Johannesburg, 23 Aug 2007
Access to spectrum to provide universal service in SA should be put to tender, ensuring the business model is sound, says Neotel head of strategy Angus Hay.
Hay was participating in a panel discussion at GovTech 2007, in Cape Town, yesterday. The discussion comes at a time when the Independent Communications Authority of SA has yet to gazette its set of criteria for allocating WiMax spectrum.
Internationally, the more successful models for universal service occurred where spectrum was put to tender, noted Hay. An example is Tata's successful roll-out out of services in rural regions in India, after winning a government bid.
"If we were to adopt a commercial model to universal access, we'd be successful. When you have to bid for it, you make it commercially sound."
Vodacom ISP CTO Thami Mtshali agreed that spectrum should be put out to tender. However, he argued there should be a pre-qualification framework.
Those who bid for the spectrum need to demonstrate they have the resources to roll-out infrastructure and provide telecoms services, he argued. "You have to be careful how you make decisions when allocating spectrum."
Telkom senior manager Mike Vos urged against bidding for spectrum to provide universal services. He said this will lead to operators cherry-picking areas and neglecting poor areas, despite the strong need to provide telecoms services.
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