The South African Telecommunications Regulatory Authority (SATRA) says public hearings on the third cellular license will only start in early September. This would seem to confirm recent media speculation that the license could only be granted in December.
SATRA chairman Nape Maepa earlier this month conceded that the original statement that the license would be issued by August would have to be revised. "Due to the large number of applications received the process could take some time," he said when SATRA received the bids. Eight companies are in the running to challenge MTN and Vodacom at their own game.
According to official guidelines the submitted bids have to be made available for public scrutiny, after which submissions can be presented to the judging council. Only after all submissions have been considered can the license be granted.
But another potential problem stands in the way of the issue. SATRA says only two applicants have allowed their entire application to be put on public display and some claim that their entire application is confidential. SATRA regulations allow for portions of the bids to be withheld if they contain sensitive information.
"[Withholding the entire application] is not only inconsistent with SATRA regulations, but ridicules the entire public consultative process and the transparency which the South African Constitution values so much," Maepa says.
If SATRA does not agree that information should not be open to the public, the bidder will be requested to remove that portion of his application. That could seriously affect the validity of the company`s bid and its chances to emerge as a winner.
International operators involved in bidding consortiums have expressed their concern at possible delays, saying that a revised timeframe will give the competition more time to strengthen its market position.
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