An invitation to apply for a 19% stake in the second national operator (SNO) due to start competing with Telkom soon is valid and will not be withdrawn, according to the Department of Communications.
In response to media reports that President Thabo Mbeki had to intervene in a disagreement between the department and the Independent Communications Authority of SA yesterday, the two parties have issued a joint statement dismissing speculation that the licensing process will be delayed.
"[The] Department of Communications and [the] Independent Communications Authority of SA (ICASA) would like to assure that the process of licensing the SNO was on course contrary to claims made by certain sections of the media," reads the statement, signed by both ICASA chairman Mandla Langa and Andile Ngcaba, director-general of the department.
"Recently the parties have been engaged in discussion on non-substantive matters relating to the legal interpretation of the legislation pertaining to the process. This was motivated by a need to minimise the legal risk to the process, and was seen by both ICASA and the department as necessary safeguards for the smooth running of the process."
The parties say the matter has been "amicably resolved", but that outstanding issues have been referred to legal advisors. The department has vowed, however, that the licensing of a competitor to Telkom will go ahead with speed.
"The adjudication process will proceed as outlined in the invitation to apply," the statement says.
This morning Ngcaba said the issue had been blown out of proportion and did not threaten the expected October issue of the SNO licence.
"When our lawyers and the ICASA lawyers met to look at the interpretation of the [Telecommunications Amendment] Act, it is seen by some people as something that could harm the process," he says. "That is not so."
Ngcaba dismissed the assertion that Mbeki had intervened to bring the two parties together, but according to other sources, the president had been in contact with both the department and ICASA to discuss the issue.
The director-general says foreign telecoms operators will be officially invited to apply to form part of the SNO consortium "in early May". He would not be drawn on when the process will be finalised, saying the timing of the actual issue of the licence is up to ICASA.
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