Transcript 3G - Amazon Web Services

Transtel
Prepared for the Parliamentary
Portfolio Committee on Communications
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Outline
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Introduction to Transtel
Transtel present and future
Progress towards the SNO
Convergence in communications
Towards the Information Society
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Transtel overview
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Largest private telecommunications network operator
(PTN) in the Southern hemisphere
Annual revenue of more than R 700m
(70% internal to Transnet, 30% external)
Country-wide digital transmission network
(8000 km optical fibre; 14000 km microwave)
Existing customer base:
– Voice: 132 exchanges; 65 000 ports; 140m calls per annum
– Data: 67 nodes; 3420 ports; 3700 point-to-point services
– 12 000 mobile radio terminals (230 high sites)
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Project management / installation experience
– Installed 3000 sites for MTN, 900 for National Lottery
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TRANSNET
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Satellite customers in 17 African countries
Transtel depots
Over 1 400 employees in 140 places
South Africa
proud partner at the birth of the
second national operator
TRANSTEL
Transtel customers
• Transnet: All divisions and subsidiaries
• Other customers in South Africa including:
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SITA (State Information & Telecommunications Authority)
SITA Inc
arivia.kom
SA Post Office
DTI
MTN
ACSA (Airports Company of South Africa)
Eskom
• International Customers, predominantly in Africa:
– Include banks, retail stores, educational institutions
and other public telecommunications companies
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Transtel’s position
• Transtel exists as the result of a Private
Telecommunications Network licence that
allows Transnet to have its own networks
• In a de-regulated market, a PTN can no
longer compete in generic telecoms services
• Transtel’s Enterprise Voice/Data, and
International services will migrate out of
Transnet into a public operator (SNO)
• Transtel’s safety-critical Transport Telecoms
will remain within Transnet
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Transport telecoms services
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Basic transmission/access copper
Dedicated rail fibre transmission
Train radio systems: Various
Common bearer infrastructure
Other mission critical
– Shared use of trunked radio
– Port control/operations, containers
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Enterprise telecoms services
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PABXs and voice services
Audio and video conferencing
Leased lines (Transmission)
Frame relay supporting IP services
Ethernet/IP Virtual Private Networks
Internet access provision
Broadband wireless access
Broadband copper access (xDSL)
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Enterprise telecoms: Future
Transtel
Data
Transtel services are
delivered on dedicated
Voice and Data networks
Telkom
SNO
The SNO will provide a
resilient new backbone,
and be an alternative to
Telkom for public
telecoms traffic
The SNO will give
customers access to a
range of new,
converged services
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Transtel
International
(Satellite)
PAS -10
Ku-band
PAS -10
C-band
PAS -1R
C-band
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Transtel satellite in Africa
Active
Opportunities
Unexploited
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Project Services - Achievements
• Full Services Network – Transtel and Eskom
– Joint deployment of national optical fibre network and equipment
• Digital transmission networks for railways
– Ore line: 800 km digital microwave from Saldanha to Sishen
– Coal line: 500 km optical fibre cable installed at 4 km per day
• Installation of Radio Base Stations for MTN
– 2142 sites out of 3200 built up in MTN’s first five years
– Have won new contracts for deployment in specific regions
• Installation of LANs for SAA/Galileo
– 900 LANs installed in 24 months
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TRANSNET
SA National Lottery
– 500 VSATs installed in the first 20 days
TRANSTEL
proud partner at the birth of the
second national operator
New opportunities
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Provision of basic PTN services to VANS
Provision of VoIP through VANS licence
Expansion of international services
Provisos:
– Spare PTN capacity available to the market is
currently very limited – scaled for Transnet
– Capital-intensive nature of telecoms limits
opportunities whilst within Transnet
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
The reasons for an SNO remain…
• Essential large scale facilities competition
– Telecoms value chain is dependent on basic facilities
– A choice of wholesale supplier and price is critical
• A player to challenge Telkom on equal footing
– Licence, regulatory, tackle anti-competitive practice
• A large, viable infrastructure investment plan
• Access to the only other national backbone
– Cheaper facilities over existing rights-of-way
– Brings the alternative infrastructure to the market
• A new competitive provider in the market
• An environment for partnership and sharing
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Progress made towards the SNO
• Eight years of legislative and regulatory
preparation for a second operator
– Telecommunications Act and Amendments
– Drafting of multiple regulations by ICASA
• Three years of network implementation by
Transtel and Eskom Enterprises
• Alignment of business plans between
identified shareholders
• Preparation of draft licence conditions
• Work with market, partners and customers
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Convergence and legislation
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“Convergence” probably a misnomer; real issue is market structure.
Convergence need not be legislated; it is happening despite legislation.
The creation of universal, fixed & mobile licences is good, but radical
Any new legislation must:
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Have a sound basis in the principles of telecommunications regulation
Control players with Significant Market Power, and essential facilities
Not remove, but replace regulations with appropriate new regulations
Encourage and promote the deployment of telecommunications facilities
Deal with issue of Local Loop Unbundling of the incumbent’s copper lines
Deal effectively with transition of existing licences, to ensure continuity
Apply light touch regulation to services and application (class) licences
• Direct funding of the regulator by licence fees remains the ideal.
• Some concerns about the policy framework, which has not been fully
articulated to guide the legislature in finalising new legislation.
• Without broadband, there is no convergence. However, there is no
published broadband policy for South Africa, or any mechanism
proposed for the setting of targets broadband access rollout.
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Spectrum and facilities
• Giving extensive rights to a large number of facilities-based
(network service) operators on application, has the potential
to create environmental chaos. Other countries do not
typically give many players such rights.
• Certain frequency bands may require a particular minimum
allocation to build a viable business; similarly, there may be
an optimum number of players for a viable, competitive
market (e.g. 3G).
• Licence fees obviously need to be proportional to the value
of spectrum allocated or facilities rights secured in a licence.
• The number of facilities-based (individual) licences needs to
be limited:
– To ensure a predictable environment for infrastructure investments
– To ensure efficient and appropriate use of the frequency spectrum
– To provide for control of rights of way and other environmental issues
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Convergence – Mobile and Fixed Wireless
Network
Mobile
2G
E
v
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v
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3G
2G
3G applications
getting “bigger, better
and more beautiful”
Wireless/mobile
specific broadband
applications
4G
3G
Fixed network
applications
go wireless/mobile
Fixed
NB
WB
0.384
Broadband,
“Extreme bit rates”
BB
2
20
Bandwidth
(Mbps)
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
CDMA2000 technology trial
• Transtel has assisted in putting together a trial of
CDMA2000 (3G mobile) technology in South Africa.
• The trial is led by Qualcomm, the inventors of CDMA,
in partnership with Ericsson (South Africa), MTN,
Transtel, the CSIR, and Wits University.
• Trial supports an 800 MHz sharing study by ICASA.
• The trial will demonstrate the following:
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Use of upper 800MHz band without impacting broadcasting
Use of CDMA2000 for fixed-mobile and full mobile services
Highest capacity, lowest cost per subcriber for voice services
Very high speed data (EVDO), up to 2 Mbits/s
Full roaming onto GSM infrastructure (dual-band phones)
Applications including e-learning, telemedicine, Internet
• ICASA has issued the temporary frequency licence
• Trial will take place through February and March
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
SNO key success factors
• A clear, consistent policy timeline for the duration of
the SNO business plan
• Proportional rights and obligations for facilities-based
operators, now and under new legislation
• Regulatory controls on players with Significant Market
Power (currently three)
• Carrier preselection (immediate) and number
portability (during 2005) as required by the 2001 Act
• Access to additional appropriate fixed-mobile
frequency spectrum (e.g. 800 MHz, 450 MHz)
• Access to international optical fibre routes at cost (level
playing field for competition)
• Community Service Obligations and rollout targets
aligned to broadband convergent access needs
• Ideal: Access to Telkom copper Local Loop (Shared)
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
The new digital divide
• Mobile teledensity has overtaken fixed teledensity
as the measure of access to telephony, but this is no
longer the real issue…
• Only a tiny fraction of the world’s 100 million
broadband connections are in Africa
• Digital divide is no longer about telephones, but
about access to the Information Society
• World Summit on the Information Society 2003
recognised the need for broadband
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Broadband and convergence
Broadband access
Converged
(IP)
Network
Multi-service
Connection!
Bundled products
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Broadband and Internet: Global
700 -10.7%
600 --
7.4%
500 --
4.0%
Broadband as %
of Internet users
400 --
1.4%
300 -0.3%
200 -100 --
0%
0%
0%
0 -1995
1996
Internet
1997
1998
Broadband
1999
2000
2001
2002
Source: ITU Internet report: Birth of Broadband
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
Broadband policy for South Africa
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South Africa needs broadband
True broadband = 1 Mbit/s or more
Both for consumers and businesses
Mobile (3G) has a role, but different
Backbone and international bandwidth
Need a proper wholesale market
– Bitstream (wholesale DSL)
– Shared access (proposed by ICASA)
– Local Loop Unbundling
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
The Information Society
“An enabling environment at national and international
levels is essential for the Information Society … The
rule of law, accompanied by a supportive, transparent,
pro-competitive,
technologically
neutral
and
predictable policy and regulatory framework
reflecting national realities, is essential for building a
people-centred Information Society. Governments
should intervene, as appropriate, to correct market
failures, to maintain fair competition, to attract
investment, to enhance the development of the ICT
infrastructure and applications, to maximize
economic and social benefits, and to serve national
priorities.”
The Declaration of Principles of the World Summit on the Information Society, Geneva, 2003
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator
A vision for telecoms
• Sustainable competition to drive down the
cost of telecommunications in South Africa
• Facilities-based competition with
appropriate individual licensing
• Regulation to control Significant Market
Power and essential facilities
• An open, competitive telecommunication
services market with class licensing
TRANSNET
TRANSTEL
proud partner at the birth of the
second national operator