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South Africa - Market Intelligence Report

Market Intelligence Reports provide an invaluable mix of vital market data and background information, including telecoms regulation.
Published: May 2007
Pages: 46

The South African government published a new Convergence Bill, 2005, in February 2005, to provide a licensing and regulatory framework for a converged telecommunications, broadcasting and information technology industry. However, it was not until mid-April 2006 that the Electronic Communications Act (ECA) was actually signed into law, but it was not until July 2006 that the ECA took effect. Furthermore, key secondary legislation, such as that governing mobile number portability, was not activated until much later in 2006.

The Act defines new categories of licences; sets out rules and guidelines for licence applications, licensee obligations, and the construction of communications networks; provides for interconnection between licensees and facilities leasing by communications network services licensees; provides for a radio frequency plan, a numbering plan to enable number portability, and carrier pre-selection; specifies type approval and technical standards for communications equipment; and, provides for the Universal Service Agency and Universal Service Fund to continue to bring services to historically disadvantaged people and remote locations.

In the meantime, the South African authorities have proceeded with the liberalisation of the fixed-line market, with the licensing of the second national operator (SNO) in the fourth quarter of 2005. Neotel is owned by several key groups, representing state-owned entities (Transtel and Eskom own 30% between them), Black Empowerment Enterprise Nexus Connection (holding 19%), and a group of domestic and foreign investors (owning 51%, with the most important member of this group being Videsh Sanchar Nigam Ltd of India). Besides being authorised to offer basic local, long-distance, and international services, SNO Telecommunications may also offer advanced data and value-added network services, as well as third-generation (3G) mobile telecommunications services. Neotel launched in August 2006.

Ahead of the arrival of SNO, South Africa's three cellular operators have secured enhanced GSM licences (formally permitting them to offer dual-band GSM 900/1800 services, even though Vodacom and MTN had already been offering GSM 1800 services for some time under interim licences). Both Vodacom and MTN have launched 3G services via GSM/GPRS/EDGE-enhanced platforms and have most recently initiated HSDPA systems that enable them to roll-out high-speed broadband wireless services. Relative newcomer Cell C has recently launched an EDGE-based service and - like its peers - aims to offer fixed-line services in the future, most likely via fixed wireless access platforms.

 


This Market Intelligence Report was produced as part of
Communications Markets Analysis (CMA).

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