Telecommunications companies will have to partner with other role players in the industry, such as municipalities, if they are to succeed in this ever-changing market, said delegates at the Calling the Cape conference.
The year`s first telecommunications conference took place earlier this week amid industry hopes that the licensing of the second national operator (SNO) and the prospect of greater market liberalisation would help drive down prices and the cost of doing business.
"Municipalities will be an important link in the telecommunications chain," said Steve Swann, Gateway`s Western Cape regional manager. "They have the necessary licences to do what they have to do in order to deliver services. I think there will be a lot of action in that arena."
Dave Gale, business development manager at Storm, said municipalities have a number of technologies they can already use to deliver cheap connectivity.
"Power-line connectivity is one such option. We are working with Tshwane municipality on such a service," he said.
Interconnect challenge
Getting interconnect agreements with the incumbent, Telkom, is the biggest challenge facing would-be telecommunications utilities.
"The whole issue of interconnection hampers the roll-out of cheap voice and data services," said DataPro`s operations director, Jaco Voigt. "We all have our number ranges and Telkom still refuses to interconnect, because there is no legal compulsion for them to do so."
Asked if Storm was able to interconnect with Telkom, Gale said: "Yes, we approached Telkom and yes, they refused."
Other delegates pointed out that even if Telkom was legally obliged to interconnect, it could always delay on technical grounds.
Independent Communications Authority of SA (ICASA) chairman Paris Mashile was present during the discussion. Referring to the new regulatory regime that will come with the advent of the Electronic Communications Bill (ECB), he said: "Telkom will have to show why it cannot interconnect and will have to follow technical test compliance and will have to supply interconnect offer references that will have to be ratified by ICASA."
Mashile described Telkom as: "Suffering from withdrawal symptoms [due to the loss of its monopoly position] and using its [legal] war chest disgustingly in some cases."
Upbeat legislation
Delegates were upbeat that the ECB legislation could bring about greater market opportunities.
Calling the Cape executive director Luke Mills said 2006 looked set to be a pivotal year in the local telecommunications industry, with the SNO`s entrance being accompanied by sweeping legislative and regulatory changes in the form of the ECB and amendments to the ICASA Act.
Gateway`s Swann described it as being "like a thermonuclear bomb in the industry, if it does what it sets out to do".
Janet MacKenzie of law firm Cliffe Dekker said several provisions of the Bill would have a significant impact on the call centre and business process outsourcing industry. These included new powers for ICASA to impose pro-competitive terms and conditions on licensees that it declares to have significant market power. These could include the publication of pricing controls and terms and conditions for access, interconnection and facilities leasing.
"The Bill has all the right ingredients to enable the local telecommunications industry to really take off," MacKenzie said. "But it will be critical to remove some of the remaining uncertainties, and to ensure robust regulation."
MacKenzie was particularly optimistic that requirements to publish interconnect agreements and facilities agreements would result in greater public scrutiny and pressure to reduce prices.
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