'Ruling will bring down prices'

The High Court ruling will spur on the creation of many new operators in the sector that will ultimately bring down prices for consumers.

This is the view of AltX-listed Huge Group CEO Anton Potgieter. Playing in the least-cost routing and managed telecoms space, Huge itself won't benefit directly from the ruling. But Potgieter says as a managed telecommunications operator, it will create a number of opportunities for the company.

"Because there will be more telecommunications operators to choose from, this "does translate into more confusion for the consumer".

For Huge, this means the opportunity for more auditing and advisory kind of work, where clients want to cut through the increasing number of alternatives available to them.

Potgieter says it gets exponentially more difficult to manage, as the number of telecommunications operators increases: "You need to be quicker and sharper; it makes our job more complicated. But we are on top of it."

But Huge doesn't expect to see a number of new large-scale telcos. The bigger players that have been already been building their networks for some time - or have the financial muscle to potentially do so - include Vox Telecom, Internet Solutions and Altech.

Below that, Potgieter expects to see a proliferation of small businesses rising up in niches, like those setting up infrastructure and services for specific gates communities or businesses.

Job creation

This is where Potgieter says the consumer will really start finding significant benefit on the pricing front.

Some of these companies could grow into medium-sized enterprises after a few years, by spilling over from local community networks into suburbs and small towns.

This, says Potgieter, will create a number of jobs in the sector and drive the utilisation of new and emerging technologies.

Those that do succeed would then be ripe for the picking by the large operators that are looking to further expand their own networks or client base (as long as the competition authorities allow them to).

Potgieter does see a role for a fibre capacity provider like Dark Fibre Africa, in enabling the operators to save the cost of laying out their own infrastructure from scratch.

But he says laying the infrastructure is almost the easy part: "It's the services that need to be structured and priced right. Just because you can self-provide doesn't mean you have a business. It takes time to win customers."

Which is why it is not all doom and gloom for the large incumbent operators either. Potgieter says the little guys will have to work hard for their money, and it is doubtful whether any of the major companies will see a significant erosion in their market share for the first few years at least.

The important factor is, however, is that customers will have more choice among infrastructure and services providers, he says. The positive, knock-on effects of the ruling will undoubtedly "flow through to all areas of the market", says Potgieter.

- Fin24.com