Fixed-line operator Telkom was yesterday accused of chastising the Independent Communications Authority of SA (ICASA) during hearings into local loop unbundling (LLU).
The company was presenting during ICASA's three-day hearings into LLU, which were held after it published a discussion document in the middle of the year.
Telkom's group executive of regulatory affairs, Andrew Barendse, said the country is at an inflection point in terms of its market reform. He added that the hearings contained much speculation in terms of regulatory intervention.
During the proceedings, companies had argued around the benefits that LLU would bring to SA, including creating more jobs, encouraging competition and expanding broadband penetration.
Barendse encouraged ICASA not to speculate or experiment with unbundling. He said ICASA should do its own research and determine the possible consequences of unbundling.
There is much at stake, said Barendse, adding that Telkom was “disappointed” with the lack of quality “engagement” from the telecoms sector and a lack of empirical research from ICASA into whether LLU would deliver on its objectives.
There had been much speculation around whether LLU would create jobs, increase competition and lower the cost of broadband, said Barendse. He argued there was no data to support these assertions.
The company called for a regulatory impact assessment to be conducted to determine the effect that unbundling would have on the sector, and whether it would meet its objectives.
Homework
ICASA councillor William Stucke said Telkom was presuming to “chastise” the authority for not putting empirical evidence on the table. He said the analysis that Telkom presented around LLU was “misleading” and it was not ICASA's place to provide research.
In addition, said Wills, unbundling also did not extend the reach of broadband penetration in the UK, instead simply moving spending from one operator to another. LLU was implemented in the UK in 2005.
The research was questioned as the UK has a high penetration of fixed lines and most of the jobs were shed during the recent global recession.
Barendse said the company now requires more clarity from ICASA regarding how the hearings will shape possible regulations before deciding on a way forward.
Telkom argued the proceedings were “unusual” without any clear indication of what the outcome would be as the authority would either publish regulations, or guidelines.
If necessary, said Barendse, the company will approach the courts to gain clarity on certain issues. Telkom had argued that ICASA did not have sufficient legal authority to free the last mile.
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