WORLDWIDE MARKET RESEARCH REPORT - CISE

EC/IST FP6 Project No 026920
Work Package: 6
Type of document: Report
Date: 20.12.2007
File name: OP_WP6_D37_V1.0.doc Version: 1.0
Title: Worldwide Market Research Report 209 / 356
bundle their services or not, depending on their business model. The only key distinction
under the new framework is between individual and class licences, where the latter has a
limited geographic scope. As previously, applications are subject to spectrum allocation.
Value-added network service (VANS) providers now have an option of applying for an
individual licence, which would give them the same rights and privileges enjoyed by the big
fixed-line and mobile telecoms operators. VANS will only need class licences to build their
own networks and sell spare capacity. Depending on how many VANS take advantage of
the opportunity to build their own networks, and how much capacity they spare, the new
licensing framework could bring about options for VANS for national, regional and
metropolitan bandwidth.
The dissolution of Telkom's fixed line monopoly, will create new service providers, such as
SNO, licensed in December 2005 and officially launched as Neotel in August 2006.
[A06] The Icasa Act amendments and the EC Act redefine and expand the powers of Icasa
to control the communications market. Icasa's key functions include regulating players in the
communications sector, issuing operating licences to service providers, managing the
frequency spectrum in South Africa and protecting consumers against unfair business
practices. Most significantly, Icasa has now been given power to dictate price controls, terms
and conditions of access, interconnection and facilities leasing.
The mobile services market, with a CAGR of 9%, is forecast to grow faster than the fixed line
and fixed wireless market which has a CAGR of 5%. In the mobile services market, voice
remains bread and butter of the mobile market but mobile data services will be the industry’s
growth powerhouse over the forecast period, which has a CAGR of 29% driven by
multimedia content and data access for PCs and laptops.
5.4.2.3.2 The situation of the fiber optics
[A07] Before markets were liberalised, telephone companies were in the main government-
owned institutions. When they wanted to build undersea cables, governments financed this
activity and the project was carried out by the government-owned telephone company.
Liberalisation has opened the market to new competitors at both an international and