No ECNS, no WiMax

Johannesburg, 14 Mar 2008

Without an individual electronic communications network services (ECNS) licence, value-added network service providers (VANs), running WiMax trials, will not be allocated WiMax spectrum.

Spectrum shortage means that, of the 11 operators who received WiMax test licences, only three or four will receive permanent licences, say sources within the telecommunications regulator.

MWeb and Internet Solutions are among several VANs that have been involved in WiMax trials in the hopes of receiving spectrum from the Independent Communications Authority of SA (ICASA). However, those testing the technology are not guaranteed to be awarded ECNS licences that are required for spectrum allocation.

An ICASA official, who asked not to be named, says operators participating in WiMax trials knew the licence was temporary. "WiMax tests do not guarantee that operators would be granted permanent licences," he says. "The idea is to test, get the results and send them to ICASA; not to allow an operator to go on with a test forever.

"WiMax spectrum is very limited, and a large chunk of it was already allocated to Telkom, Sentech, Neotel and iBurst. At most, ICASA will only be able to allocate WiMax to three to four more operators," says the official.

He also questions why operators are not looking at alternatives, such as spectrum in the 1 800 band. "ICASA has plenty of that spectrum and we can process applications starting tomorrow if an operator with an ECNS licence applied," he says.

One step at a time

ICASA intends to hold public hearings on the VANS licence conversion process, at the Midrand Conference Centre, on Monday and Tuesday next week, and VANs are appealing to the regulator to consider them seriously.

Last year, Internet Solutions (IS) and MWeb were earmarked as two of six VANS eligible to receive ECNS conversion.

However, so far, both companies are only listed for guaranteed electronic communications services licences. "We are focusing on receiving the ECNS licence now, and we hope after the hearings next week that we have all the correct licences in place to be allocated WiMax spectrum," says MWeb CEO Rudi Jansen.

He says the company can only "play with what ICASA has given". MWeb has been trying to establish itself as an independent service provider, a position that WiMax would realise. "Anything can happen, we will just have to wait and see."

The company did not say what strategies it would use as a contingency if ICASA denied the ECNS application.

Status quo

IS director of regulatory affairs Syabonga Madyibi says, if the company is not awarded the ECNS licence, it will have to refocus its strategy.

"Those VANs who want to play in the independent space need the licence conversion to compete with the incumbent providers. Those who are denied that conversion will have to partner with those who have it."

If those providers are not licensed, the country`s current environment stays exactly the same, he says. "And that would be not just a worry for IS, but for the entire country. Without added competition in the market, the costs of services will not come down."

The Internet Service Providers` Association of SA (ISPA) has a strong view on ICASA`s licensing process. "ICASA doesn`t seem to have a WiMax spectrum allocation process. Their current approach is to deal with the licence conversion process and worry about spectrum later."

ISPA says: "It is impossible to comment on the ECNS (individual) licence allocations, because ICASA`s process for awarding these has changed three times in as many months."

ICASA would not comment on the issue.