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Another telecoms drama in the making?

Candice Jones
By Candice Jones, ITWeb online telecoms editor
Johannesburg, 09 Dec 2009

The Independent Communications Authority of SA (ICASA) could be walking into another interconnection-like debacle, following the release of its newest draft on facilities leasing.

Two years after the second draft was released, the regulator has finally published its latest rules on facilities. However, the regulator has once again failed to clamp down on the costs associated with the lease agreements.

Essentially, the regulator has once again said it will not interfere with the commercial agreements made between operators - precisely the same statement it made on the high cost of termination across networks.

In the regulator's explanatory note on the draft, it says the facilities leasing regulations should help boost competition in the telecoms market, with ICASA having to approve the agreements between operators on how much each facility will cost.

However, the regulator does not seem to have entirely forgotten the trouble it faced over the last few months with the interconnect debate. It has included a clause in the latest set that does not allow the operators to keep the agreements confidential.

During hearings held before Cabinet this year, the operators refused to reveal the rates charged for interconnect to various operators, saying the agreements were confidential. The regulator's new clause will prevent a similar scenario with the facilities leasing agreements.

The second draft of the regulations was published in December 2007, with the first set released in June the same year. The latest set is intended to go hand in hand with the interconnect regulations, which are expected to be completed by March next year.

Essentially not there

In the latest draft, ICASA has also made no mention of how essential facilities, like the local loop and international cable access, should be handled, despite much needed clarity on the issue.

The regulator does have a draft list of essential facilities, which includes most of the infrastructure basics held by the incumbent operators. However, the draft has seen no change since December 2007, and many hoped the two sets of regulations would either be amalgamated or published at the same time.

The regulator expects comment to be in by 21 January 2010. It will then look at conducting public hearings on the matter.

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