Between 1999 and 2004, Telkom’s monopoly of access to crucial international bandwidth and high-speed ADSL lines meant they could freely charge ISPs excessive fees. And they did. Inevitably, this left them with no choice but to pass costs on to their customers,.
We demanded a competitive market, and aggressively lobbied to have Telkom’s wholesale and retail divisions separated to end its monopoly. Under those conditions, we believed that South Africa’s economy and its citizens could not fully realise the benefit of the Internet.
It was a long, tough battle, and it was a great day – I remember it very well – when in 2012 the Competition Commission ruled that Telkom was engaged in ‘bullying’ and ‘anti-competitive’ business practises.
Does industry not want a competitive, fair and level playing field?
To my frustration, both in and outside the context of the wholesale open access network (WOAN) debate, it appears that our local telecommunications industry is working against what should be the bedrock of our industry – a competitive, fair and level playing field. Companies with vested interests in their smaller monopolies are cocooning themselves in legal posturing, adopting a protectionist stance for short-term financial gains.
South Africa’s Mobile Network Operators (MNOs) are nervous about the WOAN model proposed by government and are vocal in their opposition. The irony is that the conventional MNO is starting to sound like and resemble our old fixed line operator.
Arguably, what the MNOs are trying to protect are new business models that establish themselves as ISPs. This is a natural evolution of a telecommunications landscape once dominated by ‘voice’ services that are history compared to the demand for Internet connectivity and data.
The era of wireless communications
As we continue to communicate for work and play in a new era of wireless communications, the market must open up. Indeed, it is vital that Internet access is unbundled from other value-chain activities. It happened with Telkom, and now it must happen in the mobile space.
I have no doubt that this will stimulate opportunities for new competitors, deliver better pricing, and usher in a more competitive, fairer marketplace. The winners will be South Africa and South Africans.
Achieving the outcomes of the ICT policy white paper
Let’s stop being side-tracked by the obsession with spectrum. In a country like South Africa, the communication needs of wide-spread rural communities and more densely-populated cities means that newer technologies like 5G cannot simply take over from legacy wireless systems like 3G and even 2G. They will still exist alongside for many years to come.
Any qualified engineer in the industry will tell you that there’s enough spectrum. The key is how we use it – or indeed abuse it.
If more competition – to reduce the cost of data and services, increase access to the Internet and stimulate economic development – really is government’s aim, as stated in the 2016 ICT policy white paper, then a WOAN is not the answer.
After all, no matter who or what kind of enterprise holds a monopoly, network monopolies bring high prices. This is a barrier to access for many South Africans, and negatively impacts the economy and society. The fundamentals of economics dictate that competition reduces abuse of market dominance, and produces exactly the price and service results that government wants.
A WOAN is not the answer, but many WOANs may well be.
I propose that MNOs are compelled to completely separate their wholesale and retail businesses as a first step towards achieving the desired outcomes detailed in government’s ICT policy white paper. This wholesale / retail divorce has sound precedence that should not be ignored. At a wholesale level, there’ll be full price transparency, and all ISPs will be able to compete fairly at a retail level.
By compelling MNOs to fully separate their wholesale and retail businesses, we achieve several positive outcomes:
- Industry entrants and existing players that do not own their own infrastructure can build their businesses on the investments made by others, increasing the depth of the market and providing consumers – be they individuals who still want voice services or large enterprises wholly dependent on fibre – with all the benefits of more competition and choice;
- Entities that own infrastructure still profit from their investments, encouraging further development of the industry and maintenance of South Africa’s network, which, when compared to much of the continent, is far superior;
- A WOAN controlled by a government- or industry-body could be launched in parallel with leftover spectrum. This will create a comparative environment that allows all the industry to evaluate the viability of the model for our market;
- There is reduced opportunity for any industry player to ingratiate itself with the body managing the WOAN for spectrum or any other market advantage; and
- Allocation of spectrum to those operators that want it – through application or auction – will not be delayed because of a prolonged industry consultation that must precede any significant policy shift.
The commercial interests of South Africa’s MNOs and ISPs are not at odds with government’s ideals of accessible, affordable, quality internet connectivity and communications services for all citizens.
We all share these ideals, but they are only achievable in a commercially-sound business environment. Regulation must be formulated in the interests of consumers and within a legislative framework that prevents market abuse and eliminates barriers to entry. It must embrace, encourage, and stimulate competition, which gives local, even neighbourhood, operators an opportunity to thrive if they develop compelling product and service offerings that perhaps national service providers cannot.
Since its inception in 1993, Internet Solutions has been championing a fair and competitive market and we are not going to stop. We believe that it is not only our duty, but also the duty of the entire telecommunications industry to fight for the right of South Africa to enjoy all the social and economic benefits of the Internet that come about when it is accessible and affordable to all.
I am not convinced that a WOAN can give South Africa these things, but WOANS can.
New iPhone pricing for SA
The iStore has announced that the latest iPhones, the Xs and Xs Max, can now be pre-ordered at www.myistore.co.za , and will be available in stores starting 28 September 2018.
|iPhone Xs and iPhone Xs Max feature 5.8-inch and 6.5-inch Super Retina displays that offer remarkable brightness and true blacks while showing 60 percent greater dynamic range in HDR photos. iPhone Xs and iPhone Xs Max have an improved dual camera system that offers breakthrough photo and video features, A12 Bionic chip with next-generation Neural Engine, faster Face ID, wider stereo sound, longer battery life, splash and water resistance,
Pre-orders will be open for cash purchases and on iStore’s revised payment plan in partnership with FNB Credit Card, allowing customers to pay off their iPhone at a reduced interest rate. However, the contract period is 37 months rather than the usual 24 months.
Accenture opens Fjord design centre in Johannesburg
Accenture has launched its first design and innovation studio on African soil, Fjord Johannesburg.
The company says the move significantly expands its design capabilities and demonstrates its commitment to unlocking Africa’s innovation potential through the creation of experiences that redefine industries in our constantly evolving digital era.
The new studio, opening in November, will be located at Accenture’s new 3875m² offices in Waterfall. It will be led by Marcel Rossouw, design director and studio lead for Fjord Johannesburg.
Said Rossouw, “Brands are constantly asking, ’how does one take a business need or problem, build that out into a definition of a service experience, and then bring it to market?’ It’s about re-engineering existing service experiences, identifying customer needs, prototyping rapidly, iterating often and proving or disproving assumptions. But it’s also about getting feedback from customers. The combination of these factors helps companies advance towards the ultimate service experience.”
Fjord is the design and innovation consultancy of Accenture Interactive. The Johannesburg location marks its 28th design studio globally, solidifying its position as the world’s leading design powerhouse.
Working in the same location as Accenture Interactive will allow Fjord to fuse its core design strategy DNA with the digital agency’s expertise in marketing, content and commerce to create and deliver the best customer experiences for the world’s leading brands.
Accenture Interactive Africa‘s blend of intelligent design and creative use of technology has already been used by some of South Africa’s largest and most prominent brands, including Alexander Forbes, Discovery, MultiChoice and Nedbank. The digital agency has also earned industry accolades for its innovative and compelling business results, most notably two gold awards in the Service Design category at the 2017 and 2018 Loeries awards.
“Great design tells great stories,” says Wayne Hull, managing director of Accenture Digital and Accenture Interactive lead in Africa. “It unifies a brand, drives innovation and makes the brand or service distinctive and hyper-relevant in both the digital and physical worlds. This is critical to achieving results. Having Fjord Johannesburg as part of Accenture Interactive, and collaborating with all of Accenture Africa, will provide unique experiences and forward-thinking capabilities for our clients.”
“Businesses in South Africa are becoming more design-aware and are looking to take greater advantage of design skills to compete with the rest of the world,” said Thomas Müller, head of Europe, Africa and Latin America at Fjord. “We’re excited to open our first design studio on the continent and to be part of an emerging market that is ripe for design and innovation, and open for business. Developing markets like South Africa are challenging assumptions and norms about what digital services and products are meant to be, and we’ll strive to put design at the heart of the innovation being produced there.”