In making its presentation on the Convergence Bill on Tuesday, Saudi-held mobile firm Cell C noted that there is a conflict in the lack of separation of the roles of policy formulation versus policy implementation and proposed that such issues be dealt with by the Independent Communications Authority of South Africa (Icasa).
The operator noted that policy formulation powers were vested in Communications Minister Ivy Matsepe-Casaburri while the regulator was responsible for implementation.
As examples of conflict Cell C cited the fact that the minister has the final say in terms of individual licences and that she is responsible for frequency allocation and spectrum. In addition, it noted, the minister -‒ and not Icasa — will exercise her powers and determine the date for the issue of new communications services network licences.
In order to avoid an incoherent, rigid and unworkable framework, Cell C wants various communications services to be properly defined because they are currently “vague, conflicting and confusing.”
“There are also missing definitions. In particular there are no definitions on ‘convergence’ and VANS (value added network service) and the definitions of ‘applications services’, ‘communicating service’, ‘reseller’ and ‘communications network service’ need substantial reworking,” Cell C CEO and chairperson Talaat Laham told the parliamentary portfolio committee on communications.
Cell C hailed the imminent principle of significant market power -‒ that is applied ex-ante (when the regulator acts in anticipation to promote competition) as one of the most significant changes introduced by the Bill.
Examples of ex-ante include accounting separation, licence terms and conditions as well as interconnection and facilities leasing regulations.
On the other hand ex-post — which relates to industry dominance and is part of the Competition Commission’s duties — is when the Commission acts on market failure.
Cell C proposed the retention of concurrent jurisdiction between Icasa and the Commission although it suggested a rethink on a memorandum of understanding between the parties.
Although the firm’s proposed sale of a 15% stake to Saudi Arabia’s Lanum Securities was recently given a go-ahead by the Commission and the Competition Tribunal, the regulator has yet to make the final word on the deal that could see an empowerment holding reduced to 25% in Cell C. ‒ I-Net Bridge