Global Insight Perspective | |
Significance | The first phase of USAL licensing saw 7 licences granted in 2004, and the second phase has continued, with some delays, since 2006. |
Implications | The operators have been granted ECNS licences, which permit them to build their own networks. |
Outlook | The new operators will establish networks in municipalities that have been defined as under-serviced, and will be able to offer a wide range of services including VoIP. |
ICASA reportedly granted electronic communications network service (ECNS) licences during December 2007 to seven operators, six of them being PlatiTel, Ilembe Communications, Metsweding Telex, Dinaka Telecoms, Mitjodi Telecoms, and Nyakatho Telecoms, according to ITWeb. Rather than granting these operators under-serviced area licences (USAL) as the first operators were, they have been granted ECNS licences under the terms of the 2006 Electronic Communications Act (source: ITWeb). Other categories of licence holders, notably value-added network service (VANS) licensees, are currently being converted to the new framework created by the act.
The USAL was a new category of licence created by the government and intended to work towards the attainment of universal access in areas with less than 5% teledensity. The remit of licences is confined to certain defined, geographic areas, which were selected on the basis of a study to identify those areas that would qualify as "underserved". During May 2004, ICASA recommended that USALs be granted in seven districts (see South Africa: 8 November 2004: South African Regulator Awards Four Underserviced Area Licences).
ICASA Recommendations for USAL Licensees (2004) | |||
Province | District/Municipality | Applicants | ICASA Recommendation |
LimpopoProvince | DC35-Capricorn District | Bokone Telecomms | Granted |
KwaZulu-NatalProvince | DC21-Ugu District Municipality | Thinta Thinta Telecoms | Granted |
DC26-Zululand District | Kingdom Communications | Granted | |
Eastern Cape Province | DC15-OR Tambo Municipality | Ilizwe Telecoms | Granted |
DC12-Amatole District | Thethani Telecoms | Disqualified | |
Free StateProvince
| DC20-Northern Free State District | Mamela Communications | Disqualified |
DC18-Lejweleputswa | Bokamoso Communications | Granted, pending the removal of warehoused shares from the chairperson of the consortium to the community trust or any other legal instrument that will ensure broad-based empowerment | |
North WestProvince | DC18-Central District | Ledimo Communications | Disqualified |
Karabotel | Granted, pending submission of revised shareholding structure reflective of the community of the district | ||
DC39-Bophirima District | Lonaka Communications | Refused | |
Karabotel | Refused | ||
Source: ICASA (www.icasa.org.za) | |||
Outlook and Implications
The objective of the USAL programme is to ensure that telecommunication services are rolled out to areas where there is no service or limited service provision. ICASA describes this class of licence by saying "USALs belong to a new category of licences that were introduced through the amendment of the Telecommunications Act 103 of 1996. USALs are telecommunications licensees that provide telecommunication service in areas with a teledensity of less than 5%. USAL licences are ear-marked for small and emerging entrepreneurs to enter the burgeoning and lucrative telecommunications market. Licensees in this category could provide telecommunications services, including voice over Internet Protocol (VOIP), fixed mobile services, public pay telephones and long distance calls to be transported through the trunk networks of any operators licensed to carry international traffic." The seven operators will establish networks in areas that have been defined as under-serviced, and will be able to provide a wide range of services.