Transcript National Treasury Presentation

National Treasury Presentation
Market Sounding – Rolling out
broadband infrastructure in SA
WIRELESS ACCESS
PROVIDERS’ ASSOCIATION
Presented by:
Christopher Geerdts, WAPA Chairperson
Sumaiyah Makda, WAPA Regulatory Advisor
Jabulani Vilakazi, WAPA Member
ABOUT WAPA
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Formed in 2006
Non-profit organisation
Further interests of wireless access providers
Facilitates self-regulation of the outdoor fixed
wireless and indoor nomadic wireless
industries
ABOUT WAPA
• 131 members & growing fast
• Majority of members: infrastructure providers
– Build, expand and maintain their own wireless
networks
ABOUT WAPA
• Average WAPA member: SMME providing
extensive coverage in rural areas where there
is no cost-effective alternative access means
• Track record of price reduction and service
innovation in the provision of broadband
services in areas where larger operators will
not go
An example of an area serviced by a WAPA member
– where incumbent operators fear to tread
2011 CENSUS
• Approximately 80 000 subscribers, including
broadband and voice
• Free or discounted services
– More than 150 hospitals and clinics
– Approximately 550 schools
• BBBEE Rating within Levels 1 to 4 – approximately
50% of WAPA members
• Employ around 1 000 people
• Collective turnover: R160 million per annum
• More than 6 000 hotspots
COVERAGE MAP
COVERAGE MAP
Coverage in rural areas
WHAT DOES WAPA DO?
EXTENDING WIRELESS ACCESS
COVERAGE IN SOUTH AFRICA
• Estimate that there may be as many as 500
SMME Wireless access providers over and
above WAPA members
• Huge growth in the industry, despite
– Legal and regulatory constraints
– Lack of access to licensed spectrum
EXTENDING WIRELESS ACCESS
COVERAGE IN SOUTH AFRICA
• Interaction with fixed-line incumbents –
agreement on how WAPA members will
extend coverage into rural areas
• Promotes model of community-based SMMEs
covering small areas and interconnecting with
each other
– Achieves ubiquitous coverage
– Fosters job creation, skills transfer
– Deepens broadband penetration
EXTENDING WIRELESS ACCESS
COVERAGE IN SOUTH AFRICA
• Provision of access where
– There is no alternative
• especially marginalised communities
– Current providers have defaulted
• eg after frequent copper theft
– Rollout is too slow
• including many urban areas
– Customers simply choose alternatives
• based on innovation, pricing, quality of service, customer
responsiveness, or more personalised attention
• So do not have to be a large incumbent to make a
difference!
CONSTRAINTS
Growth in the industry occurring despite policy,
legal and regulatory constraints
• Inability to use licensed spectrum for access
services
– a long-standing challenge met with innovative use
of licence-exempt spectrum and investment in
future technologies such as tv white spaces
• Lack of national wholesale networks providing
bandwidth at cost-plus pricing
CONSTRAINTS
• Regulatory environment – makes no
allowances for SMMEs and does not
incentivise their operations
• Weak regulator – not able to stand up to the
incumbents
• Difficulties in obtaining rights of way and high
sites
• No enforced framework for co-ordinating
infrastructure builds and infrastructure
sharing
Incumbent operators are prickly about sharing infrastructure
UNIVERSAL BROADBAND BY 2020
• WAPA members and providers who fit the
WAPA profile are a key ingredient in
deepening broadband access
• Costing of national broadband network –
should take into account existence of
community-based providers
• Business case for rural service provision does
exist! Even in the absence of subsidies.
UNIVERSAL BROADBAND BY 2020
• Licence-exempt spectrum is where innovation
happens – evidenced by the WiFi explosion
(billion+ devices shipped in 2011)
• Bottom-up Model allowing local communities
to build and operate networks which service
such communities – done according to
blueprint to ensure interoperability
WAPA thanks the National Treasury for the
invitation to address it, and offers WAPA’s
support for future endeavours
Christopher Geerdts
[email protected]
083 222 1463
Sumaiyah Makda
[email protected]
082 045 8058