Local loop unbundling isn't the answer to delivering pervasive broadband access in SA, says Neotel executive head of technology Angus Hay.
While the company admits the process will help, it will take too long and cost large amounts for a company like Telkom, which will essentially be forced to free up access on technology it has spent years investing in.
“The process of unbundling the local loop takes time and patience, as you are expecting an operator, who has invested heavily in a network, to open it up to its competitor, and we believe the South African consumer is running out of both,” explains Hay.
He believes self-provision is now the way forward for new operators, which will require that barriers to entry be addressed as soon as possible.
Hay believes speeding up the process of spectrum allocation, for example, will already provide the means to connect more rural areas. “The allocation of spectrum is critical to operators - we simply cannot operate without it. This, in conjunction with the creative use of wireless technologies where it is impossible to lay fibre, will go a long way in connecting more communities,” he says.
The second national operator has been steadily increasing its backbone footprint across SA, and is working with MTN and Vodacom to roll-out its own national fibre network.
However, the company is looking to see the scarce spectrum allocation to use wireless technologies to cover areas that have no in-the-ground connectivity.
“Speeding up the process of spectrum allocation will, in turn, speed up the process of increasing network coverage and thus competition in the marketplace. This is precisely what the South African market so sorely needs - more access, more competition and eventually more affordable connectivity,” says Hay.
He adds that the industry's recent focus on unbundling the local loop is not necessarily the best approach to the roll-out of broadband. “We understand the need and drive for local loop unbundling, but believe there are additional measures to stimulate competition that could sideline the need for this intervention,” he concludes.
Neotel was the only operator to attend the hearings on digital terrestrial TV regulations, encouraging the regulator to speed up the process and allow the telcos access to the freed up spectrum.
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