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Motorola Document Classification, File Name, Rev NumberAdd additional legal text here if required by your local Legal Counsel.MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2005

Making South Africa a World Class Telecommunications Leader

A presentation to the Portfolio Committee on Communication

on the Convergence Bill, 17 August 2005

Ronnie Seeber & Judi Nwokedi, Motorola Southern Africa (Pty) Ltd


Part 1: Introduction to Motorola(Please refer to separate presentation by Judi Nwokedi)


Part 2: Discussion of the Convergence Bill


Axiom 1

“Telecommunications can lead to great wealth and prosperity if innovation in technology and service provision (including convergence) is allowed to

flourish”


Axiom 2

“Telecommunication innovation must be enabled by legislation and regulation - not impeded”


Axiom 3

“Innovation (also in convergence) will be enabled by allowing

consumers, operators, manufacturers, suppliers and

other telecommunication users freedom of choice”


Axiom 4

“Freedom of choice requires legislation and regulation to be

limited to only that which is really necessary”


Convergence has many angles Use of a single technology, network or facility to provide:

• A single telecoms service or a diverse range of services (including broadcasting services)

Use of multiple technologies (also in different frequency bands), networks and facilities to provide:• A single service or a diverse range of services

Combined, shared use, by different service providers, of technologies, networks and other facilities, to provide:• A single service or a diverse range of services

The provision of multiple services and functionalities by means of a single end-user device, with seamless handover from one platform or network to another to provide seamless mobility services

• The provision of services whereby essentially the same service is seamlessly handed over from one user device to another, as the user transits from one environment to another (e.g. office, to car to home) – another form of seamless mobility services


Convergence can take place at different levels, e.g. in the case of fixed-mobile convergence

there is: Commercial convergence

• the marketing and administration personnel of both the fixed and mobile departments are pooled together

Service convergence • fixed and mobile services are offered to the customer in one package

with or without integration between the two Network convergence

• the same physical infrastructure is used for both fixed and mobile services

Terminal convergence• one terminal could access services rendered by different technologies


‘Convergence’: US Telecommunication Industry Association (TIA) definition

“The term ‘convergence’ refers to the advanced integration and seamless mobility of communications and computing functionalities, in particular the ability to offer voice, data, video, and other increasingly intermingled multimedia services seamlessly over single or multiple infrastructures -- as well as to the capability to access such services at any time, at any place, and with an ever-expanding array of network agnostic devices. It also means that competing infrastructure platforms will be able to provide essentially similar multimedia experiences.”


‘Seamless mobility’: Motorola’s definition

“Seamless mobility means the ability of the consumer and the connecting devices of the consumer to move easily

and smoothly between and among internet protocol enabled technology platforms, facilities and networks, including during the course of a call or of a download”


‘Seamless mobility’: Definition in US Congressional Bill

“… the term “Seamless mobility” means the ability of a consumer and connecting devices of consumer to move

easily and smoothly between and among internet protocol enabled technology platforms, facilities and

networks.”


Treatment of ‘seamless mobility’ in US Congressional Bill

“In implementing the provisions of this Act or any other proceeding the Commission shall not take any action to

impede the development of seamless mobility.”


Truths about convergence (including seamless mobility)

Convergence (including seamless mobility) • has many facets• can be extremely complex, technologically and commercially• cannot be steered or guided by a law or regulations• can be allowed to develop if the law and regulations provide a suitable framework –

based on only what is fundamental (really necessary)

Curtailing or limiting any of the following, by a licence, a regulation or any other legislative or regulatory provision, is likely to make convergence fail

• The services the service provider can provide• There should be no limitation on the services that can be provided

• The network or other facilities the service provider may use• The service provided must be able to use its own facilities or that of another provider

• The technologies that the service provider may deploy• It must be allowed to use the technology of choice

• The price for its services, or bundles of services• The service provider should have complete freedom of choice to respond to the market

• The manner in which services are bundled, whether self-generated or sourced from outside


Truths about convergence (continued)

There must be good scope for convergence (including seamless mobility) in the Bill

South Africa’s Convergence or Telecommications Act and the ensuing regulations must be limited to only what is fundamental (really necessary), in order to provide maximal scope for convergence and seamless mobility


What aspects are fundamental to regulation (really necessary for regulation)?

Facilitation for access to radio-frequency spectrum and a reasonable degree of order in its use

Order in the use of consumer addressing schemes (numbering schemes)

Provisions to ensure human health and safety Provisions for the emergency-response needs of public-

safety agencies Provisions for lawful interception to combat terrorism

and crime Provisions for rights of way (for cabled systems)


What aspects of regulation are sometimes advisable?

Provisions for compulsory interconnection between networks, but only in exceptional cases (e.g. not video)

Provisions for number portability Provisions for people with disabilities, where needed Provisions for needy people


Global regulatory developments

Less ‘economic’ regulation• Types of services not prescribed• Tariffs not prescribed• Not limiting the number of operators (not limiting competition, therefore)• Quality of service not prescribed

More emphasis on ‘automatic regulation’ by market forces• Allowing competition to determine prices• Spectrum trading gaining ground

More emphasis on providing incentives, rather than imposing obligations A move to provide regulatory scope for converged services – e.g. fixed-

mobile and seamless mobility services More emphasis on regulation as an enabler rather than an inhibitor


Global regulatory developments (continued)

More emphasis on the more fundamental reasons for regulation and licensing: • Facilitating access to and coordinating the use of radio-frequency spectrum• Coordinating end-user addressing (numbering schemes)• Obliging, only if really necessary, operators to interconnect on fair terms

(especially in the case of dominant operators)

Regulators are allowing operators to use technologies in shared spectrum bands, without any licence• Began in US in 1995 and now implemented in Europe• Typical bands: 2.4GHz, 5.3GHz, 5.4GHz and 5.8GHz• Many inexpensive and competitive technologies exist• Very successful in US, with thousands of ISPs and other operators using this

spectrum• No reason to limit operators because of spectrum availability considerations


Required legislative provisions for radio-frequency spectrum

Provision for the regulator to establish a national frequency band plan – the allocation of frequency bands for certain uses (e.g. cellular mobile, trunked mobile, fixed wireless access, fixed-satellite service, radio astronomy)• The Bill provides for this, but the terminology needs to be improved

Provision for the regulator to allow market entrants to get access to spectrum, for certain frequency allocations in the band plan, on a market-driven basis• The Bill is weak in terms of providing scope for competitive allotment of

spectrum in cases where the demand may exceed the supply of spectrum (no provision for spectrum trading, for instance)

• The Bill is weak in terms of prescribing that processes for acquiring spectrum by new entrants, especially local or regional market entrants, must be quick

• The Bill commendably limits the categories of licences to only a few, but the categories are not well defined and seem to be not all-embrasive

• The Bill is effectual in putting an obligation on the regulator to respond to a licence application within a certain time – at least for the specific category of licence


Required legislative provisions for radio-frequency spectrum (continued)

Provisions for the use of licence-exempt spectrum• The Bill is inadequate in this respect (does not recognise the important

global regulatory and technological developments in the use of licence-exempt spectrum)

Provisions for the regulator to enforce coordinated use of spectrum in certain frequency bands (conditional spectrum licensing)• The Bill is effectual in this respect

Provisions to make rules (including laying down technical requirements for equipment) for the orderly use of spectrum and to curtail harmful use of spectrum• The Bill reasonably adequately covers this aspect• However, the Bill should put an obligation on the regulator so as to

allow as many technical standards as is reasonably possible, so as to not unnecessarily impede or curtail competition


Other negative aspects of the Bill The Bill calls for a licence for categories of activity that

do not need a licence, e.g.– Application services (Applications are very far removed

from those aspects really necessary to licence)– It’s most undesirable to require a licence for applications

• The Bill seems to call for a licence where a licence is not really necessary– VANS providers that buy their network capacity from a

network operator– A private user of a licence-exempt frequency band

• The Bill is not effectual in giving the regulator rights for intervention under exceptional circumstances, while curtailing those rights under normal circumstances


Other negative aspects of the Bill (continued)

It is not clear whether the class licence category of ‘communication services’ will provide for:• Cases where use is made of self-owned networks• Cases where use is made of capacity obtained from private

telecommunication networks• Private telecommunication networks• Any service not covered by individual licences

• The chapter on communications facilities leasing involves a level of intervention on the part of the regulator that we doubt would be necessary, should there be enough scope for competition

• Recognition of the importance of broadband for convergence?


Other positive aspects of the Bill The Bill is commendable in not calling for any exclusive

rights in the provision of services or the provision of facilities. However, the Bill should go further than that:• In the interest of competition the Bill should make it clear

that the regulator may not grant any exclusive rights for the provision of services

• In the interests of not closing the door to any future technological or market developments the Bill should make it clear that any exclusive rights granted in regard to any aspect (e.g. the use of spectrum), will only be for the purpose of fundamental reasons for regulation and not for influencing market outcomes


Objects of the Bill

The Bill should put greater emphasis on allowing scope for:

Existing operators to grow in response to market demands – in terms of type, quality and range of services and geographical coverage

Vibrant competition by creating scope for new entrants to the market, at any time• Through, amongst others, spectrum trading

Innovation in terms of technologies and methods of marketing Great growth in the use of private telecommunication networks


Is there scope for private telecommunication networks? (up to now seriously impeded by

section 41(2) of the Telecoms Act) Examples

• Networks for schools and other educational applications• Networks for telemedicine• Business networks• National government and provincial networks• Municipal networks• Networks for universities, colleges and other educational

institutions• Private telecoms networks will also help to keep service

prices in check


Example of an application using a broadband private telecoms network

The virtual classroom of the

Ulwazi E-learning Wireless Broadband Project


Motorola Canopy units mounted against the wall of one of the schools


Getting ready for the class


“You see me, I see you!”


“You need to learn the theory before you experiment!”


“See, that’s what happens if you light magnesium!”


“Now we’ll see if you paid attention”


In conclusion The Bill should:

• Remove all obstacles presented by the existing Telecommunications Act to spontaneous market-driven development in telecoms,

• Refrain from requiring a licence where there is no fundamental reason to licence (e.g. for ‘application services’)

• Generally allow for more voluntary agreement and less forced arrangements• Place greater emphasis on new technological developments such as

broadband and convergence (including seamless mobility)• Give greater recognition to the beneficial role of the use of licence-exempt

spectrum• Place more emphasis on user ‘protection’ through greater scope for

competition and new market entrants and less on forced arrangements• Remove all obstacles to the deployment of private telecoms networks• Introduce an era of freedom of choice and real competition and not regulator-

sanctioned competition• Introduce excitement for local and foreign direct investment

Motorola would welcome improving the Bill and, eventually, a new Telecommunications Act

Motorola would participate in making the Act a success – for South Africa


Motorola thanks the Portfolio Committee on Communications for the opportunity to make this

presentation

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