Wireless Applications by Municipalities REGULATORY GUIDELINES

1. Wireless Applications by MunicipalitiesREGULATORY GUIDELINES 09 June 2006

4. A user can select the best network …and be “Always Best Connected” Voice, internet and multimedia services converged onto a single, portable device Wearable computer becomes mainstream Broadcast networks compete with fixed/Mobile networks for device “screen time” Privacy, Presence and Tracking move to real-time Explosion in personalised advertising occurs Super SP’s offer Unified Billing across multiple operators Work/Leisure time becomes blurred A Vision of the Future... A day in the life of a citizen

5. A Vision of the Futrure (2) e-government in full swing (spur development, bringing govt-citizen interaction • Modern services for citizens - public service delivery powered by information technology access around the clock (Citizen Relationship Mgt) • e-health (electronic patient records)/Dept of Home Affairs/DoW • Business – e tax filling/UIF/Registration of companies • Transform learning with ICT • Payment of Municipal Bills/Accounts online • Online identification • Improved access for people with disabilities

6. A Vision of the Future (3) • tackling digital divide • minimise social exclusion • ensure the correct national skills framework responsive to public service • promote and increase public awareness about ICT • pressing ahead with delivering public services online

7. 2010 Imperatives • tackling digital divide • minimise social exclusion • ensure the correct national skills framework responsive to public service • promote and increase public awareness about ICT • pressing ahead with delivering public services online

8. Need commitment National Gov Technology push Market Forces Provincial Gov Local Gov Services Local govt will provide ‘test-bed’ for best practise in delivery of e-govt services

9. Government commitment (1) National Gov Provincial Gov Local Gov ECT Act PiTs E-rate 2010 Soccer World Cup Services e-voting e-health billing security registrations etc Prices/cost of delivery of services

10. State of the Nation Address May 2004 The President charged us to create a globally competitive telecommunications sector to address the challenges of the 2nd economy

11. Government commitment (2) Electronic Communications Act • Objects of the Act • to promote UA primarily in under-serviced areas; • remove and prevent barriers to electronic communications and transactions; • promote the development of electronic transaction services which are responsive to the needs of users and consumers; • promote the development of HR in electronic transaction environment; • s5(4)(vi): The national e-strategy must …set out the role expected to be performed by the private sector in the implementation of the national e-strategy and how government can solicit the participation of the private sector to perform such role • s5(6): for purposes of achieving the objectives of the national e-strategy, the Minister may in consultation with the Minister of Finance (a) procure funding from sources other than the state

12. e-rate The Ministerial Determinations of 3 September 2004 – Preparing our Youth for the Knowledge economy: Our economy needs a skilled and informed work force that is equipped, from childhood, to meet the demands of the information society and knowledge economy. Access to ICT’s is critical in the process and enriches the learning environment.

13. What is the fuss about?

14. Is there enough spectrum? Interference Mitigation Who has the right to access frequencies? How to ensure that operations of the transmitters do not cause or receive harmful interference? PTN vs PSTN/MCTS – licence fees and USO

15. 2400 2440 2480 2.4GHz Background Bluetooth HomeRF Industrial Heating Microwave Ovens Sulphur Plasma Lighting ISM OBTV RLANs Audio & Video Links RFID SRDs

16. 2.4 GHz Band • Major users: Telkom; Transtel; SANDF and Eskom • Others: • University of the Western Cape • Denel • Armscor • Vaal Colliery etc

17. 3.8 GHz band • No licensed users in this band but unlicensed Industrial, Science and Medical (ISM) application that are not recorded by ICASA • Authority in the process of formulating an assignment policy for this band

18. Principles … • Frequency Re-use

19. Noise and Interference limited approach to frequency planning Power in kW Interfering field strength Nuisance field Wanted field strength Protection ratio Noise level Distance in km Coverage area with noise only as interferer Coverage area with one interfering Tx

20. Regulatory Position Authority in support of: • innovation • Universal Access and Universal Service

21. Regulatory Position (2) Telkom exclusivity 1997 - 2002 (2002) Delay in infrastructure competition Ministerial Determinations of 3 September 2004 PTN operators shall be entitled to resell spare capacity and facilities or to cede or assign his or her rights to use such facilities or to sublet or otherwise part with control thereof 2006 Electronic Communications Act

22. Regulatory Position (3) • s5(4) of ECA • Electronic communications network services, broadcasting services and • electronic communication services that require a class licence, include but not • limited to – • (a) electronic communications networks of District Municipality or local • Municipality operated for commercial purposes Impact on USALS; impact on USOs; contribution to the USF; concentration in key centres – will there be regulatory failure? Are the issues of a developmental state of paramount?

23. Regulatory Position (4) Electronic Communication Act (s44(7)provides: Despite a finding of significant market power, for the purpose of promoting investment in new fibre communications network, the Authority may exempt a communications network service licensee from the obligation to lease fibre loops and sub-loops serving residential premises where the communications network service licensee…satisfies the following: (a) the new fibre loops and sub-loops, as applicable have been, or will be, constructed and placed in operation after the coming into force of this Act (b) the new fibre loops and sub-loops, as applicable, are or will be, - (i) constructed in, and serve, a geographic area

26. What is the holdup? Regulation can be a catalyst for development or a constraint upon it Need to change mindset in the regulation of the sector pricing and cross subsidisation of services (predatory pricing and prevention of anticompetitive behaviour) Ring fencing of specific regulated activities Licence fees Universal service Universal Access Cherry picking Duplication of facilities Right of way (use of condiuts, manholes which constitute a major portion of supply chain) Multi-sector Regulation

27. Western Cape ‘Cherry picking’

28. What is the hold up? (2) Of the 284 Municipalities in SA, 7 have applied for a PTN Licence • City of JHB • City of Cape Town • City of Umhlathuze • Sol Plaatjie Municipality • Buffalo City Local Municipality • Breede Valley Municipality • Ethekwini Municipality

29. What is the holdup? (3) • s92(7) of ECA: Any current applications, process, recommendations and regulations pending before the Authority or the Minister upon the coming into force of this Act must be considered to have been submitted in accordance with the provisions of this Act and must be considered in terms of the relevant sections of this Act Policy Directives: re Budget Vote 25 May 2006 & transitionary provisions • Wireless Broadband • The role of SOEs • Sentech as the TNO • Unbundling of the local loop

30. ???? ??? ???? What is the envisaged role of Municipalities? 2020 2015 2006 Now? Future…2030 ??? 2010

31. THANK YOU Zolisa Masiza Mandla Mchunu Lee-Ann Cassie Samson Koloi Pieter Basson Brendon Marais