The Internet Service Providers’ Association (Ispa) has blasted communications regulator Icasa for failing to provide new network and service licences to industry players, warning this is undermining the ICT sector’s development.

Ispa, which has about 220 members (mainly ISPs), said on Friday that if Icasa were to issue a standing invitation to apply (ITA) for so-called IECS and IECNS licences, then there would be a direct flow-through benefit to South Africa’s economy and to black economic empowerment.

An IECNS licence allows for the construction of connectivity services over a physical network throughout South Africa, while an IECS licence allows the provision of services, including Internet access and voice services, also on a national basis.

Ispa has made several requests over the past two-and-a-half years for licensing to resume. According to its regulatory advisor, Dominic Cull, the association wrote to both the minister of communications and Icasa in October 2020 to request that IECS and IECNS licences be made available through a standing ITA. No substantive response was received, he said.

According to Cull, small businesses wanting to grow their footprint have no option but to purchase a licence on a willing seller, willing buyer basis from existing licensees and apply to Icasa for a transfer.

“This costs a significant amount of money – generally more than R1-million — and the Icasa application process will take a minimum of five to eight months to be completed,” Cull said.

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“In Ispa’s view, there is no legal impediment to Icasa immediately drafting and finalising a standard ITA to allow applications for IECS licences. As regards IECNS licences, there is a requirement for a simple ministerial policy directive before a standing ITA can be finalised.”