ISPA FNO and ISP Best Practice Recommendations
Contents
SECTION A: OPEN ACCESS NETWORKS
A1. Minimum requirements for an Open Access Network
A2. Shareholding conflicts of interest
A3. Prohibition on discriminatory tactics
SECTION B: COMMUNICATIONS WITH CUSTOMERS
B1: Customers’ personal information
B2: Communications with customers
B4. Customer premises equipment
SECTION C: COMMUNICATION BETWEEN FNOs AND ISPs
C1: Access to network information
C2: Clear escalation paths for communications
C8. Managing disputes over lines
SECTION D: MISCELLANEOUS INDUSTRY ISSUES
Introduction
This document contains a set of best practice recommendations for Fibre Network Operators (“FNOs”) and Internet Service Providers (“ISPs”) providing services over fibre networks in South Africa.
This document has been developed by the Internet Service Providers’ Association NPC (“ISPA”), following considerable consultation with both ISPA’s members and with FNOs who are not members of the Association. It is likely that these guidelines will continue to be revised and updated in the future based on additional industry feedback.
The primary goal of these recommendations is to ensure that consumers and businesses using fibre-based internet access services experience a consistent, fair and reasonable approach to the provision of those services from companies offering such services.
These recommendations will also be used as the basis for development of additional information resources for subscribers and potential subscribers of fibre-based internet access services.
It is recognized that the Electronic Communications Act (“ECA”), the Competition Act and the Protection of Personal Information Act (“POPIA”) provide a legal context for this document. These recommendations are intended to be practical rather than legally prescriptive, and contain many recommendations which promote fair competition in the market. ISPA is mindful of the need to comply with competition law in any engagement involving bodies of horizontal competitors.
SECTION A: OPEN ACCESS NETWORKS
Many FNOs market their networks as Open Access Networks (“OANs”). There is no universal definition of an OAN, nor does South Africa’s electronic communications legislative framework define the term in any way.
Key points include:
- Open Access is a model in which an infrastructure provider limits its activities to fixed value layers in order to avoid conflicts of interest.
- An Open Access provider creates a platform for ISPs to add value and remains neutral and independent.
- An Open Access provider offers standard and transparent pricing to ISPs on its network.
- An Open Access provider never competes with the ISPs using its network.
A1. Minimum requirements for an Open Access Network
For a network to be considered an OAN in South Africa, it must meet the following minimum requirements:
- An OAN operator must offer the same pricing to all ISPs on its network. It cannot offer any ISP preferential pricing for any services provided using the OAN. Preferential pricing includes offering volume-based discounts and promotions.
Offering preferential prices is not only counter to best practices, but also a regulatory concern. Section 9(1) of the Competition Act and Price Discrimination Regulations restrict dominant firms from engaging in price discrimination, particularly in the supply of services to small and medium-sized enterprises and firms owned by historically disadvantaged persons.
- An OAN operator must have transparent pricing. It must not be a requirement for an ISP to enter into a non-disclosure agreement in order to obtain pricing information from an OAN operator. In addition, FNOs should not contractually prohibit ISPs from disclosing the costs of the FNO’s services.
- An OAN operator must not compete directly with the ISPs using its network. No services on the OAN can be offered directly to end-users of the OAN, but must only be made available by an ISP using the OAN.
FNO best practice checklist:
- Do offer the same pricing to all ISPs.
- Do not offer any ISPs preferential pricing.
- Do not offer volume discounts.
- Do not require that ISPs sign a non-disclosure agreement.
- Do not prevent ISPs from disclosing the cost of the services.
- Do have a standard contract applicable to all ISPs.
- Do not sell services directly to customers in competition with ISPs.
A2. Shareholding conflicts of interest
Ideally, the operator of an OAN should not have a financial interest in any ISP. Competition law places significant restrictions on the activities of vertically integrated firms, particularly if a company is dominant in a particular market segment. FNOs with a direct or indirect financial interest in an ISP should thus exercise exceptional care to ensure that wholesale and retail operations are structurally and financially separate and that they do not engage in unlawful sharing of resources or customer information.
FNO best practice checklist:
- Avoid financial interests that create conflicts of interest.
- Do keep wholesale and retail operations structurally and financially separate.
- Do not share information or resources between wholesale and retail operations.
A3. Prohibition on discriminatory tactics
Best practice is for an FNO to have a clear policy of equal treatment for all ISPs using its network. This includes pricing, incentives, and marketing prominence.
FNO best practice checklist:
- Do provide all ISPs with equal access to all parts of the network.
- Do provide all ISPs with equal access to all of the services offered on the network.
- Do not provide preferential access to one ISP when rolling out services in a new location.
- Do provide all ISPs with equal access to promotions and special offers.
- Do not give some ISPs advanced knowledge of upcoming promotions and specials.
- Do not promote one ISP over another on any marketing material, including websites.
- Do list ISPs in a random order on a website for each visitor to the site.
- Do not engage in “paid for” promotion of one ISP over others.
- Do provide all ISPs with equal access to mapping information.
- Do provide all ISPs with equal access to technical information about the network.
A4. Barriers to entry
Unreasonable barriers to entry for new ISPs who wish to gain access to a network can prevent that network from being truly open. It is important for FNOs to make it feasible for new ISPs to sell internet access services over fibre networks.
FNO best practice checklist:
- Do not have minimum revenue commitments that are unrelated to the cost of providing an ISP with access to the network.
- Do give new ISPs a ramp-up period to reach any minimum revenue commitments.
- Do not place a numerical limit on the number of ISPs able to connect to the network.
SECTION B: COMMUNICATIONS WITH CUSTOMERS
In the provision of fibre access services, typically the FNO is the ECNS provider and the ISP is the ECS provider. There is a business relationship between the customer and the ISP, and between the ISP and the FNO. There is no contract between the FNO and the customer.
B1: Customers’ personal information
The POPIA and RICA frameworks inform best practice recommendations when it comes to retaining fibre customers’ personal information. An ISP should share customer information with an FNO only after obtaining the customer’s consent to do so.
Tip: Many customers will not answer calls from unknown numbers. Sending an SMS or email to a customer asking them to expect a call from a particular number that day will increase the chance of a successful installation.
ISP best practice checklist:
- Do seek consent from each customer to share their personal information with an FNO for the purpose of installing or maintaining a line.
- Do ensure that you have a valid data operator agreement in place if you are collecting customer information and sharing it with an FNO.
FNO best practice checklist:
- Do not retain customer personal information longer than necessary for the installation or maintenance of a line.
- Do ensure that you have a valid data operator agreement in place if you are collecting customer information and sharing it with an ISP.
B2: Communications with customers
ISPs should be responsible for all service-related communications with individual customers. FNOs should generally only communicate with individual customers at the behest of an ISP for technical reasons.
ISP best practice checklist:
- Do discourage customers from approaching FNOs with service queries.
FNO best practice checklist:
- Do not communicate directly with an ISP’s customers unless requested to do so by that ISP.
B3: Service level agreements
Fibre services are often lacking in clear distinctions of the service levels offered. Service providers must only offer SLAs which are supported by their track record of service provision.
ISP best practice checklist:
- Do not offer customers SLAs that are not consistent with the SLAs an FNO provides.
- If an FNO provides different SLAs for “home” and “business” fibre services, do make sure that this difference is clearly communicated to customers up front.
- Do ensure that terms and conditions clearly specify that no refunds apply for periods the service is unavailable (unless refunds are provided under an SLA).
- Do not blame an FNO for outages that are not, in fact, caused by the FNO.
FNO best practice checklist:
- Do publish SLAs which specify minimum uptimes.
- Do make it abundantly clear which SLAs apply to each category of service offered.
- Do not blame an ISP for outages that are not, in fact, caused by the ISP.
B4. Customer premises equipment
Damage to termination equipment is common. FNOs should have a clear policy setting out when the ISP will be held liable for replacement costs.
ISP best practice checklist:
- Do make sure that a customer’s liability for damaged or stolen CPE is clearly specified in the terms and conditions for the service.
FNO best practice checklist:
- Do have a clear policy setting out when an ISP is liable for the costs of replacing broken CPE.
- Do be transparent about how repair costs are calculated so that ISPs can pass these costs onto their customers.
B5: Consumer education
It is the collective responsibility of all FNOs and ISPs to enhance public understanding regarding factors that impact service quality, such as Wi-Fi interference, device limitations, and the true meaning of speed tests.
SECTION C: COMMUNICATION BETWEEN FNOs AND ISPs
Good communication between FNOs and ISPs is critical for end-users to have a positive experience.
C1: Access to network information
Fundamental to an ISP’s ability to properly support its customers is access to information about an FNO’s network status.
FNO Technical staff requests:
- Please include ONT/CPE signal level info and the reason for going offline on your ISP portal.
- Please include DHCP Option82 line id with any DHCP request passing through an OLT.
FNO best practice checklist:
- Do provide ISPs with transparent and readily available information on all network outages and planned maintenance.
- Do proactively notify ISPs of network incidents via email.
- Do provide an API with as much information about the status of each customer’s connection as possible.
- Do make sure that you have processes in place to support all common ISP requirements.
- Do share information about parts of the network that do not have fully redundant connectivity.
ISP best practice checklist:
- Do ensure that the information provided by FNOs is made readily available to the relevant support staff.
C2: Clear escalation paths for communications
Clearly defined processes prevent frustration during critical network failures.
FNO best practice checklist:
- Do provide a clear process for ISPs to log faults.
- Do provide a clear escalation path to ISPs for queries that require special attention.
- Do not have escalation paths that rely on a single member of staff.
- Do provide a clear point of contact for new ISPs interested in using the network.
- Do impose a minimum standard of customer support for ISPs.
ISP best practice checklist:
- Do follow an FNO’s established fault logging process before escalating queries.
- Do not abuse an FNO’s escalation path; escalate only if the initial point of contact is ineffective.
- Do provide a clear process for FNOs to use for installation queries and fault reports.
- Do make sure that staff are trained to provide feedback to FNOs on queries where appropriate.
C3: New installations
Coordination between ISPs and FNOs during new installations is key.
Best practice:
- Do schedule installations at times convenient for customers and ISPs.
- Do provide ISPs with expected timelines for installations and activation.
- Do provide customers with notifications about installation dates and times.
C4: Notice of price increases
ISPs must be notified of price increases in advance so that they can pass them on to customers fairly.
FNO best practice checklist:
- Do provide at least 30 days’ notice of price increases.
C5: Service upgrades
When network capabilities improve, FNOs should inform ISPs so they can offer upgrades to their customers.
Best practice:
- Do provide clear upgrade options and pricing for ISPs.
C6: Change of customer
Clear processes prevent disputes over ownership of lines.
FNO best practice checklist:
- Do verify the identity of a new customer before transferring services.
C7: Migration between ISPs
ISPs should be able to migrate customers to or from another ISP without undue delay.
FNO best practice checklist:
- Do provide a fast and efficient porting process for ISPs.
C8: Managing disputes over lines
Dispute resolution procedures must be clear and neutral.
FNO best practice checklist:
- Do maintain a clear dispute resolution process.
- Do involve ISPs in dispute resolution fairly.
C9: Service cancellations
Cancellations should be processed quickly to prevent billing issues.
FNO best practice checklist:
- Do process cancellations within the agreed SLA period.
C10: Cancellation fees
FNOs should be transparent about any fees that apply on cancellation.
FNO best practice checklist:
- Do publish all applicable cancellation fees.
SECTION D: MISCELLANEOUS INDUSTRY ISSUES
D1. MTU size
Standardization of MTU size across networks improves reliability.
FNO best practice checklist:
- Do maintain standard MTU sizes to minimize packet fragmentation.
D2. Provision of mapping data
Accurate mapping data enables ISPs to plan services and respond to outages efficiently.
FNO best practice checklist:
- Do provide ISPs with accurate and up-to-date network maps.
Acknowledgements
We thank the many ISPA members and FNOs who contributed to the development of these recommendations.
Feedback
Feedback on these guidelines can be sent to info@ispa.org.za.
Version history
- v1.0 – Initial release
- v1.1 – Minor updates to sections A and B
- v1.2 – Updated C and D sections
