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Monday, April 25, 2005

Under Serviced Area Licence - USAL

Hello good morning and welcome to Cybersurf, your weekly injection for the Internet connection – I am your Cyberhost Steven Lang.

In recent months we have had to devote several programs to telecoms issues rather than web matters, this is because information and communication technologies are inextricably woven together, and because there have been so many serious telecommunications issues that we’ve had to deal with.

Most of these telecom stories have centered on alleged Telkom abuses and have not been very happy stories. Today we have a more encouraging telecom development.

It is about USALS – yes, another acronym – U.S.A.L. which stands for Under Serviced Area Licence.

Both King Goodwill Zwelithini and communications minister, Ivy Matsepe Cassaburri were present at a very grand event last week, where Vodacom announced the signing of agreements with five USALs.

So what really is a USAL? – I put this question to one of the holders – Zuzifa Buthelezi, chairman of Kingdom Communications:

IN: They looked at these areas . . . .
OUT: . . . . both fixed and wireless. DUR: 0’19”


It appears that most of the USALs will be providing voice services. But will they be able to provide data as well? Bevan Booy of Amatole telecommunications services:

IN: Yes, we’ll be offering . . . .
OUT: . . . . in a phased approach. DUR: 0’19”

In my understanding of the USALs, they will be able to provide cheaper services in their particular areas, because Vodacom will offer them favourable bulk rates. The underserviced areas will receive cheaper call rates, and they will benefit from additional employment opportunities.

Speaking to some of the new licence holders, I had the impression, that they did not have a huge amount of experience in the telecommunications business – so are they being set up to fail?

Well this thought must have crossed Minister Matsepe-Casaburri’s mind too, because she made a very public and not at all veiled threat to Vodacom saying that if the USALs failed, she has ways of getting at the largest cellphone operator in the country.

I asked the MD of Vodacom, Shameel Joosub, what his company was contributing to the project:

IN: Government has licenced . . . .
OUT: . . . . their own networks. DUR: 0’24”

That was Shameel Joosub, MD of Vodacom telling us about the Under Serviced Area Licensing initiative. A project aimed at providing information and communication technologies to the more isolated rural communities of country.

With that we close today’s edition of Cybersurf – next week I promise it will be only the ‘Net. Thanks for listening and remember to keeep on surfing.




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