. . . as telcos object to CoW licence
Staff Writer
The awarding of telecoms licence to the City of Windhoek (CoW) by the Communications Regulatory Authority of Namibia (CRAN) is brewing up a storm in the telecoms sector, with players accusing the regulator of violating its own rules in the awarding process.
This comes as the CoW licence was upgraded by CRAN from the initial application of a Network Facilities Service License, allowing it to lease its fiber optics to other licensed operators to a Class Comprehensive Telecommunications Service License, allowing the municipality to offer integrated telecommunications services, directly competing with existing players in the sector.
“The City of Windhoek applied for a Network Facilities License and was given a Class Comprehensive Facilities Telecommunications License instead which they have not applied for. MTC was given an opportunity to object but we have not done so because the invitation to comment or object was for a Network Facilities License,” MTC’s Chief Human Capital and Corporate Affairs Officer, Tim Ekandjo told the Windhoek Observer.
“You cannot apply for one license and get something that you have not applied for. Secondly, if due process was followed we would have had the opportunity to object and or give comments but this process was not followed by CRAN which we find very strange. Not having been given the opportunity to comment before the license was awarded, which flouts the elements of fair administrative action by CRAN.”
He said the entry of the City of Windhoek into the country’s telecoms sector will provide it with an unfair advantage over existing players.
“Competition is supposed to be healthy and this will not be healthy competition at all. All telecommunications operators are obliged to seek permission from the City of Windhoek should we wish to erect towers or deploy infrastructure, with now them now becoming direct competitors to operators it cannot be fair for very obvious reasons. We have and will always welcome competition,” Ekandjo said.
“This would mean that operators will be at the mercy of the City of Windhoek whenever we want to erect towers or deploy infrastructure and we cannot be place in such a dilemma given the massive investment and our role towards our customers to provide ICT services.”
Quizzed on the mobile company’s next move since it was not happy with the CRAN decision, he said the company was open to an engagement process, but will also consider a legal option.
“Our philosophy would always to resolve such things amicably by engaging our Regulator but should that not be fruitful we will consider our alternatives in terms of law,” he said.
Paratus Telecommunications also weighed in, accusing CRAN of lacking transparency in the licencing process of the City of Windhoek.
“What is of interest to Paratus, is the highly irregular action of CRAN to amend the class of license awarded to City of Windhoek from that which was applied for, and such amendment, which under normal procedural circumstances would be done with public and stakeholder consultation and engagement. Such procedure was, however, not followed by the industry regulator,” Paratus Spokesperson, John D’Alton said.
He said the venture by the city into the telecoms sector was in violations of the Local Authorities Act.
“The Local Authorities Act is the enabling Act of the City of Windhoek and does not contain any specific provision which mandates the City in terms of implementing, owning or managing any type of telecommunications services. The awarding of such a license to the City of Windhoek is therefore illegal,” Paratus Spokesperson said.
CRAN in its response to an inquiry by the Windhoek Observer rubbished the telecoms companies’ claims.
“The licence was awarded in terms of section 38 of the Communications Act 8 of 2009 and the Procedure set out in the Regulations Regarding Licensing Procedures for Telecommunications and Broadcasting Service Licenses and Spectrum Use Licenses. The award of the licence to CoW is not anti-competitive as they are now subject to the provisions of the Communications Act and CRAN’s Regulations to ensure fair competition in the Telecommunications Sector,” CRAN’s Acting Chief Executive Officer, Jochen Traut said.
He said the decision to award a Class Comprehensive Telecommunications Service License as compared to the Network Facilities Service License was made after taking into considering the services that the city planned to offer.
“Although COW applied for a Network facilities license a Class Comprehensive Telecoms license was awarded. The reason for this is that in terms of regulation 11(9) (a) of the Procedure Regulations, CRAN must, after considering an application, issue the appropriate license.Considering the type of services that CoW intend to provide, CRAN is of the position that the correct license category is a Class Comprehensive Telecommunications Service License (ECNS and ECS) instead of the Network Facilities Service License that was initially applied for. This is especially due to the envisaged smart city services that COW intends to provide,” Traut said.
He, however, said the telecoms companies which are against the awarding of the licence can still lodge an appeal against the regulators decision.
“Despite the decision by CRAN, aggrieved parties still have an opportunity in terms of the Communications Act to apply to CRAN to reconsider its decision in line with the process in the Procedure Regulations,” Traut said.
The licencing of the City of Windhoek comes after power utility, NamPower in March last year launched Grid Online, a fibre optic broadband service after being licensed by CRAN.
