THE floodgates have been opened for companies to start laying their own telecommunications networks — and finally start bringing prices down.<\/p>\n
The Independent Communications Authority of South Africa (Icasa) decided not to appeal the Pretoria High Court’s judgement to allow Altech Autopage Cellular to become a provider of telecommunications services. <\/p>\n
Senior Icasa officials were locked in meetings late last week to discuss the appropriate response to the court’s decision. <\/p>\n
The decision will mean that Altech Autopage Cellular will be allowed to roll out its own physical network infrastructure rather than being a mere service provider piggy-backing on the network of licensed operators (MTN, Vodacom, Telkom, Neotel and Cell C).<\/p>\n
Icasa spokesman Sekgoela Sekgoela said: “Our position is that we are not appealing. That judgment stands, and we won’t oppose it.”<\/p>\n
Following this, the regulator said it was now ready to issue converted I-ECNS (Individual Electronic Communications Network Licences). <\/p>\n
A total of 27 licensees will receive IECNS and IECS (Individual Electronic Communications Services) licences. <\/p>\n
Industry observers felt the Altech decision was justified considering the country’s high telecommunications prices which, according to a 2005 study by the South Africa Foundation, are 31 times higher than the cheapest country. <\/p>\n
Since the publication of the study, prices in South Africa have been on the rise — despite the introduction of second network operator Neotel. In the rest of the world average prices have been dropping. <\/p>\n
Last week’s decision could set a precedent where a flood of Vans (value added network service providers) entering the market will have the legal right to dig up roads and pavements in areas they feel are commercially viable for the rollout of fixed networks, which will be either copper or fibre-optic cables.<\/p>\n
The regulator is currently converting five Vans licences into I-ECNS licences . <\/p>\n
These are for Dimension Data, Datapro, MultiChoice, Global Web intact and Verizon.<\/p>\n
In December last year, Altech wrote to Icasa seeking clarity on the decision and threatened legal action on the matter.<\/p>\n
In April this year, Altech launched a court case which held little promise of victory.<\/p>\n
Craig Venter, Altech chief executive, said: “We undertook to get clarity on a matter which at the end of the day affects the South African consumer and businesses alike in terms of having access to a wider range of telecommunications providers and ultimately seeing reduced rates in voice and data services.”<\/p>\n
South Africans have, to date, had a choice between services hosted by Vodacom and MTN, Telkom and recently Neotel.<\/p>\n