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Johannesburg - Altech Autopage's legal battle for the right to provide its own telecommunications networks began on Tuesday morning in the Pretoria High Court.
The fight so far put a spanner in the works of many telecommunications operators, with SA's telecommunications regulator, Icasa, putting a hold on licensing new network service providers.
The hearings are set to run until Thursday this week, with Altech's legal team scheduled to argue its case for the best part of Tuesday, and each of the opposing parties to state their positions thereafter.
Icasa has, meanwhile, started the process of converting the old, undisputed classes of licences - like value-added network service (Vans) licences and electronic communication services (ECS) licences - into their new categories under the Electronic Communications Act.
Those Vans licensees who want to build their own networks - and who now need an individual electronic communications network service (I-ECNS) licence - were due to hear the outcome of the competitive process from Icasa soon.
Icasa, however, will only announce those results subject to the court's findings on the Altech application.
Altech's legal argument centres around an interpretation of the old Telecommunications Act and the minister of communication's September 2004 determinations. These set down a date for players other than Telkom to provide telecoms facilities.
Altech believes that the minister's determinations removed the prohibition on self-provision from February 1 2005. Altech feels it should therefore automatically be granted an i-ECNS licence.
The department of communications and Icasa dispute this.
While other Vans licensees may agree with Altech, many believe it should have challenged the interpretation of the minister's determinations some time ago, instead of so near to the end of Icasa's process of awarding new licenses.
Applicants that eventually come to enjoy the right to provide their own infrastructure would still have to apply for frequency spectrum in order to roll out wireless networks (which are much cheaper than fixed-line network options). Icasa recently said that those wanting spectrum for WiMax would have to be 51% black-owned.
The judge's ruling will have implications for the entire telecoms industry.
- Fin24.com