Infraco hearings could provoke protests

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 16 Mar 2009

Public hearings over the licence conditions for Broadband Infraco will probably provoke a storm of protest from industry, if the state-owned entity does not stick to its original mandate, sources say.

Today, communications regulator Independent Communications Authority of SA (ICASA) published its “invitation to apply” (ITA) for Broadband Infraco to apply for its licence. This follows a policy directive issued by communications minister Ivy Matsepe-Casaburri, in February.

This is the latest step in the saga to ensure Broadband Infraco has a licence. This was originally asked for by the Department of Public Enterprises (DPE), the controlling government department, almost two years ago and necessitated an amendment to the Electronic Communications (EC) Act.

However, the change in legislation, plus confusion over the lines of responsibility between the DPE and the Department of Communications, led to a delay and only now is the process entering its final stage.

Move quickly

In her policy directive, Matsepe-Casaburri urged ICASA to grant Broadband Infraco a licence as quickly as possible. It is mandated to expand the availability and affordability of access to electronic communications, including, but not limited to, underdeveloped and under-serviced areas.

Matsepe-Casaburri also urged ICASA to forego the public hearings process as required by the EC Act because of the urgency “...so as to allow it to play its role in the economy...”

Salient dates, published in the ICASA ITA, are that Broadband Infraco must have its application in by 20 April and, should the public hearings be conducted, then they will happen around 20 May.

A lawyer, who asked not to be named, says ICASA has no option but to hold the public hearings as they are required by the EC Act, even though they may seem a waste of time because Broadband Infraco will get its licence.

“ICASA has to hold the hearings otherwise they will contradict the EC Act,” the lawyer says.

An industry source says the public hearings will have to be held and will have to focus on what exactly Broadband Infraco plans to do.

“If they are supplying wholesale infrastructure, then that's fine. But the problem is that if they decide to move into the IP services side, then there will be a storm of protest from industry,” the source says.

The source adds it will be unlikely Broadband Infraco will get its licence before the end of July.

Monopoly-breaker

Former public enterprises minister Alec Erwin originally made it clear before the Parliamentary Portfolio Committee on Public Enterprises in 2007 that Broadband Infraco was to be an infrastructure provider and that it would not compete with industry in providing services.

One of the prime reasons for the state creating Broadband Infraco was that it would break the monopoly Telkom has on providing infrastructure and wholesale services. Broadband Infraco would also take over some of the assets that were originally earmarked for second national operator Neotel, namely those from the Eskom-owned Easitel and Transnet-owned Transtel.

Neotel stated before Parliament the creation of Broadband Infraco would impact its business case. However, the two entities have since established a close working relationship with Neotel having a five year contract to market Broadand Infraco's services.

Neither the DPE nor Broadband Infraco were available for comment this morning.