The second phase of hearings for the underserviced area licence (USAL), hosted by the Independent Communications Authority of SA (ICASA) begin in Mpumalanga tomorrow.
Hearings will be conducted in 14 areas during this phase, according to ICASA`s USAL programme manager, Phineas Moleele. The first phase resulted in seven licences being issued in December last year.
ICASA will listen to presentations from locally owned companies that not only aim to provide telecoms to their communities, but include the empowerment of the youth, women and the handicapped as part of their overall strategy, says Moleele. Business plans should also include job creation strategies and account for cascading benefits that will come from it operating in the area.
Moleele acknowledges that some of the USALs that were licensed last year did not have the expertise to start and manage a telecoms company. A key strategy has been to ensure local people have shareholding in the business. This encourages ownership and pride in local infrastructure, he says.
The partnerships that have been formed between USALs and mobile operators, equipment vendors and consultants have also included a level of skills transfer, he says. As a result, the licensed USALs that have not yet launched their services are now getting ready to do so.
One of the USALs licensed last year, Kingdom Communications, is launching on 3 November. ICASA has allocated it 30 000 mobile numbers, says CEO Sifiso Mbatha. A roaming agreement with Vodacom allows the company to operate while it rolls-out its own infrastructure. The company now has over 500 subscribers, he says.
Operating as a USAL is not easy, Mbatha says. As it was part of the first group to be licensed, there is nothing it can copy when facing operational challenges.
There is also pressure from investors to see results. "We need to work hard to deliver and be seen to be working towards meeting targets," he says.
Thus, Kingdom Communications wanted to get into the market as soon possible, even though its licence agreement grants its three years to become operational, he says.
Competition is also tough for USALs, as mobile operators sometimes regard them as competitors for users` wallets, says Mbatha.
The company strived to not only have competitive prices, but to capitalise on the fact that it is locally based, he says. He calls on government to take measures to create an enabling environment for USALs, because if this is not done, even those who are going to be licensed this year will be highly disadvantaged.
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