The Department of Communications (DOC) has placed the issue of local loop unbundling (LLU) on the backburner, due to its heavy workload.
Speaking today, communications minister Dina Pule said LLU will only be looked at towards the end of the year.
"The directive for LLU was given long ago by my predecessors, but, because of our workload, we haven't been able to look at LLU."
The minister added that it is only after the ICT policy colloquium taking place this week, the ICT Indaba in June, and digital terrestrial television in the third quarter of this year that LLU would be picked up again.
"We have just had so much on our plate," said Pule.
Advantage extended
Industry players have previously criticised the delay in addressing LLU since it is expected to boost competition in the telecoms sector.
Any effort to slow down the process of local loop unbundling should be regarded as holding back competition and economic growth, says World Wide Worx MD Arthur Goldstuck.
“We have competition, but it is not healthy. The competitive landscape will remain blighted if one company is allowed to maintain its market dominance,” says Goldstuck, referring to Telkom's control of the local loop.
However, he adds: “It is not a criticism of Telkom, but rather of the slow pace of regulatory change in SA.”
The unbundling of the local loop, or last mile, has been on the cards for the past decade, and is expected to increase competition in the telecoms market, as well as drive down prices.
Late last year, communications regulator, the Independent Communications Authority of SA, said it would implement a phased approach to LLU, with the first leg expected to kick-off in November this year, in effect extending Telkom's advantage in the market.
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