Operators tackle under-serviced areas

The Independent Communications Authority of SA (ICASA) yesterday held hearings on the draft under-serviced area definition regulations.

ICASA explained the process aims to harmonise its approach to the definition with that of the Universal Service and Access Agency, and the minister, in the determinations of 'universal service' (US) and 'universal access' (UA).

Telkom requested clarity on the concept of “network coverage/limited coverage”, the methodology used to determine under-serviced areas, and the methodology of assigning universal access and service obligation to operators.

It added the term coverage should not be applied to fixed networks, as this would entail extremely complicated calculations, including down to distribution point level, which ultimately may not match any reality if not properly defined.

Cell C also has a problem with the definition of “limited coverage in inhabited parts”.

“The terminology is vague and imprecise. Cell C requests that ICASA define the term 'limited' in quantifiable terms, eg, where there is less than 50% coverage. We also request that ICASA define the term 'coverage', eg, broadband availability.”

Vodacom said the draft regulations should define limited coverage to mean “an area within a local or district municipality which either has less than 80% geographic coverage, 90% population coverage or 20% broadband coverage”.

Neotel said the authority's definition of the 'under-serviced area' does not distinguish areas where there is no demand for electronic communications services. “The authority includes any area where there is no infrastructure, regardless of whether people live there or not.”

“Under-serviced areas”, “market access gap” and “needy people” must be defined and identified in a manner that will be best to achieve the bridging of the digital divide, said MTN. “It can be deduced that the entire SA is not properly serviced, 98% of SA is under-serviced.”

For this reason, MTN says there are some concerns with the list of local municipalities cited as under-serviced areas. SA has a total of 257 local municipalities; 251 of these are listed as under-serviced areas, including all six metropolitan municipalities.

“Our view is that cascading stats down to ward level to pinpoint problem areas within the larger municipal area could assist the larger metropolitan municipalities. If the purpose of defining under-serviced areas is specifically for allocation of funding from USAF [Universal Service and Access Fund] for construction or extension of electronic communications networks as prescribed, is it viable to have 98% of municipalities qualifying for a USAF subsidy? Is this practical?”

The operator said available funds in the USAF should be analysed, and funding requirements of priority areas should be determined, as should how far the available funds will go in assisting with US's and UA's achievements.

It recommends that under-serviced areas be defined as any area within a ward in a local or district municipality in which its inhabitants are severely disadvantaged as a result of lack of basic infrastructure, including communications services and electricity; low geographical population density and tele-density; low income economic activities, low per capita income, lack of disposable income, general poverty; lack of social administrative facilities, including public service institutions, healthcare centres and schools libraries; difficult geographic features like mountainous regions; and a higher degree of illiteracy than rest of the population.

Cell C says payments require the determination of “needy persons” by the minister, which has not yet occurred.

However, Vodacom says the focus should not unduly be on needy people in assessing whether or not an area is under-serviced.

“US areas should not be defined on the basis of the type of people or population residing in that area. US areas should be categorised in terms of towns, wards, suburbs and sub-places, not municipalities, with specific focus on rural areas.”

Vodacom adds broadband network penetration should be the real focus in defining US areas.

“Mobile has been successful in ensuring affordable and reliable access to ECS. However, the key challenge is Internet access/broadband. Evidence suggests that only 10% of households in SA have broadband connection. Broadband infrastructure is central to the achievement of the goal of digital inclusion. Thus definition of US areas needs to align to government's broadband policy objectives.”

Its proposal for the definition of an under-serviced area is “any area within a local or district municipality in which an electronic communications network has been constructed, but which is not capable of delivering quality broadband services”.