Johannesburg - Altech CEO Craig Venter says the group will oppose Communications Minister Ivy Matsepe-Casaburri's appeal against its successful High Court ruling allowing telecommunications companies to build their own networks and not rely on operators like Telkom and Neotel for infrastructure.
If necessary, Altech - and the industry - would proceed with a class action suit against her "unconstitutional" attempt to change the Electronic Communications Act, Venter said.
Speaking at the presentation of the group's half-year results to end-August, Venter said that in the meantime, Altech was proceeding according to the judgment.
Justice Davis instructed telecommunications regulator Icasa to convert the value-added network service (Vans) licences into individual electronic communications network service (I-ECNS) licences, giving them the right to build a national network, among other things.
On Tuesday, Altech went to regulator Icasa to fetch its I-ECNS licence.
It is unclear, however, whether Altech would be successful in doing so.
Icasa had invited some Vans to collect their I-ECNS licences this week, but again put the conversion process on hold pending the outcome of the minister's appeal.
Venter says it is not yet clear whether the appeal would be granted. And even if it were, it was not clear on what grounds the appeal court judge would overturn such an "emphatic" judgment.
In a strategic move, Altech has also bought Fleetcall, a national trunked radio network operator, and one of the few Vans that was on Icasa's original list of those that stood to be awarded I-ECNS licenses. The maximum purchase price is R85m, R35m of which would be paid over two years, subject to performance criteria.
Fleetcall has a national network of high sites which could be used to build any network, ranging from two-way radios to mobile base stations and WiMax broadband.
Venter reiterated that Altech's fight was a matter of principle, the outcome of which could positively impact the entire industry and give it greater clarity.
Altech has yet to decide whether it would build a national network. The ability to do so would not impact its financial performance, however, he said.
Altech reported headline earnings per share of 261c, up 19% on the comparable six-month period. Revenue grew 13% to R4.5bn and operating, or earnings before interest, tax, depreciation and amortisation (Ebitda) margins, increased from 7.7% to 9% in the period.
Venter said the margin improvement was a result of a number of factors, mostly in its telecoms business (which is the biggest contributor to the overall group).
Altech Autopage Cellular had improved efficiencies and cost control. It had also launched its data offering, and had 57 000 mobile broadband subscribers by the end of August.
Venter said the acquisition of the Sameer ICT Group in Kenya, which launched Altech as a player in the East African broadband market and has already contributed to the group's bottom line, had also helped margins during the period.
Venter said Sameer already had 2 400km of fibre in the ground and was rolling fibre out at a rate of 7km per day in Kenya: "We are selling bandwidth there faster than we can lay it," he says of the demand for capacity in that region.
Safaricom and CelTel are currently the firm's biggest customers. Sameer also has network licences in Tanzania and Uganda, and Altech is also rolling out a WiMax network in Rwanda. In addition, the group has taken a 10% stake in TEAMS, an undersea cable operator.
- Fin24.com