Independent Communications Authority of South Africa on Under Serviced
Area Licences

14 August 2006

Good day and welcome everyone

This is a briefing regarding the issuing of the under serviced area
licences. The Authority wishes to take this opportunity to present today what
it considers a milestone towards the closing of the digital divide. It has been
a long process given the many applications we received. It is indeed a great
achievement to finally be where we are today. We wish to thank one and all for
the patience and cannot for one minute undermine the efforts and time that you
have dispensed with to date. However telecommunication licensing is a process
that requires involvement by both Independent Communications Authority of South
Africa (Icasa) and Minister of Communications.

Today is a culmination of a process that was announced by the Minister of
Communications who in terms of section 34(2) of the Telecommunications Act
(hereinafter referred to as the Act) issued an Invitation to Apply (ITA) which
was published in Government Gazette No. 27166 dated 11 January 2005.

The Authority together with the Department of Communications conducted
workshops in the various communities on the contents of the ITA and the
legislative framework governing this licensing process. As a result of such
endeavours the Authority received 43 applications and published a notice in the
government gazette advising the public of the number and names of applicants.
These applications were then laid open for public inspection at the Authority’s
library and the relevant municipal libraries in the districts.

Public hearings were held in the Districts designated for licensing in terms
of the ITA. Subsequent thereto applicants were given an opportunity to provide
additional information within seven days of each hearing. Thereafter the
Authority undertook deliberations in accordance with section 35 of the Act
taking into account the written application, oral hearings and the additional
information provided.

Accordingly, the Authority completed the analyses and made a recommendation
to the Minister taking into account the requirements of the Act and the ITA.
The Minister was furnished with the recommendations regarding the Authority’s
findings on the preferred applicant in each District. The recommendations were
submitted on 28 February and 29 May 2006, respectively. The first
recommendation of 28 February 2006 was in relation to the licence areas where
there was one and not more than two applications were received. Thereafter all
applications for the remaining licence areas were analysed and the
recommendation was forwarded on the 29 May 2006.

The Minister has responded to the Authority’s recommendations as
follows:

The following applicants are granted and can be issued with licences:

Eastern Cape province
DC 14 Ukhahlamba District Municipality
Ukhahlamba Communications (Pty) Ltd Limited granted

Free State province
DC 20 Northern Free State District Municipality
Northcom (Pty) Limited granted

Mpumalanga province
DC 31 Nkangala District Municipality
Nkangala Telecoms (Pty) Ltd granted

The following applicants are granted but can be issued with licences upon
Icasa receiving the following comprehensive information:

KwaZulu-Natal province
* DC 27 Umkhanyakude
Nyakatho Telecommunication’s (Pty) Limited: Comprehensive information on
technical solution

* DC 29 Ilembe District Municipality
Ilembe Communications (Pty) Ltd: Comprehensive information on financial and
technical information

North West province
* DC39 Bophirima District Municipality
Dinaka Telecommunications: Comprehensive information on technical solution and
financial statement

* DC 37 Bojanala District Municipality
PlatiTel (Pty) Limited: Comprehensive information on technical solution

Gauteng province
* CBDC 2 Metsweding District
Metsweding Telex (Pty) Limited: Comprehensive information on financial
information and technical solution

The following applicants should not be granted until the finalisation of
their proposed merger:

Limpopo province
* DC 34 Vhembe District
Vhembe Telecommunications Company and Kwetedza Telecommunications: Outstanding
is the merger of the two companies

Eastern Cape province
* DC 13 Chris Hani
CH Communications (Pty) Ltd and Ntwasahlobo: Outstanding is the merger of the
two companies

Free State province
* DC 19 Thabo Mofutsanyana
Thabo Mafutsanyana Telecom (Pty) Ltd and Maluti Communications (Pty) Ltd:
Outstanding is the merger of the two companies

Mpumalanga province
*DC 30 Eastvaal (Gert Sibande)
1. Thanda Telecom (PTY) Ltd
2. Khula Air Conditioning
3. Elangeni Communication (PTY) Ltd
4. Arengo 134 (PTY) Ltd: Outstanding is the merger of the four companies

This process is close to completion as the merged entities in both Limpopo
and Free State provinces have submitted their documents as a merged entity. The
recommendations with respect to these will be forwarded to the Minister as soon
as possible after the analyses.

With respect to Mpumalanga province the date for submission by the merged
entity is 31 August 2006. The same process will be followed therein.

Gauteng
* CBDC 8 Westrand
The recommendation regarding the process in the above district will be
finalised after proper consideration of the outstanding information from the
Department of Communications.

Limpopo province (Clr Zokwe )
* CBDC 4 – Bohlabela District
Zero Plus Trading 217 trading as Bohlabela Fixed Mobile Telecommunications
Limited: Comprehensive financial and technical solution.

The Authority will be contacting the applicants to propose dates to commence
negotiation of license terms and condition. Before I hand over for questions, I
wish to thank the Icasa team that gave up their December holidays and worked
tirelessly on this process.

We thank and wish you all the best.

Issued by: Independent Communications Authority of South Africa
14 August 2006
Source: Independent Communications Authority of South Africa
(http//www.icasa.org.za)