Identifier
Created
Classification
Origin
05PRETORIA424
2005-01-31 15:25:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Pretoria
Cable title:  

MINISTER ADDRESSES QUESTIONS SURROUNDING VANS

Tags:  ECPS ETRD ECON EINT SF 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS PRETORIA 000424 

SIPDIS

DEPT FOR AF/EPS, AF/S/TCRAIG AND KGAITHER, AND EB/CIP
COMMERCE FOR 4510/ITA/IEP/ANESA/OA/JDIEMOND
TREASURY FOR GCHRISTOPULOS, LSTURM, AND AJEWEL
DEPT PASS USTR FOR PCOLEMAN, WJACKSON AND CHAMILTON

SENSITIVE

E.O. 12958: N/A
TAGS: ECPS ETRD ECON EINT SF
SUBJECT: MINISTER ADDRESSES QUESTIONS SURROUNDING VANS
REGULATIONS

REFTEL: A) PRETORIA 389

B) 04 PRETORIA 5555

(U) Sensitive but unclassified. Not for Internet
distribution. Please protect accordingly.

UNCLAS PRETORIA 000424

SIPDIS

DEPT FOR AF/EPS, AF/S/TCRAIG AND KGAITHER, AND EB/CIP
COMMERCE FOR 4510/ITA/IEP/ANESA/OA/JDIEMOND
TREASURY FOR GCHRISTOPULOS, LSTURM, AND AJEWEL
DEPT PASS USTR FOR PCOLEMAN, WJACKSON AND CHAMILTON

SENSITIVE

E.O. 12958: N/A
TAGS: ECPS ETRD ECON EINT SF
SUBJECT: MINISTER ADDRESSES QUESTIONS SURROUNDING VANS
REGULATIONS

REFTEL: A) PRETORIA 389

B) 04 PRETORIA 5555

(U) Sensitive but unclassified. Not for Internet
distribution. Please protect accordingly.


1. (U) Minister of Communications Ivy Matsepe-Casaburri
released a January 30 statement addressing concerns
surrounding the interpretation of her Ministerial
Determinations that she released September 3, 2004 regarding
liberalization.


2. (U) Casaburri said, "The issue of self provisioning was
issued in the government's policy determinations only in
relation to mobile cellular operators in terms of fixed
links." She continued that value-added network service
(VANS) providers could obtain facilities from "any licensed
operator." While Casaburri used the same language in her
"clarification" that she used in the original Ministerial
Determination, industry analysts understand this to mean
that VANS will not be allowed to self-provide their own
infrastructure and will need to procure facilities from a
licensed operator such as Telkom, the mobile operators,
Transtel, and others. Although this is a victory for
incumbents who argued that VANS could not self-provide, it
likely avoids litigation on the subject that would have
delayed implementation of the remaining benefits to VANS.


3. (U) The Minister also said that government did not
intend "to license every single activity that can be
provided by a VANS operator," apparently in response to
industry requests for greater detail on what a VANS provider
is and what VANS services would require licenses. Casaburri
promised that the imminent Convergence Bill would provide
certainty to the sector in this regard.


4. (SBU) COMMENT. Industry observers are puzzled by the
chronology of these events. That the Minister would
implement Ministerial Determinations to liberalize certain
telecommunications services just weeks prior to the release
of Convergence legislation establishing a more liberal
legislative and regulatory framework is akin to putting the
cart before the donkey. In issuing her clarifying
statement, the Minister did so "against the imperative to
avoid any delays" and "within the context of regulatory lag"
in the event of an amendment to the Telecommunications Act,
leading industry observers to speculate about possible
delays in the February 1 implementation of her Ministerial
Determinations. END COMMENT.

FRAZER