Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Starlink wait set to drag on as Icasa flags legal hurdle

      Starlink wait set to drag on as Icasa flags legal hurdle

      13 May 2026
      Malatsi opens door to 'some' partial privatisations of SOEs - communications minister Solly Malatsi

      Malatsi opens door to ‘some’ partial privatisations of SOEs

      13 May 2026
      Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

      Sam Altman denies betraying Elon Musk

      13 May 2026
      Naked Insurance launches native app in ChatGPT - Alex Thomson

      Naked Insurance launches native app in ChatGPT

      13 May 2026
      Canal+ firms up 3 June JSE listing

      Canal+ firms up 3 June JSE listing

      13 May 2026
    • World
      Pop star sues Samsung for $15-million - Dua Lipa

      Pop star sues Samsung for $15-million

      11 May 2026
      OpenAI's new audio APIs aim for conversational voice agents

      OpenAI’s new audio APIs aim for conversational voice agents

      8 May 2026
      'It was my idea': Musk claims paternity of OpenAI - Elon Musk

      ‘It was my idea’: Musk claims paternity of OpenAI

      29 April 2026
      Pivotal week for US tech stocks

      Pivotal week for US tech stocks

      28 April 2026
      Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

      Worries over OpenAI’s growth as Anthropic gains ground

      28 April 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      Datatec is firing on all cylinders - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
    • TCS
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
    • Opinion
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      R230-million in the bag for Endeavor's third Harvest Fund - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Icasa rejects Telkom’s LLU arguments

    Icasa rejects Telkom’s LLU arguments

    By Duncan McLeod11 December 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Ethernet-640

    Telkom cannot use the fact that it is relatively overstaffed and unproductive to hold back local-loop unbundling (LLU).

    The Independent Communications Authority of South Africa has rejected arguments the fixed-line operator has put forward about the impact of its so-called “access-line deficit” and has determined that this deficit is of “no relevance” in crafting the LLU regulations.

    These findings are contained in an “explanatory note” published to accompany the draft LLU regulations that were gazetted in September 2013. LLU involves opening up Telkom’s last-mile copper network — and, it now appears, the access networks of other players, including mobile operators — to rivals.

    The authority will hold public hearings on LLU on 17, 18 and 19 February 2014. The hearings are likely to prove a stormy affair, with Telkom already warning in a written submission to Icasa that it intends fighting the regulatory intervention tooth and nail.

    Telkom uses the profits it makes from voice and data services partially to offset losses it makes from basic line rental — this deficit is known as the access-line deficit.

    In a written submission to Icasa in October, Telkom warned that LLU would lead to competitors targeting high-value customers while only paying for the cost of the line. “LLU is therefore likely to adversely affect that overall financial sustainability of the network.”

    It warned that LLU would “put pressure on the business to raise its prices, which will reduce the affordability of even its most basic services”.

    But Icasa has chosen to disregard the access-line deficit argument. In the explanatory note, published below this article, it says it does not agree with Telkom on the scope and the scale of the deficit.

    “The principle cost make-up of the deficit is related to the cost of employees and labour-related costs,” it says. “It is imperative that Telkom manage its labour costs in line with an efficient provision of services.”

    Icasa says it is “evident” that Telkom’s business model and approach to providing services “needs to be adapted considering that the market dynamics have changed considerably since 2000”.

    “The authority notes the difficulties faced by the shareholder [government] in terms of employment sustainability within the ICT sector as well as at Telkom specifically,” it continues. “However, this social challenge, faced by the entire ICT sector, is not a justification for preventing the provision of access to any form of local loop.”

    It says Telkom provided it with “copious information about the purported access-line deficit”, but that the information provided was “not convincing”.

    “The authority therefore determines that the purposed access-line deficit is of no relevance in determining access to the local loop.”

    Icasa says elsewhere in the explanatory note that the proposed LLU regulations affect not only Telkom, but also mobile and fixed-wireless operators and other telecoms network licensees.

    It says it is required by law to develop the regulations and that a regulatory impact assessment will therefore not be carried out as this is only necessary in instances where Icasa has a choice in drawing up new regulations.

    “It should be clearly understood that the scope of these draft regulations is considerably wider than simply the copper twisted pair local loop,” Icasa says. “This means that Telkom is by no means the only licensee that will be expected to make its facilities available to other licensees. This changes the emphasis and the dynamics of the discussion on the subject significantly.”

    The authority says, too, that there is “no intention that any licensee providing access should suffer any financial harm”.

    “In terms of access to any form of local loop (fixed-line copper, fixed-line fibre and/or wireless access), the network owner has the right to set the price to ensure future sustainability of its own private network services and future investment commitments.”

    Icasa says that a telecoms licensee seeking access to another operator’s network is “obliged to pay the capital costs of setting up their access to the local loop and any associated usage fees”.

    “However, should the access seeker consider that the price charged is unreasonable, they may dispute these charges before the authority,” it says.  — (c) 2013 NewsCentral Media

    [gview file=”https://techcentral.co.za/wp-content/uploads/2013/12/Explanatory-Note-On-Draft-LLU-Regulations.pdf”]

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Icasa Telkom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSA’s top YouTube videos of 2013
    Next Article Sanral rejects e-tag accusations

    Related Posts

    Malatsi opens door to 'some' partial privatisations of SOEs - communications minister Solly Malatsi

    Malatsi opens door to ‘some’ partial privatisations of SOEs

    13 May 2026
    Reinvest spectrum cash in ICT sector, industry urges

    Reinvest spectrum cash in ICT sector, industry urges

    10 May 2026
    South Africa's TikTok election is coming

    South Africa’s TikTok election is coming

    7 May 2026
    Company News
    In crypto, trust is the new currency - Binance South Africa's Sam Mkhize

    In crypto, trust is the new currency

    13 May 2026
    Don't miss the Telviva Tech Insights webinar

    Don’t miss the Telviva Tech Insights webinar

    13 May 2026

    Don’t miss the Pan African DataCentres Exhibition & Conference

    13 May 2026
    Opinion
    Free calls, dead voice and Shameel Joosub's Spanish ghost - Duncan McLeod

    Free calls, dead voice and Shameel Joosub’s Spanish ghost

    22 April 2026
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Starlink wait set to drag on as Icasa flags legal hurdle

    Starlink wait set to drag on as Icasa flags legal hurdle

    13 May 2026
    Malatsi opens door to 'some' partial privatisations of SOEs - communications minister Solly Malatsi

    Malatsi opens door to ‘some’ partial privatisations of SOEs

    13 May 2026
    Sam Altman denies betraying Elon Musk. Shelby Tauber/Reuters

    Sam Altman denies betraying Elon Musk

    13 May 2026
    Naked Insurance launches native app in ChatGPT - Alex Thomson

    Naked Insurance launches native app in ChatGPT

    13 May 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}