SUMMARY OF SUBMISSIONS TO PUBLIC HEARINGS ON THE TELECOMMUNICATIONS AMENDMENT BILL [B65-2001]

Date

Organization

  • Principal issues raised
  • Perceived Impact
  • Issue/ section of the Bill

    • Proposal/Suggestions by the organisation

    27/09/2001

    MTN

           
       
    • Definition of fixed mobile.
     

    1

    • MTN proposes the deletion of the definition because the definition of PSTN in Gov. Gazette No. 17984 of 07 May 1997 enables Telkom to provide fixed-wireless services.
             
    • PSTN operators should not offer any PSTS utilizing fixed-wireless technologies other than local access services. (sec.36B(1)
             
    • In sec. 36B(1) delete reference to fixed-mobile. Amend paragraph (a) to read: "a local access network utilizing amongst others, fixed-wireless services".

    • ICASA should determine which areas to be serviced with mobile technologies and also determine the technical criteria.
       
    • Number portability: drafting issue.
     

    1

    • Define number portability as follows:
    • "Number Portability is a facility provided by one operator to another which enables customers to keep their number when switching their business between those operators"
       
    • On 1800 MHz : Conflicting subsections of Sec. 30A, licensing of PSTN operators on a deeming basis,
       
  • Proposals on 1800MHz:
  • Sec30A sub-sec2 (a) be deleted and sub-sec.2 (b) be amended as stated in MTN’s submission.
  •          
    • Sub-sec 2 (a) should not permit Telkom to use 1800MHz for services other than fixed-wireless in its limited interpretation (local access services within areas that could not be accessed through traditional fixed line access technologies).
             
    • The existing pricing regulations (pertaining to GSM fees) should be implemented with regard to 1800MHz. Therefore, the phrase "… at a fee to be determined by the minister…" be deleted.
       
    • On third generation frequency licences: There is conflict between sub-sections 2 (a) and 2 (b) of section 30B. The former provides for a deemed licence whilst the latter deals with an application process.
       
    • That sub sec 2 (a) be deleted and that the current sub sec 2 (b) be amended as stated in the submission.
       
    • Seeks clarity on the intention of sec 36B. MTN perceives that the PSTN systems contemplated in sub sec (1) shall include systems that are utilised for the purposes of mobile telecommunications on the premises of the customer.
         
       
    • That sec. 37 (1) of the Act should not be deleted before the Authority issues its deemed licence. If deleted there would be no legitimate process to be followed to re-issue a licence to MTN. The provisions of Sec 42 will also not find application.
         
       
    • When under-serviced area licensees are licensed the PSTN operators will not need to use "fixed-mobile or fixed-wireless" technologies but rather to permit the PSTN operators to address the universal issues within the confines of their existing entitlements.
         
       
    • Interconnection (Sec. 43): ICASA not the Minister should "declare terms and conditions".
         

    28/09/2001

    SACOB

    • Support facilities- based as well as resale- based competition
    • Elimination of investment barriers (nationality, raised, gender)
    • The provisions on VANS create unnecessary exclusivity for Telkom and the SNO (Sec. 1(a), (q) and Sec. 40)
    • The provision on decisions on applications is not investor friendly because they are discriminatory. (Sec.35 (4)
    • The 30% for BEE should be determined by ICASA and not fixed in the legislation. (Sec. 35 (5)
    • The Bill should recognize the WTO and GATS obligations. (Sec. 40 a) and b).
    • USA should be funded from the public budget. (Sec. 67 (2) a)
    • ICASA should be the final deciding body of disputes. (Sec.53 A)
         

    25/09/2001

    CAPE IT INITIATIVE /CITI

    • Licensing of broadband service.
       
    • That at least one single broadband licence is granted –to at least one NGO in the major metropolitan areas.

    28/09/2001

    MultiChoice and M-Net

    • Extension of the meaning of PSTS and PSTN. Extends Telkom’s exclusivity to include provision of customer premises equipment.
    • Definition incapable of interpretation

    Sec 1

     
       
    • Definition of Multi-Media and issuing of Multi-Media Licence to Sentech
    • The Bill does not conform to the Telecommunications White Paper of 1996.
    • Unilateral termination of rights currently held by Telecommunications operators.
  • Contradicts the definition in the IBA Act
  • Open to a constitutional challenge
  • Unconstitutional to grant the licence by way of statute.
  • Prejudicing other service provider’s constitutional rights to equality.
  • Right to freedom of expression
  • (Sec 9 & 16 of the Constitution)
  • Ministerial involvement in licensing Broadcasting (multimedia) unconstitutional.
  • The Bill might result in a regulatory environment that is confusing and ungovernable.
  • This will contravene S32 & 33 of the constitution.
  • Sec 32C

    • The definition and any other reference to the multimedia licence should be deleted from the Bill.
    • This should not be done by means of statute, the procedures set out in the Telecom Act should followed.
       
    • The guidelines for determining tariffs by ICASA should not apply equally to Telkom and third party operators.
         
       
    • Definition of Telecommunications facility is too broad

     

     

       
       
    • Removal of Public Hearings.
    • Mediation and Arbitration Panel
  • Prejudicial to the parties and administrative law.
  • Sec 34(2)©; 35A, 53A, and 96.

    • Accelerate the process by shortening time frames.
    • Public hearings should be dispensed with when its minor licenses and when there has been no written

    26/09/2001

    Internet Solutions

    • Role of ICASA undermined and replaced with decision making by the Minister.
  • This Bill gives more powers to the Minister.
  •    
       
    • In respect of definitions and rulings made by ICASA valuable work has been undone.
  • Erodes the powers of ICASA.
  •    
       
    • Removal of the existing requirement of the public hearings by ICASA.
  • Contrary to fair administrative procedure.
  • Prejudicial to the parties and administrative law
  • Section 34 (2)(c); Section 53A and Section 96

     
       
    • Definition of Multimedia very wide and also gives Sentech exclusivity.
  • VANS now unable to sell VPN related services for profit.
  • Unfair competition
  • Prevents bulk buyers of bandwidth or telecommunication services from buying these services from, Sentech. I.e. does "end users" encompass ISPs and VANS.
  • Lack of clarity.
  • Unconstitutional
  • Section 1 (i)

     
       
    • Services included in the PSTS licence far too wide.
  • Extends Telkom’s exclusivity.
  • Prejudicial to the development and provision of value added services via 1800MHz and 3G
  • Onerous for SMMEs and VANS.
  •  

     

     

    28/09/2001

    M-Cell

    • The 2 year limitation on facilities sharing is not acceptable
     

    Sec 30(A)

    • Proposed definitions in M-Cell’s submission
    • Proposed that ICASA should conduct a Market Study after three years, and proposed necessary measures for interconnection and sharing or leasing of facilities.
       
    • The Bill prohibits unbundled access of the local loop by the SNO
     

    Sec 44

    • Proposed definitions in M-Cell’s submission
    • Proposal has been made to unbundled the local-loop
       
    • There is a need for implementation of carrier pre selection and carrier selection by 7th May 2002
     

    Sec 86

    • Proposed definitions in M-Cell’s submission
       
    • M-Cell supports number portability, but practical and cost effective measures to be considered
     

    Sec 87

    • Proposed definitions in M-Cell’s submission

    26/09/2001

    Association of Third Party operators.

    • Extension of the meaning of PSTS and PSTN. Extends Telkom’s exclusivity to include provision of customer premises equipment.
  • Third party operators be specifically be excluded from the provisions of this clause. (p.15)
  • Clause 19(c)(i)

    • Third party operators be specifically excluded from the provisions of this clause. (p.15)
       
    • The Bill does not conform to the Telecommunications White Paper of 1996.
         
       
    • Unilateral termination of rights currently held by Telecommunications operators.
         
       
    • The guidelines for determining tariffs by ICASA should not apply equally to Telkom and third party operators
         
       
    • Definition of Telecommunications Facility is too broad
         

    27/09/2001

    Internet Society of South Africa

    • Role of ICASA undermined and replaced with decision making by the Minister.
  • Erosion of the independence of the regulator.
  •  
    • 36A (b), it should refer only to international telecommunications carrier services.
       
    • In respect of definitions and rulings made by ICASA valuable work has been undone.
  • Definitions of the Bill are wrong and unworkable.
  •    
       
    • Removal of the existing requirement of the public hearings by ICASA
  • Contrary to transparent democracy
  • Sec36A

     
       
    • Definition of Multimedida very wide and also gives Sentech exclusivity.
  • ‘Damage in the economy
  • Stifles the growth of Internet in South Africa
  • Could include first tier ISPs in South Africa.
  • Section 32C

     
       
    • Services included in the PSTS licence far too wide.
  • It implies that a supplier of customer premises equipment requires a PSTS licence.
  • The definition creates the impression that Telkom is currently having a licence exempting it from VoIP restriction in the Act.
  • Omission of the additional wording will make it difficult for under serviced area licensee to provide any service at all.
  •  
    • Inclusion of the words and / or facilities. (p.3)
       
    • Substitution of value added networks by electronic transactions.
    • Any website that offers E-commerce will require a VANS licence, which will impact on E-commerce in South Africa.
       

    28/09/2001

    CUASA

    • Number portability
  • Disadvantage SNO and SMMES.
  •  
    • To be provided from 2002.
       
    • Carrier pre-selection and carrier selection
  • Essential for survival of SNO
  • SNO will be unable to get critical mass.
  •  
    • Carrier selection in 2002.
    • Carrier pre-selection in 2003.
       
    • VoIP
  • Other methods of transmitting voice over ATM, Frame Relay are they not restricted.
  •  
    • Define voice
    • Define interconnection
       
    • 0.5 % turnover
  • Excessive amount does it include PTN.
  •  
    • Clarify PTN and gross turn over.
    • Reconsider PTNs.

    28/09/2001

    Bridges.org

    • Technology Neutrality.
  • Technology advancing rapidly.
  • Clarity whether VoIP allowed for SNO only in underserved areas.
  • S 40

    • Ensure legislation is not a burden to growth and development.
       
    • VANS
    • Replacement by electronic transactions creates uncertainty.
    • Unfair competition.
    • Remove electronic transactions and reword
     
    • Remove electronic transactions and reword.
    • VANS be allowed to operate their own infrastructure
       
    • Multimedia services licence
  • Doses transmission of Multimedia over Internet constitutes digital broadcasting.
  • S32C

    • Clarity on exclusivity and role of ISPs.

    28/09/2001

    SAVA

    • VPN
  • Discrimination to VANS.
  • Volatile constitution and WTO commitments.
  • Destroys ISP industry in era of convergence
  • Definition of VPN, VoIP
  • Section 41

    • Not to overturn ICASA ruling
    • Adopt the definitions of ICASA
       
    • VANS definition
     

    Section 40

    • P.12, stick to SATRA definition note p.13.
    • Adopt the definitions of ICASA
    • Revert to old Act
       
    • VoIP
  • WTO commitments regarding equal treatment violated
  • Definition of VPN, VoIP
  • Section 29 and 32C

    • P.12, stick to SATRA definition note p.13.
    • Adopt the definitions of ICASA
       
    • USO
  • Obligations to Universal service to comensorate with status as VANS providers.
  • Section 67

     
       
    • ICASA power
  • Right to licence prescribed in the Bill (1800 & 3G). This encroaches on licensing functions of ICASA
  • Section 53

     
       
    • Multimedia
     

    Section 32C

    • Deletion of Multimedia and Sentech licensing.
       
    • Facilities leasing
  • Contravenes WTO commitments on discrimination to access to telecommunications facilities
  • Violation of WTO commitments
  • S32 A on allowing resale of PSTS between 2000 and 2003
  • Reasonable request should be determined by Telkom and SNO
  • Section 40

    • Reasonable request should be determined by Telkom and SNO
    • Delete amendments.
       
    • Impairment of ICASA’s independence
  • Violates existence of independent regulator
  • Section 53 and Section 30A

    • Section to be deleted
    • Not only Minister should appoint ICASA selection
    • Minister should not control ICASA budget
       
    • Expropriation of rights to provide VANS services
  • Violate Constitution
  • Section 30A and Section 40

     
       
    • Customer Premises equipment
  • Proposed inclusion of CPE and PSTS part inconsistent with government policy, unconstitutional
  • Section 30A

    • Recommends changes in section 18 of the Bill p. 47.
       
    • Resolution of Disputes a and controls of anti competitive behaviour
  • Long processes
  • Section 53

    • Section 21 of Bill P.47
       
    • Public hearings
  • Impact negatively on investment in industry
  • Section 35 and Section 96

    • Public hearings should be there.
    • Period too short increase to 45 days

    26/09/2001

    National Association of Broadcasters.

    • Legislative approach
  • Failure to address issues of convergence, Internet and new communications technology.
  • Creates regulatory problems for ICASA., especially regulation of multimedia of new media.
  •  
    • Omnibus Act to be prepared and passed.
    • Bill must only deal with issue related to SNO.
       
    • Independence of ICASA
  • ICASA bound by Ministerial policy directional issues on telecomm but not on broadcasting.
  • Undermines independence of ICASA:
    • IBA act – licences and conditions by ICASA.
    • Telecom Act – Minister may make regulations consistent with object of Act.
    • Minister approves all telecom regulations, ITA, grants and imposes licence conditions.
    • ICASA is not a Chapter 9 institution.
    • Compromises transparencies.
    • Appointment of councillors by panel selected by Minister.
    • No applying for licence by Sentech.
    • 1800 and 3G given to operators, no application.
       
       
    • Technology based legislation
  • Allocation of spectrum.
  • VoIP / VPN.
  • Hamper industry growth.
  •  
    • Omnibus Act addressing these issues
       
    • International Telecommunications service and Multimedia
  • Anti-competitive
  • Does it maximise competition of providing sufficient benefits to end users.
  • Clarity required on licensing and regulation of multimedia services.
  • Status of e-commerce policy.
  • Section 32C

    • Multimedia should not be legislated exclusively in telecomm or broadcasting.
    • To be regulated in omnibus Act.
    • Should not be a monopoly but for both telecomm and broadcasting.
    • Sentech can provide multimedia carrier services, and/or also provide content.

    27/09/2001

    Tertiary Education Network

    • Public Higher Education institutions as well as consortia of Public Higher Education Institutions should be entitled to the 50%discount calculated on the published Tariff.
  • Evolutionary pattern will also apply to the schools and other institutions envisaged in the Bill
  •    
       
    • Public Higher education sector should be excluded in the benefits of an enabling environment envisaged section 20 (b)
         
       
    • Point To Point Data communications Section 20 (b) should also include discounts.
    • Public Higher education should be eligible for the discounts proposed in amendment 20 (b)
         

    28/09/2001

    Yunus Kahn

    • Under serviced Areas Licences
     

    Section 40

    • The Bill must make provisions for the privatisation of various exchanges throughout the country.
    • They must be allowed to interconnect with Sentech, Telkom and SNO.
     

    OMNI-LINK

    • The right to resale by PSTS should be extended to VANS providers too.
  • Redefined Resale may affect the rights of VANS/ISP
  •    
    • Multimedia services should be removed from the Bill.
         
    • Delete clause 34(3)(c )
         
    • Section 35(1)(a) Oral hearing should be restored
         
    • Remove VPN form sections 41 and referenced in section 40 under VANS.
  • Weakening of ICASA’s authority will affect its independence and may violate the GATS Basic Telecommunications Agreement.
  •    
    • The 50% discount for public schools for accessing internet should be from the universal service contributions
  • Section 35(A) would cast uncertainty over licensing methods and terms and conditions.
  •    
    • Any mediation and arbitration, hearing and appeals etc should not be at the expense of perpetuation of anti competitive behaviour against any party
  • Section 35(A) would cast uncertainty over licensing methods and terms and conditions.
  •    

    28/09/2001

    ISPA

    • The definition should be expanded to encompass a wide range at equipment used by ISPs because existing definition is only benefiting Telkom and the SNO.
         
       
    • Sentech should not be the only one licensed to provide multimedia services excluding the ISPs.
         
       
    • The definition has been broadened to allow services excluded before and is in conflict with the PSTN Section 36 (b) (2).
  • Constitutes unjustified enrichment in Terms of Section 16 of the constitution.
  • IT will suffice competition
  •    
       
    • The definition should be broadened
         
       
    • VPNs are categorised as species of PTNs and unintentionally depriving ISPs of lawfully provided VANS
  • The lack of clarity will encourage endless disputes and litigation
  • If read literally might render all provisions of VANS services for the Public resale
  • VANS would not be allowed resale
  •    
       
    • The exclusive right to Telkom, SNO, SMMEs to provide Voice over Internet Protocol here is a need to level the playing field by giving VANS the right to render the services.
  • Anti competitive and unfair
  •    
       
    • Section 40(2) should not be changed
         
       
    • Telkom, SNO should be prohibited from unilaterally terminating services without resorting to ICASA for a ruling.
         
       
    • The discount to be funded from Universal Services Fund
  • The 50% discount by ISPs would result in unfair double taxation
  •    
       
    • Liberalisation of resale services between 2000 and 2003
  • The country will be violating the agreement by restricting resale to PSTS only.
  •    

    28/09/2001

    Evan Scop

     
    • Procedure leading up to Bill is flawed
       

    26/09/2001

    SACF

    • Relationship between policy maker and regulator be clearly defined.
         
       
    • South Africa should follow SADC model of telecommunications regulations
         
       
    • Appointment of regulator be as follows:
    • Minister appoints selection panel
    • General public, industry stakeholders nominate candidates
    • Selection panel submits shortlist to President for final endorsement, after consulting with portfolio committee
         
       
    • BEE participation should be confirmed (not up to 30%)
  • BEE participation of up to 30%, is an implied objective not a commitment
  •    
       
    • Carrier pre-selection should be introduced by 2003.
         
       
    • Delete "digital broadcasting service" substitute with "communication services"

       
       
    • Section 29(5) be retained and insert "may" before" hold
         

    26/09/2001

    Cable and Wireless

    • No need for fixed mobile as it already exists in the Act especially as it is defined as fixed wireless
  • Undermines investor and consumer confidence made in mobile cellular and radio regulations
  •    
       
    • Look at FCC and OFTEL to see asymmetric regulation
  • Provides new entry by SNO
  • Regulatory intervention
  •    
       
    • Facilities sharing should remain open
  • Facilities sharing for two years involves duplication of Telkom’s infrastructure
  • Interconnection can be source of anti competitive behaviour.
  • To continue indefinitely and revision by regulator
  •    
       
    • Mediation and Arbitration
  • Disputes resolution abilities likely to be very limited.
  •    
       
    • Supports individual licensing of Transtel & Esitel to provide fixed line services for defined markets like long distance and international services.
    • Consider granting them national long distance as in S 39.
  • Against inclusion of these entities in SNO. Should be based on commercial negotiation between contending bidders
  •    
       
    • Propose that Sentech provide national long distance also and to all licences service operators.
  • Restricting competition if international service restricted to wholesale and not consumers directly
  •    
       
    • Withdraw Multimedia from present amendments
  • Impact on VANS as providers of components of this service.
  • No exclusive right to Sentech
  • Conflicts with S192 of constitution.
  • WTO commitments
  • Anti-competitive bundling of voice and data resulting from prohibitions over VoIP.
  •    
       
    • Granting of one service billed competitor now
         
       
    • Confirm that liberalisation of resale takes place between 2000 and 2003.
         
       
    • Open up to VANS providers also or closed users groups as part of VANS full service Virtual Private Network services and products
    • Allow provision of VoIP and VPN
    • Release prohibision of VoIP.
  • Economic and Technological setback to South Africa.
  • Anticompetitive
  • Against WTO commitments.
  • Results in demise of VANS and providers
  • 0.5% of annual turnover disproportionate imposition on VANS and PTNs
  • Disincentive to investment
  • Needs access to broadband services
  •    
       
    • Consider level of service required and net cost of provision before imposing this on SMMEs
  • What about consolidations
  •    
       
    • Network operators to be included and also encourage provision of non Telecomm needs such as training

     

     

       

    26/09/2001

    CeLL-C

    • Fixed-Mobile is an infrastructure component and not an additional service to PSTS Licence Holders.

    It is open to misinterpretation

    Under current regulations and ownership, Gazette No. 300, ownership and control in respect of mobile cellular services

     

    The definition of fixed mobile should be amended as reflected in page 2 and 3 of the submission. Reference to section 37 should be deleted because it relates to mobile cellular.

       
    • Need for clarity on mobile telecommunications relating to equipment location
       
    • Deletion of the last part of the definition to whom it refers to mobile telecommunications equipment (page.5 of the submission)
       
    • Minimum of 2 years exclusivity before the introduction of a fourth cellular licence
       
    • Inclusion of a feasibility study before an additional licence to be issued after 23 June 2003
       
    • GSM Pay Phones and Value Added Network Services
       
    • Subsection 3 should not be deleted because it will be interpreted to say mobile cellular operators are required to hold additional licences to render these services
       
    • To use fixed connections for high traffic concentrations
       
    • Expansion of section 37 (d) (a) to i9nclude fixed line connection to provide community services telephones.
       
    • Mobile Commerce
       
    • The section should be expanded to provide protection for cellular operators when providing M-commerce
       
    • Number Portability
       
    • Should be clarified in order to cover separately fixed ton fixed and mobile to mobile
    • Full number portability can be achieved by 2003.
    • Interim measure providing a recorded message for up to twelve months giving new customers number.
    • Simplification of the definition.
     

    Orbicom

     
    • Monopoly in multimedia would hamper economic growth and investment.
     
    • Operators should be licensed to provide public switched telecommunication services using any appropriate technology,
         
    • Deleting section 29(5) of telecommunications Act would compromise transparency and is not the interest of industry
     
    • Allocation of 1800MHz spectrum to mobile operators should be in terms of sections 28 and 29 of the telecommunications Act.
         
    • Awarding of multimedia license is unconstitutional
     
    • Subsection (1)(h)(vii) should be deleted. It is matter for the Operator and regulator to negotiate.

    25/09/2001

    Telkom SA

    • Definition of Carrier pre-selection
       
    • Change operator to service.
       
    • Definition of End-Office
       
    • Change to local exchange
       
    • Definition of Fixed Line Operator and Fixed Mobile Service
       
    • Page 6 and 7 redefines.
    • The definition of fixed mobile must include the mobility within an exchange
       
    • Local and Long-distance telecommunications service
       
    • Addition as in Telkom’s licence
       
    • Multi-media Licence
  • Violates constitution
  • May also be provided by VANs
  •  
    • Licence granted to Sentech not to be exclusive to Sentech
       
    • Public Pay Telephone Service
       
  • Addition as in Telkom’s licence
  •    
    • Number Portability
  • Technical hurdles and cost prohibitive.
  • Avoid Number portability
  •  
    • Telkom proposes redefining to provide same physical address.
       
    • PSTN and PSTS
       
    • Additional definition
    • Additional and corrections to definition
       
    • Resale
       
    • Redefine resale
       
    • Telecommunications facility
       
    • Deletion of right of way, area, collocation or collocation of space.
       
    • Under serviced area licence
       
    • Redefined p. 20 p - 1/32
    • SMME’s be denied to provide VoIP
    • The under-serviced areas must be given the PSTS licences
       
    • VANS
       
    • Refer back to original definition.
       
    • VPN
       
    • Redefine p. 21
       
    • VoIP
       
    • Recommends deletion of the reference
       
    • 1800 Spectrum
       
    • Corrections to sections to allow Telkom & SNO
       
    • International Telecommunications Gateway
       
    • Deletion of international telecomm gateway
       
    • Amendment of Telkom’s Licence
       
    • P.21 amendment deletion of word construct
       
    • Mediation and Arbitration Committee
       
    • Proposes an appeal tribunal instead of this committee established by Bill not Minister as permanents statutory body.
    • It should also be adjudicative forum of first instance. Text suggested in p.43
       
    • Universal Service Fund
       
    • Text suggested in p 43
    • Suggesting turnover from licences activities rather than overall turnover
    • The USF be reserved specifically for the SMME’s

    25/09/2001

    Cape Telecommunications users Forum

    • Multi Media Licence
  • May entitle Sentech to claim that all forms of Multimedia fall within the exclusivity created by its licence.
  • Creation of uncertainty around definitions of Multimedia and Broadcasting.
  • Stifling of small business development.
  • Damage to Internet investment in South Africa.
  • Each and every provider of E-commerce Web-site or E-mail service will be defined as a VANs operator compelled to apply for a licence.
  •    

    27/09/2001

    Thintana

    • Fixed mobile service to be defined as fixed wireless. To be consistent with global practices.
  • Impact International practices of Telecommunications
  • Service provision to customers.
  •    

    27/09/2001

    AT&T

    • VPN and VANS Definitions
    • Prohibition of VoIP
  • Major economic harm to South Africa.
  •  
    • Define virtual private networks as "private telecommunications Networks (PTN).
    • Redefine VANS as "private telecommunications Network.
    • Act should prohibit the unilateral denial of facilities for Vans
    • Adopt the ICASA definition of VANS
    • Universal service contributions must be annual limited to turnover related to licensed telecommunication services provided by licensee.

    28/09/2001

    Worldcom

    • Prohibition of VANS on VoIP
    • VPN definition as PTN
    • Allowance of resale
  • Anti-competitiveness
  • Market abnormalities
  • WTO and constitutional impact.
  • WTO
  • Competition Act and Telecommunications Act.
  • Unfair advantage to Telkom and SNO
  • Section 1 (i) of the Act. Breach of the Constitution, only the regulator can grant such a licence.
  • Prevent the SNO from establishing itself as an effective competitor to Telkom, it creates the a potential for duopoly pricing
  • WTO contravention
  • Infringement of the right to freedom of expression
  • Foreign investors will decrease their investment.
  • Violation of the WTO commitments, increases the operational costs to VANs makes them uncompetitive
  •    

    25/09/2001

    ICASA

    • VoIP
       
    • Doc must publish policy directions to monitor VoIP
       
    • Manage liberalization requires that the regulators autonomy should not be limited in order to ensure the success of Telkom’s IPO and Investment interest in the SNO.
       
    • The autonomy be strengthened.
       
    • Reject the new proposed procedure of appointing councillors.
     

    Section 5 and 8 of the ICASA Act proposed in the schedule of the Bill

    Current

    • The present procedure is still preferred, because it ensure transparency. The section should be deleted.
       
    • ICASA is strongly opposing the establishment of the competition tribunal.
     

    Section 53 A

    • The clause be deleted.
       
    • ICASA is not in favour of the proposed amendment for conducting public hearings.
     

    34(3)©

    • The current clause be retained to give the authority discretion to hold hearings.
       
    • Under-service area licences must be clarified for ICASA to be reinforced.
     

    Section 40 Section 32A

    • It will be appropriate for the licences to be reflected under section 32A. That is PSTS licences.
       
    • Carrier preselection and carrier selection need to be well defined as to bring the difference between the two.
     

    Section 89A

    • It is critical the carrier selection be phased in from May 2002, and carrier preselection be introduced in 2003.

    25/09/2001

    Transtel / Eskom

    • Servitudes
       
    • The SNO will require the servitudes in order to use the existing PTN infrastructure.
    • Removal of section 32A (4) (c)
    • 32A (2) (a) to be amended as to replace facilities with services.

    25/09/2001

    Sentech

    • Carrier pre-selection
       
    • Carrier pre-selection to be implemented immediately.
       
    • Licences to Sentech
       
    • Sentech’s licence to include direct to customer services.
    • Sentech to be given the right to build its own network.
    • No clear definition of the extent of powers for Sentech with regard to the new responsibilities/licences.
       
    • Definition of "Carrier-of-Carriers"
       
    • Carrier of Carriers the definition is silent on the implications of the definition does not include VANS, SMMEs and ISPs. Telkom’s monopoly is still being entrenched, as SMMEs will not have a choice in the carrier.
       
    • Definition of Multi-media
  • Unilateral termination of rights currently held by Telecommunications operators.
  •  
    • Multimedia as currently defined does not state, how will Sentech provide the return path in the interactive broadcast environment.
       
    • Definition of PSTS and PSTN
  • Extension of the meaning of PSTS. Extends Telkom’s exclusivity to include provision of customer premises equipment.
  • Definition of Telecommunications facility is too broad
  •    
       
    • Interconnection and Tariff Regime
  • On interconnection the present incumbent Telkom should not determine the rates, this must be the responsibility of the regulator inline with the international standards on rates.
  •  
    • The guidelines for determining tariffs by ICASA should not apply equally to Telkom and third party operators.

    25/09/2001

    Vodacom

    • The definition of carrier of carries appears to be based on the definition of "international call"
     

    Sec 1

    • The wholesale nature of the service should be stated at the start and at the end of the definition
       
    • Number portability needs correct terminology
     

    Sec 4(1)(a)

    • Insertion after the definition of a Private Network Telecommunications Network
       
    • The radio frequency spectrum is the country’s greatest asset and Vodacom.
     

    Sec 34(4) and (5)

    • Prefers that the minister determine an annual or other periodic access and usage fee for the 1800MHZ spectrum
       
    • Major license applications merit public hearings
       
    • Must be managed by the Authority in the Public Interest and Vodacom objects to the elimination of the requirement
       
    • Vodacom is concerned that the fixed mobile license authority be consistently defined and applied through out the Act
         
       
    • Vodacom objects to the previous policy decision and legislation sanction that VANS be allowed to provide their own links at some time in the near future.
     

    Sec 40

    • After 7 may 2002 be provided by telkom and the SNO until date to be fixed by the Minister in the Gazette
       
    • Vodacom does not support the amendment of subsection 4(b)
     

    Sec 4(b)

    • Section (4) (b) should not be amended
       
    • Existing consumer protection institutions should be allowed by the authority to exercise some form of concurrent jurisdiction
       
    • The authority may offer consultation with consumer protection bodies make regulations to ensure efficient protection
       
    • There is no definition of Universal Access Projects this need to be remedied
       
    • Define
       
    • Needs to be made clear that the Number 112 is the exclusive Public National Emergency number
       
    • Amendments

    25/09/2001

    American Chamber of Commerce

    • The fixed mobile service allows for Telkom and SNO to be a competitive threat to cellular operators by roaming within GSM network.
    • It also devaluate foreign investor interest like M-Cell.
  • International Impact to Foreign investors
  • Economic impact to mobile operators
  •    
       
    • The Bill will make it impossible for competitive VANS by prohibiting the shared customer use facilities used for VPN’s.
  • Economic impact to VANS
  • Section 1(q)

    • VANS suppliers to be allowed to provide services without obtaining approval from Telkom and SNO.
       
    • Voice over IP must not be allowed only to Telkom, SNO and SMMEs as they will be given a competitive advantage in the market place.
  • Economic impact to VANS and destruction of VANS
  • Section 40(3)(b)

    • Voice over IP not be limited to Telkom SNO and SMME’s.
       
    • Valuation and operation of Esitel and Transtel are unclear, it provides inflexibility to the international investor.
  • Economic and International impact to Investor confidence.
  • (Section 32 B)

    • This should not be included in the Act, but left to the market forces.
       
    • 30% allocated to the BEE will make the SNO not to be competitive enough to Telkom.
    • The concept of BEE is not clear, how is it going to be calculated.
  • International impact on foreign investor confidence.
  • Section 32 B

    • The clause should be removed from the Bill.
       
    • Equal treatment. Advantage that is given to Telkom, SNO and Sentech is in conflict with SA’s World Trade Organisation commitment and GATS.
  • Impact on SA’s international agreements WTO and GATS.
  • Section 32 B

     

    28/09/2001

    COSATU/CWU

    • Issues are more related to the restructuring of the state owned enterprises.

    Privatised entities will not be able to achieve the following:

    • Universal Service will not be achieved

    Issues are based on the objects of the Bill rather than on the sections of the Bill.

    • Government must set out targets for universal for all operators
       
    • Private companies are commercially oriented especially in a competitive environment, they dictates costs minimization and revenue maximization
  • The high rate of unemployement will make it impossible to consumers to afford services
  •  
    • Price structure based on the system of lifeline services and progressive block tariffs developed for municipal services
       
    • Private sector always under-invest in infrastructure and ignore the wider economic growth
       
    • Government must use its majority ownership of Telkom and other major licences to ensure that objectives are met.