Ms. M. Msimang
Senior Manager: Policy Analysis and Development
ICASA
Private Bag X1
Marlboro 2063 SOUTH AFRICA

Dear Ms. Msimang,

The provision of wireless Internet access using Industrial, Scientific and Medical frequencies

Bridges.org would like to take the opportunity afforded by the Independent Communications Authority of South Africa (ICASA) to provide written comments on the Provision of Wireless Internet Access Using Industrial, Scientific and Medical (ISM) Frequencies, under section 27 of the Telecommunications Act, No. 103 of 1996. We hope that our comments and development perspective will add value to the deliberations and the outcomes to be published in due course in the Government Gazette.

Bridges.org: Who we are and why we care

Bridges.org is an international non-profit organisation based in South Africa which believes that, if properly used, information and communications technology (ICT) offers huge potential to people in developing countries. ICT has the potential to empower people to overcome development obstacles, to address the most important social problems they face and to strengthen communities, democratic institutions, a free press and local economies.

Our mission is twofold: one, tackling the obstacles to ICT use at the grassroots level by helping people understand the technology and its utility, and two, working at the policy level to promote laws and policies that foster technology use. On the policy level, we have participated in the communications public debate having made submissions to the Parliamentary Portfolio Committee on Communications, on numerous draft bills and act amendments. We are current providing input to the deliberations of the National e-Strategy Task Team, which we believe will coordinate recent legislative and regulatory developments as well as the numerous ground-level initiatives that are underway.

Bridges.org recognises that the South African Government is committed to supporting the growth of the ICT industry, whilst concurrently ensuring universal and equitable service and access to information and communications technologies for the vast majority of South Africa's population. We believe that the goals of fostering ICT growth, and narrowing the digital divide between the various sectors of South African society, will be best met within an enabling legislative environment with a clearly defined and implemented regulatory framework. Furthermore, we believe that sound ICT policies and regulations established in South Africa will provide an example throughout the continent and among other developing countries.

Our understanding of the wireless environment in South Africa

Internationally, there is a growing trend towards the use of wireless telecommunications technologies, in addition to and in even in replacement of, existing fixed-wire telecommunications technologies. The rapid uptake of GSM-based wireless telephony products throughout Africa, and notably South Africa, has surpassed all initial predictions about the viability of the market and of the demand for communication services. This has prompted the expansion of South African mobile operators into other African countries with the result that universal service and access figures have vastly improved, with more people having access to wireless telephony than fixed-wire telephony.

In South Africa, certain non-GSM based telecommunications providers are utilising wireless solutions to circumvent the existing Telkom monopoly and to increase efficiency by using telecommunications facilities not provided by Telkom, or only provided by Telkom at a central point. The technical capacity to circumvent Telkom's monopoly to connect to the end-user is a competitive advantage for anyone using wireless Internet connectivity as the local call connection charges are bypassed, as is the advantage for the service provider in that they bypass the requirement that Telkom provide the telecommunications facilities used by a value added network service (VANS) license holder. Furthermore, recent technological advancements provide further advantages in respect to speed of the installation and connection and the amount of bandwidth that can be carried.

Wireless telecommunications therefore covers a broad definition, but we understand ICASA to be primarily considering the connection of telecommunications equipment at the customer's premises to the network operated by an Internet Service Provider (ISP). This will facilitate the provision of Internet access, which is clearly a telecommunications service (and more particularly a VANS) and not a Public Switched Telecommunications Service (PSTS). This is based on the definitions contained within the Telecommunications Act of 1996.

The Act defines telecommunication as:

"… the emission, transmission or reception of a signal from one point to another by means of electricity, magnetism, radio or other electromagnetic waves, or any other agency of a like nature, whether with or without the aid of tangible conductors."

"Telecommunication service" is defined in the Act as any service provided by means of a telecommunication system.
"Telecommunication system", in turn, is defined as any system or series of telecommunication facilities or radio, optical or other electromagnetic apparatus or any similar technical system used for the purpose of telecommunication.
"Telecommunication facilities" is defined as including any wire, cable, antenna, mast or other thing, which is or may be used for or in connection with telecommunication.

Thus, it is clear that wireless Internet access is a telecommunication service, as it involves the emission, transmission or reception of a radio or electromagnetic signal from one point to another, by means of telecommunication facilities such as, for example, radio transmitters and receivers, and satellites.

Currently, there is no specific definition of "wireless Internet" in South Africa, but the Internet Service Providers Association (ISPA) have provided the following generally used working definition. Wireless Internet is generally understood as Internet connectivity by the end-user to an ISP by means of a local transmitter/receiver (point to multi-point), generally operating in the 2,4 - 2,5 GHz band (commonly referred to as the ISM band). Considerations on Internet connectivity via satellite and mobile telephony, are relevant, but remain beyond the scope of these comments.

General comments and observations

We welcome ICASA's broad consultation with the public to ensure technical accuracy in its regulations, and ensure that the broader development goals and objectives of the government are met while placing South Africa in the international Information Society. The primary object of the Telecommunications Act is to provide for the regulation and control of telecommunication matters in the public interest and for that purpose to, among other things:

• promote the universal and affordable provision of telecommunication services;
• promote the provision of a wide range of telecommunication services in the interest of the economic growth and development of the Republic;
• encourage investment and innovation in the telecommunications industry;
• promote the development of telecommunication services which are responsive to the needs of users and consumers;
• promote and facilitate convergence of telecommunication, broadcasting and information technology.

Maintaining a development focus

Our general comments are couched within these objectives of the Act and are focussed on the development implications of effective and efficient use of wireless technologies to address the socio-economic inequalities reflected in the Digital Divide. We believe that comments received from the private sector will provide informed technical expertise and suggestions on applicable business models. The private sector is best placed to comment on these aspects of the introduction of wireless Internet access, and we do not comment on them here, except to say that bridges.org strongly supports the roll-out of these technologies into public and private areas.

Bridges.org has studied international precedents concerning the legislation and regulation of wireless telecommunications services. The cost-saving and efficiency gains of using wireless within a corporate environment include the savings incurred in not having to lay extensive cabling, in by-passing local telecommunications charges, and in providing the mobile executive access to the Internet. However, the benefits of wireless technologies, and more importantly wireless Internet access, extend to rural areas often characterised by poor fixed-wire telecommunications and in need of information that will help guide, inform and facilitate development initiatives on the ground. In fact, the potential benefits stand to rival the benefits experienced in the adaptation and wide-scale adoption of mobile telephony. We believe that the broader implications of this technology for all South Africans should be reflected in the Authority's findings, and that the debate should not just be focused on the deployment of technology in (largely) urban areas, which is where there will be demand from the private sector and more affluent individuals.

The next development frontier? Connecting PDAs wirelessly

In December 2002, bridges.org completed a seminal study on the use of Personal Digital Assistants (PDAs) in healthcare environments in three African countries, Kenya, Uganda and Ghana (1) . The project put PDAs into the hands of physicians, medical officers, and medical students in different settings in order to demonstrate their viability and usefulness, especially for the collection of health data and dissemination of medical information.

Given ground level realities in Africa where electricity, security, and cost are only a few of the factors that inhibit technology use, it is unrealistic to imagine that technology could be put in the hands of the general public if that means a PC in every home or office. But PDAs are a viable alternative that can be used for a variety of practical purposes throughout society, and they may represent a turning point in the way that the digital divide is approached across Africa and beyond.

The following represents some of the key findings of the report:

• There is clearly a market opportunity for handheld computers in African countries.
• Linking the use of handheld computers with wireless capabilities would exponentially extend the utility of both technologies.
• There is clearly a market opportunity for locally relevant medical content in electronic formats, which is targeted to the needs of African countries.
• Partnering handheld computer initiatives with community access point initiatives offers an effective model that would be mutually beneficial for both efforts.
• Linking handheld computer initiatives with alternative power development efforts, such as the investigation of solar panels and wind-up technologies, may offer innovative opportunities for solving the power supply problems.
• Handheld computers offer enormous potential for improving service delivery in national Ministries of Health as well as international healthcare organizations and programs.
• Handheld computers offer specific utility in rural healthcare settings.

Handheld computers could revolutionise technology access for the people of Africa. But none of this potential can be realised unless the technology companies and content providers rise to the occasion. This study should be a wake-up call to industry, a glimpse into the untapped markets where their attention and involvement would make a real difference to people's lives.

Regulatory implications for wireless Internet access

It is currently possible to provide wireless Internet access lawfully in South Africa assuming a relevant services license is held, and a number of requirements are met. Section 32 of the Telecommunications Act prescribes that: "…no person shall provide a telecommunication service except under and in accordance with a telecommunication service licence…".
Service licences are granted for services mentioned in the Act, including:

• PSTS (public switched telecommunication services)
• Mobile cellular telecommunication services
• VANS (value added network services)
• Private telecommunication network services
• Under-serviced areas services
• Multimedia services
• Carrier of Carriers services

Other services not specifically mentioned in the Act may be prescribed by ICASA, for example, global mobile personal communications by satellite services. ICASA may also prescribe telecommunication services or activities that may be provided without a licence, although none have yet been prescribed.

However, these requirements are cumbersome, and there is a lack of regulatory and legislative certainty, notably around the provision of wireless Internet access in a hot-spot (either as a paid for, or a free service to customers within a demarcated area where such a service is offered). This is providing a bottleneck for both the technology industries, and broader business, and on the use of wireless technologies for development. This consultation is therefore welcomed as an attempt to alleviate this bottleneck and provide clarity.

I trust that our broader development comments on the provision of wireless Internet Access will add value to ICASA's deliberations. Please do not hesitate to contact me if you require further clarification on any of the points that we have made.

Yours Sincerely,
Ewan McPhie
policy director
bridges.org

1.) See http://www.bridges.org/satellife/index.html for further details on bridges.org's evaluation of the SATELLITE project using PDAs in Healthcare.