Dark Fibre Africa (DFA) has applied to telecommunications regulator ICASA to transfer an individual electronic communications network service and electronic communications services licences from a VenFin-owned company to it.
DFA CEO Gustav Smit says: “The only reason for DFA's need for a licence is to get way leaves [rights of way to lay cable across public roads] from obnoxious metros and city councils. The only reason for our bad network coverage in certain areas, such as the East Rand [Ekurhuleni], and - to a lesser extent - Cape Town and Durban, is a licence.”
ICASA confirms it has received and is reviewing the application, and has yet to make up its mind on whether to hold public hearings.
Smit says: “If you have a licence, the Electronic Communications Act gives you the right to use municipal and national roads to build a network. This right to get way leaves will help us to roll out networks faster.”
The blurring of the lines between what constitutes an infrastructure network provider and one that sells managed services over a network has kicked up dust during the recent Broadband Infraco hearings. The state-owned enterprise is mandated to lay a national long-distance fibre-optic network and is now looking to sell services as well.
However, Smit says DFA will never start to sell managed services.
“It will kill our business model instantaneously, as we will compete with our customers. We will inform our customer base about the licence as soon as we have more clarity from ICASA. We have discussed this with our most important customers,” Smit says.
The cost of the licence is not an issue for DFA, as it is being transferred from a VenFin company and there will be annual fees to be paid as determined by the Electronic Communications Act.
Smit says DFA has discussed a different kind of licence with ICASA (one that would allow it to build a network only - with no services option), but the regulator does want to create special licences at this stage.
Technology investment company VenFin is a major shareholder in DFA, along with Community Investment Ventures and Absa Capital.
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