Johannesburg - Telecommunications industry players popped open the champagne on Friday afternoon in the wake of Justice Davis' ruling that operators could provide their own networks.
Those with the financial means to do so are already planning to roll out their own networks to bypass the incumbent operators.
This should mean increased competition and lower telecoms prices.
Altech CEO Craig Venter said many - this journalist included, it must be conceded - had accused the company of potentially delaying the deregulation process, but it was pleased that it had the backbone to stand up and challenge a flawed process: "In hindsight, it actually sped things up... The liberalisation process has been substantially sped up with today's ruling."
He says that Altech, as a listed entity and a player in the industry, had believed the entire industry was being compromised by the lack of clarity: "We're not necessarily going to build a national network, but at least the process is now clear and transparent."
Few believed that Justice Davis would deliver his verdict so quickly, but he did so in just four weeks.
Icasa and the minister of communications have yet to decide whether or not they will appeal the judgement.
Icasa released a statement saying it would study the contents of the judgment and "chart the way forward". The minister, meanwhile, was in a meeting this afternoon, and her spokesperson Joe Makafola said he would revert with a response as soon as she became available to do so.
Asked whether Altech had been surprised with the verdict, which went entirely in its favour - including paying its legal costs - Venter said it had been "quietly confident", although the outcome of a judicial process was never certain.
Venter said the landscape had previously been unpredictable, but now that there was clarity, the Altech board would decide on how to proceed.
It would consider all its options in this regard, including rolling out a wireless network (subject to obtaining the necessary spectrum), a fixed-line network, as well as consolidating or partnering with other players. "There is only a handful of players that would have the financial wherewithal to build a national network. Altech would be one of those," Venter said.
Spectrum for wireless
In order to qualify for WiMax spectrum - a high-speed wireless broadband technology - Icasa has said it requires companies to be 51% black-owned.
Venter says the industry is taking this up with Icasa, after it raised the bar from 30% ownership: "We don't believe the 51% is a fait accompli." He said Altech had committed to a 30% BEE stake in Autopage (the subsidiary that holds the telecoms licence) and was in the process of working on this transaction.
Vox Telecom is one of the alternate telcommunications operators that wasn't initially pleased with Altech's decision to take the matter to court, but now concedes that it has done the entire industry a favour.
Chairperson Tony van Marken said the ruling "levelled the playing field".
Van Marken says with its BEE credentials, Vox would be well placed to potentially qualify for WiMax spectrum. But, it will also look at some high traffic metropolitan routes and could consider leasing fibre optic capacity "selectively" along those from Dark Fibre Africa, a fibre capacity provider to the operators. He said Vox would study the judgment and decide how and when to proceed.
ECN, another Vans licensee and voice over IP (internet-based networks) operator to corporates, was also surprised, but elated by the ruling.
CEO John Holdsworth says the landscape has been fundamentally changed: "Now its open season," he says.
ECN had never intended to roll out its own network, so the ruling doesn't necessarily impact it directly.
Holdsworth said it may consider renting capacity from a "dark fibre" - which is a privately owned fibre-optic cable operator, instead of one of the incumbents.
Regulations needed
The ruling was also important as it set the trend: "I think Icasa and the DoC will now be more reluctant to oppose attempts to open up the market."
Holdsworth has long said, however, that having a licence under the new legislation is less important than having the right pro-competitive regulations in place.
He says Icasa must now move quickly in this regard. Some of these include non-discriminatory numbering, fixed-line number portability, cost-based interconnection and facilities leasing, carrier pre-selection and local loop unbundling.
The ruling is a blow to the incumbent operators, including Telkom, Vodacom, MTN, Cell C and Neotel, because it means that the market could become more competitive almost overnight.
Speaking on Talk Radio 702's the World at Six programme, Vodacom CEO-designate Pieter Uys said the operator had long anticipated additional competition with the passing of the Electronic Communications Act.
But, with extra competition also came new opportunities and choices for it. This would also help keep Vodacom on its toes, he said: "We are not afraid of competition."
MTN said it would respond by Monday, while the others had yet to respond to emailed requests for comment at the time of publishing. Their responses will be published at a later stage.
- Fin24.com