South Africa's Second Telecommunications Network Operator, which was due to roll out services in mid 2006, does not appear to have an official, brand-oriented name yet, much less take on the de-facto Telkom monopoly, according to the Communications Users Association of South Africa spokesman, Ray Webber.

"Competition is taking quite some time to arrive in South Africa in the form of the SNO and while the country waits, Telkom essentially remains a monopoly," says Webber.

The latest public statements indicate that the SNO will be in a position to offer international wholesale services at the end of August. Earlier reports claimed the SNO would be on track to roll out wholesale services by mid-year. SNO MD Ajay Pandey was quoted as saying:

"The SNO has targeted the launch of its initial wholesale services in mid-2006, and, in line with this projection, plans are well under way towards introducing international wholesale voice and some international data services to other telecom operators.

"The SNO has adopted a phased approach to rolling out its services. We are currently in discussion with various potential customers and are now in advanced stages of readiness to deliver."*

"If the SNO is, indeed, ready to deliver services then they are entering the market with something of a whimper rather than a bang," says Webber. "By comparison, Virgin's foray into the South African cellular market has been flanked by what appears to be a solid marketing strategy, including clever and highly visible advertising," says Webber. "All we can really find on the SNO is a rather unfortunately named web site, www.snotelecom.co.za."

According to the site, the SNO is to roll out services to Mobile Network Operators, VANS Providers and ISPs by mid 2006. The site claims such providers will "soon have the choice of connecting their networks using state-of-the-art technology deployed by the SNO across South Africa with better quality of service and greater value for money than ever before."

Business is next in-line to receive services from the SNO - in the third quarter of 2006. The site claims the SNO will "specialise in providing domestic & international telecom services that Enterprises require to manage their businesses efficiently. Our strengths include Private Leased Circuits, IP-VPN, Ethernet services & new developments in Managed Services & Applications along with Data Centre services. We also intend to offer traditional voice services & bundled VoIP solutions."

The last to benefit from the introduction of the SNO will be consumers, who, according to the site, will have access to SNO service by Christmas: "We plan to introduce a variety of consumer services for the benefit of individual consumers. However, in order to ensure that the SNO customers experience nothing but the very best, we intend to roll-out our retail services in stages, starting with basic voice telephony and internet access in the major cities of South Africa."

According to CUASA's Webber, the phased approach to delivering services by the SNO is not unexpected. "The SNO will need to offer services to ISPs and VANS first in order to secure cash-flow for the next target market, big business. In addition, any teething problems the SNO is likely to encounter with delivery can be ironed out with these organisations," he says. "Moreover, such organisations will recognise the importance of keeping the SNO as an active competitor in South Africa. Their mere presence should force the incumbent to start offering more competitive services," he says.

"The downside for consumers and smaller businesses is that it is unlikely that they will benefit from competition until the SNO is in a position to roll-out competitive consumer services. Worse, it's possible the incumbent operator will pressurise consumers to make up for lost market share and profits due to competition at a corporate and ISP level," says Webber.

"While the SNO claims they will begin to deliver at least some services any day now, we do recognise that rolling out such a large-scale telecommunications business is not easy. It's taken a number of years for the SNO to get this far and we will be sad, but not surprised if the SNO takes longer to effectively enter the market than what they, and the rest of South Africa, would have hoped," concludes Webber.

* Source: ITWeb

CUASA's Marc Furman has developed the following document which contains a synopsis of the Electronic Communications Act ("the Act" ), which came into force on 19 July 2006.

It should be noted that these points merely highlight significant aspects of the Act seen from a telecommunications angle, (broadcasting is excluded) but are by no means intended to be exhaustive of the provisions or contents of the Act.

1. Licensing Framework – Chapter 3

The following new license categories have been enacted under the Act:

· Electronic communications network services licensees ("ECNS" )
· Electronic communications services ("ECS" )
· Broadcasting services

The above licensees are to be licensed either as individual licenses, or as class licenses, depending on the existence of particular criteria specified in the Act (ss 3 and 5).

The Authority is also entitled to exempt certain types of communication service activities from a licensing requirement. Again, the criteria to be eligible for such exemption are further specified in the Act (s6(2)).

The remaining portion of the "Licensing Framework" deals with the procedures surrounding the amendment of licenses, the application for, and granting and renewal of, licenses, the criteria to be applied by the Authority in drafting terms and conditions of licenses, the conditions surrounding license exemptions (some of the services which the Authority may exempt include not-for-profit ECS, resale of ECS, private ECS, and LAN ECS) and related matters.

2. Networks and Facilities – Chapter 4

This chapter of the Act enumerates the provisions which apply to electronic communication network licensees. Provisions relating to construction, maintenance and removal of fixed-line infrastructure (including rights-of-way, laying of cables and underground pipes, measurement specifications of infrastructure facilities, regulations around fencing and trees obstructing infrastructure facilities, electrical works, etc) are specified in this chapter.

These provisions are essentially no different from those legislative provisions under previous legislation which dealt with these issues in respect of Telkom's public switched telecommunications network.

3. Radio frequency spectrum – Chapter 5

This chapter provides the rules and regulations in respect of radio frequency spectrum. The Authority is mandated to manage and control the use and allocation of the spectrum in accordance with international regulations and standards and "… must investigate and resolve all instances of harmful interference to licensed services" (s30(4)). The chapter regulates the use of the radio frequency spectrum, providing that no person may transmit a radio signal except in accordance with a radio frequency spectrum license issued by the Authority. The criteria for the awarding and removal of such licenses are laid down in this chapter, as are the provisions which enable the Authority to enforce the license conditions.

The chapter goes on to regulate the co-ordination of frequency usage by licensees to avoid harmful interference (failure of such co-ordination will require the Authority to intervene and resolve such the disputes) and stipulates exactly how the Minister of Communications is to work in conjunction with the Authority to develop and manage the national radio frequency plan. The criteria and considerations to be taken into account in such management are stipulated.

4. Interconnection – Chapter 7

A critical section of the Act is chapter 7, which regulates interconnection. Essentially, any person licensed in terms of Chapter 3 of the Act (i.e. any person in possession of an ECS or ECNS license) must on request, interconnect its network to that of any other person licensed under the Act, as well as to any person providing a service but who is exempt from a license under the Act. (There is an exception to this under section 38(5) where the licensee can be shown not have sufficient market power to necessitate an obligation to interconnect).

The request for interconnection must be reasonable, and where a dispute arises as to the reasonableness of the request for interconnection, this chapter provides for the Authority to intervene and resolve the dispute.

There is a requirement that provision of interconnection must be made on an equitable and non-discriminatory basis to all requestors. The principles and procedures regarding the promulgation of interconnection guidelines (including interconnection pricing principles) are specified. The chapter further provides for the filing of interconnection agreements with the Authority, and with the resolution of any disputes which may arise during the negotiation of such agreements. Finally the Authority is mandated to prescribe regulations regarding the relationship between interconnection and carrier-pre-selection.

5. Electronic communications Facilities Leasing – Chapter 8

This chapter obliges a ECNS licensee to lease electronic communications facilities to any other licensee under the Act, as well as to any person providing a service but who is exempt from a license under the Act. Such request for facilities must be reasonable and again, the Authority is given the mandate to adjudicate where disputes arise as to such reasonableness. Procedures are laid down as to how parties are to submit a matter to the Authority for adjudication, and it stipulates that where parties are unable to reach consensus on the terms of a facilities leasing agreement, the Authority may intervene and propose or impose terms for such an agreement.

Certain types of provisions (such as exclusivity provisions) are prohibited in respect of certain facilities lease agreements and will be declared invalid as from a date to be determined by the Minister of Communications. Provision is made for the promulgation of regulations by the Authority stipulating additional guidelines for facilities leasing, and a list is provided of matters which the regulations may address. These include time-frames and procedures for the negotiation of facilities leasing agreements, quality of service levels to be provided, and the manner in which unbundled ECS facilities are to be made available. A facilities leasing agreement must also be filed with the Authority and this Chapter stipulates the procedures around such filing.

As with interconnection, there is a provision which exempts a party from the obligation to lease facilities where the licensee can be shown not have sufficient market power to necessitate an obligation to lease its facilities.

Importantly this Chapter ends with the provision that the Authority "may prescribe regulations establishing a framework for . . . wholesale rates applicable to specified types of ECS . . ." (section 47).

6. Competition matters – Chapter 10

Chapter 10 contains the provision relating to the regulation of fair competition with respect to the communications industry. This chapter expands far beyond the parameters which existed in section 53 of the Telecommunications Act, and principles and frameworks are imported from the Competition Act into this Act.

A range of regulations are authorized under this section of the Act, including regulations which lay down what constitutes anti-competitive practices under the Act, and what constitutes a "significant market power" in terms of the Act such that it will attract additional obligations and restrictions in respect of competition-related matters. Insofar as the Competition Act and the Competition Commission are concerned, this Chapter stipulates that ICASA is a "regulatory authority" as defined in the Competition Act, and both ICASA and the Competition Commission may ask for and receive assistance and advice from each other on proceedings before them. The effect of this provision is to legislate concurrent jurisdiction between the Authority and the Competition Commission in respect of competition regulation and enforcement within the communications industry.

7. Numbering – Chapter 11

This chapter mandates the Authority to make regulations prescribing a numbering plan, and prescribing the introduction of number portability and a number portability database. Criteria to be used in developing this numbering plan are laid down. Consumer protection issues in respect of numbering are also dealt with in this Chapter.

8. General – Chapter 13

In Chapter 13, under "General" , the following matters, inter alia, are dealt with:-

· The establishment of an e-Rate, which legislates a discount for Internet access to schools and other education bodies;
· Offences and penalties (such as the provision that a failure to comply with one's license conditions under this Act may make one liable for criminal prosecution under the Act);
· Directory services; and
· Emergency number regulations.

9. Universal Service and Access Agency – Chapter 14

Chapter 14 provides for the continuation of the old Universal Service Agency established under the Telecommunications Act under the new name of the "Universal Service and Access Agency" . The constitution of the staff and the functions of this agency are stipulated. Importantly, the Agency is authorized to regulate and prescribe, together with the Minister, the amount which licensees are required to contribute to the Universal Services Fund.

10. Transitional Measures – Chapter 15

This critical chapter serves as a bridging mechanism between the framework which existed under the old Telecommunications Act and that of the new Act. It provides, inter alia, as follows:-

· All licenses granted under the Telecommunications Act are valid under the new Act until such time as they are converted by the Authority in terms of this Chapter;
· Such existing licenses are considered to be individual ECNS, ECN or broadcasting licenses under the new Act, whichever is applicable;
· The Authority is required to convert all old Telecommunications Act licenses to licenses under the new Act (and provided that the new licenses will confer no less rights) within 24 months from the enactment of the Act, or at the most 6 months thereafter; and
· The Authority may not grant any monopoly / exclusionary rights in licenses under the new Act and all rights contained in licenses issued under the Telecommunications Act are null and void.

NEW FINDINGS, JUDGEMENTS AND ANNOUNCEMENTS

ICASA

• In terms of the Electronic Communications Act, Icasa has 30 working days, until 31 August 2006, to publish a schedule for converting existing licences.
  
• Icasa will hold hearings in respect of secondary market commercial radio broadcasting licences from 16-23 August 2006.
  
• Icasa announced the licensees for the second round of underserviced area licences on 14 August 2006 in respect of DC 14 Ukhahlamba District Municipality and DC 20 Northern Free State District Municipality.  The other areas were not licensed pending the provision of further information from the applicants themselves or the DOC.

EVENTS

Ispa, UniForum SA and Isoc-ZA will host iWeek from 4-7 September 2006.  For registration go to www.ispa.org.za/iweek/2006/apply.shtml.

For information contact 011 314 7751 or iweek@ispa.org.za.

NEW PROCEEDINGS

ICASA

• Icasa has accepted applications for amendment from broadcasting licensees, Radio Hindvani and Zibonelle Community Radio.

PENDING PROCEEDINGS - REPRESENTATIONS DUE

ICASA

• Icasa has issued an invitation to apply for commercial satellite and cable subscription broadcasting licenses (to both those who currently have authority to operate and to new entrants). Due date for applications is 31 August 2006.
  
• Icasa has invited applications for new community sound broadcasting licenses. Due 31 October 2006, and thereafter, every April and October.
  
• Icasa has invited persons to apply for low power sound broadcasting licenses on the application form published by Icasa. No specific deadline has been set.

DEPARTMENT OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT
Most private bodies must comply with the Promotion of Access to Information Act requirement to compile an information manual by 31 December 2011.

PENDING PROCEEDINGS - OUTCOME AWAITED

PARLIAMENT
Appointments to the Board of the Media Development and Diversity Agency.

MINISTER OF COMMUNICATIONS

• Regulations regarding alternative dispute resolution in terms of the ECT Act.
  
• Approval of the ICT Charter regarding BEE. A copy of the charter can be found at www.ictcharter.org.za.
  
• Guidelines for Recognition of Industry Representative Bodies in terms of Chapter XI of the Electronic Communications and Transactions Act.
  
• Approval of regulations regarding short-range radio devices.
  
• Approval of regulations relating to an operator's entry, construction, maintenance, deviation or alteration of any telecommunication facilities and works upon any land.
  
• Approval of regulations relating to the height of telecommunication wires and cables and telecommunication facilities, pipes, tunnels and tubes.
  
• Approval of regulations on the manner of determining fees and charges for mobile cellular telecommunication services.
  

MINISTER OF COMMUNICATIONS/ICASA

• Underserviced area licenses (second round).
  
• GMPCS licenses.
  

ICASA

[Please note that pending decisions about individual licenses and complaints have not been included in the following list.]

• Findings in respect of a study into the sharing of channel 65 and 66 between broadcasters and telecommunication services providers.
  
• Regulations in respect of mobile handset subsidization.
  
• Regulations with regard to the functional specification for geographic number portability.
  
• Findings in section 27 enquiry into a satellite licensing framework.
  
• Findings in section 27 enquiry into the use of the frequency spectrum band 5725 - 5875 MHz for broadband fixed wireless access.
  
• Findings in respect of the use of channel 65 for non-broadcasting services.
  
• Regulations for the provision of ADSL service.
  
• Regulations in respect of the ordering system specification for mobile number portability.
  
• Findings in respect of the Discussion Paper on the Review of Community Sound Policy.
  
• Findings in section 27 enquiry reviewing mobile cellular telecommunication services prices.
  
• Decision regarding Icasa's notice of intention to include any licensee with market share of at least 35% of a market, in the category of major operator in terms of the supplementary interconnection guidelines.
  
• New interconnection and facilities leasing guidelines (regulations).
  
• Licensing framework for public payphone services.
  
• Radio regulations regarding new standards for telecommunications equipment.
  
• Regulations / lists of standards that telecommunications equipment will have to abide by.
  
• Regulations with regard to telecommunications equipment approval.
  
• Regulations with respect of personal locator beacons.
  
• Regulations in respect of standards for analogue terminal line equipment.
  
• Regulations regarding amateur radio.
  
• Regulations for the resolution of complaints in terms of section 100 of the Telecommunications Act.
  
• Decision in respect of section 27 inquiry regarding the transition to LRIC pricing for interconnection.
  
• Supplementary interconnection guidelines in respect of provisioning charges and quality of service between PSTS operators.
  
• Regulations regarding local television.
  
• Decision regarding the right of a provider or user of a telecommunications service to utilize a telecommunications facility made available in terms of an international treaty.
  
• Audit on Telkom's roll-out and service target obligations.
  
• Regulations prescribing new telecommunication service license categories.
  
• Regulations in respect of telecommunication services that may be applied for only pursuant to and in accordance with an invitation to apply issued by the Minister of Communications, namely local access telecommunication services.
  
• Decision on whether to conduct a study on the need to share broadcasting frequency spectrum with telecommunication wireless local loop systems and link equipment, in the frequency band 790-854 MHz.

.ZA DOMAIN NAME AUTHORITY
Adoption of policy document regarding the structure of the .za domain and the use of the .za domain.

SOUTH AFRICAN LAW REFORM COMMISSION
Report on Privacy and Data Protection.


DEPARTMENT OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT
Ratification of the Council of Europe's Convention on Cyber crime (dealing computer-related fraud and forgery and infringement of copyright). An additional protocol regarding racist and xenophobic acts committed through computer systems has yet to be signed by South Africa.

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