The Independent Communications Authority of SA (Icasa) has rejected criticism that it is taking too long to open the industry to competition. The telecommunications regulator says it is moving as fast as it can to implement the Electronic Communications Act.<\/p>\n
Icasa\u2019s responsibilities under the 2006 act include the conversion of more than 1300 licences issued under the old telecom and broadcasting laws. At the same time, it is empowered to license Internet service providers (ISPs) and other companies to compete with operators such as Telkom, Vodacom and MTN in providing telecom infrastructure.<\/p>\n
Those hoping for infrastructure licences have bemoaned the time it is taking Icasa to issue the licences. Dimension Data, MWeb and Altech are among those champing at the bit to roll out their own networks. All are running noncommercial pilots to test the feasibility of building their own wireless networks to circumvent Telkom\u2019s \u201clast-mile\u201d access network \u2014 the fibre and copper cables that connect businesses and residential customers.<\/p>\n
Marcia Socikwa is the Icasa councillor overseeing the licence conversion process. She says the process couldn\u2019t start until Icasa had published the processes and procedures dealing with transfer, renewal and amendment.<\/p>\n
Socikwa, who was appointed to the Icasa council a year ago, says the regulator also had to draw up standard terms and conditions for new licences. \u201cThat took longer than anticipated,\u201d she says.<\/p>\n
Another challenge has been to determine appropriate licence fees. Smaller industry players have argued it does not make sense to impose onerous fees on ISPs and other companies that are overshadowed by incumbent operators. Icasa is still considering the fee structure.<\/p>\n
Socikwa says the industry is unfair in its criticism of delays. \u201cThey are unaware of the amount of research we have to do,\u201d she says. \u201cWe need to study very varied licences. The six \u2018individual\u2019 licences \u2014 licensees such as Telkom and Neotel \u2014 are dissimilar in many respects and trying to align them is difficult. We have to look at international precedent, at case studies applicable to SA, the market structure, the economy. It\u2019s a complex process.\u201d<\/p>\n
Negotiations between Icasa and industry players have proved tough. Socikwa says companies too often use the threat of litigation to try to get their way. \u201cThis is not an industry that has a proclivity to negotiation and discussion. Instead, we receive threats of litigation.\u201d<\/p>\n
She says attending to litigation wastes time that Icasa could otherwise use to finalise regulations. Companies often threaten to sue Icasa over issues cast in stone in the act.<\/p>\n
On the other hand, she is not surprised that dominant incumbent operators use legal threats and action as delaying tactics. It\u2019s not in their interest for licence conversion to be hurried along. The incumbents, Socikwa says, are also keen on lengthy, legalistic licences while Icasa is trying to produce licences that are short, simple and written in plain English.<\/p>\n
She says Icasa would be reckless to proceed with the licence conversion process without adequate research. She points out that the new licences will last for 15-20 years so they must be clearly written, well formulated and not open to interpretation.<\/p>\n
Icasa recently warned it would miss the deadline of July 2008, set out in the act, for conversion of licences to be completed. However, the authority has the option of a six-month extension. And Socikwa says \u201cless complex\u201d licences will be issued before the first deadline \u2014 this will include broadcasters and ISPs. If all goes well, she says, those that want their licences changed in order to build their own networks for the first time should also receive them by July.<\/p>\n
Incumbent operators will take longer, due to what she calls \u201cmore difficulties\u201d.<\/p>\n
Another bun fight is set to follow: determining who gets access to scarce radio-frequency spectrum. Those wanting to build their own networks want access to spectrum to give effect to their beefed-up licences. But Socikwa says they may not be granted access. They will have to apply separately for spectrum. Because of its scarcity, some companies will be turned down. And licensees may apply for spectrum only once they have received their new licences.<\/p>\n
The Icasa council must still determine how it will divvy up the spectrum, much of which has already been claimed by Telkom, Sentech, iBurst, Vodacom, MTN, Cell C and Neotel. \u201cIt is not an automatic right. If a large number of licensees seek access to the same frequency then you need a dispensation to find some fair way, administratively, of distributing it.\u201d<\/p>\n
Socikwa says that, in view of industry anxiety, Icasa will make a decision about spectrum soon. – Duncan McLeod<\/p>\n