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
      The biggest IPO ever is also one of the riskiest - SpaceX

      The biggest IPO ever is also one of the riskiest

      4 June 2026
      The MVNO trap deepens as the battle moves to data

      The MVNO trap deepens as the battle moves to data

      4 June 2026
      BMW's Pretoria hub built the AI now running on its factory floors worldwide - Peter van Binsbergen

      BMW’s Pretoria hub built the AI now running on its factory floors worldwide

      4 June 2026
      Nedbank, Jumo bet on AI lending for the underbanked - Mutsa Chironga

      Nedbank, Jumo bet on AI lending for the underbanked

      4 June 2026
      AI demand sparks 'chipflation' warning

      AI demand sparks ‘chipflation’ warning

      4 June 2026
    • World
      Meta takes on OpenAI and Anthropic in enterprise AI

      Meta takes on OpenAI and Anthropic in enterprise AI

      4 June 2026
      Astronomers discover exoplanets with magnetic fields

      Strange winds reveal magnetic fields on distant ‘hot Jupiters’

      2 June 2026
      AI giant Anthropic files for landmark US listing

      AI giant Anthropic files for landmark US listing

      1 June 2026
      Dell guns for MacBook Neo with low-cost laptop

      Dell guns for MacBook Neo with low-cost laptop

      1 June 2026
      Nvidia's first CPUs to debut in Windows laptops this week

      Nvidia CPUs to debut in Windows laptops this week

      31 May 2026
    • In-depth
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      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
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
    • TCS
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      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
    • Opinion

      Clashing judgments leave South Africa’s crypto law unsettled

      2 June 2026
      The author, Pambos Soteriades

      The trap inside South Africa’s banking MVNO boom

      1 June 2026
      The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

      The hidden cost of social media age bans is everyone’s privacy

      29 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 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
      • CM Telecom
      • 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 » In-depth » Local-loop unbundling in limbo

    Local-loop unbundling in limbo

    By Craig Wilson9 May 2013
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    telephone-pole-640

    Whatever happened to cracking open Telkom’s last mile of copper cables into homes and businesses to rival broadband operators? The industry regulator has gone silent on the issue, leaving industry players wondering whether local-loop unbundling has quietly been shelved.

    The Independent Communications Authority of South Africa (Icasa) had promised that the first and most basic form of unbundling, something called “bit-stream access”, would have taken place by November 2012. That date slipped by with no action from the regulatory authority and no new deadline being set.

    “It’s like a black hole,” says Internet Solutions regulatory affairs head Siyabonga Madyibi of the lack of information about the local-loop unbundling process. “All we’ve seen is the new draft of the minister of communications’ broadband policy.”

    Madyibi had hoped that minister’s document would have provided Icasa with fresh deadlines for unbundling, but it didn’t, he says.

    Internet service providers and consumers had expected that unbundling, even in its simplest form of bit-stream access, would have helped bring down the cost of fixed-line connectivity and helped foster greater demand for fixed broadband services.

    Telkom has long warned that any planned intervention by Icasa must be counterbalanced by a recovery scheme for the “access-line deficit”, the sum of the money it claims it loses on every fixed-line in service.

    TechCentral last year revealed internal Telkom documentation from 2011 that showed it believed that this deficit amounted to a staggering R2,2bn/year. The documents claimed that it cost the company R256/month on average at the time to maintain each fixed line in service. It said the scale of the impact of unbundling would depend on a number of variables, including the form of unbundling that was implemented and the degree of cost recovery allowed by Icasa. It said the revenue lost could be anywhere between R200m and R2,2bn annually.

    Last October, Telkom told TechCentral that it was in discussions with Icasa about an access-line deficit recovery scheme, which it described as a precursor to the implementation of bit-stream access.

    Telkom vs Neotel
    Mystery continues to surround the outcome of last May’s victory by Neotel over Telkom at a hearing of Icasa’s complaints and compliance committee. The result appeared to open the door for Neotel to gain access to its rival’s last-mile infrastructure.

    The committee found that Neotel’s 2010 request for access to Telkom’s exchanges under so-called facilities leasing regulations was valid. It found that Telkom’s response to Neotel’s request for access to the Benmore and Rosebank telephone exchanges in Johannesburg was “inadequate”.

    Last month, Icasa faced pointed questions in parliament about its progress with local-loop unbundling. The authority said draft regulations had been compiled and would be released soon, but that a new target of March 2014 had been set for introducing bit-stream access.

    Icasa hinted that, under bit-stream requirements, it need not create specific regulations, as those dealing with facilities leasing were sufficient. This, however, would not be true of more aggressive forms of unbundling.

    Icasa councillor Nomvuyiso Batyi told parliament that the authority had considered the compliance committee’s ruling and was implementing it.

    In the meantime, Internet service providers have been left guessing as to what’s going on.

    Icasa failed to answer written questions sent to it by TechCentral.  — (c) 2013 NewsCentral Media

    • Image: Sharon Mollerus/Flickr
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Icasa Internet Solutions Neotel Nomvuyiso Batyi Siyabonga Madyibi Telkom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleGijima rescue plan gets the nod
    Next Article E-tolling set for further delay?

    Related Posts

    Why Telkom is pouring capex into IT - Serame Taukobong

    Why Telkom is pouring capital spending into IT

    2 June 2026
    Telkom's data growth story still has years to run: CEO

    Telkom’s data growth story still has years to run: CEO

    2 June 2026
    Telkom's four-year SIU standoff awaits a final ruling

    Telkom’s four-year SIU standoff awaits a final ruling

    2 June 2026
    Company News
    Payments Live returns to Johannesburg for 2nd edition

    Payments Live returns to Johannesburg for 2nd edition

    4 June 2026
    Finding the next Sandton - AfriGIS

    Finding the next Sandton

    3 June 2026
    How telematics keeps fleets safe, efficient and compliant - Tracker

    How telematics keeps fleets safe, efficient and compliant

    3 June 2026
    Opinion

    Clashing judgments leave South Africa’s crypto law unsettled

    2 June 2026
    The author, Pambos Soteriades

    The trap inside South Africa’s banking MVNO boom

    1 June 2026
    The hidden cost of social media age bans is everyone's privacy - Petrus Potgieter

    The hidden cost of social media age bans is everyone’s privacy

    29 May 2026

    Subscribe to Updates

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

    Latest Posts
    The biggest IPO ever is also one of the riskiest - SpaceX

    The biggest IPO ever is also one of the riskiest

    4 June 2026
    The MVNO trap deepens as the battle moves to data

    The MVNO trap deepens as the battle moves to data

    4 June 2026
    BMW's Pretoria hub built the AI now running on its factory floors worldwide - Peter van Binsbergen

    BMW’s Pretoria hub built the AI now running on its factory floors worldwide

    4 June 2026
    Nedbank, Jumo bet on AI lending for the underbanked - Mutsa Chironga

    Nedbank, Jumo bet on AI lending for the underbanked

    4 June 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}