MTN says the process of convergence should be market-led and proposed legislation is unlikely to achieve government objectives.
Graham De Vries, MTN GM of regulatory affairs, says the current legislation is based on the Malaysian model, which has been shown by history to be difficult to implement.
"There is a scarcity of international benchmarks to guide the implementation model and the convergence Bill is being proposed at a time where no cost benefit and market need analysis has been undertaken," he says.
The Bill is envisaged to lower retail prices, unlock bandwidth, contribute to the development of modern infrastructure and increase opportunities for black economic empowerment. However, De Vries says the global convergence process has been highly complex and has yet to deliver these desired results.
"Convergence is seen as the blurring of the lines between broadcasting, telecommunications and IT. But a prerequisite for convergence is digitisation in broadcasting and liberalisation. Market players therefore need the opportunity to acquire market share and move away from monopoly or dominance in the fixed-line sector."
De Vries says the local market is unlike Malaysia, Australia or India. As a result, the country needs to move towards a market-led convergence rather than top-down convergence.
He says in order to unlock competition within the market, mobile providers need to be able to self-provide their entire infrastructure, be licensed to offer international telecommunication services, and have immediate and full access to the 1 800MHz and third-generation frequency spectrum.
De Vries says the second national operator needs to be licensed and the sector needs a regulator with full competition law powers, and a clear policy and legislative framework setting out how to move from this regime to the next.
De Vries was speaking at the ICT in government conference held at the Sandton Convention Centre on Tuesday and Wednesday.
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