GSMA ASM Final Project 2018

1. Advanced Spectrum
Management(ASM)
GSMA Capacity Building ASM Jan 2018
Wireless Open Access Network in South Africa
Prepared: V.R Ramadzhia

2. Spectrum Management Background
 Radio frequency spectrum management, commonly referred to as “spectrum
management,” has been practiced around the world since the 1920s (Mueller,
1982). The principles on which spectrum is managed in the United States of
America (USA) is still based on the 1927 Radio Act (Coase, 1959).
 Radiocommunications is heavily used in a growing number of services such as
national defence, public safety, broadcasting, business and industrial
communications, aeronautical and maritime radiocommunications,
navigation, and personal communications. (ITU National Spectrum
Management Handbook, 2005)
 Historically, access to and use of radio spectrum has been highly regulated in
order to prevent interference among users of adjacent frequencies or from
neighbouring geographic areas, particularly for reasons of defence and
security. (ICT Regulatory Toolkit Section 5)

3. Country Profile (South African Context)
General Indicators
 Population: 56,5 million (As at July 2017).
 Area: 1.22 million sq km (470,693 sq miles)
 Official languages: 11
 Region: Southern African Development Community (SADC)
 ICT Regulator: Independent Communications Authority of South Africa (ICASA)
Frequency Indicators
 Regulator: Independent Communications Authority of South Africa (ICASA)
 Number of Television Station: 17
 Number of Radio Stations: +39

4. Country Profile (South African Context)
Cont..
 ICT Indicators
 Telecoms Operators: 4 Operators
 Broadband Wireless Access Operators: 10 Active Operators
 Mobile penetration: 68% penetration (As at July 2017)
 Voice subscription: 37.5 million (As at Sept 2017)
 Data Subscription: 51.5 Million (As at Sept 2017)
 Internet Service Providers: 13 (As at Sept 2017)

5. Wireless Open Access Network (WOAN)
South African Case Study
 Although there is no standard definition of open access (OA) in its regulatory
application, it has two common principles: (1) non-discrimination and (2)
price transparency. These are generally enforced to ensure equal access to
networks and wholesale services and prevent incumbents from favouring their
own up-/downstream operations over that of competitors: “vertical
foreclosure”. (CRASA 2015)
 Open access principles may be enshrined in laws and licence conditions, in
contracts, or in regulation.
 Examples of this include wholesale access obligations, or imposed structural
or functional separation.

6. Wireless Open Access Network (WOAN)
Definition
 A practical definition proposed by Krämer and Schnurr (2014: 7) is used for
the purposes of this presentation:
 “Open Access regulation refers to the mandated or voluntary provision of
access to an upstream resource which must be based on the principle of
nondiscrimination. The concept may apply to publicly or privately owned
access providers that are vertically separated, integrated or represent a
cooperative of multiple entities. Open access regulation usually refers to the
network layer, but may also be applied to other layers of the
telecommunications value-chain”.

7. Integrated ICT White Paper 2016 (Opening
Access: Infrastructure and supply-side issues
 In essence the White Paper is attempting to deal with the policy frameworks
in order to address the supply-side challenges to transforming South Africa
into an inclusive, people-centred and developmental digital society.
 It further argues that the current infrastructure market, particularly in
relation to broadband, is characterized by fundamental market problems of
ineffective competition, infrastructure sharing bottlenecks, unnecessary
duplication of infrastructure, and inefficient use of scarce resources.
 Multiple networks have been rolled out across the country, with deployment
skewed towards urban areas where infrastructure duplication is prevalent.
Competition, in particular in the mobile broadband market, is limited by the
number of players that have access to scarce frequency spectrum resources.

8. Integrated ICT White Paper 2016
(Opening Access)
 In order to realize South Africa’s developmental objectives, transform society and the
economy, encourage broadband deployment, and preserve and promote the open and
interconnected nature of the Internet, an open access regime will be implemented in South
Africa along the entire infrastructure and services (broadband) value chain.
 Through this open access policy:
 Core networks will support, at a minimum, traditional open access principles of fairness,
transparency and non-discrimination;
 Last mile infrastructure will be built on open access core networks and will be made
available in a manner that will enable many users to coexist on the same infrastructure or in
the same spectrum; and
 Digital services and applications will be provided over open access networks and will be
governed by the Open Internet and net neutrality regime outlined in Chapter Eight in order to
protect and maintain open, uninhibited access to legal online content.

9. Concentrated Broadband Market

10. Concentrated Broadband Market Cont…

11. Integrated ICT White Paper 2016
Regulatory Gap and Challenges
 Chapters 7 and 8 of the EC Act, provide for an open infrastructure sharing
regime that obliges every licensee to interconnect upon request and every
electronic communications network service (ECNS) licensee to provide access
to electronic communications facilities, on negotiated terms, unless the
request for access is unreasonable.
 The regime further provides that operators with significant market power
(SMP) may have additional and more effective and far reaching open access
obligations placed on them.
 It further argues that the regulator has been prevented from exercising
regulatory interventions without conducting cumbersome, lengthy and
expensive competition inquiries. This results in a delayed response to market
developments and ineffective regulation.

12. Critiquing the Integrated ICT White Paper,
2016 Wireless Open Access Network (WOAN)
 The Integrated ICT White Paper has been met with mixed feeling especially on
issues of use it or lose it principle and the Wireless Open Access Network (WOAN)
by Operators and industry players.
 With multiple competing demands on the fiscus, the state does not have the
resources to build, implement or manage broadband networks – open access or
other.
 There is little rationale for a mandatory open access wireless network in South
Africa.
 Private fibre companies have voluntarily adopted commercially-driven open access
principles
 On the other hand State Owned Company, Telkom SOC Ltd has welcome the
Integrated ICT White Paper on the primes that “the wireless open access network
presents such an opportunity. Further argues that it is an innovative way of
distributing spectrum without imposing punitive costs for smaller players and will
ultimately allow all customers to benefit from lower prices” (Business day, 2017)

13. Critiquing the Integrated ICT White Paper
Wireless Open Access Network (WOAN) Cont…

14. Critiquing the Integrated ICT White Paper,
2016 Wireless Open Access Network (WOAN)
Cont…
 There is an argument that if WOAN is implemented as is, high-demand
spectrum will be assigned on an open access basis.
 Incumbent networks providers are investing in the extension of broadband
networks and providing access on an open basis voluntarily and by doing so,
they are stimulating competition.
 new operators are exploiting the gaps left in the various network levels by
installing fibre, even where there are extensive municipal and commercially
closed networks.
 The incentive to voluntarily adopt OA principles exists simply because it
makes commercial sense to sell to as many customers as possible.

15. Conclusion
 Without radical reform to the sectoral institutional arrangements, ICASA is not
institutionally capable of managing and overseeing the implementation of open
access principles in the ICT market.
 Far less complex interconnection and facilities-leasing regulations, market reviews
to establish dominance, and pricing reviews have not been successfully regulated.
 Various open access models adopted by undersea cable companies have driven up
bandwidth capacity on the continent and dramatically reduced wholesale prices,
making the cost of national IP transit a greater
 the complexities of these are extreme and require sophisticated understanding of
the mobile market.
 The unintended consequences and potential policy and regulatory failure being
observed in Mexico, Kenya and Rwanda (all with far less competitive and
concentrated markets than South Africa) are a caution to policymakers and
regulators.

16. References
 National Spectrum Management Handbook, 2005 retrieved from https://www.itu.int/dms_pub/itu-
r/opb/hdb/R-HDB-21-2005-R1-PDF-E.pdf
 ICT Regulation Toolkit Section 5 retrieved from http://www.ictregulationtoolkit.org/toolkit/5
 The state of South Africa’s mobile market vs the rest of Africa
https://businesstech.co.za/news/mobile/184693/the-state-of-south-africas-mobile-market-vs-the-rest-of-
africa/
 National Integrated ICT Policy White Paper, 2016 retrieved from
https://www.dtps.gov.za/images/phocagallery/Popular_Topic_Pictures/National_Integrated_ICT_Policy_Whi
te.pdf
 Research ICT Africa Policy Brief No. 5 2016 “Do Open Access wireless networks threaten competition and
investment?” retrieved from
https://researchictafrica.net/polbrf/Research_ICT_Africa_Policy_Briefs/2016_Policy_Brief_5_Open_Access_
wireless_networks_in_South_Africa.pdf
 An Evaluation of Open Access Broadband Networks in Africa: Case Studies of Nigeria and South Africa
retrieved from
https://researchictafrica.net/publications/Other_publications/2016_Integrated_Policy_Paper_-
_Open_Access_Broadband_Networks_in_Africa.pdf

17. References
 South Africa country profile http://www.bbc.com/news/world-africa-14094760
 Will South Africa get an open access wireless network?
http://www.itnewsafrica.com/2017/11/will-south-africa-get-an-open-access-wireless-
network/
 SIPHO MASEKO: Proposed wireless open access network should be welcomed
https://www.businesslive.co.za/bd/opinion/2017-12-18-sipho-maseko-proposed-wireless-
open-access-network-should-be-welcomed/
 https://www.fin24.com/Tech/Companies/vodacom-criticises-sa-ict-policy-for-being-unclear-
20170201
 https://www.fin24.com/Tech/News/why-sas-new-ict-policy-could-break-the-industry-
20170126
 https://www.fin24.com/Tech/Companies/sas-ict-white-paper-potentially-dangerous-telkom-
20161020
 Vodacom’s position on government’s WOAN plan
https://mybroadband.co.za/news/government/246975-vodacoms-position-on-governments-
woan-plan.html