The conventional telcos were complaining that the Googles and the Facebooks of the world (labeled by them as Over-the-Top or OTT players) were unfairly getting a free ride on the expensive, difficult-to-maintain last mile access network. Bharti Airtel went as far as unilaterally seeking to identify such uses by their customers and to impose additional charges on them. They backed off in the face of widespread protests, but they said that they expected the regulator to “level the playing field.” Now it looks like their complaints may be getting a response from a different quarter. If the Googles and the Facebooks of the world provide connectivity directly to their users, the old boys will have nothing to complain about.
From where I stand there is little doubt that the access network will be wireless, except perhaps in high-density housing in cities. But we have so many people going on about the necessity of fiber to the home, even from within government. But I never hear them talk about the need to liberalize the permission process for trenching in city streets. “One of the biggest issues within the market today is the movement of bandwidth – there are no routes available for fibre and companies in the business are really doing their own thing. In Cape Town there is a law now which dictates that trenches can only be opened once, and this is very difficult for a competing business.
TelecomTV – TelecomTV One – News Of course that’s not to say that everything is rosy and you can just lay it and the business will come. I was a little surprised at the hostile reaction I received in a panel session when I suggested that some of the builds on thinner routes were vanity projects based more on national prestige and political expediency than actual real business cases. A fair percentage of the industry is fanatically evangelistic about submarine cables and conveniently forgets the fact that you can’t fill those pipes if you don’t have favourable regulatory and investment reforms in the access network at the other end as well as basic preconditions such as mass PC literacy and affordable services. Powered by ScribeFire.
The Ugandan government gave full power to the country’s telecoms regulator, the Ugandan Communications Commission (UCC), to liberalize the infrastructure sector in October 2006. Earlier in the year, the Ministry published guidelines defining the opening up of services to full competition. This was a result of the end of the five-year exclusivity period of the National Telecom Operators (NTO)—MTN Uganda and Uganda Telecom, and Cellular Telecom Operator (CTO)—Celtel Uganda. With this new market structure, the Ugandan telecoms is set to become even more attractive as infrastructure rollout increases, new services and applications are deployed, and customers’ needs are meet in the greater context of convergence. In our view, despite current and upcoming challenges, Uganda is well positioned to become a very competitive and vibrant telecoms market and this can already be seen in the moves of South Africa’s giants MTN and Telkom SA which have either increased their stakes in the country or are seeking to make a push into Uganda.
By Divakar Goswami & Onno Purbo, March 2006 LIRNEasia’s latest research paper is available for comment. The paper looks at the deployment of Wi-Fi in Indonesia, under the 2005 WDR theme, ‘Diversifying Participation in Network Development.’ Download paper: indonesia wi-fi study 2.0 [PDF] Please post your comments below. Executive Summary With their low-cost and quick deployment time, wireless Internet technologies like Wi-Fi offer last-mile access network solutions to developing countries with limited network infrastructure.