31 august 2005

PRESENTATIONTO

SELECT COMMITTEE ON LABOUR AND PUBLIC ENTERPRISES

ON THE CONVERGENCE BILL

BYSENTECH LIMITED

31 AUGUST 2005

2DD/mr/Select Comm-Labour & Public Ent –31 Aug 2005

TEAM

Specialist: Government Relations Mr Matime Nchabeleng

Specialist: Policy & Licensing Ms Dimakatso Qocha

Specialist: Technology Mr Chris Johnson

Senior Transmitter Manager Mr Frank Creese

Team Leader Mr Peter VamvadelisMr Cameron ValentineMr Johan Scholtz


TELECOMMUNICATIONS MEANS: ANY TRANSMISSION, EMISSION OR RECEPTION

OF SIGNS, SIGNALS, WRITINGS, IMAGES AND SOUNDS OR INTELLIGENCE OF

ANY NATURE BY WIRE, RADIO, OPTICAL OR OTHER ELECTROMAGNETIC

SYSTEMS.(1)

A BROADCASTING SERVICE MEANS: A RADIO COMMUNICATION SERVICE IN

WHICH THE TRANSMISSIONS ARE INTENDED FOR DIRECT RECEPTION BY THE

GENERAL PUBLIC. THIS SERVICE MAY INCLUDE SOUND TRANSMISSIONS,

TELEVISION TRANSMISSIONS OR OTHER TYPES OF TRANSMISSION.(2)

IT MEANS: ALL THE EQUIPMENT, PROCESSES, PROCEDURES AND SYSTEMS

USED TO PROVIDE AND SUPPORT INFORMATION SYSTEMS (COMPUTERISED

AND MANUAL) WITHIN AN ORGANISATION AND THOSE REACHING OUT TO

CUSTOMERS AND SUPPLIERS.(3)

REF: Source 1&2 ITU Radio Regulations - Articles1 - Edition of 2001

Source Newton’s Telecom Dictionary - The Official Dictionary

of Telecommunications Networking and Internet

DEFINITIONS


DEFINITION OF CONVERGENCE

THE ACKNOWLEDGEMENT OF THE BLURRING DISTINCTION

OF TELECOMMUNICATIONS, BROADCASTING, COMPUTERS

AND DATA NETWORKS

THE PROVISION OF COMMUNICATIONS SERVICES OVER THE

SAME NETWORK, VOICE AND DATA TRANSMITTED OVER THE

SAME NETWORK

BROADCASTING, TELECOMMUNICATIONS, COMPUTERS AND

INTERNET OVER THE SAME NETWORK


ASPECTS OF CONVERGENCE

1. LEGAL

2. TECHNICAL

3. COMMERCIAL

1. SINGLE REGULATOR

2. CONVERGENCE FRAMEWORK

(a) POLICY

(b) LEGISLATION

(c) REGULATIONS

REGULATING CONVERGENCE


ADVANTAGES/BENEFITS OFCONVERGENCE (Digital Technology)

1. DIGITISATION

2. BRIDGING THE DIGITAL DIVIDE

3. INTERNET PENETRATION - PROVIDING INFORMATION,

VIDEO AUDIO, PRIVATE DATA, ETC. - AT MPCC’S , SCHOOLS,

CLINICS

4. INTRODUCING COMPETITION AND CHOICE

5. LOWERING OF PRICES (ECONOMY OF SCALE)


WHY CONVERGENCE?

• Enables delivery of content on various

platforms and receiving devices

• Triple play: ability to offer bundles of ICT

services (voice, Internet access and

broadcasting services)

• Move from push to pull content delivery

• User demand of content delivery any time

any where any platform

• Create once, distribute many


WHY CONVERGENCE?

• To remove the inhibitors placed by Telecommunications Act

• Different networks can deliver the same services and content - they must be able to do so

• Increase teledensity


WHY CONVERGENCE?

• Interactivity requirements (broadcasting)

• Multiple services on single device (eg. DVB on Handheld)

• Lower access cost

• Improved functionality

• More efficient spectrum usage

• Content on demand


INTERNATIONAL TRENDS

Country Licensing Regime

Australia Carrier licence and carriage service provider

European UnionGeneral authorization regime

India Unified licensing

JapanSimple registration/ notification

MalaysiaConverged licensing for national operators

SingaporeFacilities-based and service-based licensing


CONVERGENCE MAPPING:LICENSING

CONTENT SERVICES

PROVIDERS

APPLICATION SERVICES

PROVIDERS

NETWORK SERVICES

PROVIDERS

(OPERATORS)

COMMUNICATION SERVICES (Convergence Act)


SOUTH AFRICAN SITUATION

Need to cater for cultural, social and public interest concerns unique to South Africa

Section 192 of the Constitution


CURRENT SCENARIO

End Users

TV & Radio Sets

Signal Distribution(Sentech, Orbicom etc.)

Broadcast Content

Broadcasters

BROADCASTING (Broadcasting Act, IBA Act, ICASA Act, Sentech Act)

DESTINATIONTRANSPORTORIGINATION

End Users

Computers &Data Terminals

Telecommunication Networks(Telkom, SNO, Sentech, WBS, USAL’s)

Information Services

VANS,ISP, etc

ENHANCED DATA SERVICES (Telecommunications Act, ECT Act, ICASA Act)

Mobile / Wireless Networks (MCOs, Sentech, USALs)

End Users

Voice / Data Terminals

Fixed Networks (Telkom, SNO, Sentech, USALs)

Voice / Data / Video

VOICE / DATA CONVEYANCE SERVICES (Telecommunications Act, Icasa Act)


COMMON CARRIER STATUS

Common carrier status is in the public interest

Need to migrate to digital broadcasting

Universal access to broadcasting services

Economies of scale

Likelihood of cherry picking


INHIBITORS IN SENTECH’s LICENCES

The Bill must remove all inhibitors & restrictions imposed on Sentech :

Prohibition on carriage of switched voice (Multimedia Services Licence)

Restriction on the provision of international services directly to end users (Carrier of Carriers Licence)


RadioChannel

TVChannel

EnhancedServices

On-lineservices

VideoStreaming/ PPV/VoD

Multiplex

Subject to contentregulation

MU

LT

IME

DIA

SE

RV

ICE

SB

RO

AD

CA

ST

ING

SE

RV

ICE

S

Converged DeliveryMedium, e.g. DTT, DTH, IP

SIGNAL DISTRIBUTION

Radio

DVBDecoder

DVBDecoder Television

GSM & DVB-H /DAB

Video/Audio/Data Streaming

Cell Phone

DVB PCICard

Video& IP

Streaming

DVB PCICard

Video& IP

Streaming

REGULATORY DISTINCTION BETWEEN BROADCASTING AND MULTIMEDIA


REGULATION OF ANTI-COMPETITIVE CONDUCT

Regulatory imbalances must be addressed -

Licenses must be technology neutral

Level playing field

Special licence terms & conditions for operators with significant market power


REGULATION OF COMPETITION

ICASA responsible for ex-ante regulation Regulation of access, interconnection

and facilities leasing obligations, including pricing

Regulation of charges and imposition of cost orientated charges and rates on SMP licensees

Imposition of special licence terms and conditions on licensees with significant market power


REGULATION OF COMPETITION

Competition Authorities responsible for ex-post regulation -

Abuse of dominance

Horizontal prohibited practices

Vertical prohibited practices

Specific rules need to be formulated for the communication sector

margin squeeze, discriminatory and exclusionary conduct


ICASA OR COMPETITION AUTHORITY?

Competition Authorities and ICASA must be jointly responsible for the regulation of mergers –

Competition Authorities responsible for competition

ICASA responsible for licensing


FUNDING THE REGULATOR

• Independence• Proposal• Maximum of 1% of annual turn-over

• USF


THE EXECUTIVE – POLICY

The Minister authorised to make policies and the following is in the public interest and is not unconstitutional -

Policy

Setting of framework for individual licence applications

Determination of radio frequency spectrum policy


TRANSITIONAL PERIOD

During transition Inhibitors to convergence contained in

the Telecommunications Act and any licence should be of no force and effect

90 days license re-application period

imposed on existing licensees must be removed Licensees should not required to re-

apply


TRANSITIONAL PROCESS

Transitional process must cater for -

Status of existing regulations

Status of pending litigation or complaint proceedings before ICASA or the courts

Continued validity of type approvals, supplier registrations and other similar authorisations

Status of pending licence applications


GENERAL

• Assignment of broadcasting radio frequencies to the signal distributor under a digital environment

• Resellers and content services must not be licensed – light touch!


Thank you

31 august 2005

Documents

public enterpriseson

general public

convergence framework

convergence mapping

definition of convergence

broadcasting service

network broadcasting

delivery of content