1

PPCC Hearings on Cost of Communication in South AfricaSoweto Hotel - 24 July 2013

Alison Gillwald, Executive Director, Research ICT Africa, Adjunct Professor, University of Cape Town, Management of Infrastructure Reform & Regulation Programme.

Version: 1 8 May 2013)

Friday 26 July 2013

SA steady descentGlobal ICT indices

2

ICT Development

Report‣ ICT Readiness

(infrastructure, access)

‣ ICT Use (intensity)

‣ ICT Capability (Skills)

‣ 90/155 overall 2013

‣ 95/155 price basket 2013

‣ 1996 rank 40

‣ 2002 rank 77th

‣ 2005: rank 91st

‣ 2007: rank 91st

‣ 2008: rank 92nd

‣

WEF Network Readiness

‣ 70% of 144 2013 (72/2012)

‣ 140/144 Education system

‣ Maths and Science 143/144

‣ Fallen from 34th in 2004, 37th in 2005, 47th in 2006, 51st in 2007, 52nd in 2008.

‣ Major barriers to market growth:

‣ Lack of competitive or affordable backbone infrastructure/ bandwidth

‣ High costs of access to communications

‣ Effective regulation

‣ Labour supply (skills)

Friday 26 July 2013

Fixed, mobile, PC, Internet penetration, TV radioICT Access

3

Table  :  Summary  of  ICT  Access  in  South  Africa  from  Census  2012  and  Research  ICT  Africa  Household  &  Individual  User  Survey  2012

Table  :  Summary  of  ICT  Access  in  South  Africa  from  Census  2012  and  Research  ICT  Africa  Household  &  Individual  User  Survey  2012

Table  :  Summary  of  ICT  Access  in  South  Africa  from  Census  2012  and  Research  ICT  Africa  Household  &  Individual  User  Survey  2012

Table  :  Summary  of  ICT  Access  in  South  Africa  from  Census  2012  and  Research  ICT  Africa  Household  &  Individual  User  Survey  2012

Table  :  Summary  of  ICT  Access  in  South  Africa  from  Census  2012  and  Research  ICT  Africa  Household  &  Individual  User  Survey  2012

Census DataCensus Data RIA Survey DataRIA Survey Data

2006 2011 2007 2011

Households with Fixed Line 18.5% 14.5% 18.2% 18.0%

Households with Computer 15.6% 21.4% 14.8% 24.5%

Household with Radio 76.5% 67.5% 77.7% 62.3%

Households with Television 65.5% 74.5% 71.1% 78.2%

Households with Internet 35.2% 4.8% (Household)15.0% (Individual)

19.7% (Household)33.7% (Individual)

Cellphone Ownership 72.7% 88.9% 62.1% 84.2%

Friday 26 July 2013

Required to understand real points of policy intervention

Need for demand side sector survey

4

Table 1. Type of Internet connection by household with Internet access (multiple response)

Table 1. Type of Internet connection by household with Internet access (multiple response)

Table 1. Type of Internet connection by household with Internet access (multiple response)

Table 1. Type of Internet connection by household with Internet access (multiple response)

Table 1. Type of Internet connection by household with Internet access (multiple response)

Using mobile phone

Mobile model (3G)

Wireless broadband

Modem/ISDN dial-up ADSL

56.4% 54.8% 7.5% 4.9% 22%

Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012

Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)

Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)

Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)

Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)

Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)

Table 2. Individual Internet users - location for accessing the Internet in the last 12 months (2012 survey)

Home Work Place of education

Community

Internet access

Any place via a mobile

phone

Any place via another

mobile device

42.7% 35.9% 20.6% 9.8% 70.8% 18.2%

Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012Source: RIA household and individual survey 2011/2012

Friday 26 July 2013

Inequality in use

5

Table 6: Internet access and useTable 6: Internet access and use National BoP RoP Male Female

15+ using the Internet15+ using the Internet

Used the Internet first on a computer Used the Internet first on a computer

Used the Internet first on a mobileUsed the Internet first on a mobile

Where did you use the Internet in the last 12 months?

Any place via a mobile telephone

Where did you use the Internet in the last 12 months?

HomeWhere did you use the Internet in the last 12 months?

Work

Where did you use the Internet in the last 12 months?

Place of education

Where did you use the Internet in the last 12 months?

Internet Café

Are you signed up for any online social network (Facebook, Mxit, Twitter etc.)?Are you signed up for any online social network (Facebook, Mxit, Twitter etc.)?

Do you have an email address?Do you have an email address?

How often on average have you used the internet in the last 3 months?

Every day or almost every day

How often on average have you used the internet in the last 3 months?

At least once a week

How often on average have you used the internet in the last 3 months?

At least once a month

How often on average have you used the internet in the last 3 months?

Less than once a month

What limits your use of the Internet?

there is no interesting content for me

What limits your use of the Internet?

lack of local language content

What limits your use of the Internet?

the Internet is very slow

What limits your use of the Internet?

to expensive to use

What limits your use of the Internet?

few people to communicate with via the Internet

How concerned would you be about security of your credit card or banking information when or if you ever bought something on the internet? Would you be:

Not at all concernedHow concerned would you be about security of your credit card or banking information when or if you ever bought something on the internet? Would you be:

Somewhat concerned

How concerned would you be about security of your credit card or banking information when or if you ever bought something on the internet? Would you be:

Very concerned

How concerned would you be about security of your credit card or banking information when or if you ever bought something on the internet? Would you be:

Extremely concerned

33.7% 18.4% 40.3% 40.6% 28.6%

65.1% 52.5% 70% 70.1% 57.2%

34.9% 47.5% 30% 29.9% 42.8%

70.8% 70.7% 68.7% 70.7% 70.9%

42.7% 15.5% 48% 46.2% 38.4%

35.9% 6.5% 45.3% 44.5% 25.4%

20.6% 23.3% 17.6% 19.6% 21.9%

32.5% 40.5% 32.5% 23.7% 11.5%

74.9% 52% 78% 73.6% 76.4%

65.9% 29.3% 75.9% 67.0% 64.6%

64.5% 44.6% 68.9% 63.8% 65.3%

24.4% 28.3% 23% 28.1% 19.9%

9.2% 27.1% 5.8% 6.6% 12.5%

1.9% 0% 2.2% 1.5% 2.3%

20.4% 30.5% 19.4% 12.3% 30.3%

8.4% 4.3% 9.3% 8.8% 8.0%

24.9% 20.8% 25.3% 25.6% 24.1%

37.8% 47.9% 36.1% 34.4% 42.1%

19.0% 21.8% 19.3% 12.6% 26.9%

7.9% 7.3% 6.3% 6.8% 9.2%

12.3% 11.3% 13.4% 12.1% 12.6%

48.5% 49.3% 47.3% 45.2% 52.5%

31.3% 32.1% 33% 35.9% 25.7%

_- Education/Income

Friday 26 July 2013

All prices high

6

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Figure 14: Telkom Call Charges

Against countries in the OECD area, South Africa compares poorly. Based on the OECD medium-user basket, South Africa has the highest priced basket. The net e!ect of Neotel’s entry into South Africa has been negligible in terms of fixed line prices.

Figure 15: OECD residential fixed-line basket: medium-usage

Usage

The RIA demand-side figures for 2007-2008 confirm that less than 20% of households have a fixed-line telephone. This constitutes about 2.2 million residential subscriber lines. The disparity can be

South Africa Poland

Czech RepublicTurkey

HungaryMexicoFinlandGreece

BelgiumFrance

ItalyOECD

AustriaJapanKorea

AustraliaNew Zealand

Slovak RepublicSwitzerland

NetherlandsGermany

SpainPortugalSweden

United StatesUnited Kingdom

IrelandDenmark

NorwayCanada 41

7689

111122

137182

198199200207

227253

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348355

428447

504540

556830

South African Sector Performance Review 2009/2010

29 Towards Evidence-based ICT Policy and Regulation

Comparison of OECD low user fixed price baseket US cents (FX=average 2012)

Comparison of broadband rates in US cents (FX=average 2012)

Friday 26 July 2013

termination rates reduction finally having positive effect on retail rates.

Termination rates

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Table 3 Mobile Termination glide Path

PeakPeak Off PeakOff PeakTable 3 Mobile Termination glide

Path ZAR US cents ZARUS

cents

March 2011 0.73 10.11 0.65 9.00

March 2012 0.56 7.76 0.52 7.20

March 2013 0.40 5.54 0.40 5.54

Asymmetrical termination rates may apply, whereby operators with less than 25% market share could charge up to 20% more for calls they carried on their networks between 1 March 2011 and 28 February 2012. Thereafter, the maximum premium they could charge fell to 15%, and finally, in March 2013, it will fall to 10%. Only Vodacom and MTN have more than 25% of the mobile market, and only Telkom has more than 25% of the fixed market.

Asymmetrical termination rates may apply, whereby operators with less than 25% market share could charge up to 20% more for calls they carried on their networks between 1 March 2011 and 28 February 2012. Thereafter, the maximum premium they could charge fell to 15%, and finally, in March 2013, it will fall to 10%. Only Vodacom and MTN have more than 25% of the mobile market, and only Telkom has more than 25% of the fixed market.

Asymmetrical termination rates may apply, whereby operators with less than 25% market share could charge up to 20% more for calls they carried on their networks between 1 March 2011 and 28 February 2012. Thereafter, the maximum premium they could charge fell to 15%, and finally, in March 2013, it will fall to 10%. Only Vodacom and MTN have more than 25% of the mobile market, and only Telkom has more than 25% of the fixed market.

Asymmetrical termination rates may apply, whereby operators with less than 25% market share could charge up to 20% more for calls they carried on their networks between 1 March 2011 and 28 February 2012. Thereafter, the maximum premium they could charge fell to 15%, and finally, in March 2013, it will fall to 10%. Only Vodacom and MTN have more than 25% of the mobile market, and only Telkom has more than 25% of the fixed market.

Asymmetrical termination rates may apply, whereby operators with less than 25% market share could charge up to 20% more for calls they carried on their networks between 1 March 2011 and 28 February 2012. Thereafter, the maximum premium they could charge fell to 15%, and finally, in March 2013, it will fall to 10%. Only Vodacom and MTN have more than 25% of the mobile market, and only Telkom has more than 25% of the fixed market.

Source: Government Gazette No. 33698, 29 October 2010. Call Termination RegulationsExchange rate based on average exchange rate for 2011Source: Government Gazette No. 33698, 29 October 2010. Call Termination RegulationsExchange rate based on average exchange rate for 2011Source: Government Gazette No. 33698, 29 October 2010. Call Termination RegulationsExchange rate based on average exchange rate for 2011Source: Government Gazette No. 33698, 29 October 2010. Call Termination RegulationsExchange rate based on average exchange rate for 2011Source: Government Gazette No. 33698, 29 October 2010. Call Termination RegulationsExchange rate based on average exchange rate for 2011

2%

17%37%

44%

Vodacom MTN CellC Telkom Mobile

Figure 5: Estimated market share based on annual reports and statement of CellC

Friday 26 July 2013

Mobile Pricing - retail

8

South Africa, Low User basket in US cents based on average exchange rates in 2011

Source: Research ICT Africa Pricing Portal 2013

Table 1: Cost of cheapest products for OECD-40calls-60SMS basket in USDTable 1: Cost of cheapest products for OECD-40calls-60SMS basket in USDTable 1: Cost of cheapest products for OECD-40calls-60SMS basket in USDTable 1: Cost of cheapest products for OECD-40calls-60SMS basket in USDTable 1: Cost of cheapest products for OECD-40calls-60SMS basket in USDTable 1: Cost of cheapest products for OECD-40calls-60SMS basket in USD

Country nameCountry nameCountry name

Ghana

Egypt

Mauritius

Ethiopia

Kenya

Sudan

Rwanda

Tunisia

Algeria

Libya

Congo Brazzaville

Sierra Leone

Nigeria

Uganda

Tanzania

Benin

Mozambique

Namibia

Mauritania

Liberia

Cote d'Ivoire

Botswana

Central African Republic

South Africa

Burkina Faso

Mali

Togo

Chad

D.R. Congo

Cameroon

Seychelles

Senegal

Zambia

Niger

Angola

Zimbabwe

Madagascar

Lesotho

Malawi

Swaziland

Cape Verde

Morocco

Cape Verde

Cheapest product Cheapest product Cheapest product Cheapest product

% cheaper than dominantdominant operatordominant operator cheapest in countrycheapest in country % cheaper than dominant

USD Rank USD Rank

% cheaper than dominant

3.90 1 3.90 5 Dominant is cheaper

4.01 2 4.01 4 Dominant is cheaper

4.13 3 4.13 6 Dominant is cheaper

4.30 4 4.30 7 Dominant is cheaper

4.37 5 2.91 2 33.4%

4.56 6 1.72 1 62.3%

5.48 7 5.48 8 Dominant is cheaper

6.36 8 6.17 10 3.0%

6.48 9 6.48 13 Dominant is cheaper

6.88 10 6.88 15 Dominant is cheaper

7.82 11 7.82 16 Dominant is cheaper

8.24 12 6.28 11 23.8%

8.41 13 5.77 9 31.4%

9.17 14 6.32 12 31.1%

10.35 15 3.20 3 69.1%

10.97 16 10.97 17 Dominant is cheaper

11.35 17 11.35 18 Dominant is cheaper

12.20 18 12.20 20 Dominant is cheaper

12.33 19 12.33 21 Dominant is cheaper

12.40 20 12.40 22 Dominant is cheaper

12.75 21 12.75 24 Dominant is cheaper

12.93 22 11.75 19 9.1%

13.16 23 13.16 25 Dominant is cheaper

14.91 24 12.57 23 15.7%

14.95 25 14.72 27 1.5%

14.97 26 14.97 28 Dominant is cheaper

15.52 27 15.52 29 Dominant is cheaper

16.80 28 16.80 33 Dominant is cheaper

17.10 29 17.10 35 Dominant is cheaper

17.32 30 17.13 36 1.1%

18.13 31 18.13 37 Dominant is cheaper

18.89 32 16.24 30 14.0%

19.07 33 18.76 39 1.6%

19.35 34 16.34 31 15.6%

22.55 35 19.97 41 11.4%

22.70 36 21.83 42 3.8%

23.06 37 22.32 43 3.2%

23.76 38 19.28 40 18.9%

23.78 39 18.39 38 22.7%

27.20 40 27.20 44 Dominant is cheaper

29.82 41 29.82 45 Dominant is cheaper

39.11 42 17.00 34 56.5%

29.82 43 29.82 46 Dominant is cheaper

1 0 0

1 2 0

1 4 0

1 6 0

1 8 0

Q4

20

10

Q1

20

11

Q2

20

11

Q3

20

11

Q4

20

11

Q1

20

12

Q2

20

12

Q3

20

12

Q4

20

12

Q1

20

13

Q2

20

13

8ta Cell C MTN South Africa Virgin Mobile Vodacom South Africa

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

2629

31

2325 24

22 2224

22 23

16.6 16.6 16.614.7 14.7 14.7

12.9 12.9 12.9 12.6 12.6

3.2 3.2 2.9 2.4 3.21.7 1.7 1.7 1.7 1.7 1.7

Cheapest in Africa in USD SA basket price in USD SA Rank

Ranking and cost of cheapest prepaid mobile product available in South Africa and Africa for OECD 40 calls and 60 SMS basket

Friday 26 July 2013

Mobile is cheaper than fixed broadband and contract mobile is cheaper than prepaid mobile broadband

Broadband pricing

9

Table 4: South African contract broadband cheapest products in ZAR, July 2013Table 4: South African contract broadband cheapest products in ZAR, July 2013Table 4: South African contract broadband cheapest products in ZAR, July 2013Table 4: South African contract broadband cheapest products in ZAR, July 2013Table 4: South African contract broadband cheapest products in ZAR, July 2013Table 4: South African contract broadband cheapest products in ZAR, July 2013

CellC MTN Telkom Mobile Vodacom ADSL

1GB 59.50 108.17 98.17 68.16

5GB 218.17 528.17 278.17 288.17 425.315

Uncapped 405.315

ADSL Contract Mobile Prepaid Mobile

1 GB

5 GB

uncapped

237.4

112.4

328.2

218.2

59.5

405.3

425.3

Figure 1: Cheapest broadband products available in South Africa in ZAR per month.

Friday 26 July 2013

SA cheapest 1GB post-paid/contract but prepaid much higher ranking. SA 5GB contract, only Nigeria cheaper, and only Tanzania on pre-paid, but ADSL for both baskets poor considering SA economies of scale.

Africa Broadband Pricing Mini-Index

10

Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013

Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013

Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013

Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013

Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013

Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013

Table 5: Comparison of 1GB cheapest broadband baskets in USD per month, April 2013

PrepaidPrepaid PostpaidPostpaid ADSLADSL

Rank USD Rank USD Rank USD

Ghana 1 3.72 4 10.92 3 37.17

Kenya 2 8.52 3 10.81 4 37.22

Tanzania 3 10.17 2 10.17 1 18.77

South Africa 4 11.23 1 9.81 6 42.15

Rwanda 5 13.92

Mozambique 6 23.68 9 28.75 8 58.60

Namibia 7 31.89 8 27.34 5 40.32

Uganda 8 40.12 5 15.71

Cameroon 9 40.67 9 59.14

Nigeria 10 50.99 6 19.77

Botswana 11 73.48 23.48 7 58.59

Ethiopia 7 19.98 2 21.53

Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013Table 6: Comparison of 5GB cheapest broadband baskets in USD per month, April 2013

PrepaidPrepaid ContractContract ADSLADSL

Rank USD Rank USD Rank USD

Tanzania 1 13.30 3 28.94 1 18.77

Ghana 4 28.27 4 30.97 2 37.17

Kenya 5 33.40 5 36.10 3 37.22

Ethiopia 7 60.81 4 37.68

Namibia 8 119.05 6 39.41 5 40.32

South Africa 2 22.47 2 21.80 6 42.15

Mozambique 7 54.11 8 64.25 7 58.60

Cameroon 11 198.90 8 59.14

Botswana 10 105.68 9 117.30

Rwanda 3 25.22

Uganda 6 40.03 9 98.91

Nigeria 1 19.77 10 50.99

Friday 26 July 2013

South Africans not getting what is advertised or what they are paying for.

Quality of Service -

11

Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country

Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country

Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country

Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country

Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country

Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country

Table 10: Mobile broadband monthly cost in USD for 24 months period for the cheapest product available in a country

Countries

PostpaidPostpaidPostpaid PrepaidPrepaid

commentsCountries1 GB 5GB uncapped 1 GB 5GB

commentsCountriesmin.7.2

Mbps

min.7.2

Mbps

min.7.2 Mbps

min.7.2

Mbps

min.7.2

Mbps

comments

Botswana 26.70 133.51 na 78.81 381.08no uncapped

service

Ghana 14.36 36.10 na 6.21 36.10no uncapped

service

Kenya 7.30 7.30 7.30 8.68 34.05

Mozambique 30.44 68.04 na 25.07 57.28

no uncapped service

South Africa

12.07 26.61 32.80 12.64 21.85

Uncapped only 3GB at full

speed than 256k

Tanzania 13.00 16.20 22.60 13.00 16.20

Uganda 18.67 37.78 37.78 14.49 40.81

Friday 26 July 2013

Uncapped services in South Africa are expensive compared to other African countries. South Africa is in sixth position in the uncapped contract mobile broadband baskets and in the fourth position in the uncapped ADSL broadband baskets.

Uncapped broadband price

12

Table 7: Comparison of uncapped cheapest broadband baskets in USD per month, April 2013Table 7: Comparison of uncapped cheapest broadband baskets in USD per month, April 2013Table 7: Comparison of uncapped cheapest broadband baskets in USD per month, April 2013Table 7: Comparison of uncapped cheapest broadband baskets in USD per month, April 2013Table 7: Comparison of uncapped cheapest broadband baskets in USD per month, April 2013

Contract mobileContract mobile ADSLADSL

Rank USD Rank USD

Tanzania 3 19.55 1 18.77

Kenya 2 7.16 2 37.22

Namibia 9 100.96 3 40.32

South Africa 6 32.80 4 53.14

Cameroon 8 50.56 5 59.14

Ghana 4 20.83 6 94.16

Botswana

Rwanda 5 25.22

Uganda 7 36.43

Ethiopia

Mozambique

Nigeria 1 5.20

Friday 26 July 2013

Unlike maturer broadband markets mobile in SA is faster than fixed broadband

Quality of service

13

Figure 3: Cumulative distribution of download throughput (speeds) for different fixed-line and mobile network technologies (MyBroadband data).

Figure 2: Distribution of download throughput (speeds) for fixed and mobile users. Mobile speeds are higher in general (MyBroadband

data)

Friday 26 July 2013

Up to a two line subtitle, generally used to describe the takeaway for the slide

Conclusion

14

‣ All prices wholesale and retail remain high in South Africa creating high input costs for business and suboptimal use by consumers generally

‣ Positive effect of reduced termination rates finally kicked in with reduce retail prices.

‣ Both termination rates and retail prices for pre-paid mobile remain high

‣ SA fares a little better in broadband prices but still high by African standards and particularly by OECD.

‣

Friday 26 July 2013

All prices wholesale and retail remain high in South Africa creating high input costs for business and suboptimal use by consumers generally Termination rates and prepaid mobile prices

Conclusions

Positive effect of reduced termination rates finally kicked in with reduce retail prices.

Both termination rates and retail prices for pre-paid mobile remain high by African and international standards

SA fares a little better in broadband prices but still high by African standards and particularly by OECD.

Contract baskets are generally better than pre-paid, and SA is ranked better on high use baskets than low use.

Unlike maturer broadband markets broadband predominantly wireless and increasingly access on mobile phones.

Unlike these markets mobile is generally cheaper than fixed and faster.

SA are generally not getting what is advertised as their broadband speed and quality. ADSL particularly poor throughput for fixed service.

15Friday 26 July 2013

Within the context of a need for a wider review of ICT policy and development of a national e-strategy the following specific actions should be undertaken:

Recommendations

‣ MOBILE TERMINATION RATES: ICASA should reduce the MTR to the cost of an efficient operator which international benchmarking suggests is less than 2US cents.

‣ ICASA needs to weigh the need for late entrants to continue to enjoy asymmetrical termination rates in a market that demonstrates many of the characteristics of a duopoly, and makes gaining a foothold by new entrants difficult. The dangers of small players exiting the market needs to be considered against the potentially negative consequences of asymmetry justifying high off net prices by dominant operators and inhibiting the expansion of the the small operators subscriber bases. (The only way to prevent this would be for the ICASA to regulate a flat on and off net rate for operators).

‣ BROADBAND DATA: With growing demand for data services, ICASA needs to enable operators to respond to the changing nature of the business and to innovate and grow new services in response to declining voice revenue streams.

‣ This requires wholesale regulation of the growing broadband data market

‣ Policy bottlenecks to ICASA urgently allocating high-demand spectrum need to removed in order to enable operators to respond to the changing demand for mobile services, to build new revenue streams, and to grow new value-added services and applications which can further drive demand.

‣

16Friday 26 July 2013

Up to a two line subtitle, generally used to describe the takeaway for the slide

Recommendations

17Friday 26 July 2013