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No. 37261
GOVERNMENT GAZETTE, 24 JANUARY 2014
5.6 Reform Trends
5.6.1
Intermodal and Intramodal Facilities based Competition
Facility based competition can be inter-modal or intra-modal. Inter-modal competition is
competition between different transmissions media, for example satellite versus fibre.
Therefore intermodal facilities based competition provides insights and competitive
advantage based on technologies. Before the days of convergence, intermodal facilities
gave rise to the concept of technology specific policies.
Intra-modal competition refers to a situation whereby operators adopt the same transmission
medium. Therefore their differential competitive advantage is not derived from the
transmission medium, but from other enterprise competencies.
A historical review of major technological innovations in the telecommunications sector
suggests that, on the one hand, inter-modal facility based competition is the most effective
means to foster competition between generic technological alternatives. On the other hand,
intra-modal facility-based rivalry founded on similar technologies could contribute to rapid
diffusion of particular technologies and the spread of knowhow, which could result in a steep
learning curve and a significant reduction of maintenance costs.
Policy Questions:
Should policy promote either a facilities-based or service-based competition environment?
Alternatively is there a case for a hybrid competition environment in which both these
modes exist?
2. What mechanisms are required to ensure effective co-ordination of broadband
infrastructure planning and rollout?
3. Notwithstanding current policy interventions to promote availability and access in the
under-serviced areas, the local loop remains a great challenge. Should LLU policy be
advanced, and if so, what are the principles which should underpin LLU policy?
4. What other, policy interventions can reduce the Significant Market Power (SMP) of the
oligopolies in the South African communication sector?
5. What considerations should inform the new policy and regulatory regime concerning the
spectrum management taking into account the anticipated revision of the frequency
spectrum regime? Is there a need for a separate agency to regulate spectrum?
1.
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