The regulations relating to the manner in which applications for value-added network services (VANS) and private telephone networks (PTNs) licences are to be made have finally been approved and published by the communications minister.
The industry has been governed by interim guidelines for the past six years.
According to Andries Matthysen, senior manager of licensing enforcement at the Independent Communications Authority of SA (ICASA), the details were published in Government Gazette 25519, dated 1 October.
"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," says Matthysen.
"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."
He says ICASA plans to send memos to the interested parties within the next week, informing them they need to reapply and explaining the details of the process.
"While we hope that the date the memo is sent signals the beginning of the three-month period for reapplication, we still need to check the original SATRA ruling, as it may state that the grace period comes into effect from the date the notice is published in the gazette," he says.
"The application fees for both VANS and PTN licences will be R5 000 per licence, and ICASA requires applicants to furnish details that include the particulars of shareholders, a copy of the organisation`s business plan, employment strategies and details of the geographic area where the service will be supplied, among others."
He says that in terms of VANS licensees, he believes there are currently around 310 using the interim licences, but ICASA anticipates a larger number of applications for licences, as there are a number of smaller operators out there who may not as yet be licensed.
Internet Solutions executive for new business development, Hillel Shrock, says the industry is happy to see that things are finally starting to happen.
"I`d have to say that it`s about time we got to this stage. At the same time, I am concerned that the licence fees will be based on revenue, rather than bottom line profit, and revenue does not take into account issues such as equipment and resource costs," says Shrock.
"Using this basis for the fees could well be detrimental to the growth of the industry, as it could create a potential barrier for smaller players."
He says that from an industry perspective, he is also a little concerned about where the licence fees are going and what use they will be put to.
"It`s fine if they go towards strengthening and improving the regulator`s capacity, as this is good for the entire industry, but if it is not the case, then it would make us wonder what the point of such fees were," he says.
Related story:
New VANS regulations released
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