In line with the Telecommunications Act, there will be no local loop unbundling for the first two years of operation of the second national operator (SNO), says Telkom.
A Telkom statement released yesterday follows media reports that the company would be forced to unbundle the local loop, allowing other operators access to the final section of a phone line.
However, there is no clarity yet on whether Telkom will be forced to unbundle the local loop. Deputy minister of communications Roy Padayachie told ITWeb recently that an announcement in this regard would be made at the second pricing colloquium to be held in Gauteng in October.
Telkom is sticking to its guns by citing the Telecommunications Act as the reason it cannot be forced to do so. This Act is due to be replaced in its entirety by the Convergence Bill, which may be passed by Parliament before the end of this year.
Government pro-unbundling
Government officials have publicly stated that local unbundling would be key to lowering the price of telecommunications and increasing competition.
In its statement yesterday, Telkom said: "While local loop unbundling will contribute to increased broadband penetration and competition, we do not believe it will contribute to an increase of investment in infrastructure."
"Government has indicated it is serious about further liberalising the telecoms sector. If it believes that bringing forward the date for shared access to the local loop is a necessary part of that, or maintaining the two-year exclusivity for the SNO in this regard, then it will look for a way to do that," says Brian Neilson, BMI-TechKnowledge director.
Neilson says since this decision would have major impact, the communications ministry would probably still wish to be involved in setting these timelines. He also states it would be helpful if the Convergence Bill would be specific on this point when it becomes an Act, making it easier for the Independent Communications Authority of SA and all industry stakeholders to interpret and plan around.
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