The ICT SMME Chamber says the Independent Communications Authority of South Africa’s (ICASA’s) decision to change direction in regards to licensing of the wholesale open-access network (WOAN) is “inconsistent” with the policy directiveon spectrum licensing.
In making this decision, ICASA has also “gone beyond its powers”, it says.
Telecoms regulator ICASA earlier this month said it had resolved not to publish the envisaged WOAN consultation document on 19 November as previously communicated. Since its announcement, ICASA has drawn criticism from advocacy group Right2Know, and now the ICT SMME Chamber.
The ICT SMME Chamber is concerned the suspension of the WOAN invitation to apply (ITA) will delay the objectives of the minister’s policy directive, as dated 26 July 2019.
It highlights that these objectives include the implementation of broad-based black economic empowerment (B-BBEE) in the sector, SMME development and engagement, fulfilment of legal and regulatory requirements, and spectrum allocation and licensing.
For the ICT SMME Chamber, the above-mentioned objectives are not only important for the regulation of the sector, but also important to realise Constitutional rights such as access to information.
It states: “The effective participation of historically disadvantaged individuals, together with SMME development in the sector, has been a big bone of contention. It is clear that the minister through the WOAN ITA has attempted to address B-BBEE and SMME objectives; however, it is apparent these objectives have not been taken seriously.”
The ICT SMME Chamber believes the ITA for high-demand spectrum and WOAN must commence simultaneously, as contemplated in the minister’s policy directive.
“If the authority is of the view that the WOAN ITA should be temporarily suspended, then the spectrum ITA should be suspended along with it. The two ITAs must proceed simultaneously as contemplated in paragraph 2.1.2 of the minister’s policy directive.”
It adds: “Further, the licensing of permanent spectrum must be made a priority and the licensing of provisional or temporary spectrum cannot be licensed indefinitely. By suspending the two ITAs and withholding the licensing of provisional spectrum, the authority will create incentive for all stakeholders to not only participate in the ongoing consultative process, but it will also help all stakeholders to come together to rectify any issues with the ITAs.”
The chamber of business advocates for small business ICT entrepreneurs and women on all matters of ICT SMME development and ICT sector transformation.
It’s been very vocalin the past of its desire to see the creation of a WOAN, as it believes it to be a viable option for creating new business opportunities for ICT SMMEs, as well as new entrants to the sector.
WOAN still on track
Briefing Parliament’s Portfolio Committee on Communications this morning, ICASA chairperson Dr Keabetswe Modimoeng reassured MPs of the regulator’s commitment to the WOAN.
In order to ensure more telecoms operators gain access to high-demand spectrum, ICASA has created a policy which requires that a portion of unallocated high-demand spectrum be assigned to the WOAN.
ICASA has set aside radio frequency spectrum within the 700MHz, 2 600MHz and 3 500MHz spectrum bands for the WOAN.
The WOAN invitation to apply provides for a radio frequency spectrum licence to be issued for the WOAN, which will be valid for a period of 20 years, renewable annually on payment of a prescribed licence fee.
Modimoeng told the portfolio committee members that the WOAN is intended for the introduction of a new market player, which will operate on a wholesale basis.
He explained the regulator has taken the decision that between now and March 2022, it will conduct further research and embark on international interactions with countries that have licensed the WOAN.
This, he stated, is to learn what to avoid or enhance to ensure the success of the WOAN in the country. “ICASA is still committed to the WOAN,” he indicated. “There will still be spectrum set aside for the WOAN.
“In the period between now and March 2022, we’ll be embarking on the international interactions while also focusing on the spectrum auction. This is so that the auction can conclude in March, and we can seamlessly start the process of outlining the next licensing steps for the WOAN.
“The WOAN is still alive, and even as we auction high-demand spectrum, there’ll still be spectrum set aside for the WOAN. There shouldn’t be any apprehension that ICASA may be abandoning the WOAN.
“We are still embarking on that process [but] it has to be an informed process and we need to ensure that by the time the WOAN is licensed, it’s licensed having taken into account a number of economic considerations internationally, which include the impact of the COVID-19 pandemic on market structures and telecommunications sectoral configurations.
“Markets are changing as a result of the pandemic, and consolidating from four-player markets to two-player markets in some respects.
“As the regulator, we believe in making informed decisions,” Modimoeng concluded.
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