Today may have seen the beginning of the end of the dreaded monster lurking in the tangled forests of South African telecommunications law.
When Justice Dennis Davis ruled in the high court this morning that value-added network services (VANS) must be allowed to provide their own networks — and that the regulator is obliged to grant the appropriate licence to any network that chooses to do so — he heralded the beginning of a truly competitive environment in telecommunications.
The court case was brought by Altech Autopage against the telecoms regulator, Icasa, essentially to force Icasa to issue a new category of telecoms licences to anyone who applied, rather than cherry-picking a select handful that Icasa decided were worthy. The Electronic Communications Act envisages that these ECNS (electronic communications network services) or i-ECNS (individual ECNS) licences would eventually allow their holders to provide any communications service, from internet or phone to broadcasting, as the technology underpinning these services is all moving to a common platform, namely the internet protocol. Little wonder everyone would like a slice of that pie.
Friday's court ruling in favour of Altech is probably the most important Telecommunications event since the Government decided to allow a 2nd Network Operator. If you recall the enthusiasm from the public regarding the announcement of the new operator, the depression as the process dragged on for several years and now the eagerness with which we all wait for Neotel to finally launch, you will understand what this means. In effect the court has ruled that anyone who has a VANS license can roll out a network that competes with Telkom (and Neotel, MTN, Vodacom, iBurst, CellC and Sentech), and currently 600 companies in South Africa are licensed.
Expect lots of people to be competing for your telecommunications business in the near to medium future.