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31 AUGUST 2005 PowerPoint Presentation
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31 AUGUST 2005

31 AUGUST 2005

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31 AUGUST 2005

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  1. PRESENTATIONTOSELECT COMMITTEE ON LABOUR AND PUBLIC ENTERPRISESON THE CONVERGENCE BILLBYSENTECH LIMITED 31 AUGUST 2005

  2. TEAM • Specialist: Government Relations Mr Matime Nchabeleng • Specialist: Policy & Licensing Ms Dimakatso Qocha • Specialist: Technology Mr Chris Johnson • Senior Transmitter Manager Mr Frank Creese • Team Leader Mr Peter Vamvadelis • Mr Cameron Valentine • Mr Johan Scholtz

  3. DEFINITIONS  TELECOMMUNICATIONS MEANS: ANY TRANSMISSION, EMISSION OR RECEPTION OF SIGNS, SIGNALS, WRITINGS, IMAGES AND SOUNDS OR INTELLIGENCE OF ANY NATURE BY WIRE, RADIO, OPTICAL OR OTHER ELECTROMAGNETIC SYSTEMS.(1)  A BROADCASTING SERVICE MEANS: A RADIO COMMUNICATION SERVICE IN WHICH THE TRANSMISSIONS ARE INTENDED FOR DIRECT RECEPTION BY THE GENERAL PUBLIC. THIS SERVICE MAY INCLUDE SOUND TRANSMISSIONS, TELEVISION TRANSMISSIONS OR OTHER TYPES OF TRANSMISSION.(2)  IT MEANS: ALL THE EQUIPMENT, PROCESSES, PROCEDURES AND SYSTEMS USED TO PROVIDE AND SUPPORT INFORMATION SYSTEMS (COMPUTERISED AND MANUAL) WITHIN AN ORGANISATION AND THOSE REACHING OUT TO CUSTOMERS AND SUPPLIERS.(3) REF: Source 1&2 ITU Radio Regulations - Articles1 - Edition of 2001 Source Newton’s Telecom Dictionary - The Official Dictionary of Telecommunications Networking and Internet

  4. DEFINITION OF CONVERGENCE THE ACKNOWLEDGEMENT OF THE BLURRING DISTINCTION OF TELECOMMUNICATIONS, BROADCASTING, COMPUTERS AND DATA NETWORKS  THE PROVISION OF COMMUNICATIONS SERVICES OVER THE SAME NETWORK, VOICE AND DATA TRANSMITTED OVER THE SAME NETWORK  BROADCASTING, TELECOMMUNICATIONS, COMPUTERS AND INTERNET OVER THE SAME NETWORK

  5. ASPECTS OF CONVERGENCE 1. LEGAL 2. TECHNICAL 3. COMMERCIAL REGULATING CONVERGENCE 1. SINGLE REGULATOR 2. CONVERGENCE FRAMEWORK (a) POLICY (b) LEGISLATION (c) REGULATIONS

  6. ADVANTAGES/BENEFITS OFCONVERGENCE (Digital Technology) 1. DIGITISATION 2. BRIDGING THE DIGITAL DIVIDE 3. INTERNET PENETRATION - PROVIDING INFORMATION, VIDEO AUDIO, PRIVATE DATA, ETC. - AT MPCC’S , SCHOOLS, CLINICS 4. INTRODUCING COMPETITION AND CHOICE 5. LOWERING OF PRICES (ECONOMY OF SCALE)

  7. Enables delivery of content on various platforms and receiving devices Triple play: ability to offer bundles of ICT services (voice, Internet access and broadcasting services) Move from push to pull content delivery User demand of content delivery any time any where any platform Create once, distribute many WHY CONVERGENCE?

  8. WHY CONVERGENCE? • To remove the inhibitors placed by Telecommunications Act • Different networks can deliver the same services and content - they must be able to do so • Increase teledensity

  9. WHY CONVERGENCE? • Interactivity requirements (broadcasting) • Multiple services on single device (eg. DVB on Handheld) • Lower access cost • Improved functionality • More efficient spectrum usage • Content on demand

  10. INTERNATIONAL TRENDS Country Licensing Regime Australia Carrier licence and carriage service provider European Union General authorization regime India Unified licensing Japan Simple registration/ notification Malaysia Converged licensing for national operators Singapore Facilities-based and service-based licensing

  11. CONVERGENCE MAPPING:LICENSING COMMUNICATION SERVICES (Convergence Act) CONTENT SERVICES PROVIDERS APPLICATION SERVICES PROVIDERS NETWORK SERVICES PROVIDERS (OPERATORS)

  12. Need to cater for cultural, social and public interest concerns unique to South Africa Section 192 of the Constitution SOUTH AFRICAN SITUATION

  13. CURRENT SCENARIO ORIGINATION TRANSPORT DESTINATION BROADCASTING (Broadcasting Act, IBA Act, ICASA Act, Sentech Act) Broadcasters Broadcast Content Signal Distribution (Sentech, Orbicom etc.) TV & Radio Sets End Users ENHANCED DATA SERVICES (Telecommunications Act, ECT Act, ICASA Act) VANS, ISP, etc Information Services Telecommunication Networks (Telkom, SNO, Sentech, WBS, USAL’s) Computers & Data Terminals End Users VOICE / DATA CONVEYANCE SERVICES (Telecommunications Act, Icasa Act) Voice / Data / Video Fixed Networks (Telkom, SNO, Sentech, USALs) Voice / Data Terminals End Users Mobile / Wireless Networks (MCOs, Sentech, USALs)

  14. COMMON CARRIER STATUS • Common carrier status is in the public interest • Need to migrate to digital broadcasting • Universal access to broadcasting services • Economies of scale • Likelihood of cherry picking

  15. The Bill must remove all inhibitors & restrictions imposed on Sentech : Prohibition on carriage of switched voice (Multimedia Services Licence) Restriction on the provision of international services directly to end users (Carrier of Carriers Licence) INHIBITORS IN SENTECH’s LICENCES

  16. REGULATORY DISTINCTION BETWEEN BROADCASTING AND MULTIMEDIA

  17. REGULATION OF ANTI-COMPETITIVE CONDUCT • Regulatory imbalances must be addressed - • Licenses must be technology neutral • Level playing field • Special licence terms & conditions for operators with significant market power

  18. REGULATION OF COMPETITION • ICASA responsible for ex-ante regulation • Regulation of access, interconnection and facilities leasing obligations, including pricing • Regulation of charges and imposition of cost orientated charges and rates on SMP licensees • Imposition of special licence terms and conditions on licensees with significant market power

  19. REGULATION OF COMPETITION • Competition Authorities responsible for ex-post regulation - • Abuse of dominance • Horizontal prohibited practices • Vertical prohibited practices • Specific rules need to be formulated for the communication sector • margin squeeze, discriminatory and exclusionary conduct

  20. ICASA OR COMPETITION AUTHORITY? • Competition Authorities and ICASA must be jointly responsible for the regulation of mergers – • Competition Authorities responsible for competition • ICASA responsible for licensing

  21. FUNDING THE REGULATOR • Independence • Proposal • Maximum of 1% of annual turn-over • USF

  22. THE EXECUTIVE – POLICY • The Minister authorised to make policies and the following is in the public interest and is not unconstitutional - • Policy • Setting of framework for individual licence applications • Determination of radio frequency spectrum policy

  23. During transition Inhibitors to convergence contained in the Telecommunications Act and any licence should be of no force and effect 90 days license re-application period imposed on existing licensees must be removed Licensees should not required to re-apply TRANSITIONAL PERIOD

  24. Transitional process must cater for - Status of existing regulations Status of pending litigation or complaint proceedings before ICASA or the courts Continued validity of type approvals, supplier registrations and other similar authorisations Status of pending licence applications TRANSITIONAL PROCESS

  25. Assignment of broadcasting radio frequencies to the signal distributor under a digital environment Resellers and content services must not be licensed – light touch! GENERAL

  26. Thank you