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Telkom Workshop with the Portfolio Committee on
Communications in Parliament
06 06 06 06 –––– 07 October 2004 07 October 2004 07 October 2004 07 October 2004
2
Terms of Reference
The Portfolio Committee on Communications has requested Telkom to present on the technical and regulatory aspects of its
business
3
Introducing the Telkom Delegation
• Nkenke Kekana Group Executive – Regulatory & Public Policy
• Benitto Lekalakala Executive – Parliament, Policy & Legislation
• Wally Broeders Executive – Integrated Network Planning
• Jack Tlokana Senior Specialist – RC: Advanced Technology
• Graham Keet Senior Specialist – RC: Special Markets
• Josephine Mabotja Senior Specialist – Competition Law & Economics
• Izaak Coetzee Senior Specialist - Regulatory Economics
• Nozicelo Ngcobo Senior Specialist – Research and Strategy
• Keso Mbali Senior Specialist - Multi-media and Convergence
• Maphelo Mvunelwa Specialist – Parliamentary Liaison
4
Agenda items
• Overview of the Current Regulatory Environment
• Overview of the Expected Regulatory Environment
• Telkom Licences
• Numbering Plans
• COA/CAM
• Interconnection
• Carrier Pre-Selection
• Number Portability
• Network Planning and Management
• Square Kilometre Array (SKA)
• Convergence
Overview of the Current Regulatory Environment in
South Africa
6
International Telecommunications Reform
• Early 1990’s - end of telecommunications natural monopoly across the world as administered by governments
• Economic and technological developments necessitated a review of the treatment of telecommunications
• WTO, ITU, EU and other international bodies reassessed the increasing importance of telecoms and its expanded role in the market
• The above resulted in telecoms reform and the design of the so-called optimal institutional structure
7
The decentralised structure of telecom reformGovernment
(Policy Development)
Regulator
Market
(Customers and Operators)
Fixed Line OperatorsFixed Line OperatorsFixed Line OperatorsFixed Line OperatorsTelkom South AfricaSecond Network OperatorUniversal Service Licensees (USALs)
Mobile OperatorsMobile OperatorsMobile OperatorsMobile OperatorsCell CMTNVodacom
MultimediaMultimediaMultimediaMultimedia& Carrier of Carriers& Carrier of Carriers& Carrier of Carriers& Carrier of CarriersSentech
Other PlayersOther PlayersOther PlayersOther PlayersInternet Service Provides (ISPs)Value Added Network providers (VANs)Wireless Data
8
The policy reform process in the telecom industry is beingconducted in three phases:
Phase 1: 1996 - 2002/3 Sectoral Reform
Phase 2: 2002/3 – 2007 Managed Liberalisation
Phase 3: 2007 – beyond Full Liberalisation
Policy Reform Process – South Africa Response
9
SA Telecoms Market - Historical and Expected Developments
1991 - Creation of Telkom Ltd
1993 - Cellular Licences
1996 - Telecommunications Act
1997 - Telkom Licence
2001 - 3rd Cellular Licence
2002- End of Telkom’s Exclusivity
2003 – Telkom Listing
2004 – SNO Licence Granted
2007 - Full Liberalisation
2005 – Convergence Legislation expected
2001 – Telecommunications Amendment Act
10
Managed Liberalisation
• SA opted for managed liberalisation of the telecoms sector has gradually opened to competition while ensuring optimum utilisation of existing investment in the sector
• A big bang approach would have opened up the sector quickly and offer many services from different network operators, but this approach could potentially have eroded SA’s public and private investment
11
History of the Regulator in SA
Independent Broadcasting
Authority(IBA)
South AfricanTelecommunications
RegulatoryAuthority (SATRA)
Independent Communications
Authority ofSouth Africa
(ICASA)
1993199319931993 1997199719971997
2000200020002000
12
Role of the Regulator – ICASA
• ICASA regulates the telecommunications and broadcasting industries in the public interest. Its key functions are to:
! make regulations and policies that govern broadcasting and telecommunications
! issue licenses to providers of telecommunication services and broadcasters
! monitor the environment and enforce compliance with rules, regulations and policies
! hear and decide on disputes and complaints brought by industry or members of the public against licensees
! plan, control and manage the frequency spectrum and numbering resources
! protect consumers from unfair business practices, poor quality services and harmful or inferior products
13
The Independence of the Regulator
Conditions necessaryfor an Independent
Regulator
" Guiding principles on the Regulator mandates
" Decision making process should be transparent and independent
" Funding
" Adequate resources and capacity
Experiences in South Africa
" ICASA been challenged by operators on flawed administrative procedures
" Act provides for decisions made by ICASA to be approved by the Minister
" ICASA is funded by the Government and not through license fees
" ICASA plagued by limited resources e.g. HR on key ICT competencies
14
Regulatory Challenges facing the Sector
• Funding of the Regulator
• Convergence
• Globalisation‐ Regional Regulator?‐ Continental Regulator?
• Adequacy of ICT Skills
Overview of the Expected Regulatory Environment
16
Ministerial Determinations3 September 2004
Notice 1924 of 2004, Gov Gazette 26763
Implementation date: 1 February 2005
Policy Announcements by the MinisterCurrent Situation Situation as from 1 Feb 2005
Self provision and greater choice for mobile operators Mobile operators are not allowed to provide their own fixed lines or acquire them from any provider other than Telkom and/or a public switched telecommunications service provider
Provision of Public Pay Phones Public payphones are services whereby providers, be they individuals or entities, purchase pay phones from manufacturers,lease lines or purchase airtime to resell to the public on their own.
Provision of voice by VANS Current legislation allows only PSTS licensees to transmit voice. Provision of voice by VANs is prohibited
Choice in the provision of Value Added Network Services Value added networks can only be provided through Telkom
Cession of telecommunications services by VANs VANs are restricted from trading their telecommunications facilities in any way
Optimising the use of Private Telecoms Network Facilities There are many entities in South Africa that have private telecommunications facilities. Such facilities cannot be sublet or re-sold and are therefore under-utilised.
Mobile operators are may utilise any fixed lines that may be required for the provision of the service including fixed lines made available by Telkom or any other person providing a PSTS
Persons may apply for a licence to provide public pay phone services in any area of the Republic. The Department is considering the removal of licensing requirements to provide these services
Value added networks may carry voice using any protocol
VANs may also be provided by means of telecoms facilities other than those provided by Telkom and the SNO or any of them
A person who provides a value added network service shall be entitled to cede or assign the right to use, or to sublet or part with control or otherwise dispose of the telecommunications facilities used for the provision of the value added network service
Private telecommunications network operators shall be entitled to resell spare capacity and facilities or to cede or assign his or her rights to use such facilities or to sublet or otherwise part with control thereof
18
Mobile Cellular Operators (MCOs)
• Self-provision and greater choice for MCOs
• Obtain fixed links from Telkom or SNO
• Self provide fixed links
19
Provision of Public Pay phones
• Telkom, SNO, USALs & MCOs
• Any person licenced
20
Value Added Network Service Providers (VANS)
• Provision of voice: VANS may carry voice using any protocol
• Choice in provision of VANS: May use facilities other than those provided by PSTS
• Cession of Telecoms Services by VANS: Entitled to cede, assign rights to use, sublet or depart telecoms facilities
21
Private Telecommunication Networks (PTN)
• Optimising use of PTN facilities
• May not self-provide, obtain facilities from PSTS providers
• Entitled to resell spare capacity and facilities, or cede, assign rights to use, sublet or depart facilities
22
Preparing youth for Knowledge Economy
• Public schools & public further education institutions entitled to 50% discount on telecoms calls to ISPs & access fees to internet
• Implementation - 18 January 2005
• Telkom working with DoC and Dept of Education on implementation
23
Impact on ICT Sector
• Further policy announcements in October 2004 • Viability of SNO and USALs• Consultation process• Interpretation of carrying of voice by VANs: may result
in 300 potential public switched telephone service providers
• Convergence legislation• Third National Operator and/or other serviced based
licencees • Unclear how 2nd economy will benefit
24
Service Obligations
• Rights come with obligations• Access to emergency / lifeline / SOLAS services • Compliance to national security objectives as
prescribed by the Interception of Communications and Provision of Communication-Related Information Act
• Compliance to environmental legislation• Licence fees and contribution to Universal Service Fund
and Skills Levy• Universal Service objectives • Regulated tariff regime
25
Service Obligations Cont.
• Service continuity and quality
• Consumer protection
• Carrier Preselection
• Number Portability
• Directory Services Database
• Continued investment in infrastructure
26
Risks for Telkom
• 2 Billion Rand market capitalisation destroyed• Over regulation of Telkom• Revenue loss and knock-on effect
– Increased cost reduction and efficiency improvements pressures
– Reduced sponsorship and social responsibility activity• Cannot sustain cross subsidization• Adverse impact on job creation• Higher labour costs• Unintended consequences downstream
– Lower BEE Spend– Fewer SMME opportunities– Erosion of jobs
27
Macro-economic impact on South Africa
• Change in Government Policy to accelerated process of liberalisation
• Big bang approach shakes investor confidence• Creates conducive environment for foreign operators
and illegal operators• Cherry-picking weakens poverty alleviation initiatives• Marginalised universal access• Compromised service continuity and quality• Hampered investment in infrastructure• Retarded NEPAD ICT Initiatives
28
Clear Regulatory Framework
• Competition rules must be clear and transparent
• Minimise regulatory uncertainty and litigation
• Empower the Regulator
• Re-define mandate of the Universal Service Agency and Universal Service Fund
• ICASA to develop regulatory framework
• Stability of telecoms industry
29
Next Steps
• The Minister will make further policy announcements in October 2004:
– Service-based licences to be operational by May 2005
– The remaining Under-serviced Area Licences– The Second National Operator– The Convergence Bill– The ICT BEE Charter
Question and Answer Session
Telkom Licences
32
TELKOM’S PSTS LICENCE
• Licensed rights (Condition 2)– construct, maintain and use the public
switched telecommunication network (PSTN)
– connect any national or international telecommunication system to the PSTN
– convey any signal to and from those systems
– install, maintain, lease or sell customer premises equipment (CPE)
33
TELKOM’S PSTS LICENCE
• Exclusivity for 5 years (Condition 3)– National Long-distance– International– Local access– Public Pay-telephones– Facilities leased to:
• Value added network services (VANS)• Private telecommunication networks (PTNs)• Cellular networks
34
TELKOM’S PSTS LICENCE
• Universal Service (Condition 4) – Provide to anybody who requests it
(subject to credit referencing): • A basic telephone service• A basic telephone instrument
– Public Pay-telephones– Free access to emergency services
35
TELKOM’S PSTS LICENCE
• Directory Services (Condition 5)– Printed directories– Directory enquiries– Listing of Governmental authorities
36
TELKOM’S PSTS LICENCE
• Consumer protection (Condition 6)– Price cap (Condition 7)– Publication of charges– Customer confidentiality– Itemised billing– Customer assistance procedures– Code of practice
37
TELKOM’S PSTS LICENCE
• Fair trading (Condition 9)– no undue preference or discrimination– no unfair favouring of own business– no exclusivity of supply– no linked sales– no unfair cross-subsidisation
38
TELKOM’S PSTS LICENCE
• General conditions:– Licence fees: 0.1% of annual revenues
from PSTS– Release from obligations to provide
service (Condition 13.4.3)• Force majeure• Breach of contract• Default of liability• Illegal usage
39
TELKOM’S OTHER LICENCES
• Radio spectrum and station licence– Licence to possess, establish, maintain and use
radio stations– Annual spectrum fees amount to about R30
million
• Value Added Network Services licence– Includes services such as Internet service
provision, electronic mail, electronic data interchange, database access, network management
40
THE PSTN – Act Section 36B
Local Access
Network
National Long
Distance Network
International Network
PSTN includes:
- optic fibres
-copper cables
-Wireless systems
-Microwave links
-Satellite systems
-Switches
41
THE PSTN – Act Section 36B
Access Network
Core Network
TCP
TCP
To another network
International Link
Public Switched Telecommunications Network
NCP
NCP
TCP = Terminal Connection Point
NCP = Network Connection Point
Voice and Data services
42
LONG-DISTANCE CALL BETWEEN TWO PRIMARY AREAS
DURBAN CAPE TOWN
A B
Durban Primary
Exchange ‘031’
Cape Town
Primary Exchange ‘021’
PMB secondary exchange ‘033’
Worcester Secondary Exchange ‘023’
Local Exchange
Local Exchange ‘784’
Dials 023-784-1234
Subscriber 023-784-1234
43
ROUTING OF AN INTERNATIONAL CALL
United
Kingdom
Telkom’s National Network
Undersea cable
station
Satellite earth
stationInternational Exchange
Dials 0944-20-XXXX
Question and Answer Session
Numbering Plans
46
Stakeholders
• ITU-T
• POLICY MAKERS
• NRAS
• INCUMBENTS
• NEW ENTRANTS
• CUSTOMERS
47
Numbering Plan RequirementsNumbering Plan RequirementsNumbering Plan RequirementsNumbering Plan Requirements
• Customer requirements
• Industry requirements
• Competitive requirements
48
ITUITUITUITU----T E. 164T E. 164T E. 164T E. 164
The International Public Telecommunication Number Structure
Recommendation E.164
49
International Telecommunication International Telecommunication International Telecommunication International Telecommunication Number StructureNumber StructureNumber StructureNumber Structure----E.164E.164E.164E.164
CCCCCCCC NDCNDCNDCNDC SNSNSNSN1 TO 31 TO 31 TO 31 TO 3digitsdigitsdigitsdigits National Significant NumberNational Significant NumberNational Significant NumberNational Significant Number
Max 15 digitsMax 15 digitsMax 15 digitsMax 15 digits
CC CC CC CC ---- Country CodeCountry CodeCountry CodeCountry CodeNDCNDCNDCNDC ---- National Destination Code National Destination Code National Destination Code National Destination Code
(ND code,Trunk Code or Area Code)(ND code,Trunk Code or Area Code)(ND code,Trunk Code or Area Code)(ND code,Trunk Code or Area Code)SN SN SN SN ---- Subscriber NumberSubscriber NumberSubscriber NumberSubscriber Number
Number for Geographic areasNumber for Geographic areasNumber for Geographic areasNumber for Geographic areas
50
Number FormatsNumber FormatsNumber FormatsNumber Formats
INTERNATIONAL :INTERNATIONAL :INTERNATIONAL :INTERNATIONAL : + CC NDC SN+ CC NDC SN+ CC NDC SN+ CC NDC SN+ 44 28 256 42715+ 44 28 256 42715+ 44 28 256 42715+ 44 28 256 42715
where ‘+’ is the International prefix 09/00where ‘+’ is the International prefix 09/00where ‘+’ is the International prefix 09/00where ‘+’ is the International prefix 09/00
NATIONAL :NATIONAL :NATIONAL :NATIONAL : ONN ABC XXXXONN ABC XXXXONN ABC XXXXONN ABC XXXX012 311 1892 (Telkom)012 311 1892 (Telkom)012 311 1892 (Telkom)012 311 1892 (Telkom)012 388 XXXX (SNO)012 388 XXXX (SNO)012 388 XXXX (SNO)012 388 XXXX (SNO)
GEOGRAPHICGEOGRAPHICGEOGRAPHICGEOGRAPHIC
51
Closed/Open Numbering SchemesClosed/Open Numbering SchemesClosed/Open Numbering SchemesClosed/Open Numbering Schemes
• A closedclosedclosedclosed scheme has a single dialling procedure for an entire country; it usually, though not necessarily, has a single uniform number length
• An open open open open scheme has separate local and trunk dialling prefixes; the lengths of codes and subscriber numbers may vary
52
SA Numbering PlanSA Numbering PlanSA Numbering PlanSA Numbering Plan
The South African Numbering Plan is planned and managed according to
telecommunications law (i.e. Section 89 of Act 103 of 1996) and regulations
53
Existing Plan
• PSTN Format – 0 NN ABC XXXX
• Geographic Numbering– working: 01, 02, 03, 04, 05– 06 spare
• Non-geographic numbering– Telkom’s enhanced voice services: 080, 086, 088,
089, 087 – spare– Mobile Cellular: 08x and 07x– 081 GMPCS– 085 reserved for new mobile operator
54
Level 1 Short Codes
• Type A – mandatory (e.g. 10111)
• Type B – For services across networks (e.g. TSA & SNO)
• Type C – For on-net services
55
Allocation of ND codes
56
Changing EnvironmentChanging EnvironmentChanging EnvironmentChanging Environment
EXISTING PLAN– Monopoly– Limited competition– Constant growth– No real pressure on
numbering resource except for GC
FUTURE PLAN– Optimised for
competition – Explosive growth– Complex
environment– Persistent pressure
57
Major impact of the new numbering Major impact of the new numbering Major impact of the new numbering Major impact of the new numbering planplanplanplan
• Introduction of 00 as International Prefix.
• Introduction of code 112 as the new National Emergency Service code.
• Introduction of code 1020 for the public to access Government directory information services free of charge.
• Introduction of Carrier Selection/Pre-Selection
• Introduction of Number Portability
• Voice over Internet Protocol (VoIP)
Question and Answer Session
COA/CAM
60
USE OF FINANCIAL INFORMATION
• Financial Accounting– Costs defined in terms of financial statements– Historical investments / recent revenue, expenses, assets &
liabilities– For external decision makers: investors, creditors, suppliers
• Management Accounting– Include forward-looking costs for decision making and cost
management (e.g how to optimise revenue, which products or services, at what price?)
– For internal decision makers: management
• COA/CAM– Chart of Accounts / Cost Allocation Manual
61
PURPOSE OF COA/CAM
To ensure that:
• Operators do not price below cost to exclude competition (predatory pricing)
• Operators do not engage in anti-competitive cross-subsidisation
• Operators do not price on unduly discriminatory basis
• Charges are cost oriented and sufficiently unbundled
62
REGULATORY ACCOUNTS
• COA– Chart of Accounts– list of accounts (account definitions)
• CAM– Cost Allocation Manual– framework / broad rules for allocating costs
(separations methodologies)
• Procedures Manual – ‘book of implementation’• RFS – Financial statements
63
FINANCIAL STATEMENTS
GENERAL LEDGERRevenue Costs
ASSETS REGISTER
ANNUAL FINANCIAL
STATEMENTS
REGULATORY FINANCIAL
STATEMENTS
Capex
Rules
Depreciation
GAAP/IAS Procedure Manual
GAAP/IAS Procedure ManualRules
Reconciliation
64
DISAGGREGATION OF SEGMENTS
Other Operators
Retail Business
Unregulated Segment
Regulated Segment
Network Business
65
Other Operators
Residential Access
Business Access
Local Calls
National Calls
etc.
Access Network Business
Retail Business
Core Network Business
DISAGGREGATION OF SEGMENTS
Regulated Segment
66
NO DISCRIMINATION BY NETWORK
Network Business
Other Operators
Interconnectcalls
Retail Business
Customers
Normalcalls
Question and Answer Session
INTERCONNECTION
69
INTERCONNECTION
The logical and physical linkage of two networks
so that customers of one network can
communicate with customers of the other
network or access services provided by such
network
70
INTERCONNECTION
Telkom MTN
Call originates on Telkom network
Call terminates on MTN network
MTN provides call termination
POI
71
INTERCONNECTION
Telkom – call origination charge (A)
MTN – call termination charge (B)
Retail charge to customer = A + B
MTN
POI
Telkom
A B
72
CALL TERMINATION RELATIONSHIPS
Collects ICX Fee
The Money
Telkom Telkom Telkom -
MTN Telkom TelkomMTN
Telkom MTNTelkom MTN
73
CONTENTS OF AGREEMENTS• scope and specification of interconnection
• service levels and the maintenance of quality of service
• charges for interconnection
• billing and settlement procedures
• ordering, forecasting, provisioning and testing procedures
• the provision of POI and Interconnection Capacity
• the transmission of CLI
• technical specifications and standards
• traffic and system management, maintenance and measurement
Question and Answer Session
CARRIER PRE-SELECTIONCARRIER SELECTION
76
What is CPS & CS?What is CPS & CS?What is CPS & CS?What is CPS & CS?
• Carrier Pre-selection– Automatic choice to use another Operator’s
network for national long distance and/or international calls
– No Prefix code required – Can choose to override choice on call-by-call basis
• Carrier selection– Manual choice to use another Operator’s network
for national long distance and/or international calls on a call-by-call basis
77
CARRIER PRE-SELECTION
SNOCT
TelkomJHB CT
78
CALL TERMINATION RELATIONSHIPS
Collects ICX FeeThe Money
Orig Fee
TelkomSNO Telkom
-SNO Telkom
SNO
Telkom
SNO
Telkom
79
COST OF CARRIER PRE-SELECTION
• Initial set-up costs– Conditioning of the networks– Customers’ support systems
• Per Operator Set-up costs– Technical and commercial arrangements to
accommodate each new alternative operator
• Customer Set-up costs– Service set-up, management, change,
discontinuation for each individual customer
80
RECOVERY OF COSTS
• Initial set-up costs– Each providing operator bears own costs
• Per Operator Set-up costs– From CPS operator concerned
• Customer Set-up costs– From CPS operator concerned
Question and Answer Session
NUMBER PORTABILITY
83
NUMBER PORTABILITY
• The ability of a customer to retain his / her telephone number when:– changes from one operator to another– moves location– changes service
84
DIFFERENT TYPES OF NP
• Service Provider / Operator NP– customer changes service providers and keeps
the same telephone number• Geographic / location NP
– customer changes location and keeps the same telephone number
• Service NP– customer changes service and keeps the same
telephone number
85
NP IN TELECOMS ACT
NP is defined in the Act as a capability whereby a subscriber to a telecommunication service who so requests can retain his or her telephone number when changing service from one PSTS licensee to another PSTS licensee or one mobile cellular telecommunication service licensee to another mobile cellular telecommunication service licensee
86
OPERATOR PORTABILITY IN SA
• Fixed to Fixed– Block Portability– Individual NP
• Mobile to Mobile
87
CALL ON OWN NETWORK
Vodacom
Dials 082 123 4567
# 082 123 4567
88
CUSTOMER HAS PORTED
# 082 123 4567
Cell CVodacom
Dials 082 123 4567
# 082 123 4567X
89
Vodacom
Dials 082 123 4567
# 082 123 4567
Cell C
# 082 123 4567X
Donor Operator Recipient Operator
CUSTOMER HAS PORTED
- Customer moved from Vodacom to Cell C
- Customer retains telephone number
90
COST OF IMPLEMENTATION
• Initial set-up costs– Conditioning of the networks– Procedures / systems for interworking between
operators
• Customer porting costs– Cancellation/creation of accounts– Co-ordinated switch over
• Additional conveyance costs– Re-routing from Donor network to recipient network
91
• Set-up costs– Each operator bears own costs– Subject to relevant price controls
• Porting transaction cost– Recipient Operator
• Additional conveyance costs– Each operator bears its own additional
conveyance costs
RECOVERY OF COSTS
Question and Answer Session
Network Planning and Management
94
CONTENTS
• Overview of the Network
• Network Statistics
• Network Planning
• Network Management
• Conclusion
95
TRANSFORMATION OF TELKOM’S VOICE NETWORK
Manual (1930) Electromech
Increased operating efficiency and effectivenessIncreased range of services and applications
Magneto (crank handle) signalling
Electromech (1980) TDM DigitalMulti-frequency (push button) signalling
TDM Digital (TODAY) PacketIP (“mouse” click) signalling
Loop disconnect (rotary dial) signalling
96
MB- Manual BoardDEC – Digital exchange concentratorOFDC – Optical Fibre Distributed concentratorWLL – Wireless Local Loop
Long Distance Long Distance 18 Switches18 Switches
Regional Regional 103 switches103 switches
AccessAccess> 2500 exchange > 2500 exchange areasareas
DSSUDSSUDSSUDSSU
DECDEC DECDEC
DPSUDPSU DPSUDPSU
DLCDLC
ToTo DSSUsDSSUsToToDSSUsDSSUs
MBMB
OFDCOFDC
WLLWLL
ITEITEINTERNATIONAL INTERNATIONAL 2 switches2 switches
Rest Rest of the of the worldworld
Mobile OperatorsMobile Operators
SCPSS7 SS7
NETWORKNETWORK
VOICE NETWORK
97
National Layer Hub-node
Local layer Hub-node
Customer node
Telkom Access layer node
TRANSMISSION NETWORK
(Mesh Topology on DWDM)(Mesh Topology on DWDM)
(Ring Topology)(Ring Topology)
98
SAT - 2
SAT - 3WASC
SOUTH AFRICAFAR EAST CABLE
Operator - owned cableSubmarine cableLandings of SAT - 3 / WASCAfrican Countries that can access SAT - 3 / WASCvia terrestrial and satellite links
SOUTH AFRICA DURBAN(MTUNZINI)
CAPE TOWN (MELKBOS)
NAMIBIA
ANGOLA
NIGERIA
CAMEROON
COTED’IVORE
SENEGAL
GHANA
GABON
BENIN
ALTA VISTA(SPAIN)
PORTUGAL
99
DATA NETWORK - SERVICES• Constant Bit Rate ServicesConstant Bit Rate ServicesConstant Bit Rate ServicesConstant Bit Rate Services• Voice Grade Leased Line• Diginet• Diginet Plus
• Frame RelayFrame RelayFrame RelayFrame Relay• Frame Express• Managed Frame Relay Express
• Asynchronous Transfer modeAsynchronous Transfer modeAsynchronous Transfer modeAsynchronous Transfer mode• Broadband data services• 2 Mbps to 149 Mbps
• Internet ProtocolInternet ProtocolInternet ProtocolInternet Protocol• Dial-up internet access• Corporate Internet access• Virtual Private Networks• International
100
• Access network consists of– Mainly copper– Radio technologies
deployed in rural areas
– Fibre deployed in high-end of the market
– Access network supports basic voice to broadband
Access network deployed
Modem ISDN
ADSLSHDSL
1.5 - 8 Mbps
VDSL
2 - 26 Mbps
2 - 26 Mbps
1-1 300 m
1 - 4 000 m
> 5 000 m
64 kbps 0.3 / 2 Mbps128kbps
Future direction of access network
101
Statistics• Voice network (99.9% digital)
– > 4,800,000 telephone access lines– 120 Digital switching units– Access points of presence (wireline and wireless)
covering 2500 exchange areas– > 10,000,000 access lines (wireline and wireless)– 658,798 ISDN channels
• IP network – 290,000 dial-up and 297 leased line Internet services, VPNs, VoIP.
• ATM network with 189 points of presences• ADSL Footprint 62%
102
Data Networks
Access Nodes
Regional Nodes
National Nodes
Network
63166Internet Protocol (IP)
Uses CBR257Frame Relay
1403712Asynchronous Transfer Mode (ATM)
371519775Constant Bit Rate (CBR)
103
Network Planning
• Evolutionary Network Approach
• Embedded Based Network
• Building Broadband Capacity In Support Of Fast Internet Services
• Fully Integrated Network
• Fully Protected Network
104
TodaySingle-service networks
Services
Access Transport & Switching Networks
Dat
a/IP
Net
wor
ks
PLM
N
PSTN
/ISD
N
Servers
Clients
Backbone Network
AccessAccessAccessAccess
FutureMulti-service networks/client-
server
Communcation Control
Content Content
AccessAccess
IMPACT ON NETWORK INFRASTRUCTURE
105
Planning for modern day telecommunications networks
• Complex concatenation of elements to provide a service
• Myriad of technologies to choose from• Intricate standards and interconnection• Customer requirements changes
constantly
106
Network planning steps
• Forecasted demand translated into equipment and interconnecting requirements
• Combined with available technology and equipment dimensioning rules
• Optimisation models utilised to decide on the placement and density of node placement
107
FORECASTING
• Dedicated Demand Forecast section.• Uses Municipalities, Developers,
Demographic information, etc. as input.• Generates Forecast figures per service
category per Exchange Area for 5 years.
ALPHACODE EXCHNAME RCON_2005 RCON_2006 RCON_2007 RCON_2008 RCON_2009 RPPP_2005 RPPP_2006 RPPP_2007 RPPP_2008 RPPP_2009CAGG AGGENEYS 157 147 138 130 123 148 160 170 178 184CAHS AUGRABIES 115 103 95 90 87 35 41 45 48 50CAKH ASKHAM 43 42 42 41 40 24 27 30 32 34CALA AMALIA 68 66 64 62 60 16 17 18 19 20
108
TRAFFIC MATRIX
• Networking Design Tools are used to dimension the network switches and inter switch trunks.
TRAFFIC MATRIX ContinuedA typical example of an imported point to point traffic matrix.
NETWORK DIMENSIONINGSoftware tools for the design, optimization and evaluation of networks are utilized.
REPORTING DESIGNING
111
Network capability to deliver enhanced Products and Services – and many more
… with a focus on broadband, data and packet based network enablement …
Carrier pre-select
IP telephony
Compressed Diginet
Local loop facilities leasing IP Centrex
Intelligent villages
Content services
Desktop conferencing
Telkom Internet powered by
satellite
xDSL
WiFi
Number portability
Video surveillance
Web conferencingSMS fixed-
to-mobile
Network IVR
VPN Supreme
112
The challenge of Network Management
• Network Manageability – All network elements must be manageable– Enables optimal network utilisation– Enables rapid service activation and restoration
• Managed Data Networks– Constant Bit Rate– Frame Relay– ATM– IP– Customer Network Care (WAN)
• Functions of the Centre (What we do)– Centralised Network Management ( All switches, transport elements,
traffic WAN)– Surveillance 24 x 7 x 365– Configuration– Workforce management and Traffic management
113
National Network Operations Center NNOC
114
115
NNOC COVERAGE AREA
Regional/Metropolitan Layer
SXDSTM-4 STM-16
SMA
SMASXA SXA
SL
SL
STM-1/4 STM-4STM-1/4Urban/
Access Layer
SMA
SMA
SMASMA
SMA
SMASMA
SMASMA
National Layer
n x STM16 / STM64
SXD
SXD
SXD
SXD
DWDM
n x STM16 / STM64
International Network Satellite
Radio EquipmentITE1
ITE2
ISTP1
ISTP2
MANAGED DATA NETWORKS (CNC)
NNOCCNCManagement
CLIENT BSite C
CLIENT B CLIENT ACLIENT A
CLIENT A
CNCMANAGEMENTROUTER
ATM/Frame Relay
Public Switched Telephone Network
EM
DEC
DEC
DPSU
DPSUDLC
To DSSUs
To DSSUs
MB O
FDC
WLL
ITE
SCP
SS7 SS7 NETWORKNETWORK
DSSU
DSSU
116
Special Projects (Completed)
• Elections 1994, 1999, 2004
• World Summit on Sustainable Development
• Rugby World cup
• Cricket World Cup
• Business Against Crime Project
• All Africa Games
117
Conclusion
• Telkom network infrastructure can handle any major international events.
• The successfully hosting of major international events is proof of this
• Examples include the recent national elections, cricket and rugby world-cups.
Question and Answer Session
Square Kilometre Array (SKA)
120
Index
• Purpose• Background• System Description • SKA Sites• Bandwidth Requirements• Timelines• Pros/Cons
121
Purpose
• Scientists use the radio telescopes to study various phenomena’s including:– The Dark ages and the dawn of galaxies– Large-scale structure of Universe– Galaxy evolution and star formation– Evolution of the heavy elements– Dark matter– The micro-arc second Universe– Gamma-ray burst sources– Gravitational waves– Extra solar planets– Search for Extraterrestrial Intelligence
122
SKA BACKGROUND
• The SKA is a $1 billion international project to create a receiving surface of a million square meters
• This huge surface will be composed of many small antennas, divided into a dense inner core array which becomes more diffuse with increasing radius
• The peripheral antennas could be 1 000 km from the core, or 5 000 km, or even 10 000 km, making the SKA an intercontinental system
• The signals received by each and all of these antennas will be combined to form a single, big, picture
• This will require complex computing and information processing systems. The result will be an instrument capable of probing the secrets of the very early universe
123
Background (1)
Light > Electric Impulses
Brain interprets Impulses:Recognise ShapeJudge DistanceJudge Speed
Electric ImpulsesLight
Brain
Eyes
124
Background (2)
Electric ImpulsesRadioWaves
Computer
Radiowave Pickup
Radio waves > Electric Impulses
Computer interprets Impulses:Recognise ShapeJudge DistanceJudge Speed
125
Background (3)
• Air Traffic Control (Radar)• Weather watch• Astronomy
RadioReflection Electric Impulses
Air Traffic Control
126
Background (4)
• Bigger lens = Bigger Picture
127
System Description (1)
1 Large Antenna vs an Array of multiple small antennas
128
System Description (2)
Central Cluster
Central Cluster
129
System Description (3)
130
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SKUKUZA
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GRAVELOTTE
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BOCHUM
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VAL
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FRANKLIN
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SENLAC
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LOTHAIR
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ALICE
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TSHIPISE
BARKLY EAST
NAMIES
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OTTOSDAL
MACLEAR
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STUDTIS
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COERTZERSDAM
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THEUNISSEN
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MASISI
STUTTERHEIM
MINGA
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GLEN
UNDERBERG
HOTAZEL
BELFAST
LADY GREY
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NAPKEI
KANONKOP
STEYNSRUS
ROOIBERG
OUBOSKOLK
KLIPPLAAT
LADYBRAND
SPRINGFONTEIN
DARLING
MOUNT FRERE
INDWE
VERENA
STANDERTON
WESSELSBRON
PIET RETIEF
MAKWASSIE
LYKSO
DELAREYVILLE
KOKSTAD
LETSKRAAL
APEL
WEZA
HEIDELBERG
INGWAVUMA
CLOCOLAN
BARBERTON
TABANKULU
ORANIA
JOUBERTINAHEROLD
NQAMAKWE
SOUTBOS
MOOLMAN
ALBERTINIA
KENTANE
PERDEKOP
WEPENER
MARQUARD
CALEDON
HUMANSDORP
SCHWEIZER-RENEKE VILJOENSKROON
FLAGSTAFF
HARDING
GROBLERSDAL
SELOSESHA
HLOBANE
KAREEDOUW
HENDRINA
DUNDEE
CAMPBELL
WARMBAD
KOEGASBRUG
MACHADODORP
GRAAFWATER
DELMAS
JAMESTOWN
VILLIERS
JERICHO
REDDERSBURG
MAREETZANE
EMPANGENI
MBAZWANA
PEDDIE
CARTER'S RIDGE
ADDO
EXCELSIOR
BEESTEKRAAL
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PERDEBERG
OHRIGSTAD
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ZOAR
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GROOTDRINK
WAKKERSTROOM
AURORA
DE RUST
LOUIS TRICHARDT
LOUWSBURGTWEELING
FICKSBURG
PROTEM
VAALBANK
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KLEIN-MIER
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VREDEFORT
LAPARISA
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PETRUS STEYN
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SCHAGEN
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FORT BEAUFORT
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WESLEY
POTGIETERSRUS
SLURRY
KLAWER
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PAUL ROUX
BEDWANG
BARKLY WEST
MILITARY BASE
ULUNDI
BIESIESVLEI
MOUNT AYLIFF
TWEESPRUIT
SWELLENDAM
MKHUHLU
BOLOTWA
PAMPIERSTAD
COLENSO
SOEKMEKAAR
WATERBRON KRANSKOP
HOWICK
BUTTERWORTH
RENOSTERKRAAL
AMSTERDAM
BOTHITONG
HELPMEKAAR
ESHOWE
ROOSSENEKAL
MARBLE HALL
CLARENS
HAASVLAKTE
THE HAVEN
ATTIESPLAAS
SADA
RADITHUSO
NORMANDIEN
MALMESBURY
KRAGBRON
MARAISMEER
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MAPUMULO
KORHAANSDRIF
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POMEROY
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MQANDULI
ALETTASRUS
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INGOGO
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HOBHOUSE
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GROOTVLEI
KEI ROAD
KOKANJE
SOUTPAN
MANCORP MINE
ROSENDAL
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NKANDLA
HAENERTSBURG
SOVENGA
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VELDDRIF
NZHELELE
COLCHESTER
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DAVEL
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VERPLIG
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OGIES
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PHUTHADITJHABA
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KAROS
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KWAMBONAMBI
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VERKEERDEVLEI
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GOEDEMOED
MPUDULLE
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KIRKWOOD
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ZWELITSHA
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ALOES
LEERPOS
COFFEE BAY
DINGLETON
OTTOSHOOP
EERSTEGOUD
HENNENMAN
ARLINGTON
COOKHOUSE
TZANEEN
MOOKETSI
VIEDGESVILLE
EZAKHENI
WARBURTON
LIDGETTON
RIVIERSONDEREND
NYLSTROOM
MMAFEFE
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BREYTEN
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NHLAZATSHE
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CARLETONVILLE
KNYSNA
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ONSEEPKANS
JAGERSRUST
MIDDLEDRIFT
REDELINGHUYS
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KOLOTI
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KLERKSDORP
BATHURST
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MUTHATHI
GARAGAMS
KOMATIPOORT
PILANSBERG
POMFRET
EKUVUKENI
DANNHAUSER
KWALUGEDLANE
NDWEDWE
TUBATSE
BULEMBU
TSHIDILAMOLOMO
MARISHANE
PHALABORWA
BOTRIVIER
AIRPORT
SETTLERS
LOCH VAAL
CREIGHTON
THUTHUKANI
BOLEO
JAN KEMPDORP
DRIEKOP
NGODWANA KARINO
SUSWE
REX
DE BLOEM
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HOLMDENE
BAKENBERG
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MPHAHLELE
BALMORAL
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OZWATINI
ORIBI
LOERIE
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MANYEDING
LENYENYE
XIPAME
SWARTKLIP
PIETERSBURG
TINA FALLS
NYONI
DORINGBAAI
WILKOPPIES
ARABIEDAM
MARIKANA
NOORDKAAP
WARTBURG
MAKGOBISTAD
MAHLABATINI
MAGOGWE
VAN REENEN
HANKEY
CHRISSIESMEER
MOTSWEDI RURTEL
BRONKHORSTSPRUIT
LAMBERT'S BAY
ELUKWATINI
GEYSDORP
WORCESTER
PILGRIM'S REST
FAWN LEAS
SEYMOUR
SHEEPMOOR
BERLINPIKETBERG
HOEKWIL
BUFFELJAGSRIVIER
MOKGARENG
RODENBECK
EMONDLO
TAUNG
DYSSELSDORPWELLINGTON
KANONEILAND
KENDAL
HACKNEY
KAMDEN
MC GREGOR
ATAMELANG
EBILANYONI
GOUDA
MADIBOGO
VUWANI
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BLOEMDUSTRIA
KGAUTSWANE
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THE CRAGS
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KEISKAMMAHOEK
RUST DE WINTER
ST LUCIA
BURGERSFORT
ACORNHOEK
IMPENDLE
HAZYVIEW
MAKONDE
NORLIM
SASOLBURG
TSHAULU
BOSKOP
GREYTON
TRICHARDT
ZEBEDIELA
THOLONGWE
WOLSELEY
HARTENBOSVYEBOOM
HARTSWATER
DONNYBROOK
LOUISVALE
DE JAGERSDRIF
STEUNMEKAAR
WITKLEIGAT
GLENCOE
BAKONE
NEILERSDRIF
RUSTENBURG
BETHANIE
KABOKWENI
ASHTON
KUNANA
CRAMOND
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TUGELA FERRY
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MTUNZINI
SEVEN OAKS
MAJEMANTSHO
HOMELANDS
PRINCE ALFRED HAMLET
MEERLUS
NTWENKA
MAYIRHENI
NGUDWINI
UTHOKOZANI
LETSITELE
VREDENBURG
HIGHWAY
MASEMOLA
NKWALINI
KORINGBERG
LANGEBAAN
STORMSRIVIER
MULIMA
MAIJANE
ROODEWAL
ALLANRIDGE
MOLELEMA
KAMEELPOORT
MAPELA
DEWAGENSDRIFT
RAYTON
ILITHA
BREERIVIER
BAPSFONTEIN
KEI MOUTH
DOMINIONVILLE
TUMAHOLE
BRENDAN
THOHOYANDOU
MAGONARE PARK
ORKNEY
KARATARA
LERATO
SAULSPOORT
DZANANI
DALTON
HERMANNSBURG
NQABENI
CHALUMNA
MOOIBANK
GLEN HARVIE ALRA PARK
STEELPOORT
WITSAND
PAULUSWEG
CHAMPAGNE VALLEY
INXU DRIFT
MOOINOOI
UMBUMBULU
BALEEMA
GRABOUW
SIDU
STILBAAI
WAENHUISKRANS
VANDYKSDRIF
SUPINGSTAD
WEMBEZI
ILINGE
MONNAKATO
FRIERSDALE
UMTENTWENI
DISANENG
KIDD'S BEACH
STILFONTEIN
WHEATLANDS
CATO RIDGE
BLANCO
DARNALL
DE WET
STANGER
MOOIPLAAS
KAAPMUIDEN
MAMRE
KOPELA
GINGINDLOVU
REFILWE
MAHWELERENG
NEW HANOVER
STRUISBAAI
THORNHILL
MAKAPAANSTAD
CORONATION
NELSPRUIT
LANGEBAANWEG
RIEBEEK-WES
BLINKPAN
PADDOCK
HEKPOORT
GAKGAPANE
LENNOXTON
CULLINAN
SWARTFONTEIN
CHUENESPOORT
SKEERPOORT
STRAITHARDT
PORT ALFRED
THULAMAHASHE
ALABAMA
GLENMILL
DUIWELSKLOOF
WITBANK
DURBANVILLE
MMASEBUDULE
EASTWOOD
MAJA
LOUW'S CREEK
JONGENSFONTEIN
NSELENI
BASHEWA
MALELANE
SINEMBE
DALMADA
KALAFI
WATERVAL BOVEN
KWAMHLANGA
SHAKASKRAAL
KWANDWAYANA
NWAMITWA
ATLANTIS
VUYANI
COALVILLE
VOLTARGO
DE DOORNS
SKILPADSFONTEIN
MAFIKENG
MASHASHANE
SHATALE
AMATIKWE
ROOIGROND
KLIPHEUWEL
DUNDONALD
MARCHAND
SILKAATSKOP
THORNVALLEY
SONOP
GREENFIELDS
LEEUWFONTEIN
GRASMERE
KAMEELDRIFT
JEFFREYS BAY
SEPANAPUDI
IFAFA BEACH
NSIKAZE
TSHIAME
SLEUTELFONTEIN
BETTY'S BAY VLEESBAAI
RIEBEEK-KASTEEL
KLIPRIVIER
UBOMBO
SHILUVANE
OLYVENHOUTSDRIFT
MIDDELBURG
SINTHUMULE
UMGABABA
EMPANJATI
ESIKHAWINI
HARKERVILLE
PUDIMOE
DWARSRIVIER
SWINBURNE
GROOTBRAKRIVIER
KALBASKRAAL
UMZUMBE
TLHAKGAMENG
TONGAAT
KENTON ON SEA
VAAL MARINA
DORINGKOP
EKULINDENI
KWAMHLUSWA
PHOKENGSTEILTES
MOEDWIL
BALLENGEICH
KEATES DRIFT
RAMOKOKSTAD
KRAAIPAN
KLIPGAT
PHILADELPHIA
DRY HARTS
MANTHESTAD
BLAIRBETH
KANYAMAZANE
HELDERSTROOM
JIBA
SUNLAND
TOEMASKOP
BOMOKGOKO
NIGEL
SUNDRA
ALTON
LUSHOF
JANE FURSE HOSPITAL
SASOL
LEDIG
OSHOEK
ELANDSBAAI
MONONONO
MOLETLANE
DENEYSVILLE
LOUISRUST
SCHMITSDRIF
ELDORADO
LANSERIA
BAIN'S VLEI
GEZUBUSO
SCHUITDRIFT
THORNVILLE JUNCTION
DALESIDE
FRANSCHHOEK
NAMAKGALE
VERSVELD
RIETVLEI
KLEINBRAKRIVIER
DE WILDT
MPULUZI
SEDGEFIELD
PETIT
MAZAMBA
HERBERTSDALE
YZERFONTEIN
BODERILO
MABESKRAAL
CHARL CILLIERS
AERORAND
IZINGOLWENI
BUTHIMBIBANE
AMANDELBULT
MOKODUMELA
COURTRAI
GOURITSMOND
WELVERDIEND
GEELPUTS
ORCHARD
NATURES VALLEY
HERMANUS
BOYNE
DAWN
FRANSKRAALSTRAND
MAGOPELA
OSKRAAL
UMTATA
SIYABUSWA
KWAMSANE
EKUPHUMLENI
GLEN COWIE
BAMAAKA
SWARTDAMSTAD
WINTERVELD
DIENJE
MAMOGALESKRAAL
VILJOENSDRIF
PORT EDWARD
NALEDI
WHEBEDE
MAJUBA
SARON
SUNRISE ON SEA
SETOTOLWANE
GEORGE
CRAIGIEBURN
TARENTAALRAND
BAHLALERWA
PIETERS
BRITS
MODIMOSANA
WEDELA
ZITHOBENI
ANNADALE
KROMDRAAI
ROTTANGLAAGTE
PAARDEKRAAL WES
HILLCREST
LOSPERFONTEIN
WILDERNESS
MOGODUMO
LULEKANI
THANDUKWAZI
LWAMONDO
RAMOKGOPA
STAALVELD
BOTHAS HILL
VOELKLIP
OKIEP
CINTSA EASTMACLEANTOWN
ERINVALE
HEALDTOWN
ELIM HOSPITAL
GAMOPUDILE
HENDRIK VERWOERDDAM
SUPERBIA
SUURBRAAK
MUNZHEDZI
MOGANYAKA
UMLAZI
MAGOGONG
LIBANON
CRYSBESTOS
WEMMERSHOEK
KELLYS VIEW
MEER EN SEE
ULUNDI SOUTH
IMBONGOZI
WALLMANSTHAL
SCARBOROUGH
KLAARWATER
VAAL REEFS
SANDFONTEIN
DE DEUR
RIEBEECKSTAD
UITKYK
BROEDERSTROOM
EDNA
DIEPDAL
SYFERKUIL
BOKNESSTRANDPAARL
ELANDSDORING
MAPLETON
KWARRIELAAGTE
EVANDER
DONKERHOEK
MASIA
TEDDERFIELD
OLIFANTSFONTEIN
BLOUPUTS
JERUSALEM
IZOTSHA
NEWLANDS
COLDOUG
ARTHURSTONE
HENLEY ON KLIP
ABBOTSDALE
PACHDRAAI
ZUURBEKOM
PELHAM
ST HELENABAAI
ZONDAGSFONTEIN
SHERWOOD
KOELENHOF
HARBURG
SALDANHA
MAGALIESMOOT
BIRCHLEIGH
LOVU
PHOTSASENG
WEBERSVALLEI
CRYSTAL PARK
BOSMANSRUS
STELLENBOSCH
SPRINGS
TAMPOSTAD
DENNILTON
KWAGUQUKA
TSIHOWDEWI
NEFT
ST FRANCIS BAY
HAMBURG
HOUTBAAI
TEKU
VAALKRAALTUGELA MOUTH
PATERNOSTER
LUCIANA
GOUDINIWEG
PLETTENBERGBAAI
KLEINEMONDE
SOMAROBOGO
GOLDEN GATE
PRINGLE BAY
LEBALENG
DELPORTSHOOP
NSHONGWENI
MARIEVALE
MAIN REEFS
SOUTHRIDGE PARK
SCOTTBURGH
SCHURVEBERG
SELCOURT
KULEKA
DWARSKERSBOS
KRUGERSDORP
VIOOLSDRIFT
GORDON'S BAY
HONEYDEW
BUFFELSKLIP
LAEZONIA
KELVIN
EDENDALE
DISKOBOLOS
MATSULU
DANABAAI
FARMALL
EIGHT BELLS
NKOWAKOWA
MELKBOSSTRAND
EZIBELENI
KLOOF
VANDERKLOOFDAM
CAROUSEL
MOERASRIVIER
MTWALUME
CLARKSON
MDANTSANE
FIRGROVE
RIETSPRUIT
STOMPNEUSBAAI
BOTHASIG
RYNFIELD
BUFFELSBAAI
SIMON'S TOWN
BENONI
RAAP AN SKRAAP
RIVERSIDE
TEMBISA
NELMAPIUS
FLAMINGO PARK
ISANDO
IKAGENG
ELSPARK
KROMRIVIER
HAMILTON
ROODEPAN
VANWYKSDORP
BOTSHABELO
KOMMETJIE
INDERMARK
OTTERY
LEOPARD CREEK
LYTTELTON
ATHLONE
DAN PIENAAR
SINOVILLE
MEYERSDAL
OHLANGA
WABOOMSKRAAL
ISIPINGO
DOORNPOORT
BARRACK STREET
DURNACOL
SALT ROCK
WESTVILLE
BEATRIX
KING WILLIAM'S TOWN
MUIZENBERG
MONTCLAIR
BEACON BAY
KWAMASHU
ROSEDALE
ANERLEY
MAYFAIR
AVIONPARK
PHOLA
STRAND
VAALTUIN
ST MICHAEL'S ON SEA
NAMBITI
DRIEZIEK
MILLER
GANSPAN
WESTBROOK
KWA-GUQA
KHUTSONG
INDUSTRIQWA
CONGELLA
LANGENI FOREST
MEQHELENG
MOTETEMA
ULUNDI NORTH
BELLA VISTA
AUGRABIES WATERVAL PAYPHONE
GATEWAY
KANDASPUNT
INVERNESS
BEACONSFIELD
COMET
ASTONBAAI
OVISTON
ROBBEN ISLAND
BEITBRIDGE
NCOTSHANE
DANCKERTVILLE
PHOMOLONG
MASERU BRUG
RIETBRON
Exchange AreasRegions
Ska-sites-04-05-27%U Karoo 2D1 site#S Spiral A#S Spiral B#S Spiral C#S Spiral D#S Spiral E#S Spiral F#S Spiral G
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 Kilometers
SKA Array
131
SKA SITES
• Control centre in Cape Town• Main/Core Site (correlator) – Karoo 2D1• Remote Sites
– South Africa – 51– Namibia – 6– Botswana – 6– Swaziland – 1– Mozambique – 1– Mauritius – 1– Madagascar - 1
132
SKA Bandwidth and connections
• The capacity requirement are as follows:
• Main site (correlator) and Control site (Cape Town) – 3.8 Tbps
• Main site (correlator) and each Remote site –152 Gbps
• The control centre in Cape Town needs to be connected to SKA users in other parts of the world
133
SKA Timelines
• 2000 International SKA Steering Committee formed
• 2002 International SKA Management Plan established
• 2005 International agreement on sites• 2007 International agreement on technical
implementation• 2009 SKA scientific and technical proposal• 2012-2020 SKA construction
134
Pros/Cons
Pros• Boost SA’s status in scientific arena• $1B budget for SKA project• Foreigners investing in SA• Tourist attraction
Cons• Most of the $1B investment will be spent on R&D and
manufacturing (which will be done by mostly international companies)
• Severe limitations on future radio developments (including radar, wireless-telecommunications, Cell phone coverage, Television and radio broadcasting) close to SKA sites and its remote sites (spirals)
Question and Answer Session
Convergence and its impact on SA Telecoms
137
What is Convergence?
• There is no universal definition of Convergence.
• Convergence can mean:-– “Provision of various communication services like text,
data, – image and video over the existing infrastructure”
– “Development of new infrastructure for handling multimedia transmission”
– “Managing of technologically and commercially distinct markets such as Broadcasting, Publishing, Cable TV, Fixed Voice, Cellular Mobile Services and Internet Services”
138
Types of Convergence ?
• Convergence of Technologies :– A common platform to deliver Voice, Data and
Video services
• Convergence of Services:– Delivery of multiple services to the end users over
the same medium/ network
• Regulatory Convergence:– Establishing a single Regulatory Authority by
blurring the regulatory boundaries for telecommunication, information technology and broadcasting
139
Drivers of Convergence…1
1. Technology– Digitisation of transmission and switching networks– Global networks based on packet switching and open standards (IP)– Increase in Processing power of Computers– Emergence of new applications (ICT) leveraging enhanced software
capabilities– Evolution of Broadband technologies(xDSL, CMTS, HFC,
Broadband wireless- Fixed/ Mobile, Satellite)
2. Market– New markets and services such as Multimedia services,Video on
demand, Interactive TV, Pay TV,Cable telephony,Unified Messagingservices, Internet Telephony etc.
– Integration of content service providers with access providers– Emergence of new Market players based on Potential of ICT
140
Drivers of Convergence…2
3. Customers – Option for new value added services in a
modular fashion – Cheaper access to communication– Single Information Socket (for phone, data,
video)
4. Regulation – Reduction in cost of regulation by optimum
utilisation of regulatory resources– Ease of Regulation and Interconnection
141
Challenges to Convergence…1
• Migration to converged license regime
• Technical Standards
• Fair and non-discriminatory access
• Competition Issues
• Frequency Spectrum
• USO and Digital Divide
142
Challenges to Convergence…2
1. Migration to converged licensing regime:
– Maintenance of Level Playing Filed between existing and new players
– Service based licenses with heterogenous terms and conditions of licenses
– The existing service provider may need multiple licenses to provide services
– Licence mapping for all current licenses from old to new licence categories
– License transitions process– Licence structure design and drafting
143
Challenges to Convergence…3
2. Technical standards:– Standards supporting convergence still evolving
– Availability of multiple standards by different agencies (ITU, IETF, ETSI, ANSI, IEEE etc)
– Problems of inter-working between various standards
– Standards for Quality of Service not yet matured
– Need for Technology Neutral Regulations
144
Challenges to Convergence…4
3. Fair and non-discriminatory access :
– Complex Regulations governing access to bottleneck facilities
– Transparent , Non- discriminatory &Cost based access.
– Access to contents: Program access regime
145
Challenges to Convergence…5
4. Competition Issues
– Removal of industry specific regulations and its replacement with general competition law applied equally to all industries.
– Legal framework aiming at promoting competition and prohibiting a range of anti-competitive practices including:
– Anti-competitive Agreements;– Anti-competitive mergers ;and– Misuse of market power
– Cross-boarder mergers and cross- media ownership restrictions in certain parts of the media
– Foreclosure of markets by anti- competitive conduct
146
Challenges to Convergence…6
5. Frequency Spectrum:
– Possible reallocation of frequency spectrum.
– Optimum allocation of spectrum to the new licensees.
– No precedence for allocation of the spectrum in the new regime.
– De-licensing of bands for certain applications.
147
Challenges to Convergence…7
6. Universal Service Obligations and bridging the Digital Divide
– Redefining the scope of Universal Service
– Identifying contributors for USO
– Formulation of regulatory policy to bridge the Digital Divide
148
Licensing under Convergence
• Purpose
– Authorise market players to do business
– Prescribe the rights and obligations of market players
• Forms
– Concessions – contractual arrangement between governments and operators
– Licences – unilateral act on the part of the licensing authority (preferred method in SA)
149
Types of Licenses
• Individual licences
• Class licences
• Licence exemptions
150
Individual licenses
• Often limited competition licences – used where market entry is restricted for policy reasons (eg because a limit has been placed on facilities-based competition) or for technical reasons (eg spectrum scarcity)
• Even in countries where competition is not restricted, individual licences may be used to impose special licence conditions on particular operators to ensure that they behave in a particular manner (eg where an operator has significant market power)
• Usually granted pursuant to some form of comparative selection process
• Preferred licensing method in South Africa
151
Class licenses
• Issued without any selection process
• Useful tool for simplifying the authorisation regime where there is no limit on the number of market entrants
• Class licences are generally employed where individual licences are not justified, but where there are significant regulatory objectives that can be achieved by establishing general conditions (eg consumer protection requirements
• Mainly used in countries that have fairly deregulated telecom sectors
• Not used in South Africa (yet)
152
Class licences
• Issued without any selection process
• Useful tool for simplifying the authorisation regime where there is no limit on the number of market entrants
• Class licences are generally employed where individual licences are not justified, but where there are significant regulatory objectives that can be achieved by establishing general conditions (eg consumer protection requirements
• Mainly used in countries that have fairly deregulated telecom sectors
• Not used in South Africa (yet)
153
Licence exemptions
• Generally granted in respect of service categories that are fully liberalised
• Useful tool in highly deregulated markets where an activity is technically caught within the definition of activities subject to regulation (eg offering a telecom service to the public), but where no justification exists for imposing any licensing requirements
• General requirements (eg registration with the regulator) tend to be imposed via general regulations and orders
• In South Africa, all telecom service providers are required to hold a licence, but ICASA is empowered to grant exemptions in respect certain service categories
154
Methods for choosing new entrants
• Competitive selection– Based on a single objective quantitative criterion – Usually used to allocate spectrum, not for service licences– Transparent, but can be costly
• Comparative selection– Based on a quasi-subjective assessment of one or more
quantitative selection criteria– Not transparent – prone to accusations of bias and
corruption from losing bidders– Currently the preferred method in SA for limited
competition licences
155
Licensing trends
• General shift away from individual / comparative selection processes to class-based licensing systems for facilities-based competition (EU)
• Removal of all restrictions on the number of service-based and facilities-based competitors (most developed markets)
• Adoption of class licensing regime / granting of licence exemptions for service providers and content providers (Australia / Far East)
156
Convergence and licensing
• Convergence is usually coupled with deregulation and liberalisation of the licensing regime
• Usually, more stringent licensing requirements apply to network services / facilities
• Application services / content services are often subject to comparatively light touch regulation, and sometimes exempted from the requirement to hold a licence altogether
157
Licensing in Malaysia (1)
• Four-tiered regulatory regime for telecoms
– Network facilities providers – owners of communications networks
– Network service providers – provide the basic connectivity and bandwidth. Network service providers are typically also the owners of network facilities
– Applications service providers – provide particular functions to end users (such as voice services, data services, content-services, and e-commerce services)
– Content applications service providers – are a special subset of application services. Content services include traditional broadcast services and new services such as online publishing and information services
158
Licensing in Malaysia (2)
Internet content applications services
Not issuedSatellite broadcasting subscription services, broadcasting, terrestrial free to air TV, terrestrial radio broadcasting
Content applications service providers
Electronic transaction services, interactive transaction services, web hosting and client servers
Audiotext hosting services,provided on an opt-in basis, directory services, internet access services, messaging services
PSTN services, public cellular services, IP telephony, public payphone services, public switched data services
Applications service providers
Incidental network services, LAN services, private network services, routers, internetworking
Niche customer access services, niche connection services
Bandwidth services, broadcasting distribution services, cellular mobile services, access applications services
Network service providers
Broadcasting & production studios, incidental network facilities, private network facilities
Niche or limited purpose network facilities
Earth stations, fixed links & cables, public payphone facilities, radiocommunications transmitters and links, satellites, submarine cables, switching centres
Network facility providers
ExemptClass licenceIndividual licenceCategory
159
Licensing in Australia
• Open telecommunications market
• Three-tiered regulatory regime for telecoms:
– Carrier licences – subject to individual licensing, but no restriction on the number of facilities-based competitors
– Carrier service providers – exempt from the requirement to be licensed
– Content service providers – exempt from the requirement to be licensed
160
Comparison: Australia / Malaysia
• Australia applies uniform licensing rules to each tier (networking / services / content)
– Less intensive and complex to administer
– Only appropriate in a highly deregulated market (?)
• Malaysia applies different licensing rules to service categorieswithin each tier, depending on their economic importance
– More complex and intensive to administer
– More appropriate in an environment of managed liberalisation such as South Africa (?)
161
Licensing regime in SA (1)
• Telecommunications– The Telecommunications Act does not take a tiered
approach to licensing
– Facilities and application services are both treated as telecom services
– The Telecommunications Act does not deal with the transmission of content over telecom networks – this is self regulated between network operators and service providers
• Broadcasting– The broadcasting legislation distinguishes between
broadcasting (content), signal distribution and multi-channel distribution – there is some attempt to tier the licensing regime
162
Licensing regime in SA (2)
• Broadcasting and telecoms are subject to different licensing requirements in SA
• In general, the licensing regime for broadcasting is far less restrictive and is subject to less executive interference than in the case of telecoms
• Eg: facilities-provisioning in the telecoms environment is restricted, whereas in broadcasting, anyone may self-provide, provided that a signal distribution licence is obtained
• Will the harmonisation of licensing regimes result in telecoms being deregulated to the broadcasting standard?
Convergence in South Africa
Telkom’s position
164
Telkom’s Key Principles on Convergence
• Managed liberalisation
• Clear Regulatory Environment
• Effective & Independent Regulator
• Self-regulation & Co-regulation
• Technology-neutral
• Fair & Balanced outcomes
• Consultative & Public process
165
Convergence Colloquium
• Telkom welcome convergence and has participated fully at the industry Colloquium on Convergence
• Draft 1 of the Convergence Bill was released to the industry for comment on 25 July 2003
• Thereafter industry was involved in an extensive process of effectively redrafting the Bill• The industry wants one piece of legislation that will replace the existing
legislation governing ICASA and the telecoms and broadcasting industries – the DoC does not want to repeal the underlying legislation
• The redrafted Bill raised more questions than answers – effectively taking it back to the drawing board for further redrafting
• Redrafted Bill expected to be tabled in Parliament towards the end of 2004
166
Convergence Colloquium
• Convergence regulation in most countries post-dates the liberalisation of the market
• What is unusual about South Africa is that convergence regulation is taking place in a context of managed liberalisation – the market has not yet been fully opened up to competition
• Real purpose of the Bill is to pave the way for market liberalisation
167
Convergence Mapping: Pre-Convergence
Broadcasters Signal Distribution
(Sentech, Orbicom, etc.)
End
Users
TV & Radio
Sets
VANS,
ISP, etc.
Telecommunication Networks
(Telkom, SNO, Sentech, USALs)
Computers &
Data Terminals
Voice
Data Voice/Data
Terminals
Broadcast
Content
Information
Services
End
Users
End Users Fixed Networks (Telkom, SNO, USALs) End
UsersMobile Networks (MCOs, USALs)
ORIGINATION TRANSPORT DESTINATION
BROADCASTING (Broadcasting Act, IBA Act, ICASA Act, Sentech Act)
ENHANCED DATA SERVICES (Telecommunications Act, ECT Act , ICASA Act)
VOICE/DATA CONVEYANCE SERVICES (Telecommunications Act, ICASA Act)
168
Convergence Mapping: Post Convergence
SERVICE PROVIDERS
(Broadcasters VANS, ISP, etc.)
NETWORK
SERVICES
CUSTOMER
PREMISES
EQUIPMENT
C0MMUNICATION SERVICES (Convergence Act)
APPLICATION SERVICES
(Content Services)
(Information Services)
END
USERS
VOICE
DATA
END
USERS
END
USERS
ORIGINATION TRANSPORT DESTINATION
169
C0MMUNICATION SERVICES (Convergence Act)
Convergence Mapping: Licencing
APPLICATION SERVICES
PROVIDERS
NETWORK SERVICES
PROVIDERS
(OPERATORS)
CONTENT SERVICES
PROVIDERS
170
The Bill so far… (1)
• Licensing regime
– 3 tier horizontal licensing regime• Network services• Application services• Content services
– 3 types of licensing methods• Individual• Class • exemptions
171
The Bill so far… (2)
• Transitional provisions
– All existing licences to remain valid for their full duration
– ICASA must convert current vertical licences to horizontal licences with the agreement of each licensee
– All existing network operators to be confined to their vertical markets for 2 years, after which they may compete across each others’ platforms (affects Cell C, MTN, Orbicom, Sentech, SNO, Telkom & Vodacom)
172
The Bill so far… (3)
• Clarification of the roles of the Minister and the regulator
– Gives ICASA full responsibility for regulatory processes
– Relegates the role of the Minister to policy-making only
– Main impact: gives ICASA independence in relation to licensing and regulation-making
173
The Bill so far… (4)
• Competition issues
– The Bill reinforces ICASA’s concurrent jurisdiction with the Competition Commission over general competition matters
– ICASA retains exclusive jurisdiction over sector specific competition matters (such as access, interconnection, facilities leasing, number portability, carrier pre-selection, etc)
174
Concluding remarks
• Technology changes quickly, regulations change slowly
• Legacy regulation is not relevant in the convergence era
• Prioritisation of regulatory challenges for optimum utilisation of regulatory resources
• Drawing the roadmap for implementation of convergence
• Need for efficient and timely dispute resolution mechanisms for converged licensing regime
• Capacity and expertise building in the regulatory bodies to meet the challenges of convergence
Question and Answer Session
