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Local Loop Unbundling to generate R1bn
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PDF The Independent Communications Authority of South Africa (ICASA) expects Local Loop Unbundling (LLU) to generate about R1 billion for the economy, through the increased utilisation of networks.
Speaking at the authority’s hearing on LLU, ICASA councillor Thabo Makhakhe, says this will also directly increase employment in the ICT sector.
The authority today published a discussion document on LLU and says it hopes to meet its November deadline for publishing supporting regulations.
“We will meet our November deadline but the question is whether the stakeholders will be able to do the same,” says Makhakhe.
LLU is the regulatory process that allows multiple telecom operators to use connections from the telephone exchange to the user’s premises. This according to Makhakhe will vastly increase employment opportunities in the telecom sector as operators will be forced to get more employees.
“We believe that the size of the pie may be increased by over R1billion, this revenue will not only retain jobs but to fund further expansion to increase the scope of ADSL capabilities,” he explained.
With the industry expecting Telkom to be the biggest loser when the regulations finally kick off, Makhakhe says the operator is not the only company affected by this.
“This will apply to all, but Telkom at the moment has more copper but other parties will be required to unbundle as well.”
The authority also outlined its approach to achieving LLU in the discussion document asking stakeholders to respond to a range of questions. This will include the form of LLU preferred by most operators and other matters such as funding and access to lines.
The authority says the motivation behind the LLU is based on the standard network economics where more users generate more traffic thereby reduce unit per user cost.
“The authority is of the view that increase in consumer choice is a crucial tool to increase the number of users effectively increasing the “size of the current pie” for all providing services,” said Makhakhe.
Further engagements with the licensees will be scheduled on request with the regulator between 15 and 26 August 2011 with written submissions due by the 14 September 2011.
10:08 am
How will this increase jobs in the ICT sector?
6:24 am
Everyone complains about the Government doing nothing, but in reality it’s us doing nothing. If the cizitens of this homeland would make a stand and make a demand for what is correct then things would finally change. It’s tiring listening about what’s wrong with our land without action. Stand up for what you believe in.