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Local Loop Unbundling: A Way for Societies to Benefit from ICT

School of Electrical and Information Engineering University of the Witwatersrand, Johannesburg. Local Loop Unbundling: A Way for Societies to Benefit from ICT . by Teddy Mwakabaga, Ishmael Msiza and Tshilidzi Marwala School of Electrical & Information Eng. Email: t.mwakabaga@ee.wits.ac.za.

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Local Loop Unbundling: A Way for Societies to Benefit from ICT

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  1. School of Electrical and Information EngineeringUniversity of the Witwatersrand, Johannesburg Local Loop Unbundling: A Way for Societies to Benefit from ICT by Teddy Mwakabaga, Ishmael Msiza and Tshilidzi Marwala School of Electrical & Information Eng. Email: t.mwakabaga@ee.wits.ac.za 5th International Conference on Open Access Paradise Holiday Resort, Bagamoyo, Tanzania 14-16 November 2007 5th International Confernence on Open Access

  2. Agenda • Introduction • LLU and ICT Services • Affordability • Innovations • Awaking sleeping giants • A way forward • Summary & Conclusions 5th International Confernence on Open Access

  3. Definition • Is a regulatory process of allowing multiple locally- and national telecommunications operators to make use of connections from the telephone exchange central office to the customer’s premises. (Wikipedia definition). • Is a process that covers a series of regulatory offers that is aimed at fairly providing newly entrant operators with access to the local loop in a competitive environment. 5th International Confernence on Open Access

  4. LLU Technical Overview 5th International Confernence on Open Access

  5. LLU Structures • Full unbundling • Operator has access to low and frequency bands • Line sharing • One operator occupies one frequency band and the remaining frequency band is taken by another. • Bitstream access • Operators provide broadband services as ISPs. 5th International Confernence on Open Access

  6. LLU and ICT Services How Societies Benefit ? 5th International Confernence on Open Access

  7. New Entrants Roll • New innovative solutions • Affordable access • Customers have more choice • Number portability • Quality services • Reaching under serviced areas • Alternative technologies 5th International Confernence on Open Access

  8. African’s World Contribution Source: 2007 World Information Society Report: ITU 5th International Confernence on Open Access

  9. Incumbents Roll • Full participation in the process • Close relationship with new entrants • More customers focus • Subscribers • New entrants • Facilitate access to the local loop • High speed backbone network 5th International Confernence on Open Access

  10. A Meeting Point 5th International Confernence on Open Access

  11. A Good Picture 5th International Confernence on Open Access

  12. LLU Challenges • Regulatory challenges • Implementation and disputes • Incumbent’s involvement • New entrants’ demands and promises • New entrants • Obtaining information from incumbents • Incumbents • Seen new entrants as parasites • Handling subscribers database 5th International Confernence on Open Access

  13. Success of LLU • Depends on • A regulatory framework that supports LLU • Cooperation between incumbent and new entrants under regulated environment • Regulator’s convincing muscle 5th International Confernence on Open Access

  14. Good Results 5th International Confernence on Open Access

  15. Expectations • More opportunities for new entrants to deliver • More broadband services • More affordable services through competition • Innovations with affordable open access • Lower telecommunication prices • A wider choice of ICT infrastructure • Enhances country’s economical growth • Employment opportunities 5th International Confernence on Open Access

  16. Thank You. 5th International Confernence on Open Access

  17. 5th International Confernence on Open Access

  18. Background to Broadband Technologies • DSL – Digital Subscriber Line • ADSL – Asymmetric DSL • HDSL – High bit rate DSL • VDSL – Very high bit rate DSL

  19. Strategic Issues (1/10) • Interference • xDSL services over twisted pairs involves the utilisation of bandwidths much higher than would otherwise be used for voice • Existing xDSL services should not degrade the performance of additional xDSL services • Certain xDSL services can cause more interference • Telkom SA decides to increase of optical fibre to customer access network – hinders deployment of xDSL which require uninterrupted copper

  20. Strategic Issues (2/10) • Interference – insuring minimum performance benchmarks • The regulator will need to produce a spectrum management guidance, which insures that the quality of service is not degraded. • The regulator will also be responsible for the development of technical codes of practice in relation to the deployment of services in the county. • The incumbent may be required to produce (to regulator) plans for the already deployed xDSL services . • The incumbent also may be required to show how deployed xDSL services are going to be managed in the unbundled competitive environment. • Specifications in relation to the copper pairs used by the incumbent should also be available to the regulator.

  21. Strategic Issues (3/10) • Technical incompatibility • What might technically hinder service delivery is • Unavailability of good copper network in some areas

  22. Strategic Issues (4/10) • What needs to be provided and known with the regulator • The quality of the incumbent’s copper network , this includes • Any problems that are known in the duct system, • Age of the copper pairs • The material that the loop is made of • Loading coils and other devices on the loop. • The length of copper from the local exchange to customer premises. • Distances of more that 3-5 KM can be a problem • The incumbent’s plan to upgrade its network • extending fibre beyond the local exchange towards the customer premises.

  23. Strategic Issues (5/10) • Provisioning • A process - new entrants orders LLU services from incumbent to connect end user premises to its own network • Provisioning process • Forecasting • New entrants required to forecast their anticipated requirements • Forecasting may be given in specified time period and updated on a rolling basis. • Understand the consequences for the new entrant • Underforecasting (demand exceeds forecast) • Overforecasting (forecasts exceed demand) • Ordering • Detailing the main steps and timeframes • In under serviced areas, what is the process to be followed to insure the construction of new pairs for the local loop. • Charges • In cases such as rejection or cancellation of orders

  24. Strategic Issues (6/10) • Collocation – key issues to be considered • The claim by the incumbent that there is no space in the relevant exchange • The application of overly onerous technical requirements on the competitors equipment as opposed to the equipment located by the incumbent itself • The requirement by the incumbent that the competitor take a minimum amount of space or that the incumbent have caged collocation as opposed to cageless collocation • The requirement that a competitor cannot interconnect with other competitors within the exchange or that if the two do interconnect the interconnections must be purchased from the incumbent

  25. Strategic Issues (7/10) • Collocation – key issues to be considered • Discriminatory security measures • The allocation of all site preparation costs to the first competitor regardless of whether all costs are attributable to that competitor • Failure to allow collocation in adjacent buildings • Lack of provision of information on space availability • If new collocation arrangements have to be negotiated, can that be done in the multi-lateral forum or bi-laterally • What is the provisioning lead-time on getting collocation space in an exchange building and what are the main steps?

  26. Strategic Issues (8/10) • Cutover • A process of moving customer’s line from the incumbent network to new entrant line • Cutover plan – should clarify the following issues • The maximum timeframe for the cutover is to occur • Hours during which cutovers will usually be organized • There will be out of hours charges by the incumbent. • The co-ordination mechanisms between the incumbent’s technicians and the new entrant’s technicians • Reversal procedures for failure to activate service on the new entrant’s network • Minimum cancellation notice for the cutover process to take place

  27. Strategic Issues (9/10) • Local number portability • T he relationship between the ULL ordering process and the LNP process needs to be known • Charges among operators involved need to be known • Fault detection and repair • Fault reporting and repair process between the incumbents and new entrants need to be outlined • Who is responsible for receiving end user fault reports • How does the incumbent prioritize fault reports • What if repair deadlines are not met

  28. Strategic Issues (10/10) • Fault detection repair • The process depends on whether the competitive carrier has • Control of the entire loop or • It is sharing the loop with the incumbent • Where the incumbent is required to have contact with the new entrants customer to repair a particular fault • What are the processes for co-ordination between the two parties and the customer • How to ensure that the incumbent will not use the information to try and win back the customer or to disparage the new entrant

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