Cellphone operators argue that it is not technically or legally possible to unbundle mobile networks at the last mile.
The operators were presenting during the Independent Communications Authority of SA (ICASA) hearings into local loop unbundling (LLU). They argue that including mobile in freeing the last mile cannot be done, and would require the authority to start a whole new process.
MTN's GM of regulatory affairs Graham de Vries said the telecoms “industry is a treasure trove of amateur magicians who are using sleight of hand that morphs LLU into something it is not”.
De Vries noted that LLU does not apply to mobile networks, because there is no break out point, and individual areas cannot be isolated. He said to include wireless in the debate will require “interesting legal gymnastics”.
ICASA councillor William Stucke has said LLU applies to all forms of the last mile, regardless of the technology involved.
However, De Vries commented there is “no local in wireless” from either a technical or legal perspective. He said either all wireless operators, including small ISPs, must be included, or ICASA will have to follow a different route to force large mobile operators to free the last mile.
Start again
If only dominant mobile players are included, ICASA will have to do a complete market review using chapter 10 of the Electronic Communications Act instead of its current process, De Vries pointed out. ICASA is using chapter eight of the Act, which is an enquiry into unbundling through facilities leasing.
Under chapter 10, ICASA has the power to determine which company has significant market share and impose remedies on companies to rectify a market failure. However, LLU would then take much longer to implement than the current timelines, which require ICASA to issue a regulatory framework by the end of next month.
De Vries said ICASA must be even-handed and provide the sector with regulatory certainty as to what exactly is involved in LLU. Operators have argued that the regulator's June discussion document is limited to fixed-line unbundling only.
Cell C's senior manager of regulatory Harrish Kasseepursad argued there is no International Telecommunications Union definition for a wireless local loop. He said trying to include mobile will delay unbundling.
Vodacom's executive head of technical regulation Mortimer Hope added that ICASA will have to formulate a new discussion document if it wants to include mobile operators in the unbundling process.
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