The seven companies with underserviced area licences (USALs) are not yet operating their own networks, says Independent Communications Authority of SA (ICASA) USAL unit manager, Phineas Moleele.
The companies would need spectrum allocated for them to launch their own networks. Moleele confirms that all seven USALs have applied for their spectrum licences, but none have been granted.
According to the USALs, the delay in the issuing of the spectrum licence is on ICASA`s side. Ilizwe Telecoms CEO Dumisani Balman says ICASA informed Ilizwe that the spectrum it requires is not available.
"As long as we don`t have a licence, we`ll have to continue using the Vodacom network," he says.
Bokamoso Communications (B-Tel) is another USAL awaiting the spectrum allocation. B-Tel has been slowly acquiring infrastructure and would have been ready to roll-out within 18 months from the time it began operations, says B-Tel CEO Dominic Mokhethi.
Thinta Thinta Telecoms (T3) has also begun deployment plans for its own broadband network, which should be launched in first quarter of 2006.
"This will allow T3 to offer fixed and mobile voice, fast data and other exciting value-added services at very affordable prices to our poorest communities," says T3 CEO Bule Mhlongo.
Karabotel CEO Emson Moyo Karabotel says his company is in talks with equipment vendors for infrastructure.
Kingdom Communications, which launched its services last month, still has major interconnection challenges to deal with. According to CEO Sifiso Mbatha, negotiations with Cell C broke down, with the result that its subscribers are unable to make or receive calls from Cell C subscribers. The issue has been referred to ICASA.
Spectrum licences issue a common hurdle
Moleele says ICASA issued a statement three weeks ago on what the USAL holders need to do, but has had no response since then.
Bokone Telecoms has confirmed that it will launch its services in the first quarter of 2006.
ICASA began hearings last month for the issuing of 14 additional USAL licences.
Despite the many challenges that the USALs have experienced, Moleele says ICASA is not planning to do things differently in terms of the assistance and support provided to the USALs.
"It is the same cause, the same situations and same terms and conditions that they are applying for," he says.
The only distinctive difference will be the readiness of regulator to support them, he says.
Moleele says ICASA has learnt a few lessons through its experience with the first batch of USALs.
"We have learnt that there will always be technology debates and that some USALs want technology that is not really viable for the area that they are servicing," he says.
He adds that the spectrum licences issue is a common hurdle.
"This is an uphill battle. Some of the USALs want spectrum that is not available," he says.
Another challenge is that some of the people entering into the business do not yet understand business processes. Moleele says this is to be expected as USALs were introduced in order to empower new entrants into the market.
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