VANS flock for licences

By Alex Kayle for ECN
Johannesburg, 16 Jan 2009

In a historic moment for South African telecoms, value-added network service providers (VANS) lined up at the Independent Communications Authority of SA (ICASA) to pick up their electronic communications network services licences (ECNS).

After years of battling for the right to build their own networks, regulatory representatives of BCS Net, Connection Telecom, Air Communications, Gateway Communications, T-Systems InfoVan and ECN all walked away with permission to take on the incumbents head-on.

ICASA sent out the notice this morning calling on those eligible for the conversion to the coveted ECNS to collect them as from noon today.

Broadcasting licences were also available for collection today; however, the scene was dominated by telcos hoping to be the next big thing.

ECN is one company that has been chomping at the bit to gain its independence from the incumbents. Just this morning, the company lamented the state of the leased service it receives and sweepingly said it would start its own provision as soon as possible.

Jeremy McDonald, head of ECN Telecommunication's legal and regulatory division, says this is a milestone in the history of South African telecommunications.

"We are extremely excited to collect our licences today. It ushers in a new era for the telecoms industry as it's the first important step in having converted licences to make it a competitive market."

Bianca Gruen, legal advisor for BCS Net, says the company was very excited about the licences.

"It's been a long time to wait for the licences from ICASA and we are very glad to finally receive them. It's important that ICASA is commended that the licences were handed out before the 19th [the previous deadline set by ICASA for issuing the licences]."

Telkom also attended the celebrations, although it may well face competition from the VANS in the future.

Most industry watchers would have expected to see Allied Technologies (Altech) as one of the first companies in the queue to receive its conversion permit, having been instrumentally involved in fighting communications minister Ivy Matsepe-Casiburri for the right of VANS to receive licences.

However, while the company was not at ICASA this afternoon, it still has until 4pm today and again next week to collect the document.

As of March last year, there were 413 registered VANS eligible for licences.