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Johannesburg - Talk around town is that Minister of Communications Ivy Matsepe-Casaburri's last-minute decision to appeal a high court decision that would result in more competition in the telecommunications industry came about after pressure from incumbent operators, including Telkom and Neotel.
Neither Telkom, Neotel, or any of the other incumbents could have participated directly in the legal action taken by Altech Autopage, given that they were not party to it. So their only course of action could have been behind-the-scenes lobbying.
Some sources even say one of Neotel's funders threatened to pull out on the news. Tata is currently negotiating to increase its stake in Neotel from 26% to 56% by buying Eskom and Transtel's share in the operator.
Both Telkom and Neotel deny this.
Telkom said, in an e-mailed statement in response to questions from Finweek and Fin24.com, that it refuted all claims "indicating any involvement, of influence or otherwise, with regards to a possible appeal by any party relating to the Altech ruling".
The former monopoly fixed-line operator said it had no knowledge of information provided to the department of communications or the state attorney for grounds to appeal the judgment.
It had indeed scrutinised the judgment, Telkom said, "but only for purposes of assessing the possible risk and impact to its own business".
Let it rest
Neotel executive head for external affairs Wandile Zote said Neotel supported competition: "We benefited from it, so would be the last to stifle that," he said.
Neotel paid R100m in initial licence fees. And if the value-added network service licensees (Vans) were given individual electronic communications network (I-ECNS) licences as part of the conversion process, they'd effectively have the same rights as Neotel and the other incumbents have.
An I-ECNS licence entitles the holder to build its own network (known as 'self-providing' by the industry).
Regulator Icasa chose not to appeal the ruling, proceeding to issue some Vans with their I-ECNS licences in accordance with the judgment.
However, the appeal means it has again been forced to put this on hold: "Icasa will accordingly await the finalisation of the appeal before it finalises the licence conversion process in relation to the Vans licensees affected," it said in a statement responding to questions this week.
Earlier this week, DA MP Dene Smuts said in a statement that the minister had "mismanaged" the liberalisation of the telecoms sector and Justice Davis had brought years of messy ministerial interventions and reversals of the state of the Vans to an end by ruling that they may build networks: "The minister should now let it rest."
"In fact, I believe the minister does want to rest, and that it is probably the director-general Lyndall Shope-Mafole who is threatening to disrupt liberalisation again," Smuts alleged.
- Fin24.com