Briefing on intended Telecommunications Policy Directives

Briefing on intended Telecommunications Policy Directives
Parliamentary Portfolio Committee on Communications

3 April 2001

Presentation Outline

General Remarks

Transtel

Salient points in policy directives

General Remarks

General thrust of policy directives is harmonious with value creation for SA Incorporated

Principle of phasing in liberalisation is supported

Caters for needs of a developing economy whilst being sensitive to global trends

Emphasis on a strong regulator is important

Convergence of telecommunications framework reform and SOE restructuring is achieved

Key government objectives (such as BEE, FDI) are catered for

Technology neutrality principle is in keeping with future trends

Transtel Overview

An annual revenue of approx. R 800m (Transnet: 75%, External: 25%)

Customers in 16 African countries

50 000 voice subscribers

A satellite footprint that covers Africa and parts of the Middle-East

Country wide digital microwave network (13000 km)

3000 km fibre optic cable network

Data networks for 20 000 workstations

12000 Mobile radio terminals

1 800 employees

Transnet Telecommunications Policy Objectives

Current Transtel Business Framework
Satellite Services

African Presence

Transtel Current Market Positioning

Tailored service offerings to a broad base of clients

World standard telecommunications engineers

Transtel has substantial infrastructure and skills

Access to rights-of-way provides a strategic advantage

Salient Points in New Telecommunications Policy Directives

ITA in July 2001

some clarity on timing of adjudication and introduction of different players in SNO

SNO (& Telkom) to provide PSTS in the form of fixed-mobile services

spectrum management will be important to ensure optimum usage levels

Facilities sharing agreement within 90days of licence issue & SNO to have developed own facilities by 7 May 2005

distinction between facilities sharing and local-loop unbundling to be recognised

Defined targets of infrastructure roll-out, USOs etc to be specified in ITA

important to balance commercial viability of SNO with need for universal service delivery

support for principle of service definition for USOs

Phelophepa - The Transnet Hospital Train

Mobile satellite terminal - 100 line PABX with 4 outgoing junctions, 45 phones, 5 faxes, 3 cardphones, LAN System (Router, 5 repeaters and 10 Terminals), 4 channel satellite TV, background music, and public address systems.

Salient Points in New Telecommunications Policy Directives (contd.)

SNO to include Transtel & Esi~tel

nature of involvement to be determined - value to be driver vs. percentage cap

existing telecommunications customers and service provisioning will be key

existing telecommunications infrastructure, systems and personnel will be key

Sentech International Services licence

‘direct to customers’ - not to be confused with national long distance or local distribution

‘multi-media services’ - clear definition of services, clarity on facilities for services

ITA for Services-based licence during Q4 of 2005

supported

SMME’s & Co-operatives can provide services where teledensity <1%

how is geographical area defined?

Salient Points in New Telecommunications Policy Directives (contd.)

Network operators to develop interconnection for SMME’s & Co-ops by 7/5/02

who initiates process and by when

regulator to ensure interests of SMMEs and Co-ops are not compromised

VANS prohibited from carrying VOIP

reconcile between Telkom/SNO VANS activity and their ability to do VOD

1800MHz and 3G spectrum for all operators

apparent conflict between clause 10.3 and 10.4 to be

when will 3G spectrum be available?

Optimum spectrum management will be important (5 operators)

E-rate

operators to be incentivised to provide internet access for schools, or

USOs to require delivery of such services

Salient Points in New Telecommunications Policy Directives (contd.)

BEE set aside up to 30%/Foreign equity up to 49%

favour governments BEE & FDI objectives

percentage issues can be dealt with through different structuring mechanisms

112 Emergency Centers

local municipalities to play major role in management & financing of emergency centers

Directories & directory information

preferably an independent body should maintain the national directory information

Numbering

carrier pre-selection implies choice shifts to the customer - supported

number portability will facilitate ease of entry into the market for new entrants