WiMax on hold for MWeb

By Candice Jones, ITWeb online telecoms editor

Johannesburg, 03 Apr 2008

MWeb's WiMax trial will be shut down at the end of April, leaving equipment that cost upward of R10 million dormant until further notice.

In December last year, the company appealed to the Independent Communications Authority of SA (ICASA) to extend the trial licence that was to be suspended in January.

"We asked ICASA if it would be possible to continue running the trial until the allocation of WiMax spectrum has been announced, but they said it was not possible for them to allow it," says GM for new business projects at MWeb Eugene van der Westhuizen.

While disappointed that the trial networks will have to be shut down, MWeb says it is encouraged by the progress ICASA has made in converting the value-added network services (VANs) to individual electronic communications network services (ECNS) licences.

An ECNS licence, combined with a communications services (ECS) licence, qualifies providers to compete for WiMax spectrum allocation. MWeb already has an ECS licence.

Process still rolling

"ICASA accepted our written proposal, and in March we presented alongside the other VANs at a hearing with the regulator. We will do everything we can to help ICASA facilitate the WiMax spectrum allocation," explains Van der Westhuizen.

In an earlier interview, ICASA officials said those running WiMax trials should not expect to be converted to ECNS. The regulator added that even if the companies are converted, they should not expect to be allocated spectrum.

ICASA has pointed out that spectrum is extremely limited, with a large chunk already allocated to the incumbent providers - Telkom, Sentech, Neotel and iBurst. "At most, ICASA will only be able to allocate to three to four more operators."

MWeb says it still stands a good chance of being converted to ECNS and allocated spectrum. "Nothing is 100% certain, but ICASA is serious about licensing the VANs. We are now just working hard on getting our finalised applications for ECNS in," says Van der Westhuizen.

Playing catch-up

For the time being, MWeb will have to shut down its trial networks that have been running across the country, with around 1 000 trial customers and which cost the company in excess of R10 million to implement.

"We are not ripping out the equipment, but will just shut down the network," states Van der Westhuizen.

The company hopes that if it is allocated spectrum, it will be able to restart the network in a short period and speed up commercial access for its customers.

The incumbent operators, who have already been converted and allocated spectrum, are speedily rolling out commercial offerings. "The only thing we worry about is the time it is taking to license the VANs. The longer we wait, the more of an advantage those with spectrum will have," he says.