The Independent Communications Authority of SA (ICASA) is expected to hold public hearings into its proposed ADSL regulations within the next two months, and indications are the authority is likely to heed calls to regulate local broadband pricing.
While ICASA spokesperson Vimla Maistry could not confirm this at the time of publication, a source close to the process tells ITWeb that a firm date has yet to be set for the hearings, adding the authority is in the process of "consolidating inputs" from the public and industry players.
ICASA`s senior manager of the consumer protection department, Diane Mgoasheng, earlier said 83 submissions were received in response to the draft regulations, 13 of which will be presented verbally at the hearings.
Meanwhile, the source, who may not be named, confirms that many of the submissions have called for stricter regulation of Telkom-controlled broadband pricing and that most respondents are seeking some form of international benchmarking model to be introduced in SA.
On whether ICASA is likely to heed the call, the source states: "Generally, what Telkom is charging for ADSL is a bit high. ICASA will always strive for consumer protection and to do what`s best for the end-user."
Fireworks
The source suggests that most of the submissions received called for ICASA to expand on some of the draft regulations surrounding ADSL line rental fees.
This follows on the heels of comments made by deputy communications minister Roy Padayachie, who last week promised "fireworks" in the telecoms sector this year, specifically in the broadband space.
"I think the ICT sector is in for fireworks in the areas of broadband and also in increasing competition in the mobile space," he said on the sidelines of Sangonet`s second "ICTs for Civil Society" conference.
But Padayachie would not elaborate on what action the government planned to take in the liberalisation of the telecoms sector and to improve broadband access.
Commenting on the possibility that ICASA may be considering international benchmarking for local ADSL price structures, MyADSL founder Rudolph Muller describes it as "great" news.
"If ICASA implement a formula like the one submitted by MyADSL, it would put SA in touch with the international market in terms of access speed and cost," he notes.
Sceptical
Muller also welcomes the news that hearings would be held soon, saying it had been a long wait since ICASA launched the process to draw up ADSL regulations in February 2004.
However, he is sceptical about Padayachie`s comments, following a colloquium on telecoms costs held by the Department of Communications at the end of last year, where the deputy minister promised government action to address telecoms pricing in SA.
"He said implementation would begin within eight weeks of his announcement. It`s been about three months now and nothing has happened. I`m a bit hesitant to believe what the Department of Communications has to say," Muller comments.
"What I would like to see is for the department to get rid of its Telkom stake, and create an open and transparent telecoms market."
Muller also believes Telkom will vehemently oppose any ADSL price regulation put forward by ICASA, as the telecoms utility would stand to lose "tens of millions" of rand a month if an international benchmarking model was introduced.
"I expect Telkom will take the legal route and attempt to drag out the regulations coming into effect."
Telkom has indicated that it would not comment ahead of the start of the ADSL hearings.
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