Johannesburg | Thursday
A SECOND competitor for Telkom might only enter the market in 2005, and not next year as earlier announced, Telecommunications Minister Ivy Matsepe-Casaburri said on Wednesday.
The licensing of a second competitor would depend on the outcome of a feasibility study, she told reporters in Pretoria.
A first competitor is to be licensed next year, after Telkom’s monopoly comes to an end in May.
Casaburri and two other ministers on Wednesday briefed the media on revisions to the government’s telecommunications policy announced last month.
At the time, she said two new operators would be licensed next year. Telkom and other players in the industry urged the government to reconsider its decision.
In March, the government said it would license only one new competitor to Telkom for at least four years.
Trade and Industry Minister Alec Erwin on Wednesday said the government still believed a second competitor — a third national operator — was realistic and feasible.
”However, if the feasibility study shows it makes no market sense, we will delay that.”
He said the decision to license only one new operator next year was not the result of pressure on the government.
”What came to bear was probably the judgement of the ministers in the end, and not pressure from particular groups.
”We felt that trying to digest all of this at once… may not be the most effective way of dealing with the managed liberalisation (of the industry).”
The new entrants would be known as fixed-mobile operators. This means they could install fixed-line telecommunications systems, and use mobile technology, similar to cellphones, in rural areas.
The first competitor — or second national operator (SNO) – would use Telkom’s infrastructure for two years, while building its own.
Asked what effect the announcements would have on Telkom’s proposed listing, Public Enterprises Minister Jeff Radebe said it was still planned to list the parastatal before the end of the current financial year.
Casaburri also said no broadband licenses would be issued. Broadband services, which require high-powered communications lines, would be available through the licensed telecommunications companies.
There would also be no legislative restriction on foreign ownership. Previously, it was proposed that foreign ownership of telecommunications companies should not exceed 49%.
Casaburri said carrier pre-selection, which would enable a user to chose which operator he wished to use, as well as number portability, enabling consumers to keep their number if they changed operators, would be in place by 2005.
The policy changes were approved by Cabinet last week. They are to form part of the Telecommunications Amendment Bill, to be tabled in Parliament shortly.
Still to be determined was which state-owned enterprise, Esi-tel (a division of Eskom), or Transtel (a subsidiary of Transnet), would be allowed to invest in the SNO, and how much.
In terms of the policy, Telkom, MTN, Cell C, Vodacom and the SNO would be assigned 1800mHz frequencies within six months of its finalisation.
The licence of Sentech, which distributes broadcasting signals, would be extended to provide international telephone services and other multi-media products.
The new licensees would be required to set aside 30% of their shares for empowerment purposes.
All telecommunications operators will have to pay up to 0,5% of their turnover to the Universal Service Fund for roll-out to underprivileged areas.
Small, medium and micro enterprises would be able to obtain licences to provide telecommunications services in areas where less than five percent of the population had access to telephones.
The policy also requires the setting up of public emergency centres to be accessible on a nation-wide number, 112, free of charge.
Public schools would be entitled to a 50 percent discount for internet use, and a private network would provide maritime services for emergencies at sea.
Telkom said it was looking forward to continued talks with the government as it finalises the detail of the policy.
The chairman of the parliamentary portfolio committee on communications, Nkenke Kekana, welcomed the minister’s announcement.
He also said the legislation to be passed by parliament this year would address all outstanding issues such as the definition of ”fixed mobile”.
”We are hoping the entire process of the passing of legislation would be finished by mid-October,” Kekana said.
Transtel has welcomed Casaburri’s announcement of proposed amendments to the Telecommunications Act and finalisation of the new telecommunications policy.
In a media statement on Wednesday, Transtel said it had been upgrading its infrastructure, including rolling out a nationwide fibre-optic network. Also on Wednesday the company issued a tender request to identify a technology partner to help it introduce a telecommunications network which can ensure strong competition for Telkom. – Sapa