ICT industry breaks free

By Damaria Senne, ITWeb senior journalist

Johannesburg, 04 Apr 2007

The local ICT sector is expected to see a complete overhaul by the middle of this year, as the line between telecommunications operators and broadcasters blurs with the arrival of a new converged environment.

The Independent Communications Authority of SA (ICASA) says the local ICT sector could be operating in a converged environment by 1 July.

The converged ICT landscape will see communications providers, including telecoms operators, broadcasters and value-added network service (VANS) providers licensed under the Electronic Communications (EC) Act of 2006.

ICASA spokesman Jubie Matlou explains the process of converting the licences of current operators, from the framework set by the Telecommunications Act of 1996 and the Broadcasting Act of 1999, will "not take long".

The licensing framework, under the EC Act, allows operators to use their network for whatever services they choose, Matlou says. Therefore there would be no distinction between fixed and mobile licensed entities. This would allow a fixed-line operator like Telkom to enter the mobile market, while a mobile operator like MTN could extend its services into the fixed-line market, he adds.

Additionally, there would be no limitations as to the type of services telecoms operators may provide using their network, Matlou says. He notes that licensees can provide telecoms or broadcasting services, and they can choose to bundle their services or not, depending on their business model.

Moving forward

Communications minister Ivy Matsepe-Casaburri previously noted the converged environment is a key driver of the knowledge economy, which has profound implications for all sectors of the economy as it is "redefining the way, where and how people work, live and play".

Last month, ICASA gazetted the framework for the conversion of existing licences. "Most of the conversions, especially the PSTS [public switched telecoms services] and the mobile licence conversions, are straightforward."

Matlou adds the framework for licensing new communications providers, under the EC Act, is also moving at a strong pace. Last month, ICASA gazetted guidelines for the licensing of new players. Unlicensed VANS providers will also be licensed under this framework.

Stakeholders have until 9 May to comment on the proposed framework, with hearings to be held soon after. "By 1 July, people could be operating in the new converged environment," Matlou says.

WiMax timelines

ICASA is also fast-tracking the allocation of spectrum in the 2.6GHz and 3.5GHz band. It expects to outline its criteria for the allocation of WiMax spectrum by May, Matlou says.

The spectrum, which is a scarce resource, is in demand. Telecoms providers have been waiting impatiently for ICASA to outline how it will allocate the spectrum in an equitable manner. Various WiMax projects are already in the pipeline, as operators prepare to roll-out networks in a country that has fallen behind other parts of Africa in terms of WiMax deployment.

ICASA also insists WiMax be used to bring down the costs of telecoms services in SA.

To date, Sentech, Telkom and Neotel have been allocated spectrum in the 3.5GHz band, with Sentech and iBurst being licensed in the 2.6GHz band.

Last week, ICASA held public hearings on the criteria and processes to allocate WiMax spectrum. Matlou says ICASA will analyse comments from stakeholders and issue a final report in May.

"We are prioritising the allocation of WiMax spectrum, and will allocate as many resources as we possibly can."

Matlou says ICASA will take measures to make sure new players who have yet to be licensed are not disadvantaged when it allocates WiMax spectrum to existing players. He adds the 800MHz band is also available for telecoms and broadcasting use, and could alleviate some of the demands for WiMax spectrum.