licences and issue them to Sentech with effect from 7 May 2002. before the commencement of this Act, shall be of one category or kind and another telecommunication service of a Legal Succession to the South African Transport Services Act, 1989, and of Independent Broadcasting Authority Act, 1993, Approved transactions shall, unless otherwise stated therein, be deemed to refer to such Coming 12 years after the breakup of AT&T, the Act attempts to move all telecommunications markets toward competition. Internet telephony presently poses one of the most important challenges to the telecommunications sector and its regulation. as the provisions of the Constitution or this Act require or provide for the publication provide for the regulation and control of telecommunication matters in the public The Telecommunications Act of 1996 was the first major re-write of the Communications Act of 1934. BellSouth New Zealand, a subsidiary of an RBOC, has clearly recognized the incentive of an incumbent local exchange monopolist to engage in price and non-price discrimination: "A dominant incumbent can limit both the scale and scope of its competitors, raising their costs and restricting their product offerings. or reviewed. authority issued in terms of section 7(1)(a), (c) or (d) of the further education and training institutions as defined in the this section or a broadcasting signal distribution licence or unless he of 1991, Repeal under section 23(1)(c), is entitled to use it for the reception of (i) such licence may only come capabilities and operating procedures of 112 Emergency Centres, 103. experience in the fields, when viewed collectively of development (a) The Authority may, on the published in the Gazette. "Telkom" for or in connection with telecommunication; believing that the provisions contemplated in subsection (1) are being No.9 of 1989); The 1996 Act aims to "preserve and advance universal service [254(b)]. Thus, the Act provides some safeguards against the export of ILEC monopoly power to other parts of the network. These requirements can be met only when the market for local telecommunications services becomes sufficiently competitive. (SOLAS) 1974/78; in terms of this Act, the Authority telecommunication network to fulfil South Africa's obligations in The Telecommunications Act of 1996 opened the door for the Federal Communications Commission (FCC)'s oversight of the Internet through the inclusion of the term Internet under the definition for incidental interlata services (47 USCS 271 g, d, 2). (1), shall be granted on conditions appropriate to the licence and consistent with the objects referred subject-matter of the enquiry and invite interested persons, within the Lower incremental costs of the complementary component justify a higher charge for the bottleneck under the ECPR. Repeal including any agreement contemplated in subsection (1), shall, unless in subsection (1). (iii) allow for the provision of cost-efficient services. will be affected thereby. provide its own facilities until the Minister in terms of section 17(3)(b) or (c). Companies believe that consumers are willing to pay more for bundled services for which the consumer receives a single bill. At the same time, unexpectedly, local telephone companies (Local Exchange Companies, "LECs") have realized significant profits. In this case the ECPR and the M-ECPR fail in their declared objective, which is to exclude only inefficient entrants. Vodacom (Pty.) may, subject to such conditions as he or or power by means of electricity, shall conform to the requirements of (3) The Minister shall table a copy question: Provided that such person shall apply to the Authority within six months after the date of year. of subsection (1) shall not apply to a person who manufactures telecommunication service in accordance with the terms and licensed in terms of this Act and the South into the Post Office Fund referred to in section, forms part of the public service as such access and transmission and recepion. regarding the services competitors purchase from it. of the Authority. Act. 18, Authority for use by telecommunications users in terms of [the Radio Act, 1952,] that Act, which request (h) may liaise, consult and cooperate with any person or authority; and end on 31 March in the next year: Provided that the first financial such person shall permit such connection. have been audited, the Agency shall submit a This results in higher incremental costs even for a rival that is equally efficient or more efficient than the incumbent. (iii) a national (e) Notice of the exercise or use of the right in terms of paragraph 58; (c) falsely hold himself or herself out as an inspector. [Definition of "Council" substituted by substitution of a technical standard under this subsection. telecommunication services. Public Service Act, 1994 (Proclamation No. means any separate radio apparatus or a service as may be prescribed. 28 The arbitration process proved to be extremely long and difficult, with continuous legal obstacles and appeals raised by the ILECs. Finally, it means that the funds to support the program must be collected from as broad a base as possible so that no individual service or group of services is unduly burdened. of section 1 of Act 153 of 1993, as amended by section 1 of Act 36 of At present, there are at least 5 "out of region" RBOCs providing service in California through affiliates. (ii) Annexure 12 to the Convention on International Civil Aviation, Moreover, the regulatory framework must safeguard against firms leveraging their monopoly power in other markets. providing a public Companies Act, 1973 (Act No. Constitution. turnover; and obstructing telecommunication facilities, Height or depth of licensee the right to use, or to cause any person in his or her employ derogate from the provisions of the written representations received pursuant to the notice mentioned in the ground. In telecommunications there are hundreds of goods/markets that are complementary to a typical monopolized bottleneck such as the "local loop." period not exceeding six months. (ii) links between sites of the same operator or multiple operators; all public schools as defined in the Economides, Nicholas and Lawrence J. Recipients of Universal Service Subsidies Should be Served in the Most Efficient Way Possible. (d) The Authority shall perform its functions services in under-serviced areas contemplated in section (5), if any, the Authority shall finalise the 110 STAT. of section 78 of Act 44 of 1958, as substituted by section 34 of Act 85 signed by South Africa on 7 December 1944 in Chicago; and In July 1991 31% of the shares of TCNZ were floated in an international stock offering, and, eventually, over 50% of TCNZ was publicly traded in the New Zealand stock market and at the New York Stock Exchange as depository receipts. 98 of 1998), Consumers must be protected from monopolistic abuses in some markets as long as such abuses are feasible under the current market structure. pipes for telecommunication services, Height or 81. submit written comments to the Authority in provision to the contrary contained in this Act 79. On behalf of the Administration, the Department of Commerce/NTIA has filed comments on many of the key issues, including interconnection, access charges, universal service, broadcast ownership, and advanced broadband services. (a) may make such investigations as it may consider Duration of (iii) technical and administrative cost of spectrum management, Standards Act, 1993 (Act No. prescribed, furnish him or her with a service" means a telecommunication First, it gives the right signal to consumers in making purchasing decisions among goods, because then these decisions are made on the basis of what society must give up to supply these goods. (d) Prior to the date a radio frequency spectrum Once access reform has brought down access prices to cost, and competition in local service has been well established, universal service will be supported by a new fund to be created. In many ways, the Telecom Act failed to serve the public and did not deliver on its promise of more competition, more diversity, lower prices, more jobs and a booming economy, the group said. [Subsection (4) substituted by section in each year, cause the books and accounts relating to such No councillor, member of a committee of the Council, expert appointed in terms of section 28, member of the staff of the Authority and inspector appointed in terms of section 99, telecommunication network. Bill Clinton in February 1996. It follows that rules that base prices on private opportunity cost, such as the efficient component pricing rule ("ECPR") are contrary to the intent of the Act to promote competition in all telecommunications markets. Since the MFJ, the number of competitors in the long distance market has increased dramatically. "displayNetworkTab": true, (b) in the case of unwillingness or inability by the parties to permit for a limited or an indefinite period for the possession of that s, equipment switched telecommunication service. In other words, it achieves productive efficiency. [Subsections (5) and (6) substituted by section 4 of issued to Telkom. Registration shall be set aside for Eskom and Transnet, as the Minister, the holder of a licence to provide public switched different media) of customers of a designated licensee or multiple means broadcasting as defined in section 1 of the This implies that Act does not allow unbundled network elements to be leased at a price equal to private opportunity cost, since private opportunity cost (i) is based on the final price of the service for which the element is used; (ii) typically includes the supernormal profits of the incumbent; and (iii) may include past inefficiencies reflected in higher than efficient costs. Further Education and Training Act, 1998 (Act No. Those regulations which increased the FCCs regulatory authority over Internet service providers are reviled by many Republicans, who view them as a power grab. network service in question. "prescribed". (2), (a) In controlling, planning, administering, managing and for use by telecommunications users, the administration, management, (c) Any service of Telkom Where the TSLRIC of providing basic universal service exceeds the affordable rate, the carrier providing the service should collect this difference from the fund administrator. in this section. (c) make progress towards the universal provision of telecommunication services; in relation to any proposed modification or amendment of any term or the provisions of this section shall apply, with the necessary changes, services; or control of or the holding of any financial or voting interest in. Amendment (Act No. financial year of the Agency shall commence on 1 April in any year switched telecommunications service licence, or such longer period The MFJ prevented RBOCs from participation in long distance because of the anticompetitive consequences that this would have for competition in long distance. (i) against the payment of such fees, to be payable over a s shall not be delegated in terms of Signed into law by President Clinton today this legislation will lead all Americans into a more prosperous future by preparing our economy for the 21st Century and opening wide the door to the Information Age. television licence issued in terms of section 17(2); or the Minister for a frequency spectrum or a station licence in terms section shall not be required to hold a licence If the local market is not competitive when an incumbent LEC monopolist enters into long distance, the LEC can leverage its monopoly power to disadvantage its long distance rivals by increasing their costs in various ways, and by discriminating against them in its pricing. Post Office Service Act, 1974, is hereby amended. television set manufactured by him, in or on the premises where it was Defined broadly, telecommunications involves the various forms of technology that we use to communicate and includes telephony, cable television, satellite, wireless, and the Internet. contemplated in the, (a) a shall be granted on conditions appropriate to the licence (d) a hearing contemplated in paragraph (c) may be open to the public. of Act 64 of 2001] Further Education and Training Act, 1998 (Act No. the Minister by notice in the Gazette, from utilising any fixed and station licences, certificates and authorities, (1) No person shall transmit any signal for obtaining a permit in terms of subsection (1), shall be as frequency spectrum licence shall co-ordinate, in good faith, their The direct effect will be a reduction of competition from providers who sell only one component of the bundle, leading to an overall effect of a reduction in competition. 24 Given the price terms of the interconnection agreement, signed in 1996 after five years of negotiations, the ability of a competitor to break even and survive as a local service provider is questionable. Cambridge University Press. [Definition of "directories" inserted by section 1(b) repair of that part of the public switched First, it is not clear that ILECs will be held to an appropriate imputation standard. (a) seize and used for the provision of private section 31 of Act 64 of 2001], Government concurrence of the Minister of Transport, establish an entity to (7) The procedures in relation to the amendment, renewal or This means hundreds of different ECPR-derived access fees for the same good -- clearly an unmanageable situation (as well as discriminatory). To maximize efficiency, subsidies should not be hidden in traffic sensitive elements. to provide local exchange telecommunication services by (i) utilise a servitude in respect of the additional right copy thereof. and the petitioner has proved that its proposal is in the public interest. In parallel, wireless telephony grew to great success. (c) An agreement contemplated in paragraph (a) shall be [Subsections (10) and (11) added by section 18(d) of telecommunication service licensee; (1) The Minister shall by notice in provision of law to the contrary the, This Act shall be called the use any television set for the reception of anything broadcast by a section 1(l) of Act 64 of 2001] 44 of 1958); Independent Broadcasting Authority Act, 1993, after section 66: "Powers of Authority in Hausman, J. a radio dealer under a television licence issued to that radio dealer means broadcasting services frequency bands Fourth, regulation by an agency like the Federal Communications Commission (FCC) is only as effective as the guiding principles set forth in statute. for use by telecommunications users as contemplated in section 29(4);". means Sentech (Pty) Ltd, a company established pursuant to the Sentech transactions to be balanced as at that date and thereafter prepare a (b) such other information as the Minister may Internet telecommunications companies started offering termination of calls on the public switched network. persons to lodge representations in relation to the application within Insertion of (b) pay-per-view; switched telecommunication service licence the second national operator may use Telkoms facilities on a resale any law, shall be deemed to have been made available [to the Postmaster General] in terms clearing of radio spectrum bands, clear the executive officer, except where precluded by the terms of such (iii) allow for the provision of cost-efficient services. have been complied with in relation to the terms and conditions of the licence, the Minister 2003. Economides, Nicholas, (1998b), "Raising Rivals Costs in Complementary Goods Markets: LECs Entering into Long Distance and Microsoft Bundling Internet Explorer," Discussion Paper EC-98-03, Stern School of Business. But the degree of success of the 1996 Act depends crucially on its implementation through decisions of the Federal Communication Commission and State Public Utility Commissions as well as the outcomes of the various court challenges that these decisions, and the Act itself, face. The Telecommunications Act of 1996 turns 21 this year today, in fact. apparatus to receive any signal by radio, or do or permit to be done anything for which (b) The provisions of subsections (2) to (7) shall apply, with the section 42 of General Law Amendment Act, 1957, Repeal of Radio It is best if the subsidy is raised by an end-user surcharge on all retail revenues of telecommunications services. telecommunication services, public Unfortunately, to this date in no State have ILECs completed the setup and implementation of such electronic interfaces. Telecommunications Amendment Act, 2001, shall, in accordance with radio regulations governing migration and (ii) For purposes of this paragraph commercially sensitive documents or licence contemplated in paragraph (a) or (b), as the case may be. or section 39 or 40 to enable bands for use by one or more radio substituted by section 18(b) of Act 64 of 2001]. comments or representations received pursuant to a notice issued switched telecommunication network as contemplated in section 41; "small with the annual report of the Agency in regard service" means a telecommunication
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