ICASA has announced that 28 April 2010 will be the date from which South African consumers will be able to port their land-line numbers (geographic numbers) from one provider to another.
Media Release – Postponement of Geographic Number Portability
Allowing porting of individual and smaller batches of related numbers is an important step in allowing alternative voice providers to compete with Telkom.
Guideline for conducting Market ReviewsICASA has published a Guideline for conducting Market Reviews which is intended to provide clarity to industry and other stakeholders as to how ICASA will be handling competition review processes under Chapter 10 of the ECA.
ICASA Guideline for conducting Market Reviews March 2010
This document will hopefully bring much need clarity on how intends to meet the procedural challenges represented by Chapter 10 of the ECA. There have been a number of false starts and, given what is at stake, it is critical that the procedure followed is immune to legal challenge from the incumbent operators who are likely to be the subject of Chapter 10 exercises.
Chapter 10 in essence calls for ICASA to define markets in the electronic communications industry (e.g. wholesale call termination, wholesale line rental) and then to investigate whether any provider in that market has Significant Market Power (SMP) in that market and to assess the state of competitiveness prevailing. Where it appears justified ICASA may then draft regulations which seek to intervene in that market. This will generally take the form of pro-competitive obligations imposed on those found to have SMP in that market and will, for the most part, seek to regulate the price at which such an entity provides services.
According to the Guideline a clear distinction is to be drawn between basic obligations and competition issues. This distinction will for example, define the difference between putting into place a framework for Carrier Preselection (CPS) as against putting together regulations setting out remedies flowing from the lack of competition in the wholesale line rental market which regulations require CPS. It is only in the latter scenario that ICASA will be entitled to include price regulation.
ICASA have also made it clear that they intend to obtain information from industry on a regular basis and that they will, if necessary, compel the provision of such information.
It is hard to put a time limit to the process of defining a market and reviewing the effectiveness of competition therein while also obtaining the required costing & other information and drafting regulations, i.e. the time taken to complete a chapter 10 process factoring in required public consultation. It is also not clear to what extent ICASA will be able to rely on existing documents relating to wholesale call termination and the markets comprising fixed line access components. No doubt some markets will be more hard-fought / contentious than others.
Our (educated) guess would be 2 years minimum….which means probably 2 years minimum before ICASA gets round to dealing with wholesale call termination.
ICASA commences review of the Numbering PlanICASA has contracted external consultants and begun informal discussions around a review of the National Numbering Plan. The primary purpose of the review will be to align the numbering plan with the Electronic Communications Act and the review will also need to take into account an anticipated increase in the number of applications for fixed number ranges as a result of the number of new individual electronic communications service licensees who were previously restricted to the 087 range.
Numbering regulation is not particularly glamorous, but numbers have an important role to play in markets which are introducing competition (very much the case in South Africa). Not only must a new entrant have access to all numbering ranges (representing different types of service such as fixed, mobile, toll-free, premium-rate etc) but consumers must be able to port their number if they want to move to a new provider. If they can’t, they probably won’t.
Although ICASA have indicated that they wish to finish the review before tackling the more thorny issue of fixed number portability, it is to be hoped that they will heed the pleas from new entrants that the two processes be dealt with simultaneously.
All of which will make for very confusing times for consumers. Mobile number portability has already made avoiding interconnection charges between the mobile companies an uncertain endeavour: fixed number portability will up the ante considerably.
Ten years of telecoms policy in SAIf you wish to improve your understanding of why the electronic communications industry in South Africa is riddled with obstructive regulation and gain a keener appreciation of the lie that is the “policy” of “managed liberalisation” then please take 20 minutes to read ‘Another instance where privatization trumped liberalization: The politics of telecommunications reform in South Africa
Note on the implications of the Altech JudgementAlthough the ink on the judgement is barely dry we are all so excited that we have drafted a memorandum which looks at some of the implications of the judgement
Please have a look ellipsis note on the Altech judgement (updated 20080903)
Please feel free to mail any queries, quibbles or quandaries to dominic@ellipsis.co.za
Inquiry into wholesale call termination marketDownload the Inquiry into Wholesale Call Termination Market.
Call Termination Inquiry:Summary of Findings published November 2007.
Download the ECA intention to define relevant end leased lines and other wholesale markets(PDF)
Section 67(4) regulationsDraft Regulations in terms of section 67(4)(a) – Market Definitions
Draft Regulations in terms of section 67(4)(b) – Determining market effectiveness
Draft Regulations in terms of section 67(4)(c) – Pro-competitive terms and conditions
Draft Regulations in terms of section 67(4)(d) – SMP Declaration
Draft Regulations in terms of section 67(4)(e) – Market review
Draft Regulations in terms of section 67(4)(f) – Investigating anti-competitive behaviour
