Nashua Mobile’sSubmissions on Convergence

Legislation

Presentation by

Mark Taylor

Managing Director

Background

• Nashua Mobile is South Africa's largest, independent, corporate focused, cellular solutions provider and one of the few providers to offer consumers the choice of all three networks (Vodacom, MTN and Cell C). Nashua Mobile provides world-class communications solutions and support to professionals, customers and customers in small and medium-sized enterprises.

Background

• More than 400 000 of South Africa's 3.5 million plus contracted cellular subscribers are Nashua Mobile subscribers.

• Headquartered in Midrand, Gauteng, Nashua Mobile has over 180 outlets strategically placed across South Africa.

• Nashua Mobile has been a service provider since the inception of GSM over 11 years ago.

Background• Nashua Mobile is a wholly-owned subsidiary of the Reunert

Limited Group which is listed on the Johannesburg Stock Exchange in the electronics and electrical sector.

• Nashua Mobile has some 650 members of staff, and was also voted one of South Africa's best companies to work for in the Finance Week and Corporate Research Foundation survey (2002).

• Nashua Mobile has a turnover in excess of 2.5 Billion Rands per year.

• Over 700 000 calls are taken by our Customer Care Consultants per year.

Service Provider

• Nashua Mobile fulfils the functions associated with a communications service provider in that in conjunction with the services provided by the mobile networks, it is responsible for –– Billing– Customer services– Choice of package– Sales and Service– Debt Collection– Technical Support– Total technical solutions for customers– Nashua Mobile offers other products to create a total business

solution

License and tariffs

• At present, Nashua Mobile is unable to apply to ICASA for its own tariffs and accordingly has to work within the parameters of the filings of the respective networks.

• It is Nashua Mobile’s submission that an appropriate service based license would enable it to design appropriate tariffs for its customers which would be beneficial to such customers and reflect converged offerings as envisaged by the Bill.

Competitive Environment

• Multiple networks• Choice of Tariffs• New Technologies• One Bill• Customer Relationship• Transparency

Class versus Individualised Service Licenses

• Nashua Mobile acknowledges the benefits of class licenses as a means of categorising and “grandfathering” existing and proposed new licensees such as VANs

• However, as set out below, Nashua Mobile also contends for an individualised service license

Communications Service Licensee• Nashua Mobile submits that

in order to give clients a choice of the most efficient and cost effective combinations of platforms, a specialised communications service license should be provided for whereby a potential licensee would be able to obtain the ability to –– Roam (lease facilities)– Interconnect– Apply for tariffs

Facilities Leasing• Agreements between

individualised service licensees and communications network service licensees for the use of their network infrastructure

• “Roaming” should be regulated by the Authority as to term, price and access

• Service levels for prevention of abuse of dominance

• Access to own spectrum

Carrier Preselection• PSTS –

– Telkom– SNO– International

• MCTS –– MTN– Vodacom– Cell C– MVNO

• VANs– First Tier Carriers– Telkom

• PTNs

Interconnect• Right to interconnect• Value of license for new

entrants is their ability to terminate on incumbent networks

• Rates for new entrants• Service levels• Rationalisation of points of

interconnection• Avoid duplication of costs

(on network interconnect where facilities are leased)

Numbering Plans

• Implications of number portability provide unique opportunities for service licensees

• Numbers allocated to existing service providers by Mobile Operators

• Debate as to who owns the numbers

• On network number portability

• Meaningful Interconnect

Role of ICASA• Confidential submissions

same as the GSM networks • Expedited processes to have

speed to market• Transparent tariffing• Licenses for service

providers

Questions

Thank You