Bigger Picture
Perhaps another way to view this withdrawal is to understand that slow as they may be, there are reforms coming down the line. Apart from insiders (or is that cartel members) nobody really knows when. There's still the imminent announcement from our infamous MoC. With the apparent finalisation of the ICASA Amendment Bill, the ECB looks likely to come into practice sometime in the near future.
In light of this, the current ICASA ADSL Hearings will actually hold very little relevance once the new laws come into being and the whole process will have to start from scratch. Maybe this is the reason for backing out. Now considering that some heads will probably roll in the ICASA camp for this 'waste' of time, new people will need to be employed and that's where the MoC and the National Assembly will be able to stall the whole process, giving the telecos more time to either sort themselves out or continue with their current practices.
Past experience tells us the more likely course of action, but honestly, nobody can tell the future. We'll just have to wait and see and hope the next round of talks don't take too long and that there won't be too many of them. With any luck, the telecos will come to their senses and make positive changes without the need for any regulation.