The Independent Communications Authority of SA (ICASA) recently published a notice of intention to revise the draft license exempt regulations published on 08 September 2007.

In this document ICASA states that, “A person offering or providing ECS (Electronic Communication Services) on a non-profit basis may operate in terms of a license exemption and does not require an ECS license.”

The draft regulation further states in clause 3(1) that “A small electronic communication network may be operated in terms of a license exemption and does not require an ECNS license.”

The proposed regulations further states that “Where a small electronic communications network communicates with other such networks across the boundaries of the different properties upon which they are installed using only radio equipment operating in radio frequency spectrum bands that are exempt form licensing to form mesh networks, such aggregation of small electronic networks continues to be subject to a licence exemption provided that

(i) the provision of ECS over such mesh networks is limited to exempted ECS in terms of clause 3(1); and
(ii) no capacity on the aggregation of the small electronic networks is sold, leased or otherwise made available to any Licencee.”

This all sounds like good news for wireless user groups which make use of unlicensed spectrum for building networks across cities.

There are however concerns from some quarters that Private Electronic Communication Network (PECN) licenses – a type of license which is not particularly difficult to get hold of – may now enable icense holders to build networks and resell up to 25 % capacity without the need for an expensive ECNS license.

The regulations state that “A PECN … may be operated in terms of as license exemption and does not require an ECNS license.”

“Where a PECN operator … resells, leases or otherwise makes available any capacity on its PECN to any third part, such resale or other provisioning of spare capacity is subject to (i) a ceiling of resale of spare capacity at a maximum of twenty five percent of the total capacity of the PECN”

To qualify for a PECN there is no formal application process – licensees must merely comply with all the clauses and are hence effectively license exempt. No official ICASA approval is therefore needed to start rolling out a network.

Municipalities for example, which previously needed a Private Telecommunications Network License to operate a network, are now license exempt.

This, coupled with the ability to resell up to 25% of network capacity, is raising some serious questions about the need to apply for an expensive and difficult-to-get ECNS license.

One industry player, who prefers to remain anonymous, says that it looks like any entity will be able to create a PECN network. “Under the conditions of the PECN I can build wire line and wireless networks as long as they are primarily for MY use. We should have the same rights as any other ECA licensee: ie could ask for way leaves etc,” he said.

He further said that the real issue is the resale clause where the company or individual can resell spare capacity ‘at a maximum of twenty five percent of the total capacity of the PECN’.

“A PECN Operator could cross-connect 2 switches with a fibre cable and state that their network capacity is 1Gbps – therefore 250Mbps would be up for resale,” he said.

If this is indeed the case it means that many individual or class ECS licensees may opt to rather build their own network under the PECN license conditions than apply for an ECNS license which comes with a R 100-Million price tag and many additional obligations.

While most commentators feel that Wireless User Groups like JAWUG and PWP should be license exempt, it should not nullify the rights of ECNS or class ECN licensees.

ICASA asked interested parties to comment on the potential amendments by 19 December.

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