ICASA seeks legally safe conversions

Johannesburg, 08 Nov 2007

Value-added network service (VANS) providers wishing to receive similar licences to those of the incumbent telcos during the licence conversion process will have to meet technical and financial criteria, says Independent Communications Authority of SA (ICASA) chairman Paris Mashile.

Answering questions before the Parliamentary Portfolio Committee on Communications, after presenting the ICASA annual report yesterday, Mashile said individual licences for electronic communications services (ECS) and electronic communications network services (ECNS) licences would have to be similar to those of the incumbents - MTN, Vodacom and Telkom.

"We have decided to take the route that will present us with less litigation. The incumbents are loaded with legal weapons of mass destruction," he said.

About 2.6% of ICASA`s R190 million budget had been spent on litigation, said ICASA councillor Kobus van Rooyen.

No more VANS

Mashile explained that, in terms of the Electronic Communications (EC) Act, there were no longer any VANS or under-serviced area licensees (USALs), and the law no longer focused on the technology used.

He stated that a number of the larger VANS were in a position to receive the ECS or ECNS individual licences, but that it would not be an easy process. "This process will separate the men from the boys," he said.

This week, ICASA published a provisional matrix indicating the types of licences communication providers can expect to be granted under the EC Act.

The regulator invites VANS, which are not under consideration for ECNS licences, but believe they qualify for consideration, to make written submissions by Friday next week, says ICASA senior manager Mathibela Selepe.

Licensees who intend to roll-out an electronic network should submit a proposed technical plan, five-year financial projections to support roll-out and a business record. Licensees who already provide, or intend to provide international connectivity, also qualify for ECNS consideration.

Competing with big boys

Mashile said the last batch of USAL licences will be issued later this year. A memorandum of understanding is also being developed on how ICASA and the Universal Services Access Agency of SA could cooperate in helping to get the USALs going, he said.

"They [USALs] are finding themselves competing against the big incumbent telcos and this means we have to look at their situation very carefully," he said.

Internal capacity

The internal structure of ICASA and its ability to recruit and retain key staff also came under the MPs` spotlight.

Mashile indicated ICASA was unique as a regulatory institution as its councillors performed an executive function, while, with other bodies, councillors performed a non-executive role and the daily functioning was left to the management team.

The appointment of Karabo Motlane as ICASA CEO and the clear division of responsibilities and duties between the councillors and management had helped to improve the authority`s operations, Mashile said.