RESTRICTED
WORLD TRADE S/NGBT/W/3/Add.24
13April 1995
ORGANIZATION(95-0956)
Original: English Negotiating Group onBasic Telecommunications
COMMUNICATION FROM SOUTH AFRICA
Response toQuestionnaire onBasic Telecommunications
Theattached communication iscirculated attherequest ofSouth Africa toMembers ofthe
Negotiating Group onBasic Telecommunications.S/NGBT/W/3/Add.24
Page2
PART I
Definition andMarket Structure
Definition
1. Present legislation doesnotdifferentiate telecommunications intobasic andpremium orvalue
addedcategories.TelkomSALtd(hereafterreferredtoasTelkom)hastheexclusiveprivilegetoprovide
alltelecommunication services (telephony, telex anddata) andprobably considers allsuchservices
asbasic. Thevarious services fulfildifferent requirements andareintended forusebydifferent user
groups. ThefactthatTelkom wasnotpermitted toconstruct andoperate amodern cellular network
under itsownbanner could beconsidered astacitacknowledgment thatcellular isnotabasic
telecommunication service. TheDepartment ofPosts andTelecommunications (hereafter referred to
asDPT), nothaving anyregulatory authority overTelkom, doesnothavethelocus standi tocategorize
anyservices provided byTelkom.
2. Present legislation doesnotmake provision thatadistinction canbemade between networks
andservices. However, asexplained intheAnnex, historically certain concessions were made for
practical purposes inrespect ofcustomer premises equipment (PABXs, telephones, TLTES etc).
3. No.
Market structure
4. Allservices except thefollowing arepresently considered tobebasic telecommunications
provided exclusively byTelkom interms oftheirstatutory monopoly:
(a) Cellular telephony;
(b) Radio trunking services
(c) Radio paging services
(d) Private automatic branch exchanges (andvariations thereof); and
(e) Telecommunication lineterminal equipment other thanastandard (basic) telephone
onsingle lineservices andmulti-line services where thePABX isprovided byTelkom.
5. Thepresent regime asstipulated inthePostOffice Act,istogrant Telkom the"exclusive
privilege" onanational basis toprovide alltelecommunication services. However, asexplained in
II.2oftheAnnex, twocellular licences havebeenissued. Telkom isawholly government-owned
corporate entity.
6. Atpresent noforeign equity participation orownership isallowed inTelkom.
7(a) Activities/categories notreserved exclusively forthemonopoly network operator
- Facsimile machines arecategorized astelecommunication lineterminal equipment.
They aresubject totypeapproval andusers maypurchase them directly from the
supplier, foruseonTelkom supplied lines. Private individuals maysetupfacsimile
bureaus, using Telkom lines.S/NGBT/W/3/Add.24
Page3
- Telex machines andservices areprovided exclusively byTelkom.
- Dataservices areprovided byTelkom asnetwork carrier butdatausers maypurchase
typeapproved terminal equipment directly from suppliers.
- Mobile: There aretwolicensed cellular operators intheRSA. (SeeAnnex II.2).
- Interms ofthedefinition ofatelecommunication line,satellite services areconsidered
tofallwithin Telkom 'sstatutory monopoly. However, noaction istaken against the
users ofsatellite services suchasINMARSAT provided theuserdoes notresell
INMARSAT capacity.
7(b) Telkom hastheauthority toparticipate injointventures withprivate andforeign suppliers of
telecommunication services andproducts. Telkom alsohastherighttopurchase equipment
andexpertise from anysource, eventhough ithasalways given preference toSouth African
products.
8. TheRepublic ofSouth Africa isamember oftheITU, INTELSAT andINMARSAT.
Consequently, South African regulations arecompatible withthelegalinstruments, resolutions and
decisions ofthose bodies.
PartII
Competition
(i) Overview
Seereply 4(Part I).Anyforeign participation must beconducted viaacompany registered
intheRSA.
(ii) Modes ofsupply
1. Cross border supply forfixedlineservices ispossible through Telkom andforcellular services
inaccordance withtheGSM-MoU.
Consumption abroad
2. Clients ofthefixed network operator (Telkom) andcellular network operators canaccess any
telecommunication service beyond ourborders viatheTelkom international direct dialling service.
Commercial presence andpresence ofnatural persons
3. SeePartII(i).
(iii) Market access
Ifitisassumed thatmarket access refers mainly totheright toconstruct andmaintain a
telecommunications network forthepurpose ofproviding telecommunications services tothegeneral
public, thelimitation onthenumber ofsuppliers (operators) isdetermined bylegislation andthe
discretion oftheMinister.S/NGBT/W/3/Add.24
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(iv) National treatment
Therearenoforeignsuppliers(operators)oftelecommunicationsservicesintheRSA.However,
bothcellular licensees arejointventures withforeign partners holding minority equity intherespective
companies.
(v) Licensing
Telkom isnotlicensed asitsexclusive privilege isgranted bystatute. However other operators
arelicensed. There arenofixed criteria, procedures orlicence fees.
B. Categories
Local/long distance/international
1. Asageneral rulealocalcallinthefixed network iswhere thecalling andcalled parties are
within 50km radial distance ofeachother. However, inpractice theconfiguration ofthenetwork often
requires modification ofthisparameter. Allcallswithin theRSAaremetered onthevariable time
interval basis. Telkom 'scalltariff structure isbased ononelocallevelandfourlongdistance levels,
eachwiththree different rategroups, depending onthetimeoftheday. Thecellular operators have
onelocal(0to200km)andtwolongdistance (200-800km and800+km)levels.
2. Telkom 'sexclusive privilege includes theprovision ofinternational links. These international
linkscanbewire-based (cross border cable ormicrowave links, undersea cable etc)orbymeans of
leased satellite links.
Resale basis
3. There arenoregulations inregard toresale ofinternational private leased circuit capacity.
Telkom doesnotallow it.Theresale ofswitched voice capacity isnotpermitted.
4. Theresale ofprivate leased circuit excess capacity isofficially discouraged byTelkom bymeans
ofhigher tariffs. Where itdoesoccur Telkom attempts tolimitconnection tothepublic network at
oneendonly. Todateithasonlybeenpermitted fornon-voice services.
Facilities-based
5. OnlyTelkom hastheexclusive privilege toconstruct andoperate itsownnetwork toprovide
telecommunication services.
Public/non-public supply
6. Nodistinction ismade between suppliers ofpublic switched andnon-public basic
telecommunications.
7. Subjecttospecificprohibitionbyitsshareholder,theGovernmentoftheRSA,Telkom'sexclusive
privilege obligates ittoprovide alltelecommunication services.
8. Theparastatals, Transnet Ltd(formerly theSouth African Railways andHarbours) andthe
Eskom Ltd,(theelectricity generating anddistribution utility) havetherighttoconstruct andmaintain
telecommunication networks insupport oftheirmainactivities. They maymake useofleased Telkom
circuits.S/NGBT/W/3/Add.24
Page5
9. Telkom isobliged toprovide "universal service" within theconstraints ofitsfinancial and
technical capabilities onthebasis ofequality, continuity, suitability andgeneral security.
10. Telecommunication suppliers (operators) otherthanTelkom mustbelicensed bythePostmaster
General. Private networks maynotcarry third party traffic inorder tobypass Telkom 'sswitched
telecommunication network.
11. Theoperation ofpublic paytelephones fallunder Telkom 'sexclusive privilege. However,
Telkom hasaprofit sharing scheme withtheowners ofprivate premises where suchtelephones are
installed.
PART III
Regulatory issues
Relationship between regulatory andoperational functions
1. Telkom andthecellular operators, Vodacom andMobile Telephone Networks, maysubmit
proposals onregulatory issues totheMinister and/or thePostmaster General.
Telkom hastheauthority tosetitsowntechnical andoperational standards.
Thecellular operators arebothsignatories oftheGSM -MoU andhaveadopted theGSM
standards. ThePostmaster General hassetcertain operational standards asconditions oftheirlicences,
forexample rollout,services todisadvantaged areas etc.
2. ThePostmaster General isresponsible forenforcing standards setascondition(s) oflicences
issued byhim.
3. Regulatory power overTelkom lieswiththeMinister andisderived fromthePostOffice Act.
ThePostmaster General hasregulatory authority overotheroperators. Settlement ofdisputes involving
Telkomand/orotherlicensedoperatorsarehandledadministrativelybytheMinisterand/orthePostmaster
General orbycivilcourts.
Frequency allotment orassignment
4. IntermsoftheRadioActthePostmasterGeneralisresponsibleformanagingtheradiofrequency
spectrum.
DuringfrequencyallotmentandassignmentcompliancewiththerequirementsoftheInternational
Telecommunication Union andother bilateral and/or multilateral agreements areobserved.
Frequency allotment andassignment totelecommunication operators andother users aredone
onthebasis ofequality andavailability.
Frequency spectrum users paylicence feesfortherighttousespectrum allocated, theincome
from which isusedtodefray thecosts ofmanaging thefrequency spectrum.
5. Asnoforeign telecommunication suppliers (operators) havebeenlicensed thisdoesnotapply.S/NGBT/W/3/Add.24
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Numbering andidentification codes
6. There arenospecific national regulations onthesubject. Thenumbering scheme ispresently
under control ofTelkom.
7. Asnoforeign telecommunication suppliers (operators) havebeenlicensed thisdoesnotapply.
Standards, typeapproval andequipment attachment
8. Forthetelecommunicationnetworks,fixedorcellular,technicalstandardspertainingtosignalling
protocols, transmission criteria andthesafety ofusers andequipment aremandatory.
Forfrequency usage, thestandards laiddown bytheITU-R, andtheconditions ofthelicence
inrespect offrequency, power intotheantenna, polarisation anddirectivity (ifapplicable), antenna
gain, antenna height andantenna siting aremandatory.
9. Thetrend inSouth Africa istobecome more open andtransparent inthedevelopment and
review ofregulations andstandards. Inpractice, standards areusually drafted bycommittees of
specialists drawn from sectors thatwould beaffected bythestandards. Comment canbeinvited by
publishing proposed standards intheGovernment Gazette. However, thetrend towards international
standardization hastheeffect ofinhibiting orlimiting thedevelopment ofunique localstandards.
10. Allequipment thatcanemitelectro-magnetic radiation and/or intended forconnection tothe
PSTN mustbetypeapproved (licensed) bythePostmaster General. Selfcertification isnotallowed.
TheRSA hasnotyetconcluded mutual recognition agreements fortelecommunication equipment
certification buthasrecognized foreign certification incertain instances forexample GSM mobile
terminals.
11. Theconnection ofunlicensed terminal equipment tothePSTN isillegal andpunishable interms
ofthePostOffice Act.
12. Telecommunicationusersmayusenon-Telkomsuppliedcustomerpremiseequipmentforexample
private automatic branch exchanges, automatic calldistribution systems etcprovided thesearelicensed.
Such equipment maybetheproperty oftheuserbutismore often rented from themanufacturer or
supplier, orleased viaafinancial institution.
13. Yes.
Interconnection
14. Theinterconnection ofprivately supplied customer premises equipment andthePSTN issubject
totheregulations governing licensing andtheconditions ofservice imposed byTelkom.
There arenoregulations governing theinterconnection oftelecommunication networks. At
present, theinterconnection between theTelkom andcellular networks isregulated bymeans ofa
multiparty agreement between Telkom, thecellular operators, theMinister andthePostmaster General.
15. Notapplicable.
16. SeePartII,B.4.S/NGBT/W/3/Add.24
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17. Thisquestion isopen tointerpretation. There arenoregulations regarding thepricing of
interconnection. Interconnection charges between theTelkom andcellular networks werenegotiated.
Competitive safeguards
18. Inrespect ofinterconnect between Telkom 'sPSTN andthecellular networks, safeguards are
provided contractually intheinterconnect andmulti-party agreements.
Inrespect ofservices where Telkom competes against other suppliers ofservices e.g.PABXs,
disputes regarding anti-competitive behaviour maybetaken upwiththeCompetitions Board.
19. No.
20. TheCompetitions Board, aspecialized organ oftheDepartment ofTrade andIndustry, is
responsible forinvestigating unfair trade practices. There isnospecific anti-trust legislation for
telecommunications.
21. No.
Pricing-related measures
22. Telkom 'stariffs aresubject toapproval bytheMinister. Cellular operators tariffs aresubject
toapproval bythePostmaster General. Aform ofprice capping isapplicable. Insectors where
competition isallowed, forexample oncustomer premises equipment, prices aredetermined bymarket
forces.
23. Seereply 22.
24. Telkom canofferdiscounts andpackages totarget market groups onanon-discriminatory basis.
There isnodiscrimination within suchgroups. Anexample isthelower tariffs forsocial andequivalent
pensioners.
Cellular operators sellairtime toservice providers whoresell ittomobile telephone users.
Cellular operators canofferdiscounts toservice providers, whointurnmayofferdiscounts andspecial
packages totheirclients. There isfierce competition between cellular operators andbetween service
providers. Cellular operators arerequired, asacondition oftheir licence, toprovide service in
disadvantaged areas atratesdetermined bythePostmaster General.
25. Yes,Telkom isobliged tosubmit tariff proposals totheMinister forapproval.
26. Telkom hasanunbalanced calltariff structure andsince January 1995 hasembarked ona
rebalancing process. Telkom iscommitted toasystem ofvalue-based pricing, butcertain tariffs are
stillcross-subsidised atthetimeofwriting.
27. Seereply 26.
Rights ofwayfortheconstruction ofinfrastructure
28. Telkom hasthestatutory righttobuild itsowninfrastructure andfacilities. Forthispurpose
Telkom maypurchase property (land, buildings etc). Italsohastherighttoconstruct infrastructure
onlandthatdoesnotbelong toit.Inexercising thisright Telkom prefers tocome toamutually
acceptable agreement withtheowner oftheproperty.S/NGBT/W/3/Add.24
Page8
Thecellular operators havetherighttobuild theirownbasetransceiver stations (BTS) and
mainswitching centres (MSC), butarerequired togiveTelkom thefirstrightofrefusal fortheprovision
oftransmission links between BTSs andMSCs.
Neither Telkom northecellular operators require anyauthorization tobuild infrastructure or
facilities other thancomplying withbuilding codes, safety requirements, liaison procedures etcoflocal
authorities.
29. No.
Newtelecommunications services
30. TherearenospecificregulationsgoverningtheintroductionofnewservicesbyTelkom.Telkom
hastheexclusive privilege toprovide (any)telecommunication service. Theintroduction ofnewservices
mayrequire theapproval ofTelkom 'sBoard ofDirectors (forexample oftheinvestment required)
andshareholder (oftheproposed tariff).
Licensed suppliers (operators) mayintroduce newservices subject totheconditions oftheir
respective licences. ThePostmaster General maychange theconditions ofthelicence. Anewservice
maynotbeintroduced prior toitbeing licensed.
31. Thestatus ofanewservice provided byTelkom isdetermined byTelkom.
Thestatus ofanewservice byalicensed supplier (operator) isdetermined bythePostmaster
General.S/NGBT/W/3/Add.24
Page9
ANNEX TOQUESTIONNAIRE ONBASIC TELECOMMUNICATIONS
Inorder toassist thereader withunderstanding thecontext ofanswers tothequestionnaire
thefollowing background information isprovided:
I. Historical perspective oftheTelecommunications Sector intheRepublic ofSouth Africa
1. TheDepartment ofPosts andTelecommunications (DPT) wasestablished in1910 byanAct
ofParliament asthegovernment organ responsible forthehandling ofmailandtheprovision of
telegraphy andtelephony services. Certain other organizations werealsogiven therighttoprovide
telecommunication networks fortheirowninternal use,notable examples being Transnet Ltd.(the
former SARailways andHarbours public utility) andEskom Ltd.(theelectricity generating and
distribution public utility).
2. However, thegeneral public could onlygettelecommunication services fromDPT. Theoriginal
Actwasamended from timetotimeandinActNo.44the1958 Article 78(1) itwasstated thatthe
"Postmaster General hastheexclusive privilege ofconstructing ,maintaining orusing, ortoauthorize
anyperson toconstruct, maintain oruseanytelecommunications lineforthepurpose ofsending,
conveying,transmittingorreceivingsounds,images,signs,signals,communicationsorotherinformation,
andoftransmitting telegrams overanysuchtelecommunications linewithin theUnion ofSouth Africa
ortheterritorial waters thereof, andofperforming alltheincidental services ofreceiving, collecting
ordelivering telegrams" .
Article 78(2) stated that"ThePostmaster General may,onconditions thathemayprescribe:
(a) against payment oftheprescribed rental, which hemayprescribe, lease any
telecommunications linereferred toinsubsection (1)toanyperson forusebyhimor
anyother person, inthemanner andforthepurposes determined bythePostmaster
General .
(b) against payment oftheprescribed fee,issue toanyperson alicence toconstruct,
maintain orsotouseanysuchtelecommunications line,ortopermit anyother person
sotouseit".
3. A"telecommunication line"includes anyapparatus, instrument, polemast, wire, optical fibre,
pipe, pneumatic orother tube, thing ormeans which isormaybeusedfororinconnection withthe
sending, conveying ortransmitting telecommunications.
4. From theforegoing itisclearthatDPThadastatutory monopoly. DPTviewed thismonopoly
asadutytoprovide thebestpossible service toallitsclients within theresources available toit.
However, duetovarious constraints, DPTveryoftenwasnotinaposition tomeetclient requirements,
especially where clients wanted something overandabove the"standard" services available atthetime.
Insuchcases, provided thatclients could convince DPTthattheyhadadefinite requirement foraspecial
service, e.g.aprivate automatic branch exchange (PABX) instead ofthestandard manual branch
exchange thatwould normally beprovided, (orafaxoratelephone answering machine, loud-speaking
andcordless telephones etc.)DPTwasnormally prepared topermit somebody elsetoprovide such
services bylicensing supplies thereof interms ofArticle 78(2)(b).S/NGBT/W/3/Add.24
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5. Even intheearly years thestandard services available from DPT didnotmeeteverybody 's
requirement asisillustrated bytheinstallation ofthefirstPABX system inCape Town in1928, but
prior toWorld War2(WW2) suchrequirements werefewandfarbetween. Subsequent to(WW2)
andprior tomiddle 70snewservices provided byDPTwere mostly technology driven. When the
demand fornon-standard services increased, DPT eventually hadtointroduce aprocedure to
accommodate suchrequirements, while atthesametimepreserve itsowninterests. Inorder tosafeguard
theintegrity ofthenetwork against theconnection ofnon-DPT provided equipment, itbecame necessary
tointroduce regulation.
6. Thefundamentalobjectofregulationistoensuretechnicalcompatibilitywiththepublicswitched
telecommunication network (PTSN). Equipment toberegulated wasinitially divided intotwocategories
namely PABXs andnon-standard terminal equipment called telephone attachments (TAs). Intheearly
80stheprivate sector waspermitted toprovide modems toDPTclients andthisactivity alsobecame
regulated.
7. However, regulation soonbecame more thanjustamechanism forsafeguarding thenetwork
andensuring thatcertain predetermined performance standards werecomplied with. Italsobecame
amethod ofachieving other objectives, e.g.theestablishment andencouragement ofalocalelectronics
industry andfaircompetition. Inthelate1950s arequirement wasintroduced thatallPABX systems
marketed forconnection tothenetwork shall, fromacertain date,make useofcertain technology (motor
driven uniselectors) andcontain acertain percentage localcontent. Nolocalcontent requirement was
everspecified forlowvolume, hightechnology terminal equipment, butthese havetocomply with
atechnical specification interms offacilities, signalling protocol andtransmission performance.
8. DPTalways viewed theprovision of"standard" telephone instruments, either single ormulti
orplantypes, aspartofitsmonopoly. Itusedthismonopoly anditspurchasing power tobring about
alocalmanufacturing capability forsuchterminals. Overtheyears Messrs. Telephone Manufacturers
ofSouth Africa (TMSA) manufactured arange oftelephones suchastheCentenary Neophone, Protea,
Lorea (first pushbutton), Disa, Erica andlately theVenus 1400.
9. Clients thatdidnotwanttouseDPTprovided telephones werepermitted touseother types
provided thatthese telephones offered facilities thatwere notavailable onDPT telephones, suchas
load-speaking andrepertory dialling, andthattheyconformed tothetechnical specifications. AsSAPTs
owntelephones became more sophisticated, e.g.when pushbutton dialling, lastnumber re-dial and
extendedmemorywereadded,therequirementforsophisticationisnon-DPTinstrumentswereincreased.
Thiswastoprevent suchterminals from competing directly withDPT provided instruments. A
requirementwasalsointroducedthatanyTAcouldonlybeusedinparallelwithastandardDPTprovided
telephone.
10. Duringtheearly70sitwasrealizedthatthedemandforDPTsstandardservicetolargertelephone
usersnamely thevarious sizeprivate manual branch exchanges (PMBX) showed adecreasing tendency.
Customers preferred PABXs fortheadditional facilities theyprovided, notably route restriction. DPT
eventually decided tosupplement their range ofPMBXs withasmall PABX typesystem. The
development ofsocalled Small business Systems, (PABXs thataremoreuserfriendly thanconventional
PABXs duetomore versatile terminals thatareconnected tothem), enabled DPTtostandardize on
equipment thatoffered facilities thatequalled orexceeded thatofthePABX systems available atthat
time. DPTadopted aparticular system, requested Messrs Plessey torefine theoriginal design byfurther
development (notably theterminals), andcalled itaBusiness Telephone System (BTS60). TheBTS60
wasahugesuccess andcompeted verysuccessfully inthesmall PABX market segment. Alarger,
stateoftheartsystem, theBTS128, wassubsequently developed locally inajointeffort between Plessey
andSAPT.S/NGBT/W/3/Add.24
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11. Deregulation ofPABX maintenance andreticulation
Prior to1980/81 theaccepted practice wasthattheprivate sector provided PABXs toDPT
clients, DPTprovided theextension reticulation andtelephone instruments andDPTmaintained the
PABX switching unit, reticulation andtelephones atnocharge tothePABX user. Thisarrangement
suited everybody asthePABX manufacturers didnothavetocreate acountry-wide infrastructure to
support theircustomers, while DPTobtained income fromtherental ofexchange lines, extension lines
andcallcharges, andalsoretained fullcontrol overthetelephone network. PABX users fortheirpart
received verygoodmaintenance support freeofcharge. However, thisidyllic stateofaffairs wasonly
possible because onelectro-mechanical systems service difficulties could invariably betraced down
tocomponent levelandrepaired onsitebyadjusting, lubricating orreplacing.
Inthelate70s,whenthemanufactureofelectro-mechanicalPABXsystemswasbeingphased-out
infavour ofelectronic systems, DPThadtodecide whether itwanted tocontinue withitspolicy of
PABX maintenance. Itwassoonrealized thatanenormous investment would berequired tosetup
repair facilities forprinted circuit boards, while administering software updates andprotecting software
copyrightswouldbringitsownproblems.DPTthereforefirstlywithdrewfrommaintainingtheswitching
unitsandeventually from theprovision andmaintenance oftheextension reticulation andtelephone
instruments. However, arequirement wasinstituted thatonlylocally manufactured telephones could
beusedforPABX extensions. Atpresent PABXs areusually maintained bythePABX supplier or
anindependent maintenance organization.
12. Radio frequency spectrum management
DPTadministers thisaspect oftheRadio Act. However, DPTisnotinvolved inregulating
broadcasting ofeither radio ortelevision programmes.
II. Present Situation
1. Legal position
ThePostOffice Amendment Act(Act85of1991), transferred alltherights andprivileges
ofthePostmaster General ofthetworespective operating companies thatwere established interms
ofthisAct,namely TELKOM SALtd.andtheSAPostOffice Ltd.
Thetelecommunications regulations thatexisted priorto1october 1991havenofurther legal
standing butareconsidered tohave become theconditions ofservice according towhich
TELKOM SALtd.willhenceforth provide service toitsclients.
InArticle 90Aitisstated "theMinister may, afterconsultation withTelkom, andifitisin
thepublic interest, bynotice intheGovernment Gazette, authorize anyother person toconduct a
telecommunication service corresponding withanypartofTelkom 'sexclusive privilege". TheMinister
mayalso,bynotice intheGovernment Gazette, authorize thePostmaster General, todetermine the
conditions subject towhich suchatelecommunication service maybeconducted. Thiswould normally
bedonebymeans ofalicensing procedure.
IntheGovernmentGazetteof28January1992theauthoritytolicencethoseservicesnotprovided
byTELKOM SAwastransferred backtothePMG, i.e.Articles 78(2), 78(5) and90A.
Onthesame daythatTELKOM wasofficially established, DPTwasre-constituted asthede
factoregulator. DPTpresently hasthelegalpower tosetconditions under which thePMG canlicence
services notprovided byTELKOM.S/NGBT/W/3/Add.24
Page12
Atpresent TELKOM cannot make anyregulations orissue anylicences. However, in
terms ofthepresent legislation DPT cannot licence TELKOM.
2. Cellular
Early in1993thegovernment decided thattheexisting obsolescent andcongest C450 cellular
telephone system operated byTelkom hadtobesupplemented byamodern cellular system. Inthe
interests ofcompetition itwasdecided thattwocellular systems would bepermitted. Telkom was
notpermitted toconstruct anewcellular network butwasallowed toparticipate inoneofthenetworks
asshareholder inajointventure. After anopentender process licences wereissued toMessrs Vodacom
PtyLtd.(inwhich Telkom hasa50percentshareholding) andMobile Telephone Networks PtyLtd.
Withtheexception oftheTelkom shareholding inVodacom anda10percentshareholding ofTranstel
(abusiness division ofTransnet) inMTN, allequity inthecellular operators areinthehands ofthe
private sector. Thecellular operators areregulated bytheDPTinterms ofthePostmaster General 's
authority tolicence operators other thanTelkom.
3. PABXs
PABXs andrelated activities areregulated byDPT interms oftheregulations thatwere
promulgated on26August 1994. These regulations came about after extensive discussions with
TELKOM SAandallother parties involved, e.g.PABX userorganizations, PABX suppliers, licensed
maintenance organizations andTMSA.
4. Telecommunication lineterminal equipment (TLTE)
Thestatusquoispresentlypreserved.DPTlicenceTLTEintermsofthenewtelecommunication
regulations.
5. Radio frequency spectrum
DPTregulates frequency spectrum usage inthose portions ofthespectrum thathavenotbeen
permanentlyallocatedtostatutorybodiesthathavethecapabilitytodotheirownfrequencymanagement.
DPT investigates complaints ofradio interference andislegally empowered tosealorseize radio
equipment thatcancause interference. DPTrepresents theRSAontheInternational Telecommunication
Union (ITU) andisresponsible toensure thatalltherequirements oftheITUinrespect offrequency
spectrum usage arecomplied with.
6. Radio community repeater services andradio trunking
(a) Radio community repeater services areprovided bybothTelkom andlicensed private
operators. Duetocongestion experienced inthefrequency bands allocated forthis
service, nonewlicences areissued. Itisexpected thattheintroduction ofradiotrunking
willresult inamigration tothatservice.
(b) Three radiotrunking licences havebeenissued totheprivate sector. Twoofthelicences
areforregional-based systems andoneforanationwide system. Allthree licensees
havestandardized ontheMPT1327 standard.S/NGBT/W/3/Add.24
Page13
7. Radio paging
Commercial radio paging services areprovided byseveral private sector operators either on
aregional ornational basis. However, approximately 300closed usergroup licences havealsobeen
issued, mainly toemergency service suppliers (ambulance, firebrigades, etc.)and/or localauthorities.
III. Establishment ofaTelecommunications Regulatory Authority (TRA)
ALondon-based consulting company, Coopers andLybrand (C&L) wascommissioned in1991
todoastrategy study ofthetelecommunications sector inSouth Africa andmake recommendations
onpolicy objectives andmatters ofaregulatory nature.
Atabout thesame time, theViljoen Commission investigated thebroadcasting sector and
submitted various recommendations togovernment aswell.
TheC&L andViljoen reports wereconsidered together bygovernment anddiscussed atvarious
forums, including CODESA IandII.Theformer government accepted therecommendation thata
TRAD should beestablished thatwillregulate alltelecommunications thatmake useoftheelectronic
media. However, duetothemomentous political changes intheRSAoverthelastfouryears, aTRA
hasnotyetbeenestablished. Thenewly elected Government ofnational Unity (GNU) hasyettofinalize
itspolicy onthetelecommunications sector.