Issued by: SA TELECOM
Johannesburg, Monday, 20 September 1999
The South African Telecommunications Regulatory Authority (SATRA), today commenced with public hearings on the applications for the third cellular operator license.
The first two days of the hearings, spanning a period over four weeks, will be dedicated to input on the license conditions of the Third Cellular Operator.
Today, Monday, 20 September 1999, MTN, Africa Speaks, Cell C and Five Mobile Networks presented their viewpoints on the license conditions for the Third Cellular Operator to the SATRA Council. Says SATRA Chairperson, Nape Maepe: "Many people have criticised the length of Third Cellular License Process. However, SATRA is obliged to follow the letter of the Law. This process is clearly defined in Section 34 of the Telecommunications Act under which mandate SATRA operates."
According to Maepa, "We are very excited about the eagerness of all the bidders to serve the historically disadvantaged in this country. From our side, we can assure them that SATRA is committed to put together license conditions that are fair, particularly considering the needs of this specific sector of our society."
MTN, South Africa's second largest cellular operator started off the proceedings, denying that it is engaged in delaying tactics. According to a MTN spokesperson, they only want to level the playing field and speed up the third cellular licensing process. He also said that a co-ordinated approach, involving all the players, would best serve the previously disadvantaged.
In addition, MTN expressed a sincere commitment to resolve technical issues such as network rollout, spectrum allocation, interconnection, facilities sharing and national roaming through discussions with all stakeholders - SATRA, MTN, Vodacom and the new market entrant.
Africa Speaks, Cell C and Five Mobile Networks, who also gave their input today, agree that the issues highlighted by MTN could be resolved through dialogue facilitated by SATRA.
Applicants also concluded that the overall License Conditions for all cellular operators should be similar. They do not expect the new entrant to enjoy superior license conditions.
However, concessions should exist in certain areas, such as a possible 5-year spectrum exclusivity to the new incumbent. This will enable it to face the major challenges, build up an effective business and get satisfactory returns on their substantial investment.
However, everybody resolved that within three years, the license conditions should be identical for all the players.
There was also a general concern amongst all the stakeholders as to when a fourth cellular license would be issued. According to Maepa, SATRA will be investigating the feasibility of licensing a fourth operator within the next two years.
Reflecting on the events of the day, Maepa said: "We are delighted by the positive attitude and commitment displayed by MTN and all the applicants who gave input today.
"Without exception, they all expressed their eagerness to co-operate in levelling the playing field; and to reach an agreement that will benefit all the players in the cellular industry."
Telkom, and four applicants, Kuluma 084, Nextcom, Spatial and Telea/Telenor will make their presentations tomorrow, Tuesday, 21 September 1999.
Issued by the SATRA Communications Department, Block B, Pin Mill Farm, 164 Katherine Street, Sandton.
For further inquiries, please contact:
Esta Gouws, SATRA Head Of Communications Cell: 083 447 6562 e-mail: estag@satra.gov.za
20 September 1999