Fibre warning for complexes and estates

Internet service providers in South Africa are calling on communications minister Solly Malatsi to enact legislative changes to address the exclusivity deals that some residential complexes and business parks have with fibre networks.

This is according to Internet Service Providers’ Association (ISPA) board member Enzio Lincke, who spoke to 702 about localised fibre monopolies in South Africa.

Even if the area where an estate is located has coverage from a single fibre network operator (FNO), different Internet service providers (ISPs) will compete on price and service offerings over the shared infrastructure.

Limiting the choice of ISPs means customers can’t look for the best pricing or service to meet their needs.

Alternatively, if they are unwilling to use the fibre ISP, they are forced to explore options like fixed-wireless connections.

Lincke’s comments came just as the Competition Commission began urging people unhappy with such exclusive ISP arrangements to come forward with their stories.

Competition Commission spokesperson Siya Makunga said they had received many complaints from residents over ISP monopolies in residential estates.

Makunga said the commission had conducted a public advocacy campaign focusing on pro-competitive regulation in estates and complexes.

He said the investigation found that some homeowners associations and body corporates in the country appoint a single service provider for things like fibre connectivity, limiting residents’ choice when shopping for a fibre deal.

Lincke said that currently, the only recourse for residents of such complexes, estates, and office parks is to take legal action, which is prohibitively expensive for most people.

He said the National Integrated ICT Policy White Paper, released in 2016, does stipulate that consumers should be given a choice of ISP.

Unfortunately, the policy had not yet been enacted.

BBM Attorneys director Marina Constas previously warned that exclusivity deals which give households or businesses no choice of ISP constitute anti-competitive behaviour.

Constas said the Community Schemes Ombud Service (CSOS) has attempted to address such practices. However, she explained that it wasn’t the correct entity to approach.

“CSOS only has delegated authority to deal with certain remedies, and dealing with fibre and this kind of thing is not one of those,” she said.

Constas said that ISPs and fibre providers sometimes promise complexes or trustees a good deal or other perks in exchange for giving them exclusivity.

She believes this kind of practice would fall foul of the competition board.

ISPA recently told MyBroadband that estates and complexes should reject fibre installations that don’t allow for competition at an ISP level.

“ISPA’s view is that closed networks — or entering into an exclusive arrangement with one provider — are contrary to the ideal of a level internet services playing field that values innovation and competition,” it said.

“South Africans must refuse second-best and continue to evangelise the principle of open access FTTH where they live.”

ISPA chair Sasha Booth-Beharilal recently said estates and complexes with exclusive fibre arrangements are doing their residents an injustice.

“More than one fibre provider is ideal,” she said.

“At the very least, homeowners’ associations, body corporates and property developers should reject any potential fibre installation that does not allow for multiple ISPs to compete at the customer-facing level.”

ISPA has called for open-access fibre installations several times in the past.

According to Booth-Beharilal, homeowners associations and body corporates that commit to open-access providers must put such assurances in writing.

“Clauses to this effect must always be inserted in any written agreements with planned fibre providers,” she said.

“Open access commitments must be kept on body corporate meeting agendas, and residents must scrutinise fibre rollout agreements within communities before trenching begins.”

ISPA said it was impossible to provide the exact number of complexes and estates using closed networks in the country. However, anecdotal evidence suggests that there are many.

It believes this is due to a lack of understanding of open access, combined with estates rushing to get fibre laid.