Telecommunications lobby group the Association for Comms and Technology (ACT) has urged communications regulator Icasa to practice “regulatory forbearance” to ease the pressure that load shedding has placed on the sector.
Speaking at public hearings on the impact of rolling power cuts on the telecoms industry in Midrand on Wednesday, ACT CEO Nomvuyiso Batyi cautioned that the combination of load shedding and stringent regulatory compliance measures is forcing operators to pull back on infrastructure investment, leading to the marginalisation of poor communities.
“Regulations must be relaxed, so that instead of focusing on compliance operators can focus on the delivery of service to consumers, especially if we want operators to extend connectivity to rural and outlying areas. Otherwise, the operators focus on maintaining connectivity to areas that already have service since they are forced to invest in batteries and generators,” she told the Icasa hearings.
“Smaller operators are under most strain, and if regulations are not eased, we will find ourselves in a scenario where only one or two large operators survive post-load shedding.”
ACT argued that the effects of load shedding on communications infrastructure cascade into the broader economy. Its research shows that when businesses are unable to operate properly or maintain communications with their supply chains or customers, there is a direct impact on sales.
“The economic impact of mobile network outages goes beyond immediate financial losses, affecting businesses, suppliers, consumers and the broader economy in various ways,” said Batyi.
Backlog
Operators – the ACT members that the organisation represents – report that load shedding leads to a shift in capital expenditure, which is detrimental to the expansion of coverage, the growth of next-generation networks like 5G and the routine maintenance that ought to be done on existing networks. They also face increased costs due to the need for greater security to protect their sites during power outages.
“This can lead to a backlog of infrastructure maintenance and upgrades, exacerbating issues such as ageing infrastructure, congestion and reliability concerns,” said Batyi.
Read: Telecoms industry calls for urgent government action on power cuts
ACT has sought exemption for the telecoms sector from load shedding without success. A request to national treasury to grant operators rebates on diesel used during load shedding have also been unsuccessful.
The organisation has asked Icasa to:
- Release temporary spectrum to assist the industry combat the impact of load shedding;
- Allow for collaboration between spectrum licensees so that spectrum is used more efficiently;
- Speed up facilities leasing requests and other regulatory processes that lead to long lead times for installation of infrastructure; and
- Implement a payment holiday related to various fees, including spectrum auction fees and annual licence fees.
ACT argued that the intensity of load shedding should not affect how stringently regulatory interventions are implemented or relaxed since operators are forced to spend in preparation of the worst case, not knowing which will occur and for what period.
“These interventions ought to remain unaffected by the stages of load shedding, as they serve consumers’ interests and enable industry and government agencies to unite and partner in a coordinated effort to ensure that South Africa remains connected,” said Batyi.
Still to present at the public hearings on Wednesday are Vodacom, MTN, MultiChoice, the SABC, eMedia and Vumatel. – © 2024 NewsCentral Media