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Regulation
Regulatory changes have been mainly focused on interconnect and customer registration. Spectrum is the next big focus area.
Industry regulators continue to lower interconnect rates. In South Africa we reduced the cost to terminate peak calls on our network by 18.0% this year. Interconnect revenue now accounts for 13.4% of Group service revenue.
Mandatory customer registration has been a feature in most of our markets. It has meant some extra cost and red tape for the industry and customers. We have had to adapt our distribution networks to meet the challenges of registration.
Spectrum is a scarce resource. Ideally, new spectrum would help us to serve customers more efficiently and accelerate the rollout of broadband services. The Independent Communications Authority of South Africa (‘Icasa’) is preparing to auction spectrum in the 2.6GHz and 3.5GHz bands. Current regulations governing the auction indicate that licensees must be at least 30% owned by historically disadvantaged individuals, a big challenge for us.