Local Loop Unbundling to generate R1bn

June 22, 2011 2:39 pm 68 comments

Share this Article


pf print icon Local Loop Unbundling to generate R1bn Print pf pdf icon Local Loop Unbundling to generate R1bn 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.


  • How will this increase jobs in the ICT sector?

    • 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.

Talkback - Tell Us What You Think

Other News

  • Mobile

    8ta shakes up prepaid market

    8.ta has introduced a new offer with low broadband rates for prepaid users.

    Following the introduction of its 10GB contract data bundle promotion, the mobile operator is now looking to shake up the prepaid market.

    8.ta is offering a 3GB pre-paid data bundle promotion at R149, which consists of 2GB anytime data and 1GB Midnight Surfer data for use between 12am and 5am. Users will basically be paying 5 cents per MB.

    Managing executive of Telkom Mobile, Amith Maharaj, said 8.ta has responded to the need for an aggressively priced pre-paid data bundle.

    Read more →
  • Internet

    Buy car insurance online

    Print PDF

    Archived; click post to view. Excerpt: Consumers can now quote, buy and manage car insurance online with the introduction of dotsure.co.za - the country’s first e-commerce portal for car insurance. Encouraged by trends in countries such as the US, UK and Australia – where approximately 80% of car insurance is done online – the company seized the market opportunity not yet filled locally. While there are some local aggregators which provide quoting and premium comparison facilities, South Africans [...]

    Read more →
  • Opinion

    Outsourcing as a step towards IT as a utility

    Print PDF

    Archived; click post to view. Excerpt: Cloud computing is the IT buzz phrase of the moment and, if one cuts through the profusion of definitions of what Cloud computing actually is, it boils down to IT as a utility – a pay per use approach akin to other utilities such as electricity and telephones. Best guesses by IT gurus, however, are that the end game of IT as a utility is some five to ten years away and [...]

    Read more →
  • Featured Mobile

    MobileTV wraps up technical trials

    MobileTV says it has completed the technical tests of its Korean Digital Media Broadcasting (DMB) technology, successfully and before schedule.

    According to founder and chairman, Mothobi Mutloatse, the company submitted its technical report and an initial request to formalise its application for a permanent commercial licence.

    “We are more than ready to roll out the ubiquitous media revolution called DMB - within two months of licensing - that is

    surely to introduce innovations of an interactive nature in both television and radio services never experienced on this massive scale in SA, turning the whole print and electronic media and advertising sectors alike on their heads,” said Mutloatse.

    Read more →
  • Mobile

    FNB Pay Wallet users on the rise

    Print PDF

    Archived; click post to view. Excerpt: FNB says its Pay Wallet solution has been used to pay over R42 million to more than 19 000 people since its introduction in July 2010. Pay Wallet is a solution that enables FNB corporate, commercial and public sector clients to electronically pay their employees directly to their cellphones or into a debit card. The recipients are then able to access their money immediately at any full service FNB ATM, with or [...]

    Read more →
  • Opinion

    SA on the right BPO track

    Print PDF

    Archived; click post to view. Excerpt: Business Process Outsourcing (BPO) has long been targeted by the South African government as a major source of employment growth and skills development. Thabo Mbeki repeatedly called attention to BPO as an employment driver, and the Zuma government has followed suit, launching an industry incentive programme in February which hopes to create 30 000 jobs over a five year period. The country is well placed to achieve this target. Role players are [...]

    Read more →
  • Internet

    Remote collaboration decreases costs

    Advances in IT and telecoms technologies are impacting how companies work efficiently in the 21st century, says the IQ Business Group.

    “Online collaboration tools, remote work spaces, high speed internet and mobile computing devices are making this the age of remote collaboration,” says Ian Duvenage, consultant at the IQ Business Group.

    According to Duvenage, the 20th century saw the rise of open plan offices, which increased efficiency and effectiveness by facilitating collaboration among teams.

    Read more →
  • Opinion

    Veteran technology shows its longevity

    Print PDF

    Archived; click post to view. Excerpt: It seems a bit crazy to call a technology that is coming up for its twentieth birthday a “veteran”. But if you consider the massive explosion of digital communications technology over the past few years, you start to realise just how long SMS has been around for. Not only that, but SMS has also proved to be an amazingly adaptable technology. For instance, it has often been predicted that the rise of [...]

    Read more →
  • Featured Mobile Broadband price wars heat up

    Broadband price wars heat up

    Cell C is the latest operator to slash prices as competition heats up.

    Following broadband price cuts by rivals 8ta, Vodacom and MTN - mobile operator, Cell C has now introduced offerings from 3c per MB.

    The mobile operator unveiled 10GB and 20GB bundled broadband packages for the local market.

    Yesterday, Vodacom announced revisions to its data services structure and pricing. The operator revealed that customers would pay 7 cents per MB for data consumption and get double their data for free with Night Owl.

    Read more →
  • Opinion

    A smarter way to deploy mobile banking

    First National Bank (FNB) has certainly fired the opening salvo when it comes to mobile banking in South Africa, with its July 19 launch of mobile banking applications for iOS, Android and Blackberry. These applications complement an established and popular USSD cellphone banking service from the bank.

    FNB is the first of the big four to venture into the banking application realm - although it is not the first in South Africa, as it claims, Imbongi Capital has offered a full suite of banking applications since 2010.

    Imbongi Captal is a customer of VMT and they used a mobile enterprise application platform (MEAP) to launch across all platforms immediately. The other South African banks would do well to sit up and take note, as it is clear that deploying banking applications is no longer a matter ‘if’ but ‘when’.

    Read more →
  • « Previous Page  1 2 3 4 5 6 7 8   Next Page »

SA IT NEWS Feedback

We appreciate any and all feedback about our site; praise, ideas, bug reports you name it!