New VANS regulations released

Johannesburg, 11 Oct 2000

The Independent Communications Authority of SA (ICASA) today published further draft regulations in the Government Gazette in its attempt to clear the murky legal framework in which value-added network service (VANS) providers operate.

The draft replaces a document released in February and amended by the ICASA council after it took over from its predecessor, the SA Telecommunications Regulatory Authority (SATRA), based on public input.

The regulations call for, among other things, a minimum 15% shareholding in VANS licencees being held by members of a previously disadvantaged group.

"We have pitched [the shareholding issue] as a point of debate because it sets involvement at a level that is above passive participation," said ICASA and former SATRA councillor William Currie at the announcement of the regulations.

The regulations distinguish between Internet service providers (ISPs) and Internet access providers, a move to determine if Internet service provision can be deregulated entirely. Should the distinction survive public input, ISPs will not be required to hold VANS licences, opening the market to micro-sized providers.

Those who do hold VANS licences, however, will be subject to an annual licence fee of around R15 000, and would have to contribute 0.25% of its turnover to the Universal Service Fund.

"Again, we would expect vigorous debate on these issues," said Currie.

The draft also sees ICASA take a stance on the resale and sharing of facilities by VANS, an issue on which Telkom has based legal cases against Dimension Data-owned Omnilink.

"VANS have always been able to share facilities, that is efficient use of the network and it does not constitute the resale of facilities," noted Currie.

ICASA says it noted a sharp divergence in views between Telkom and the SA VANS Association (SAVA) on the status of virtual private networks (VPNs), and intends to launch a fast-track enquiry into the matter.

The dispute resolves around whether a VPN constitutes a managed data network service, which Telkom says it does not. The planned enquiry is scheduled for public hearings by the end of November, while the draft regulations are scheduled for hearings only in January next year, to allow for the mandatory three-month input period.

Mike van den Bergh, SAVA chairman, says the regulations give a fair reflection of the input made by the industry on previous versions, but expressed disappointment that the process will take three or more months to conclude.

"Our biggest disappointment is the amount of time it will still take to finalise these regulations, but your [ICASA`s] hands seem to be tied on the matter."

Currie earlier said that ICASA was not willing to cut corners on the schedule, given the industry`s habit of falling into litigation at the drop of a hat.

"Given the high degree of contention on these issues, it is desirable to have the maximum possible public input."