The Independent Communications Authority of SA (ICASA) is mulling changes to value-added network service (VANS) licence requirements, including hiking the fee from R6 000 to R30 000 and raising the black economic empowerment ratio from 15% to 30%.
ICASA issued two notices earlier this week and industry has until 14 January to submit its comments on the proposed changes.
Andries Matthysen, ICASA`s senior manager for licensing enforcement, numbering and administration, says the proposed changes to VANS licences were felt to be necessary because of the additional rights that such services will now be able to obtain in the liberalised telecoms market.
"VANS will be able to compete directly in the telecommunications market and ICASA has taken the liberal view on the interconnectivity issue and decided the additional rights imply higher licence fees and a larger portion of black economic empowerment," Matthysen says.
In terms of the proposed new licence rights for VANS, they will be able to carry voice (including voice over Internet Protocol), have self-provision and resell spare capacity. ICASA`s interpretation of the government`s September liberalisation announcement allows VANS to also have access to standard telecommunications numbering and so allow them to interconnect with the Telkom network.
However, some industry critics say the proposed hike in the licence fee is too much for the entrepreneurial side of the market as it creates an added barrier to entry for the smaller players and will cap competition.
"These are considerations that we plan to take into account before publishing the final licence schedule," Matthysen says.
He says the ICASA council will probably make a final ruling as soon as possible after 14 January, "as it is seen as a matter of urgency".
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