Sa's Usals Get Off To A Slow Start By Reselling Mobile Minutes

another telecomms tragedy attributable to ineptitude at the department of communications [see under I for Imminent Second National Operator)
 
I don't have much hope for the USALs. It's another example of regulatory overreach and symptomatic of the belief that by just making laws and regulations, one can fix problems and defy the fundamental laws of economics.
 
it is interesting to contrast the USAL approach with what is happening in Knysna an to consider which model serves to advance universal access to the greatest degree at the least cost....
 
These USALs should be renamed SSLAMs - State supported local area monopolies.

R5m won't even cover the excecutive salary bills for the first year,
What cars will these execs buy and what's the budget for overseas travel ?
 
The USALs are are nothing but a way to get Telkom out of their social responsibilities. Which AFAIK is the only reason they got their monopoly license in the first place.
 
nOhIwAy said:
These USALs should be renamed SSLAMs - State supported local area monopolies.

R5m won't even cover the excecutive salary bills for the first year,
What cars will these execs buy and what's the budget for overseas travel ?
Click to expand...
there are restrictive conditions and the money can only go to infrsatructure roll-out
 
dominic said:
there are restrictive conditions and the money can only go to infrsatructure roll-out
Click to expand...

That's good news.

Would be nice to know the people involved - lots of politicians ?
 
nOhIwAy said:
That's good news.

Would be nice to know the people involved - lots of politicians ?
Click to expand...
the ones i have worked with no...mainly business types running the show and then a whole host of BBBEEE entities with shareholdings (was a condition of awarding the licence)

there are definitely some issues with the empowerment initiatives - in some cases entities have been forced to take on board partners they don't want and who do not add anything to the mix...this is severely hampering their abilty to roll out services
 
The business case for USALs were always tenuous at best, and have become more so after the years of delay in getting them licensed. The Knysna example shows that the demand for telecommunications services are in the higher teledensity areas, where the demand isn't met due to Telkom's exhorbitant pricing and monopoly status.

Thank goodness for the fact that the new Electronic Communications bill will allow smaller VANS to self-provide on a municipal district level if they apply for such a class license.
5.(5) Electronic communications network services, broadcasting services and electronic
communications services that require a class licence, include, but are not limited
t o-
(a) electronic communications networks of district municipality or local munici-
pal scope operated for commercia1 purposes;
(b) community broadcasting and low power services whether provided free-to-air
or by subscription:
(c) such other services as may be prescribed, that the Authority finds do not have
Click to expand...
 
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