USAL disaster averted

By Damaria Senne, ITWeb senior journalist

Johannesburg, 30 Mar 2007

The Independent Communications Authority of SA (ICASA) has issued Thinta Thinta a spectrum licence for use in the 800MHz band (channel 65/66).

The licence, issued this week, allows the KwaZulu-Natal-based underserviced area licensee (USAL) to roll-out its network infrastructure, which is based on CDMA technology.

It also comes days before Thinta Thinta's R52 million infrastructure funding, granted on condition the USAL had a spectrum licence, was due to expire. The funding agreement was signed in September 2005 and set for expiry at the end of March.

Thinta Thinta COO Sbonelo Mvuyana previously said this would have ruined the company, as it does not have funds to maintain its operations during another funding application process.

"We need our own network so we can start generating our own income as soon as possible," he said.

All systems go

Following the issue of the spectrum licence, Thinta Thinta held a meeting with the Industrial Development Corporation to negotiate the extension of the contract, Mvuyana says.

He adds that, while there are still some issues to finalise, indications are Thinta Thinta will soon be able to proceed with its infrastructure. "Thinta Thinta expects to provide telecommunications services on its own network by December."

ICASA previously argued that delays in providing spectrum licences in channel 65/66 were due to the spectrum being initially allocated for use by broadcasters only.

The regulator investigated the feasibility of reallocating the spectrum, and decided the spectrum would be shared by broadcasting and non-broadcasting services. The process was only finalised in October, said ICASA spokesman Sekgoela Sekgoela.

ICASA decided to allow sharing of channel 65/66 spectrum, despite the fact it is opposed by the digital migration working group, which developed a strategy to move local broadcasters from an analogue to digital framework.

The working group argues the sharing of channel 65/66 will result in degradation of quality of broadcasting services.

Neotel and Thinta Thinta are the first telecoms operators to be allocated spectrum in this band.