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VANS issues discussed as deadline looms

By Rodney Weidemann, ITWeb Contributor
Johannesburg, 21 Jan 2004

The deadline for applications for value-added network services (VANS) and private telephone networks (PTNs) licences is 27 February.

According to Andries Matthysen, senior manager of licensing enforcement at the Independent Communications Authority of SA (ICASA), while the publication of the regulations triggers the time period within which all existing licensees must re-apply for the licences, this would effectively have made the deadline 1 January.

"I don`t imagine ICASA would have been terribly popular with the industry if we had worked to a deadline which fell while the majority of people were still on holiday, so we decided to extend the deadline," says Matthysen.

He says the present guidelines and licensing agreements are interim measures that were put in place by ICASA`s predecessor, SATRA, in 1997, while it was busy finalising the regulatory framework for these services.

"The agreement with the operators was that once the framework was finalised, they would be given a time period in which they would be expected to reapply for their licences.

"Although we have already received some applications, we are still expecting quite a large number of others before the deadline," he says.

"We have also had some discussions with the Internet Service Providers` Association (ISPA) regarding clarification of some of the regulations and what exactly constitutes a VANS provider."

According to Ant Brooks, co-chairman of ISPA`s Regulatory Subcommittee, one of the key issues that require clarity is that of licensees having at least a 15% shareholding by historically disadvantaged individuals (HDI).

"This is a particular problem for some of our smaller members. It really isn`t practical to expect a small CC to arrange for a sale of that percentage of shares in such a short time," says Brooks.

"We made it clear to ICASA that it is not that our members are unwilling to have a 15% HDI shareholding, it is just that it is not feasible to expect them to do that by 27 February."

He is optimistic that ICASA has listened to ISPA`s case and that an agreement of some sort will be worked out by February.

"We have always had a good relationship with the regulator, and ICASA has always been open to discussion with us. It is important that the industry works with the regulator, and I am sure that ICASA appreciates the industry input too."

Matthysen says application fees for both VANS and PTN licences will be R5 000 per licence, which will then be used to cover the administrative costs of the process.

"We are in the process of bedding down the final terms and conditions for the licences, and we hope to have this completed by 27 February. Once this is done and the deadline has passed, we will ask the minister to publish the final regulations."

Related stories:
Applications sought for VANS, PTN licences
New VANS regulations released

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