Monday, April 10, 2006

Replacement of the Telecommunications Act imminent

The end of April should see the signing into law of the Electronic Communications Bill, which replaces the Telecommunications Act (and some others) - a month late.

The Financial Mail expect the Department of Communications to issue policy changes that will be wide-ranging and that will have a dramatic effect on competition. Finally. The changes are expected to be:







1)LLU (Local Loop Unbundling). Essential if any ISP is to provide service without going through Telkom's convoluted distribution and billing network. It also would allow the SNO to offer access on those lines without an 'agreement' from Telkom allowing them access.
2)Sentech allowed switched voice. This effectively makes Sentech a competitive telecommunications operator - from a policy viewpoint. This would help mitigate the decision to not license more than one extra operator (i.e. the SNO) as there will effectively be another competitor in the market.
3)Possible declaration of SAT-3/WASC/SAFE as an essential service. Telkom will obviously oppose any such move. Searching for 'STM-1' (i.e. a 155 Mbps connection) on MyBroadband reveals a 6-to-1 price disparity for such a link between other operators on SAT-3 and Telkom. Ghana and Benin have cheaper international access (for large volumes) than South Africa!

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