<br />Markets and Competition Division<br />ICASA<br />1<br />
  2. 2. Contents<br />ICASA’s mandate<br />An overview of interconnection and facilities leasing<br />Numbering Administration<br />Future/upcoming regulatory matters<br />2<br />
  3. 3. Mandate of ICASA<br />Vision:<br />To advance the building of a digital society. <br />Mission:<br />To ensure that all South Africans have access to a wide range of high quality communication services at affordable prices.<br />3<br />
  4. 4. interconnection and facilities leasing<br />Two rationale for interconnection:<br />Connectivity<br />Competition<br />Connectivity is about ensuring that all networks are able to “talk to each other”<br />Interconnection for competition refers to specific regulatory intervention to promote competition in the ICT sector<br />4<br />
  5. 5. INTERCONNECTION FOR CONNECTIVITY<br />Metcalfe’s Law: economic value of a network is thought to increase to the square of its size<br />New entrant network needs interconnection to survive<br />Electronic Communications Act:<br />Any licensee “must, on request, interconnect to any other” licensee (S37.1)<br />Upheld by Interconnection Regulations (GG 33101)<br />Challenges:<br />Potential lack of bargaining power in T’s & C’s<br />5<br />
  6. 6. INTERCONNECTION FOR COMPETITION<br />Objective: to support the new entrant by allowing it to use some of the services and facilities of an established player<br />Interconnection/facilities leasing services to promote competition:<br />Call origination with carrier selection<br />Bitstream access?<br />Local loop unbundling and associated co-location?<br />Satellite earth stations<br />Submarine cables<br />Upheld by Electronic Communications Facilities Leasing Regulations (GG 33252)<br />6<br />
  7. 7. CALL TERMINATION MARKET REVIEW<br />ICASA has defined two markets:<br />Market 1: The market for wholesale voice call termination services to a mobile location on the network of each licensee who offers such a service within the Republic <br />Market 2: The market for wholesale voice call termination services to a fixed location on the network of each licensee who offers such a service within the Republic<br />Pro-competitive remedies<br />Cost-based call termination rates<br />Reference Interconnection Offers <br />
  8. 8. Cost-based termination rates<br />8<br />Calculation Methodology<br /><ul><li>Fully Allocated Cost
  9. 9. Current Cost Accounting
  10. 10. Source: “COA/CAM” data</li></li></ul><li>termination rates in the Future<br />9<br />International Developments<br /><ul><li>EU is moving from LRIC+ to pure LRIC
  11. 11. SA model is already close to UK LRIC model</li></ul>> 80% reduction<br />ICASA to review rates in 2013/14<br />Everyone seeks lower input costs<br />BUT: SA needs network investment, especially in rural areas<br />ICASA will review SA’s investment needs before arriving at a pricing decision<br />9<br />
  12. 12. Network roll-out & PASSIVE infrastructure<br />Greenfields network roll-out is costly<br />Sharing of infrastructure is beneficial:<br />Reduces costs of network roll-out<br />Potential wholesale revenue stream<br />Reduces pressure on built environment<br />Reduces time of construction<br />What passive infrastructure can you lease:<br />Masts<br />Space in ducts, manholes etc.<br />Facilities Leasing regulations<br />10<br />10<br />
  13. 13. Numbering Administration<br />11<br />
  14. 14. Numbering allocation<br />12<br /><ul><li>087 no. use: Justify call pattern to earn Between ON termination rate
  15. 15. For now there will be no allocation of mobile numbers to those who do not already have a mobile number allocation</li></li></ul><li>The numbering plan<br />The Authority is close to finalising the new numbering plan:<br />Key pointers in the new plan:<br />Toll-free across networks<br />Telemetry services<br />Standardisation of no. utilisation<br />Strengthening compliance matters<br />The Authority is taking into account all technical issues raised by licensees<br />13<br />13<br />
  16. 16. Upcoming Regulatory initiatives<br />Introduction of the new numbering plan<br />Online application for numbers<br />Online lodging of interconnection agreements<br />Public hearings on Local Loop Unbundling<br />Provisional dates: 10-14 October<br />Guideline on implementation of interconnection and facilities leasing regulations<br />Mapping of electronic communications networks<br />14<br />
  17. 17. Thank you DankieRe a lebohaRe a lebogaSiyabongaInkomuRo livhuwaEnkosi<br />15<br />
  18. 18. Questions?<br />16<br />

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