Is door open for VANS self-provisioning?

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 15 Jul 2005

Value-added network services (VANS) licensing provisions and regulations seem to have left the door open for self-provisioning, leaving the highly contentious issue unresolved, say industry experts and VANS operators.

Published on the Independent Communications Authority of SA (ICASA) Web site this week, the final terms and conditions for VANS licences had to be updated because the original version was incorrect.

The terms and conditions spell out the rights and obligations of the licensee as determined by the regulations for value-added network services signed into law by minister of communications Ivy Matsepe-Casaburri in the Government Gazette.

In Section 1.1, ICASA states: "The licensee may provide its service by means of telecommunications facilities from any other person licensed to provide telecommunications services in terms of the Act."

It also allows the licensee to interconnect with any other person licensed to provide telecommunications services and the right to apply for numbering resources.

E-lawyer Dominic Cull, an associate at legal firm Nicciferguson, says section 40 of the Telecommunications Act was regarded as amended by the ministerial determination of 2 September 2004 (commonly called the Liberalisation Announcement) with regard to self-provisioning.

He says the licensing provisions and regulations have thrown the whole debate back to ICASA`s original view this year that VANS should be allowed to self-provision.

Matsepe-Casaburri tried to eliminate that view through a press release shortly before the liberalisation date of 1 February by stating it was not her intention to allow that to happen.

Raven Naidoo, CEO of ICT consultancy Radian, calls the relevant paragraph in the licence "a tautology".

"A telecommunications service is not an infrastructure provider. My interpretation of this is that whoever becomes a VANS licensee under the Telecommunications Act, becomes a telecommunications service provider," he says.

No cheering

However, companies directly embroiled in trying to offer alternative telecommunications services are less optimistic.

Tim Parsonson, joint-CEO of Storm, says: "The statements on interconnection and numbering resources are good as they allow for the creation of real competition in the arena."

Parsonson says the exact interconnection process will have to be examined, especially with Telkom, so that international facilities can be accessed and there is a separation of accounting so that operators can work out the difference between Telkom`s internal cost and what they are being charged.

Parsonson says while he acknowledges that a door could be opened on self-provisioning, he does not feel it is the intention of the terms and conditions.

"If people try their luck, a 'clarification` (now a sinister word in South African telecommunications parlance) will be issued," he says.

Angus MacRobert, CEO of Internet Solutions, says: "We believe the door has been opened for self-provisioning. However, we will work with ICASA to determine the way forward."

ICASA councillors were not available for comment due to their attendance at the telecommunications pricing colloquium that has been arranged by the Department of Communications.