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Johannesburg - The South African telecommunications landscape has been fundamentally changed as of Friday morning when a judge ruled in favour of Altech Autopage's High Court application essentially appealing for all network service providers be allowed to build their own networks.
It effectively takes the "managed" part out of the liberalisation process and could throw the market wide open to competitive forces.
The judgement means that telecommunications regulator Icasa - unless it appeals - would have to cast aside its competitive process for determining which value-added network service providers (Vans) qualify for Electronic Communications Network Service (ECNS) licences under the Electronic Communications Act, and grant these to any operators that want to build their own networks.
The winners will be those operators that have the funding, and importantly the black economic empowerment (BEE) credentials (Icasa says they'll need 51% BEE ownership), to be able to successfully apply for WiMax spectrum to build their own wireless networks.
The losers will be Vans like Vox Telecom, M-Web and Internet Solutions (among the front runners in Icasa's competitive process), because although they too will be awarded ECNS licences, they'll have their competitive advantage eroded somewhat.
The matter dates back a 2004 ministerial determination in which Ivy Matsepe-Casaburri made a statement that as of 1 February 2005, "value-added network services may also be provided by telecommunications facilities other than those provided by Telkom and the second national operator or any of them".
Icasa interpreted this as that the Vans could self-provide, but later backtracked. The minister argued she had never intended that to be the case, and this is the line that she and Icasa fought in response to Altech's court application.
Icasa also argued that it would be impractical to let all 600-odd Vans dig up the country's roads to lay their own networks.
The reality is that not all would be able to afford to do so. But, the situation would arguably have to be carefully controlled to minimise disruption and chaos on the roads.
It was always mind-boggling that the minister's confusing determinations were never challenged in court - before now, that is.
Perhaps the explanation lies somewhere in the fact that the confusion benefited some, who took advantage of the grey area to build their own networks anyway.
* Altech management is expected to release a statement later this afternoon. Fin24.com will also endeavour to get comment from the other parties.
- Fin24.com