ICASA recently published a license conversion matrix, giving an indication as to who may be Telkom’s future competitors.
The new licensing regime will afford the same rights to all Electronic Communications Network Services (ECNS) license holders which mean that these licensees are free to build infrastructure of any sort and resell spare capacity on their networks.
ICASA published a full list of planned individual and class license conversions, including Broadcasting Service (BS), Electronic Communications Service (ECS) and Electronic Communication Network Service (ECNS) licenses.
The potential Telkom competitors
If the license conversion process happens as set out in the conversion matrix published in the November 5 Government Gazette, Telkom may face competition from many newly licensed infrastructure providers.
To compete head on with Telkom companies should ideally be in possession of individual ECS and ECNS licenses.
Individual ECS and ECNS license conversions are in store for Telkom, Neotel, Vodacom, MTN, MTN Network Solutions, Cell C, Sentech, WBS (iBurst), Swiftnet and SITA.
VANS ‘under consideration’
Verizon South Africa, DataPro (aka Vox Telecom), Internet Solutions, MWEB, Global Webintact and Fleetcall are all under consideration for an individual ECNS license.
According to ICASA “Under Consideration” means that the licensee has provided all the information required and hence qualifies to be considered for license conversion.
These ‘to be considered’ ECNS licensees must be in compliance with their current license conditions, must show an intention to roll out networks substantiated by a technical plan, give their 5 year financial projections, show the ability to pay the ‘fixed license fee’ (in the region of R 100-Million over 6 years) and promise certain performance criteria.
Exemptions and exceptions
Municipalities like the City of Cape Town and City of Joburg are license exempt unless they start to resell capacity which means that they can also compete with Telkom in the infrastructure arena by providing services to their inhabitants.
Transnet and Eskom’s license conversions are “to be confirmed”, something which may be related to the controversial ECA Amendment Bill currently being debated in Parliament.
Feedback from companies
ICASA has asked licensees to study the matrix and confirm their rights. In the event that the information contained in the matrix does not properly reflect what has been submitted or the appropriate license category, companies must inform ICASA before or on 16 November 2007.
The license conversion and issuing process is expected to be completed by the middle of 2008.