Public enterprises minister Barbara Hogan is not concerned that Broadband Infraco has not received an electronic communications services (ECS) licence.
Speaking at a Parliamentary press conference yesterday, ahead of her budget vote speech, Hogan said: “My DG [director-general] will probably think I am mad saying this, but I believe that the Broadband Infraco Act went too far into the territory of the regulator and the communications minister was right in issuing his policy directive.”
Two years ago, Parliament passed the law that enables Broadband Infraco as a state-owned enterprise. The original mission was to create a company that would break the pricing stranglehold that incumbent Telkom had on the fixed-line market.
The state-owned company incorporated some Eskom and Transtel assets that were originally earmarked for second national operator Neotel, with which it still has a working relationship.
The Broadband Infraco Act stipulates that telecommunications regulator, the Independent Communications Authority of SA (ICASA), had to issue it an individual-electronic communications network services (I-ECNS) licence and an ECS licence.
The first licence allows the company to build and operate a telecommunications network, and the second to resell services across it.
Commercial ISPs have been the most vocal in objecting to Broadband Infraco receiving an ECS licence, as they claimed it would give the company an unfair advantage in a highly-competitive environment.
ICASA bowed to communication minister Siphiwe Nyanda's policy directive in January and only awarded the I-ECNS even though the law stipulates that both should be awarded.
However, it appears the issue is not settled, because - after Hogan had spoken - her deputy minister, Enoch Godongwana, said: “The issue is not entirely off the agenda and we are cooperating with ICASA, but it's not off the agenda.”
In her speech, Hogan said the creation of Broadband Infraco had lowered national long distance communications costs by 73%. She noted that it had rolled out 6 700km of additional cable, bringing the total distance to 11 700km, and that it had sufficient funding to participate in the West African Submarine Cable System that is being constructed.
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