[13 September 2014]
ICASA is holding public hearings to discuss submissions received from 1 -3 September 2014.
Press release: ICASA Convenes Oral Hearings On The State Of Competition Into The ICT Sector
[11 August 2014]
Summary of responses made with regard to Net Neutrality
[25 July 2014]
Below you’ll find links to the submissions from interested parties responding to ICASA’s inquiry.
- BBInfraco
- CellC
- e-TVS
- IITPSA
- IS
- ISPA
- ISPAAppendix A
- MTN
- Multichoice
- M-Net
- Neotel
- SABC
- SACF
- Telkom
- Vodacom
[25 March 2013]
The Independent Communications Authority of South Africa (ICASA) has officially announced an investigation into competition within the country’s Information and Communication Technology (ICT) sector. The inquiry will focus on several key areas:
- The overall level of competition in the ICT industry.
- Difficulties in creating a fair and equal environment for all participants.
- How emerging technologies, net neutrality, and convergence are affecting competition.
- The importance of fixed-line (fiber) and mobile (high-demand spectrum) infrastructure for fostering competition.
- Balancing consolidation within the ICT sector with ensuring a variety of options for consumers.
If you’d like to submit comments, the deadline is June 23rd, 2014. Please address them to Ms. Thandi Nkosi (CNkosi@icasa.org.za) or fax them to 011 568-3038. Inquiries can be made by phone at 011 566-3037, Monday to Friday between 10:00 AM and 4:00 PM.
The notice is relatively short and the relevant portion is set out below:
NOTICE OF PUBLIC INQUIRY INTO THE STATE OF COMPETITION IN THE INFORMATION AND COMMUNICATIONS TECHNOLOGY SECTOR
1. PURPOSE
The Independent Communications Authority of South Africa (“the Authority”) hereby gives notice of its intention to hold a high level inquiry into the state of competition in the Information and Communications Technology (ICT) sector in terms of s4B(1)(a) of the Independent Communications Authority of South Africa Act, Act No. 13 of 2000.
2. BACKGROUND
“They have been very slow to modernize local loop infrastructure, even when sharply increasing demand for digital services since 1994 warranted such investments. They have treated the monopoly of local services market as cash cows, using cash flow for dividends, share repurchases, acquisitions, and lobbying activities rather than for R&D or capital investment in new technology. They have merged with and acquired each other, reducing the total number of large local services providers from nine to four since the passage of the 1996 Telecommunications Act. They have deliberately and systematically avoided competing with each other despite making repeated public statements implying that it would be economically rational for them to do so, and in some cases despite stating that they intended to do so. And they have engaged in massive, highly coordinated political lobbying, regulatory and litigation activities intended to preserve the status quo.”
(A description of the US market narrated by Economist Charles Ferguson in 2004)
Is South Africa’s ICT Market Truly Competitive?
This passage examines competition within South Africa’s Information and Communication Technology (ICT) sector. The Electronic Communications Act (ECA) aims to promote competition (section 2f) and the convergence of various communication technologies (section 2a).
Market Fluctuations and Consolidation:
- Since 2005, the number of licensed Electronic Communication Network Service/Electronic Communication Service (ECNS/ECS) providers has grown significantly, but costs haven’t decreased as expected.
- Consumers in South Africa pay more than their African counterparts.
- MTN and Vodacom dominate the mobile market (80% share), raising concerns about further consolidation and its impact on competition, pricing, and the digital divide.
- Rural areas lag behind urban centers in terms of access to advanced technologies (2G/2.5G vs. 2G/3G/LTE).
Spectrum Access and Barriers:
- Lack of access to high-demand spectrum and potential advantages for established players are seen as hurdles for new entrants.
- Unanswered questions remain regarding spectrum allocation and potential anti-competitive practices.
- The role of spectrum assignment in fostering competition, considering empowerment objectives, is a key issue.
- The free allocation of spectrum to broadcasters in a converged environment raises questions about fairness.
Challenges in Different ICT Sectors:
- Broadcasting: Attempts to introduce competition in subscription television have faced difficulties, as seen with TopTV’s failed entry. Radio stations are looking to merge for economies of scale, potentially raising concerns about ownership concentration. Free-to-air TV broadcasters are worried about competition from subscription services for advertising revenue. Consumers face rising subscription costs with Multichoice.
- Convergence and Internet: The impact of convergence on the overall ICT market structure needs more discussion. South Africa’s low internet penetration rate needs to be addressed. The role of Over-the-Top (OTT) services in competition is unclear. Data pricing deserves more focus considering the shift towards an information society.
Innovation and New Technologies:
- Innovative spectrum management techniques are emerging. Should these be introduced quickly?
- How will net neutrality concerns play out?
- The potential impact of disruptive technologies like TV White Spaces on competition needs exploration.
- The mobile sector’s move to an IP platform requires consideration of its implications for the ICT market.
The Inquiry’s Purpose and Approach:
- While some issues might seem like policy matters, ICASA, as the public interest protector, needs to address potential market failures and establish corrective measures to ensure a competitive market in the short to medium term.
- The prevalence of information asymmetry, calls for regulatory clarity, and significant technological changes necessitate an inquiry.
- The inquiry aims to comprehensively examine the state of competition and inform future regulations. Public participation through written submissions and oral hearings is encouraged.
The inquiry will address five key areas:
- Current state of competition in the entire ICT sector.
- Challenges in creating a fair and equal playing field.
- Impact of convergence, net neutrality, and disruptive technologies on competition.
- Role of fixed-line (fiber) and mobile (high-demand spectrum) infrastructure in fostering competition.
- Balancing consolidation with a variety of choices for consumers.
The inquiry will involve multiple stages, including public submissions, oral hearings, research, stakeholder engagement, a draft position paper, further public comment, and final findings. It’s expected to take six to eight months to complete.
[12 March 2014]
The Independent Communications Authority of South Africa (ICASA) has issued a media release announcing a comprehensive investigation into the competitive landscape of South Africa’s ICT sector.
“The Information and Communications Technology sector has been, and continues to undergo rapid technological changes with far reaching implications for the local and international industries. One area, in which these changes are more pronounced, is in the competitiveness of the electronic communications, broadcasting and postal sectors and the assumption that greater competition will lead to reduction in the cost to communicate.
Another issue is what impact any consolidation of the market will have on the state of competition, the cost to communicate and bridging the digital divide. The question of the assignment of spectrum for broadband will also have an effect on the state of competition in the ICT sector.
It is against this background that the Authority is embarking on a wide ranging inquiry to develop a full appreciation of the implication of these unfolding changes and developments on the regulation of competition in the ICT sector.”