ICASA publishes licence conversion framework

By Damaria Senne, ITWeb senior journalist

Johannesburg, 12 Mar 2007

The Independent Communications Authority of SA (ICASA) has published the long-awaited licence conversion framework, which allows telecommunications and broadcasting providers to broaden the scope of their service offerings.

Published on 7 March in Government Gazette number 29687, the framework, which is in line with the Electronic Communications Act of 2006, applies to all licences issued under the Telecommunications Act, the Broadcasting Act and the Independent Broadcasting Act. The framework also applies to all new licences that will be issued for communication services.

"The new licensing framework levels the playing field, and operators can use their networks for whatever services they want to," says ICASA spokesman Jubie Matlou.

It means SA's licensing framework no longer has a distinction between fixed and mobile licensed entities, Matlou says. A fixed-line operator like Telkom may enter into the mobile market, while a mobile operator like MTN may choose to extend its services into the fixed-line market if it chooses to, he says.

Additionally, there are no limitations as to what services telecoms operators may provide using their network, Matlou says. Licensees can provide telecoms or broadcasting services, and they can choose to bundle their services or not, depending on their business model, he says.

The only key distinction under the new framework is between individual and class licences, where the latter has a limited geographic scope, he says. As previously, applications are subject to spectrum allocation, Matlou adds.

Impact on VANS

Matlou explains value-added network service (VANS) providers now have an option of applying for an individual licence, which would give them the same rights and privileges enjoyed by the big fixed-line and mobile telecoms operators.

Storm business development director Dave Gale also notes VANS will only need class licences to build their own networks and sell spare capacity.

Depending on how many VANS take advantage of the opportunity to build their own networks, and how much capacity they spare, the new licensing framework could bring about options for VANS for national, regional and metropolitan bandwidth.

Gale expects the conditions and costs attached to an individual licence will determine whether a VANS provider would want an individual licence and whether ICASA grants the application. "The bunfight is yet to come," he says.

The only deterrent may be cost when it comes to VANS wishing to apply for an individual licence, as they would have to pay the same licensing fees as the fixed-line and mobile operators, says Matlou.

Terms and conditions

Matlou notes ICASA plans to publish general terms and conditions, which will govern telecoms operators. The regulator also aims to evaluate the market to determine the competitive landscape, and will look at issuing special terms and conditions for operators who are deemed to require more stringent rules following that process.

He adds the new licensing framework is linked to ICASA's business plans and strategy, which will be presented to the Parliamentary Portfolio Committee on Communications tomorrow. ICASA invites stakeholders to comment on the new framework by 13 April.