JOHANNESBURG, South Africa-The four-week license hearings for the third cellular operator in South Africa held in September and October offered some of the best theatrical presentations ever seen on the African continent.
For the sake of transparency, the hearings were held in public, and six powerful consortia tested their mettle before the South African Regulatory Authority (SATRA). The regulator’s final decision on the licensee, which Minister of Posts, Telecommunications and Broadcasting Ivy Matsepe-Casaburri will then have to approve, will not be an easy one.
The winning applicant could be announced by year-end.
The applicants promised to roll out futuristic technologies that have yet to be deployed on the African continent. Most of the bidders opted for GSM technology using combinations of GSM 450, GSM 900 and GSM 1800, with General Radio Packet Services (GPRS) capabilities. More adventurous groups like Africa Speaks opted for a combination of GSM 1800 for urban areas and CDMA 1900 and iDEN 800 for rural coverage. Cell C chose GSM 1800 for initial rollout, but said it was considering other technologies-for example,
CDMA 450, CDMA 800 and iDEN.
Major equipment suppliers traveled from all over the world to make presentations-punting for a favorite bidder, responding to carrier requests for tenders and even offering capital investment.
More than 10 international operators backed the six consortia, with their chief executive officers individually presenting their companies’ plans and answering questions. The operators included SB Telecom, a privately owned telecoms company based in Geneva; GTE/Bell Atlantic, Saudi Arabia’s Oger Telecom, MSI Cellular Investments, Telecel International, the GTIB-Elgadcom Group, Distacom and Telia/Telenor. The cream of international financiers, consultants and legal representatives filled out the ranks of the consortia.
Black empowerment and equity were the buzz words in all the presentations, with promises of numerous new jobs created within the next few years.
Nextcom includes among its shareholders women, the youth and national groups of the disabled. The consortium’s analysis indicated its entry into the market would trigger rapid growth in cell-phone use, doubling the number of users within two years and equalling or surpassing the number of fixed telephones within three years.
Even the smallest consortium was not to be scoffed at. Five Mobile Networks presented a plan to cover rural areas only and provide service to the previously disadvantaged, with prices as low as 15 South African cents per call.
There were also some casualties during the hearings, with Spatial Cellular pulling out at the 11th hour before it was to address the audience.
