ICASA delay could ruin USAL

By Damaria Senne, ITWeb senior journalist

Johannesburg, 16 Mar 2007

Thinta Thinta could lose its R52 million infrastructure funding from the Independent Development Corporation (IDC) by the end of March, unless the Independent Communications Authority of SA (ICASA) allocates it spectrum urgently.

Sibonelo Mvuyana, COO of the KwaZulu-Natal-based underserviced area licensee (USAL), says the IDC approved funding for its infrastructure roll-out in November 2005, on condition the regulator allocate spectrum to the USAL.

As Thinta Thinta plans to use CDMA 2000 technology, it requires spectrum in the channel 65 band, which was allocated for broadcasting purposes at the time.

However, ICASA initiated a process to review whether the spectrum could be reassigned for telecommunications use. A decision was later made for telecoms and broadcasting providers to share the channel 65 and 66 spectrum.

ICASA spokesman Jubie Matlou says, to date, ICASA has received applications for spectrum in the channel 65/66 range from Neotel and Thinta Thinta. The applications are being circulated, for approval by the ICASA council, by round robin, he says.

Not good enough

Mvuyana, however, alleges the legitimate delays caused by the reallocation process were worsened by the inefficiency of ICASA officials responsible for the spectrum allocation process. If it were not for the lack of spectrum, Thinta Thinta would have rolled out its network and would be generating revenue from its services, he says. "ICASA is impeding our progress."

Mvuyana also alleges ICASA does not take issues relating to the operations of USALs seriously, and fails to give them high priority. "They keep saying they are processing our applications for spectrum, but we are not seeing any results from that."

Matlou contends the viability of USALs is a matter of concern for all, including the communications minister, ICASA and the Parliamentary Portfolio Committee on Communications. That is why the portfolio committee is planning to arrange an indaba to look at issues affecting the USALs, he says.

Biggest losers

Mvuyana says if the IDC pulls out its investment, and Thinta Thinta closes down, the biggest losers will be poor rural people who invested money in the company.

The closure will further tarnish the reputation of USALs, making it more difficult for the rest to be taken seriously, he says.

"The perception created in the ICT industry is that USALs are failing and that the people running them don't know what they are doing," Mvuyana says.

However, Thinta Thinta does not have a competence problem, and delays by ICASA are the sole reason the USAL may fold, he argues.