48 No. 37261 GOVERNMENT GAZETTE, 24 JANUARY 2014 5.6 Reform Trends 5.6.1 Intermodal and Intramodal Facilities based Competition Facility based competition can be inter-modal or intra-modal. Inter-modal competition is competition between different transmissions media, for example satellite versus fibre. Therefore intermodal facilities based competition provides insights and competitive advantage based on technologies. Before the days of convergence, intermodal facilities gave rise to the concept of technology specific policies. Intra-modal competition refers to a situation whereby operators adopt the same transmission medium. Therefore their differential competitive advantage is not derived from the transmission medium, but from other enterprise competencies. A historical review of major technological innovations in the telecommunications sector suggests that, on the one hand, inter-modal facility based competition is the most effective means to foster competition between generic technological alternatives. On the other hand, intra-modal facility-based rivalry founded on similar technologies could contribute to rapid diffusion of particular technologies and the spread of knowhow, which could result in a steep learning curve and a significant reduction of maintenance costs. Policy Questions: Should policy promote either a facilities-based or service-based competition environment? Alternatively is there a case for a hybrid competition environment in which both these modes exist? 2. What mechanisms are required to ensure effective co-ordination of broadband infrastructure planning and rollout? 3. Notwithstanding current policy interventions to promote availability and access in the under-serviced areas, the local loop remains a great challenge. Should LLU policy be advanced, and if so, what are the principles which should underpin LLU policy? 4. What other, policy interventions can reduce the Significant Market Power (SMP) of the oligopolies in the South African communication sector? 5. What considerations should inform the new policy and regulatory regime concerning the spectrum management taking into account the anticipated revision of the frequency spectrum regime? Is there a need for a separate agency to regulate spectrum? 1. 44 This gazette is also available free online at www.gpwonline.co.za