Interconnection is key to liberalisation

Johannesburg, 15 Oct 2004

The liberalisation of the telecoms industry will lead to the birth of the ubiquitous network, says Dimension Data SA chairman designate, Andile Ngcaba.

He was speaking at a voice over IP (VOIP) seminar held earlier this week, where he said the key to a ubiquitous network is interconnection.

A ubiquitous network is a single network that covers the full range of elements, from network infrastructure to digital equipment to communications capabilities and the infrastructure has to be compatible, be capable of interoperation and must be able to interconnect.

"It is, in effect, an environment where networks are connected at any time to any device and the shape is actually determined by the user," said Ngcaba.

He believes that for the industry to continue to develop, the country needs to see lower communications prices, increased bandwidth, increased access, good quality service and the development of value-add through new applications.

"We can achieve this by allowing more competition and choice, having robust service and technology providers and through re-regulation - adapting regulations to the new environment - deregulation, which is currently happening, and co-regulation, which is when the regulator works with the industry to develop regulations in a rapidly changing technology environment.

"Broadband, in particular, is a key factor, as it is necessary to attract foreign direct investment, which in turn leads to e-commerce, access to untapped markets and country competitiveness, which will allow SA to be part of the global economy."

Ngcaba noted that for interconnection to be successful, obligations will have to be imposed on operators that have significant market power, in order to keep the playing fields level.

"Obligations will include issues such as openness and transparency in terms of technical interfaces, in order to ensure interoperability, as well as transparency in pricing and contractual terms and agreements.

"There is a lot of work for the regulator to do if we hope to see the ubiquitous network, and it needs to work on the problems of interconnection, facilities leasing and carrier pre-selection, as well as a number of mobile and numbering issues."

If the interconnection issues are resolved, it will solve more than 50% of the problems associated with the liberalisation process, he said.

"The industry needs to formulate broad guidelines for interconnection and it needs to be done quickly, because interconnection leads to the opening up of facilities, which is the key to developing a ubiquitous network."