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VOIP stays illegal, schools get a break

By Phillip de Wet, ,
Johannesburg, 26 Mar 2001

Government`s policy directions on telecommunications, published under the authority of communications minister Ivy Matsepe-Casaburri on Friday, had a few pleasant surprises for the communications community.

The directions on the future telecommunications market structure, universal access and numbering, among other issues, forms part of government`s managed liberalisation of the telecoms industry.

According to the directions, it will remain illegal for service providers to enable voice over Internet protocol (VOIP) services for the foreseeable future, and providers who flaunt the law will stand to lose their licences.

The directions, which come into effect immediately except where amendments are needed to the Telecommunications Act and Telkom`s licence, confirms the current prohibition on VOIP with the exception of the second national operator, Telkom and special co-operatives.

"Small, medium and micro enterprises (SMMEs) and co-operatives shall be permitted to provide telecommunication services including VOIP for the specific purpose of advancing universal service in geographic areas with a teledensity of less than 1% from 7 May 2002," the direction on market structure reads. Such bodies will also be permitted to build their own infrastructure to provide services.

The document also makes it clear that the government expects Transtel and Esitel, both subsidiaries of state-owned enterprises, to be included in any consortium applying for a licence as the second national operator to compete with Telkom as of May next year. The government will determine the equity percentage it is to hold via the two bodies in its official invitation to apply for the licence.

Government holds the majority stake in Telkom and is expected to retain control of it even after its listing on the Johannesburg Stock Exchange scheduled for late this year.

A special direction on education institutes a so-called E-rate, long advocated by some as a necessity for modern schools. Operators will now be required in their licence obligations to give schools a 50% discount on any telephone calls made in order to access the Internet. The discount will be valid for all government-funded schools.

Number portability, the ability for users to change their service provider while retaining their telephone number, is to be introduced from April 2003 through a central database to be operated by the regulator, the Independent Communications Authority of SA (ICASA). Mechanisms such as carrier pre-select is also to be introduced as early as next year.

An attempt by former telecommunications minister Jay Naidoo to introduce number portability for the benefit of the third cellular operator was abandoned two years ago after objections from MTN and Vodacom. The operators said they had invested in branding their respective 083 and 082 number ranges and portability would be detrimental to their business.

A public emergency communications directive establishes SA`s version of the American 911 universal emergency number in the form of a 112 service, the number currently used by mobile operators. Public Emergency Communications Centres, to be known as 112 Emergency Centres, are to be established under the auspices of the communications ministry.

The policy directions are open to public comment until 2 May and the full text is currently available at the Department of Communications` Web site at http://docweb.pwv.gov.za/docs/policy/telpoldir.html.

Related stories:
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Transtel, Eskom will be Telkom competition, says Radebe

Third cell licence `facilitation` cancelled

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