7.2 Allocation of Scarce Resources The required scarce resources in the provision of telecommunications service such as spectrum, numbering, and rights of way shall be addressed through the issuance of separate and specific licences. Frequency spectrum shall be allocated through a separate radio licence. Numbering and rights of way shall be incorporated within the systems licence. Both the management and allocation of spectrum and numbering shall be carried out by the regulator 7.3 Consumer Protection Monitoring shall take place to protect the consumer from high costs and poor quality of service. The regulator shall be responsible for monitoring and establishing a procedure for consumers to follow when they have complaints. 7.4 Interconnection Interconnection is one of the most significant market entry barriers in the telecommunications sector. Without appropriate interconnection administration, the market is distorted in favour of incumbents. To address this familiar challenge and to promote the sustainability of both traditional and alternative business models, costs associated with interconnection shall be optimised. Regulatory intervention is required to establish and manage a modified interconnect agreement process for the rural areas. The process must ensure agreements are quickly concluded and rates are correctly set to enable the operators to build and sustain a viable business model. As a pre-emptive measure towards the attainment of this goal as well as to minimize costs associated with interconnection, it is required that: i) Interconnection shall take place at the nearest and identified technically feasible points. ii) The interconnection agreement shall be concluded by concerned operators within a maximum period of 60 days or it will automatically be adjudicated by the regulator. iii) Interconnection fees shall be cost based and the rates prescribed. Rural Telecommunications Strategy 26 October 2006 19

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