Telecommunications Reforms - Lessons from Down Under
At the end of my recent visit to Australia I crossed the “ditch” to visit family in Napier, New Zealand.
On my arrival in New Zealand on 4 May 2006 the big news of the day was the announcement by the Communications Minister, David Cunliffe, of a comprehensive regulatory package aimed at transforming the local telecommunications sector.
The four main components of the package are as follow:
- The unbundling of the local loop and sub-loop copper-wire lines between telephone exchanges and homes and businesses, allowing Internet Service Providers (ISPs) to compete fully with Telecom New Zealand to provide faster, cheaper broadband.
- Regulatory action such as information disclosure, accounting separation of Telecom's business operations and an enhanced Commerce Commission monitoring role in order to ensure improved competition.
- Removing constraints on the existing regulated Unbundled Bitstream Service to ensure ISPs can offer better and cheaper broadband at upload speeds faster than 128kps.
- Encouraging investment in alternative infrastructure such as fibre, wireless and satellite networks through various measures.
A separate package for rural broadband will also be developed, and the Digital Strategy Broadband Challenge Fund will be expanded.
Reasons for this government announcement relate to Telecom’s apparent delay in investing in new infrastructure, delivering its promised next generation IP network, and expanding the wholesale broadband market. Furthermore, the New Zealand government is also increasingly concerned about the significant gap in broadband Internet performance between New Zealand and leading OECD countries.
As in many other parts of the world, the government sees increased broadband services as a key factor in improving economic efficiency in New Zealand. Most OECD countries already have "local loop unbundling," in which competing elecommunications companies have access to the "last mile" of copper wires between telephone exchanges and homes and businesses to install their own equipment and provide their own competing services.
As far as South Africa is concerned, this is still a very contentious issue. Despite the licensing of the Second National Operator (SNO) in December 2005, the local loop is still Telkom's preserve and there is no indication when this will be unbundled.
Following on the developments in New Zealand, the Australian government unveiled a plan this week to invest $878 million in projects aimed at delivering fast broadband nationwide.
These developments in New Zealand and Australia present important lessons for transforming the telecommunications environment in South Africa.
On my arrival in New Zealand on 4 May 2006 the big news of the day was the announcement by the Communications Minister, David Cunliffe, of a comprehensive regulatory package aimed at transforming the local telecommunications sector.
The four main components of the package are as follow:
- The unbundling of the local loop and sub-loop copper-wire lines between telephone exchanges and homes and businesses, allowing Internet Service Providers (ISPs) to compete fully with Telecom New Zealand to provide faster, cheaper broadband.
- Regulatory action such as information disclosure, accounting separation of Telecom's business operations and an enhanced Commerce Commission monitoring role in order to ensure improved competition.
- Removing constraints on the existing regulated Unbundled Bitstream Service to ensure ISPs can offer better and cheaper broadband at upload speeds faster than 128kps.
- Encouraging investment in alternative infrastructure such as fibre, wireless and satellite networks through various measures.
A separate package for rural broadband will also be developed, and the Digital Strategy Broadband Challenge Fund will be expanded.
Reasons for this government announcement relate to Telecom’s apparent delay in investing in new infrastructure, delivering its promised next generation IP network, and expanding the wholesale broadband market. Furthermore, the New Zealand government is also increasingly concerned about the significant gap in broadband Internet performance between New Zealand and leading OECD countries.
As in many other parts of the world, the government sees increased broadband services as a key factor in improving economic efficiency in New Zealand. Most OECD countries already have "local loop unbundling," in which competing elecommunications companies have access to the "last mile" of copper wires between telephone exchanges and homes and businesses to install their own equipment and provide their own competing services.
As far as South Africa is concerned, this is still a very contentious issue. Despite the licensing of the Second National Operator (SNO) in December 2005, the local loop is still Telkom's preserve and there is no indication when this will be unbundled.
Following on the developments in New Zealand, the Australian government unveiled a plan this week to invest $878 million in projects aimed at delivering fast broadband nationwide.
These developments in New Zealand and Australia present important lessons for transforming the telecommunications environment in South Africa.
posted by David Barnard at
11:39 PM
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