Broadband areas will be urban

Johannesburg, 01 Aug 2001

The Department of Communications says new broadband service licences will include the rights for ISPs to build their own infrastructure in any way they see fit, but that the geographic areas in which they may do so will be small.

The policy directions released last week make provision for an invitation to apply for broadband service licences to be issued this year, even before the process to license competitors to Telkom is concluded.

"The licensing of the broadband will enhance the capacity, efficiency and speed of the South African services, particularly the data services," the department said.

The Communications Ministry said the idea for broadband licences came from submissions by the Internet industry.

Department of Communications director-general Andile Ngcaba says broadband licence holders will be able to establish their own infrastructure in any way they see fit, including the use of optic fibre and wireless networks.

"People will be licensed to basically say `here is your geographic area where you can provide broadband`," he says.

But the geographic areas, which will be defined in the invitation to apply, will probably be smaller than many would have liked. Ngcaba says the more obvious foreseen applications are for cameras in inner cities, used to detect and prevent crime, and for video-on-demand direct to consumer homes. As such, the areas are likely to be limited to city centres and suburbs.

Another likely drawback is the hybrid nature of such licences, with elements of both the public switched telephone network (PSTN) and value-added network services (VANS). The regulatory framework for broadband is expected to include contributions to the Universal Service Fund.

The policy also does not make an exception in the ban of voice over Internet protocol (VOIP) in the case of broadband service providers. Only Telkom and its competitors, along with small businesses in areas with a very low teledensity, will be allowed to use VOIP.