USALs granted

By Damaria Senne, ITWeb senior journalist

Johannesburg, 15 Aug 2006

The Independent Communications Authority of SA (ICASA) yesterday announced the names of organisations whose applications for underserviced area licences (USALs) were successful.

While licences were granted to all 14 applicants, only three of the organisations were issued with licences outright, without conditions. This is in accordance with a three-phase licensing approach adopted by ICASA, which attaches conditions to issuing of the licences.

As part of the first phase, the three licensed entities are Ukhahlamba Communications (Ukhahlamba district), Northcom (Northern Free State) and Nkangala Telecoms (Nkangala).

Licensees in the second phase will only be issued with USALs after ICASA receives comprehensive information about their financial and/or technical solutions, explained outgoing ICASA councillor Mamodupi Mohlala.

Bidders which fall under this category include Nyakatho Telecoms (Umkhanyakude district), Ilembe Communications (Ilembe), Dinaka Telecom (Bophirima), PlatiTel (Bojanala) and Metsweding Telex (Metsweding).

The third phase involves successful bidders who would be licensed subject to the finalisation of mergers between bidders, as proposed by ICASA.

Where mergers between bidders are expected, ICASA has received merger documents and the merger process is close to completion, Mohlala said. Recommendations with regard to the completed mergers will be forwarded to the communications minister as soon as possible so that she can grant these licences, Mohlala added.

An analysis of the licensing process, which will explain why certain bids were successful and others failed, will be available on ICASA`s Web site today, she said.

Fresh models

Jerry Mahlangu, bid manager for Nkangala, said the USALs come at a "most interesting time", with the introduction of the Electronic Communications Act and the Regulation of Interception of Communications and Provision of Communication-Related Information Act, as well as Virgin Mobile coming into operation.

He is aware of the problems faced by companies that were previously licensed, and hopes the new batch of companies will bring new business models and fresh ideas.