ISPA slams licensing framework

By Damaria Senne, ITWeb senior journalist

Johannesburg, 12 Nov 2007

The Internet Service Providers Association of SA (ISPA) says the way the Independent Communications Authority of SA (ICASA) converted communications licences to be in line with the Electronic Communications (EC) Act lacks transparency and consistency.

This follows ICASA`s publication of a provisional matrix last week, which indicates the types of licences communication providers can expect to be granted under the EC Act.

ISPA GM Ant Brooks says there is significant concern among value added network service providers (VANS) that ICASA did not follow a fair process when converting the licences.

"Some VANS get a favourable license condition, as they are being considered for network and service licences. Then there are those who expected individual licences and network licences and didn`t get them, and there is no explanation as to how the process was done," he says.

ICASA has previously said licensees who intend to roll out an electronic network should submit a proposed technical plan, five-year financial projections to support roll-out, and a business record.

Licensees who already provide, or intend to provide, international connectivity, also qualify for ECNS consideration, said a statement in the Government Gazette.

"It`s all very well for ICASA to say they made the decision based on information provided, but that doesn`t tally with what we hear from our members," says Brooks.

He adds that there are VANS that indicated in their applications that they would be able to roll out networks. However, the conversion matrix does not show them as being under consideration for the ECNS licence, he says.

Fear of litigation

Brooks says there is also concern from VANS that received a favourable conversion that the dissatisfaction of others providers could affect their own operations.

"There is a concern that someone could take ICASA to court, causing delays in their own implementations."

ICASA also fears its decisions could be challenged in court. Last week, chairman Paris Mashile told Parliament that ICASA was taking a conversion route that exposes the regulator with less litigation.

ICASA spent 2.6% of its R190 million budget on litigation during the last financial year, said ICASA councillor Kobus van Rooyen.

Random cut-off

Brooks says ISPA is also apprehensive because of ICASA`s provision that communication providers cannot operate a network in one province and hold a different licence in another province.

The EC Act allows for communications providers to hold different licences in different provinces if they so wish, he says.

He adds that ISPA`s third worry is that VANS that applied for licences after July 2006, when the EC Act was promulgated, were not considered for licensing in the conversion process.

ICASA has previously said it would consider new applications lodged after July 2006 as applications for an EC Act-based licence, rather than licensing them according to the outgoing Telecommunications Act of 1996, and then converting their licences.

"That might be reasonable to ICASA, but it seems a little strange to have an arbitrary cut-off date and treat everyone after that date as being different somehow," says Brooks.

Concerns flagged

ISPA will engage with ICASA on the conversion problems it identified, says Brooks. "We`re flagging general concerns with the process and trying to make sure those [operators] who feel they are not appropriately categorised get in touch with ICASA," says Brooks.

ISPA is encouraging licensees to immediately contact ICASA and state their case, says Brooks.

According to the Government Gazette, ICASA invites written submissions from licensees who believe they have not been put in the appropriate categories. Operators have until Friday this week to make their submissions.

ICASA did not respond to queries regarding ISPA`s concerns at the time of publication.