ICASA makes USAL recommendations

Johannesburg, 19 May 2004

The Independent Communications Authority of SA (ICASA) has recommended applicants for seven of the nine underserviced area licences (USALs) that were up for grabs.

The announcement will come as a relief to the bidders, many of whom have complained that the delays - the original invitation to apply for USALs was made in December 2002 - have placed an enormous strain on their resources.

"ICASA has now made its recommendation to the minister of communications and it is up to her to decide whether to award the licences, reject the recommendations or to return them to ICASA for further deliberation," says ICASA chairman, Mandla Langa.

"We have asked her to act as expeditiously as possible in this regard, as we understand that the bidders wish to begin operations as soon as possible. Therefore we expect a decision from the minister quite soon."

Asked whether there would be another bidding process for the two regions where licences were not granted, Langa said this is now also a matter for the minister to decide upon.

"I presume that she will also look into beginning the second phase of USAL bidding as soon as is feasible, since we all want to see the underserviced areas across our nation become serviced areas," he says.

The bidders that were recommended are: Bokone Telecomms (Limpopo, Capricorn District); Thinta Thinta Telecoms (KwaZulu-Natal, Ugu District); Kingdom Communications (KZN, Zululand District); and Ilizwe Telecoms (Eastern Cape, OR Tambo Municipality).

Also in the Eastern Cape, in the Amatole District, Amatole Communications was recommended, pending the finalisation of the merger discussions with Uqalo consortium members.

Both Lonaka Communications and Karabotel were refused in their bids for the Bophirima District licence in the North West Province, although Karabotel was recommended for the Central District licence, pending submission of a revised shareholding structure reflective of the community of the region.

In the Free State`s Northern Free State District, Mamela Communications - the only organisation bidding for that licence - was disqualified.

Bokamoso Communications was recommended for the Lejweleputswa District, pending the removal of warehoused shares from the chairman to the community trust "or any other legal instrument that will ensure broad-based empowerment".

"We are very pleased to have been recommended and are looking forward to getting things moving now," says Dominic Mokhethi of Bokamoso Communications.

"We anticipate that we will be able to begin operations - using GSM technology - within three to four months of being awarded the licence."