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PPCC Hearings on Cost of Communication in South AfricaSoweto Hotel - 24 July 2013
Alison Gillwald, Executive Director, Research ICT Africa, Adjunct Professor, University of Cape Town, Management of Infrastructure Reform & Regulation Programme.
Version: 1 8 May 2013)
Friday 26 July 2013
SA steady descentGlobal ICT indices
2
ICT Development
Report‣ ICT Readiness
(infrastructure, access)
‣ ICT Use (intensity)
‣ ICT Capability (Skills)
‣ 90/155 overall 2013
‣ 95/155 price basket 2013
‣ 1996 rank 40
‣ 2002 rank 77th
‣ 2005: rank 91st
‣ 2007: rank 91st
‣ 2008: rank 92nd
‣
WEF Network Readiness
‣ 70% of 144 2013 (72/2012)
‣ 140/144 Education system
‣ Maths and Science 143/144
‣ Fallen from 34th in 2004, 37th in 2005, 47th in 2006, 51st in 2007, 52nd in 2008.
‣ Major barriers to market growth:
‣ Lack of competitive or affordable backbone infrastructure/ bandwidth
‣ High costs of access to communications
‣ Effective regulation
‣ Labour supply (skills)
Friday 26 July 2013
Fixed, mobile, PC, Internet penetration, TV radioICT Access
3
Table : Summary of ICT Access in South Africa from Census 2012 and Research ICT Africa Household & Individual User Survey 2012
Table : Summary of ICT Access in South Africa from Census 2012 and Research ICT Africa Household & Individual User Survey 2012
Table : Summary of ICT Access in South Africa from Census 2012 and Research ICT Africa Household & Individual User Survey 2012
Table : Summary of ICT Access in South Africa from Census 2012 and Research ICT Africa Household & Individual User Survey 2012
Table : Summary of ICT Access in South Africa from Census 2012 and Research ICT Africa Household & Individual User Survey 2012
Census DataCensus Data RIA Survey DataRIA Survey Data
2006 2011 2007 2011
Households with Fixed Line 18.5% 14.5% 18.2% 18.0%
Households with Computer 15.6% 21.4% 14.8% 24.5%
Household with Radio 76.5% 67.5% 77.7% 62.3%
Households with Television 65.5% 74.5% 71.1% 78.2%
Households with Internet 35.2% 4.8% (Household)15.0% (Individual)
19.7% (Household)33.7% (Individual)
Cellphone Ownership 72.7% 88.9% 62.1% 84.2%
Friday 26 July 2013
Required to understand real points of policy intervention
Need for demand side sector survey
4
Table 1. Type of Internet connection by household with Internet access (multiple response)
Table 1. Type of Internet connection by household with Internet access (multiple response)
Table 1. Type of Internet connection by household with Internet access (multiple response)
Table 1. Type of Internet connection by household with Internet access (multiple response)
Table 1. Type of Internet connection by household with Internet access (multiple response)
Using mobile phone
Mobile model (3G)
Wireless broadband
Modem/ISDN dial-up ADSL
56.4% 54.8% 7.5% 4.9% 22%
Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012
Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)
Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)
Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)
Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)
Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)
Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)
Home Work Place of education
Community
Internet access
Any place via a mobile
phone
Any place via another
mobile device
42.7% 35.9% 20.6% 9.8% 70.8% 18.2%
Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012
Friday 26 July 2013
Inequality in use
5
Table 6: Internet access and useTable 6: Internet access and use National BoP RoP Male Female
15+ using the Internet15+ using the Internet
Used the Internet first on a computer Used the Internet first on a computer
Used the Internet first on a mobileUsed the Internet first on a mobile
Where did you use the Internet in the last 12 months?
Any place via a mobile telephone
Where did you use the Internet in the last 12 months?
HomeWhere did you use the Internet in the last 12 months?
Work
Where did you use the Internet in the last 12 months?
Place of education
Where did you use the Internet in the last 12 months?
Internet Café
Are you signed up for any online social network (Facebook, Mxit, Twitter etc.)?Are you signed up for any online social network (Facebook, Mxit, Twitter etc.)?
Do you have an email address?Do you have an email address?
How often on average have you used the internet in the last 3 months?
Every day or almost every day
How often on average have you used the internet in the last 3 months?
At least once a week
How often on average have you used the internet in the last 3 months?
At least once a month
How often on average have you used the internet in the last 3 months?
Less than once a month
What limits your use of the Internet?
there is no interesting content for me
What limits your use of the Internet?
lack of local language content
What limits your use of the Internet?
the Internet is very slow
What limits your use of the Internet?
to expensive to use
What limits your use of the Internet?
few people to communicate with via the Internet
How concerned would you be about security of your credit card or banking information when or if you ever bought something on the internet? Would you be:
Not at all concernedHow concerned would you be about security of your credit card or banking information when or if you ever bought something on the internet? Would you be:
Somewhat concerned
How concerned would you be about security of your credit card or banking information when or if you ever bought something on the internet? Would you be:
Very concerned
How concerned would you be about security of your credit card or banking information when or if you ever bought something on the internet? Would you be:
Extremely concerned
33.7% 18.4% 40.3% 40.6% 28.6%
65.1% 52.5% 70% 70.1% 57.2%
34.9% 47.5% 30% 29.9% 42.8%
70.8% 70.7% 68.7% 70.7% 70.9%
42.7% 15.5% 48% 46.2% 38.4%
35.9% 6.5% 45.3% 44.5% 25.4%
20.6% 23.3% 17.6% 19.6% 21.9%
32.5% 40.5% 32.5% 23.7% 11.5%
74.9% 52% 78% 73.6% 76.4%
65.9% 29.3% 75.9% 67.0% 64.6%
64.5% 44.6% 68.9% 63.8% 65.3%
24.4% 28.3% 23% 28.1% 19.9%
9.2% 27.1% 5.8% 6.6% 12.5%
1.9% 0% 2.2% 1.5% 2.3%
20.4% 30.5% 19.4% 12.3% 30.3%
8.4% 4.3% 9.3% 8.8% 8.0%
24.9% 20.8% 25.3% 25.6% 24.1%
37.8% 47.9% 36.1% 34.4% 42.1%
19.0% 21.8% 19.3% 12.6% 26.9%
7.9% 7.3% 6.3% 6.8% 9.2%
12.3% 11.3% 13.4% 12.1% 12.6%
48.5% 49.3% 47.3% 45.2% 52.5%
31.3% 32.1% 33% 35.9% 25.7%
_- Education/Income
Friday 26 July 2013
All prices high
6
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'()*+,-!./01+2!
345)67/408!9),6+0:!;4<=0+*>+!?)06+,2!@)*8>46!;4<=0>+!
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'=+*2!D+E+,!F0+,()!
G/0=48+*!A,>=)-!H>,8-/6!
I+,+-+!'0)*+,-!
B/4=J!;K0>(+!!H/0)+!
L)5>(/!
!"#$%"&'&(")(*'&+%()',")-(./'01'2,3)'
Figure 14: Telkom Call Charges
Against countries in the OECD area, South Africa compares poorly. Based on the OECD medium-user basket, South Africa has the highest priced basket. The net e!ect of Neotel’s entry into South Africa has been negligible in terms of fixed line prices.
Figure 15: OECD residential fixed-line basket: medium-usage
Usage
The RIA demand-side figures for 2007-2008 confirm that less than 20% of households have a fixed-line telephone. This constitutes about 2.2 million residential subscriber lines. The disparity can be
South Africa Poland
Czech RepublicTurkey
HungaryMexicoFinlandGreece
BelgiumFrance
ItalyOECD
AustriaJapanKorea
AustraliaNew Zealand
Slovak RepublicSwitzerland
NetherlandsGermany
SpainPortugalSweden
United StatesUnited Kingdom
IrelandDenmark
NorwayCanada 41
7689
111122
137182
198199200207
227253
270277285286288300302311313
348355
428447
504540
556830
South African Sector Performance Review 2009/2010
29 Towards Evidence-based ICT Policy and Regulation
Comparison of OECD low user fixed price baseket US cents (FX=average 2012)
Comparison of broadband rates in US cents (FX=average 2012)
Friday 26 July 2013
termination rates reduction finally having positive effect on retail rates.
Termination rates
7
Table 3 Mobile Termination glide Path
PeakPeak Off PeakOff PeakTable 3 Mobile Termination glide
Path ZAR US cents ZARUS
cents
March 2011 0.73 10.11 0.65 9.00
March 2012 0.56 7.76 0.52 7.20
March 2013 0.40 5.54 0.40 5.54
Asymmetrical termination rates may apply, whereby operators with less than 25% market share could charge up to 20% more for calls they carried on their networks between 1 March 2011 and 28 February 2012. Thereafter, the maximum premium they could charge fell to 15%, and finally, in March 2013, it will fall to 10%. Only Vodacom and MTN have more than 25% of the mobile market, and only Telkom has more than 25% of the fixed market.
Asymmetrical termination rates may apply, whereby operators with less than 25% market share could charge up to 20% more for calls they carried on their networks between 1 March 2011 and 28 February 2012. Thereafter, the maximum premium they could charge fell to 15%, and finally, in March 2013, it will fall to 10%. Only Vodacom and MTN have more than 25% of the mobile market, and only Telkom has more than 25% of the fixed market.
Asymmetrical termination rates may apply, whereby operators with less than 25% market share could charge up to 20% more for calls they carried on their networks between 1 March 2011 and 28 February 2012. Thereafter, the maximum premium they could charge fell to 15%, and finally, in March 2013, it will fall to 10%. Only Vodacom and MTN have more than 25% of the mobile market, and only Telkom has more than 25% of the fixed market.
Asymmetrical termination rates may apply, whereby operators with less than 25% market share could charge up to 20% more for calls they carried on their networks between 1 March 2011 and 28 February 2012. Thereafter, the maximum premium they could charge fell to 15%, and finally, in March 2013, it will fall to 10%. Only Vodacom and MTN have more than 25% of the mobile market, and only Telkom has more than 25% of the fixed market.
Asymmetrical termination rates may apply, whereby operators with less than 25% market share could charge up to 20% more for calls they carried on their networks between 1 March 2011 and 28 February 2012. Thereafter, the maximum premium they could charge fell to 15%, and finally, in March 2013, it will fall to 10%. Only Vodacom and MTN have more than 25% of the mobile market, and only Telkom has more than 25% of the fixed market.
Source: Government Gazette No. 33698, 29 October 2010. Call Termination RegulationsExchange rate based on average exchange rate for 2011Source: Government Gazette No. 33698, 29 October 2010. Call Termination RegulationsExchange rate based on average exchange rate for 2011Source: Government Gazette No. 33698, 29 October 2010. Call Termination RegulationsExchange rate based on average exchange rate for 2011Source: Government Gazette No. 33698, 29 October 2010. Call Termination RegulationsExchange rate based on average exchange rate for 2011Source: Government Gazette No. 33698, 29 October 2010. Call Termination RegulationsExchange rate based on average exchange rate for 2011
2%
17%37%
44%
Vodacom MTN CellC Telkom Mobile
Figure 5: Estimated market share based on annual reports and statement of CellC
Friday 26 July 2013
Mobile Pricing - retail
8
South Africa, Low User basket in US cents based on average exchange rates in 2011
Source: Research ICT Africa Pricing Portal 2013
Table 1: Cost of cheapest products for OECD-40calls-60SMS basket in USDTable 1: Cost of cheapest products for OECD-40calls-60SMS basket in USDTable 1: Cost of cheapest products for OECD-40calls-60SMS basket in USDTable 1: Cost of cheapest products for OECD-40calls-60SMS basket in USDTable 1: Cost of cheapest products for OECD-40calls-60SMS basket in USDTable 1: Cost of cheapest products for OECD-40calls-60SMS basket in USD
Country nameCountry nameCountry name
Ghana
Egypt
Mauritius
Ethiopia
Kenya
Sudan
Rwanda
Tunisia
Algeria
Libya
Congo Brazzaville
Sierra Leone
Nigeria
Uganda
Tanzania
Benin
Mozambique
Namibia
Mauritania
Liberia
Cote d'Ivoire
Botswana
Central African Republic
South Africa
Burkina Faso
Mali
Togo
Chad
D.R. Congo
Cameroon
Seychelles
Senegal
Zambia
Niger
Angola
Zimbabwe
Madagascar
Lesotho
Malawi
Swaziland
Cape Verde
Morocco
Cape Verde
Cheapest product Cheapest product Cheapest product Cheapest product
% cheaper than dominantdominant operatordominant operator cheapest in countrycheapest in country % cheaper than dominant
USD Rank USD Rank
% cheaper than dominant
3.90 1 3.90 5 Dominant is cheaper
4.01 2 4.01 4 Dominant is cheaper
4.13 3 4.13 6 Dominant is cheaper
4.30 4 4.30 7 Dominant is cheaper
4.37 5 2.91 2 33.4%
4.56 6 1.72 1 62.3%
5.48 7 5.48 8 Dominant is cheaper
6.36 8 6.17 10 3.0%
6.48 9 6.48 13 Dominant is cheaper
6.88 10 6.88 15 Dominant is cheaper
7.82 11 7.82 16 Dominant is cheaper
8.24 12 6.28 11 23.8%
8.41 13 5.77 9 31.4%
9.17 14 6.32 12 31.1%
10.35 15 3.20 3 69.1%
10.97 16 10.97 17 Dominant is cheaper
11.35 17 11.35 18 Dominant is cheaper
12.20 18 12.20 20 Dominant is cheaper
12.33 19 12.33 21 Dominant is cheaper
12.40 20 12.40 22 Dominant is cheaper
12.75 21 12.75 24 Dominant is cheaper
12.93 22 11.75 19 9.1%
13.16 23 13.16 25 Dominant is cheaper
14.91 24 12.57 23 15.7%
14.95 25 14.72 27 1.5%
14.97 26 14.97 28 Dominant is cheaper
15.52 27 15.52 29 Dominant is cheaper
16.80 28 16.80 33 Dominant is cheaper
17.10 29 17.10 35 Dominant is cheaper
17.32 30 17.13 36 1.1%
18.13 31 18.13 37 Dominant is cheaper
18.89 32 16.24 30 14.0%
19.07 33 18.76 39 1.6%
19.35 34 16.34 31 15.6%
22.55 35 19.97 41 11.4%
22.70 36 21.83 42 3.8%
23.06 37 22.32 43 3.2%
23.76 38 19.28 40 18.9%
23.78 39 18.39 38 22.7%
27.20 40 27.20 44 Dominant is cheaper
29.82 41 29.82 45 Dominant is cheaper
39.11 42 17.00 34 56.5%
29.82 43 29.82 46 Dominant is cheaper
1 0 0
1 2 0
1 4 0
1 6 0
1 8 0
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
8ta Cell C MTN South Africa Virgin Mobile Vodacom South Africa
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
2629
31
2325 24
22 2224
22 23
16.6 16.6 16.614.7 14.7 14.7
12.9 12.9 12.9 12.6 12.6
3.2 3.2 2.9 2.4 3.21.7 1.7 1.7 1.7 1.7 1.7
Cheapest in Africa in USD SA basket price in USD SA Rank
Ranking and cost of cheapest prepaid mobile product available in South Africa and Africa for OECD 40 calls and 60 SMS basket
Friday 26 July 2013
Mobile is cheaper than fixed broadband and contract mobile is cheaper than prepaid mobile broadband
Broadband pricing
9
Table 4: South African contract broadband cheapest products in ZAR, July 2013Table 4: South African contract broadband cheapest products in ZAR, July 2013Table 4: South African contract broadband cheapest products in ZAR, July 2013Table 4: South African contract broadband cheapest products in ZAR, July 2013Table 4: South African contract broadband cheapest products in ZAR, July 2013Table 4: South African contract broadband cheapest products in ZAR, July 2013
CellC MTN Telkom Mobile Vodacom ADSL
1GB 59.50 108.17 98.17 68.16
5GB 218.17 528.17 278.17 288.17 425.315
Uncapped 405.315
ADSL Contract Mobile Prepaid Mobile
1 GB
5 GB
uncapped
237.4
112.4
328.2
218.2
59.5
405.3
425.3
Figure 1: Cheapest broadband products available in South Africa in ZAR per month.
Friday 26 July 2013
SA cheapest 1GB post-paid/contract but prepaid much higher ranking. SA 5GB contract, only Nigeria cheaper, and only Tanzania on pre-paid, but ADSL for both baskets poor considering SA economies of scale.
Africa Broadband Pricing Mini-Index
10
Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013
Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013
Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013
Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013
Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013
Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013
Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013
PrepaidPrepaid PostpaidPostpaid ADSLADSL
Rank USD Rank USD Rank USD
Ghana 1 3.72 4 10.92 3 37.17
Kenya 2 8.52 3 10.81 4 37.22
Tanzania 3 10.17 2 10.17 1 18.77
South Africa 4 11.23 1 9.81 6 42.15
Rwanda 5 13.92
Mozambique 6 23.68 9 28.75 8 58.60
Namibia 7 31.89 8 27.34 5 40.32
Uganda 8 40.12 5 15.71
Cameroon 9 40.67 9 59.14
Nigeria 10 50.99 6 19.77
Botswana 11 73.48 23.48 7 58.59
Ethiopia 7 19.98 2 21.53
Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013
PrepaidPrepaid ContractContract ADSLADSL
Rank USD Rank USD Rank USD
Tanzania 1 13.30 3 28.94 1 18.77
Ghana 4 28.27 4 30.97 2 37.17
Kenya 5 33.40 5 36.10 3 37.22
Ethiopia 7 60.81 4 37.68
Namibia 8 119.05 6 39.41 5 40.32
South Africa 2 22.47 2 21.80 6 42.15
Mozambique 7 54.11 8 64.25 7 58.60
Cameroon 11 198.90 8 59.14
Botswana 10 105.68 9 117.30
Rwanda 3 25.22
Uganda 6 40.03 9 98.91
Nigeria 1 19.77 10 50.99
Friday 26 July 2013
South Africans not getting what is advertised or what they are paying for.
Quality of Service -
11
Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country
Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country
Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country
Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country
Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country
Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country
Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country
Countries
PostpaidPostpaidPostpaid PrepaidPrepaid
commentsCountries1 GB 5GB uncapped 1 GB 5GB
commentsCountriesmin.7.2
Mbps
min.7.2
Mbps
min.7.2 Mbps
min.7.2
Mbps
min.7.2
Mbps
comments
Botswana 26.70 133.51 na 78.81 381.08no uncapped
service
Ghana 14.36 36.10 na 6.21 36.10no uncapped
service
Kenya 7.30 7.30 7.30 8.68 34.05
Mozambique 30.44 68.04 na 25.07 57.28
no uncapped service
South Africa
12.07 26.61 32.80 12.64 21.85
Uncapped only 3GB at full
speed than 256k
Tanzania 13.00 16.20 22.60 13.00 16.20
Uganda 18.67 37.78 37.78 14.49 40.81
Friday 26 July 2013
Uncapped services in South Africa are expensive compared to other African countries. South Africa is in sixth position in the uncapped contract mobile broadband baskets and in the fourth position in the uncapped ADSL broadband baskets.
Uncapped broadband price
12
Table 7: Comparison of uncapped cheapest broadband baskets in USD per month, April 2013Table 7: Comparison of uncapped cheapest broadband baskets in USD per month, April 2013Table 7: Comparison of uncapped cheapest broadband baskets in USD per month, April 2013Table 7: Comparison of uncapped cheapest broadband baskets in USD per month, April 2013Table 7: Comparison of uncapped cheapest broadband baskets in USD per month, April 2013
Contract mobileContract mobile ADSLADSL
Rank USD Rank USD
Tanzania 3 19.55 1 18.77
Kenya 2 7.16 2 37.22
Namibia 9 100.96 3 40.32
South Africa 6 32.80 4 53.14
Cameroon 8 50.56 5 59.14
Ghana 4 20.83 6 94.16
Botswana
Rwanda 5 25.22
Uganda 7 36.43
Ethiopia
Mozambique
Nigeria 1 5.20
Friday 26 July 2013
Unlike maturer broadband markets mobile in SA is faster than fixed broadband
Quality of service
13
Figure 3: Cumulative distribution of download throughput (speeds) for different fixed-line and mobile network technologies (MyBroadband data).
Figure 2: Distribution of download throughput (speeds) for fixed and mobile users. Mobile speeds are higher in general (MyBroadband
data)
Friday 26 July 2013
Up to a two line subtitle, generally used to describe the takeaway for the slide
Conclusion
14
‣ All prices wholesale and retail remain high in South Africa creating high input costs for business and suboptimal use by consumers generally
‣ Positive effect of reduced termination rates finally kicked in with reduce retail prices.
‣ Both termination rates and retail prices for pre-paid mobile remain high
‣ SA fares a little better in broadband prices but still high by African standards and particularly by OECD.
‣
Friday 26 July 2013
All prices wholesale and retail remain high in South Africa creating high input costs for business and suboptimal use by consumers generally Termination rates and prepaid mobile prices
Conclusions
Positive effect of reduced termination rates finally kicked in with reduce retail prices.
Both termination rates and retail prices for pre-paid mobile remain high by African and international standards
SA fares a little better in broadband prices but still high by African standards and particularly by OECD.
Contract baskets are generally better than pre-paid, and SA is ranked better on high use baskets than low use.
Unlike maturer broadband markets broadband predominantly wireless and increasingly access on mobile phones.
Unlike these markets mobile is generally cheaper than fixed and faster.
SA are generally not getting what is advertised as their broadband speed and quality. ADSL particularly poor throughput for fixed service.
15Friday 26 July 2013
Within the context of a need for a wider review of ICT policy and development of a national e-strategy the following specific actions should be undertaken:
Recommendations
‣ MOBILE TERMINATION RATES: ICASA should reduce the MTR to the cost of an efficient operator which international benchmarking suggests is less than 2US cents.
‣ ICASA needs to weigh the need for late entrants to continue to enjoy asymmetrical termination rates in a market that demonstrates many of the characteristics of a duopoly, and makes gaining a foothold by new entrants difficult. The dangers of small players exiting the market needs to be considered against the potentially negative consequences of asymmetry justifying high off net prices by dominant operators and inhibiting the expansion of the the small operators subscriber bases. (The only way to prevent this would be for the ICASA to regulate a flat on and off net rate for operators).
‣ BROADBAND DATA: With growing demand for data services, ICASA needs to enable operators to respond to the changing nature of the business and to innovate and grow new services in response to declining voice revenue streams.
‣ This requires wholesale regulation of the growing broadband data market
‣ Policy bottlenecks to ICASA urgently allocating high-demand spectrum need to removed in order to enable operators to respond to the changing demand for mobile services, to build new revenue streams, and to grow new value-added services and applications which can further drive demand.
‣
16Friday 26 July 2013
Up to a two line subtitle, generally used to describe the takeaway for the slide
Recommendations
17Friday 26 July 2013