NOMVUYISO BATYI: Icasa’s satellite internet licensing plans are on shaky ground

After three days of hearings the Independent Communications Authority of SA (Icasa) is considering what it says will be an “informed and inclusive approach to the framework for satellite services in SA”. 

But in written and oral submissions to Icasa the Association of Comms & Technology (ACT) argued that the regulator’s approach lacked clear or inclusive objectives. 

The ACT, which represents the telecommunication sector, including major network operators such as Cell C, Liquid Intelligent Technologies, MTN, Rain, Telkom and Vodacom, believes all licensees in the sector, not just new satellite entrants, deserve a more considered regime. 

It also believes any attempt by Icasa to develop a satellite licensing framework with the hope of achieving universal broadband connectivity will be doomed to failure unless it first repairs the broken framework for universal service and access to communications.

That’s why we urged the regulator to pause its satellite inquiry and institute a formal process to review licensing provisions in the 20-year-old Electronic Communications Act (ECA), whose primary objective is to ensure that all South Africans achieve universal service and access to basic communication services regardless of their location or socioeconomic status. 

This was not a new call by the association. We have been vocal about the need for a review of licensing provisions to align them with a global trend towards a regime that levels the regulatory playing field and which is future proof. 

This review must reconsider the onerous obligations — including connectivity obligations to underserved communities — imposed on network operators when they are granted access to high-demand spectrum. And there must be an acknowledgement that spectrum is technology neutral, meaning all service providers who use it — be they satellite or terrestrial — are treated in the same way. 

So far, Icasa has not been upfront in providing an explanation for what shortcomings triggered the proposed new licensing framework. Nevertheless, the regulator has proposed three new types of licences or registration requirements: 

• A satellite gateway earth station licence. Gateway earth stations connect the satellite network to terrestrial networks, and the licence will specify their location and the spectrum they are authorised to use, among other things. The licence will be granted under the ECA’s Private Electronic Communication Network regime, even though a gateway earth station is clearly not private; it is a national network service. 
• A user-terminal network licence. This will authorise access to radio frequency spectra for user terminals to communicate with satellites. However, the ECA already uses the term “subscriber equipment” for devices used by subscribers to access the services of a licensee. Icasa has not explained its intention behind the introduction of a user-terminal network licence. 
• A registration of space segment. The space segment of a satellite system is one of its operational components (the others being the user and ground segments). The proposed registration regime would allow an operator to include SA in its service area. However, if gateway earth stations are to require a licence, there is no purpose to this registration approach. 

Icasa asked for submissions in response to several questions that indicate the direction of its thinking — and which suggest more favourable requirements for the providers of satellite services than for terrestrial networks. For example, Icasa said it intended to align its proposed licensing framework with some of the African Telecommunications Union’s policy principles. However, ACT insisted on a socioeconomic impact assessment study to better align with SA legislation and consider local needs. 

A better approach would be to be guided by global regulatory standards, which emphasise the importance of equitable market access, including regulatory frameworks that permit various technological solutions — such as terrestrial and satellite systems — to function under uniform guidelines. This is the only way to create an equitable competitive landscape and stimulate the market rivalry that puts consumers first. 

These global guidelines, which have won support from regulators such as the UN International Telecommunication Union, are designed to facilitate impartial market entry and attract a diverse array of service providers. Clearly, Icasa needs to conduct an independent analysis to determine the policy principles best suited for SA. 

The regulator also needs to consider the position of existing licences when it devise its new satellite proposals. These are businesses that have invested many millions of rand to ensure compliance with legislation and regulations. A sudden change to the licensing regime, as appears to be under consideration, may render their investments sunk, putting them at a disadvantage to new market players.

In the absence of updated ECA legislation, Icasa is constrained to act within the framework as it stands. New entrants, either terrestrial or satellite, must meet the same requirements and accept the same obligations as existing licensees.

In today’s landscape in SA, satellite services can enhance end-user connectivity and bridge the digital divide by partnering with existing network operators that hold IMT (mobile phone) spectrum and are mandated to fulfil coverage obligations in remote regions where terrestrial infrastructure is economically unsustainable. 

Anything else would discourage terrestrial infrastructure investment, which is critical to make satellite impactful and able to achieve the universal service and access objectives.

• Batyi, a former Icasa councillor and head of the Presidential Commission 4IR project management office in the department of communications & digital technologies, is CEO of the Association of Comms and Technology.