VANS not public operators

Sentech has taken issue with the fact that the Independent Communications Authority of SA`s (ICASA`s) draft interconnection guidelines, which were published in January 2005, regard value-added network service (VANS) providers as public operators.

The concern formed part of the company`s verbal presentation to ICASA on Monday. This was the first day of public hearings on draft interconnection and facilities guidelines.

According to Dingane Dube, Sentech executive for regulatory and government affairs, the Telecommunications Act does not recognise VANS as public operators. He also pointed out that it would take an act of law, not regulations, to make the amendment.

Dube maintained that Sentech does not have a problem with the fact that at a certain point, VANS and other service providers would become public operators. However, that was not yet the case, he said.

He also pointed out that the Electronic Communications (EC) Bill had a provision for entities such as VANS to apply to convert their licences to become public operators.

Once ICASA had approved such conversion, the entity would carry the same obligations, including those relating to licence fees, as other public operators. He also said until VANS become public entities according to law, they would apply for interconnection at retail price.

ICASA councillor Tracy Cohen, who is chairing the hearings, suggested that the basis for Sentech`s objection was licence fee contributions, not consumer need. She also asked Dube to suggest how VANS should be treated if they are not to be regarded as public operators.

The Internet Service Providers` Association of SA (ISPA) noted in a statement that Sentech`s view was that the discriminatory treatment of VANS was justified because VANS pay lower licence fees than other telecoms providers. However, ISPA said this argument was disingenuous because VANS fees are proportional to turnover.

"Some of the larger VANS could be paying higher licence fees than Sentech if the regulatory environment actually permitted them to grow without hindrance," the statement said.

ISPA said certain licensees were "clearly afraid that many South African businesses and homes have already chosen the service offerings of VANS and instead of responding by making their offerings more competitive, they are trying to promote an anti-competitive stance that will rid the consumer of choice".

Sentech, along with MTN and Telkom, questioned whether ICASA should continue with the interconnection regulation hearings, as the EC Bill, which has yet to be passed, would have an impact on the telecoms environment.

Nkateko Nyoka, MTN Group`s head of legal and regulatory affairs, said it was not right for ICASA to deploy its resources on these regulations when the Bill would change the telecoms market. Telkom said once the EC Bill was promulgated, ICASA would have to revisit the regulations.

ISPA, represented by Michael Silber at the hearings, disagreed that the hearings were premature. He said if the interconnection regulation process was not overtaken by the enactment of the EC Bill, it would be of great importance to members as it would provide clarity on interconnection guidelines. Silber also pointed out that it was unclear how soon the EC Bill would be promulgated.

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Interconnection guidelines to be reviewed