IECNS licences almost certain

2008-11-04 12:35

Cape Town - The Internet Service Providers' Association of South Africa (Ispa) has welcomed the High Court's decision on Friday to deny communications minister Ivy Matsepe-Casaburri leave to appeal the court's recent judgment in favour of Altech.

"We are delighted that Altech has been successful in opposing the minister's application for leave to appeal against the original judgment," Ispa regulatory advisor, Mike Silber said in a press release on Monday.

Altech Autopage Cellular and the Department of Communications have been engaged in an ongoing battle about rights under the Electronic Communications Act, that would allow value-added network service (Vans) providers to build their own networks.

"Ispa hopes that the latest ruling by Judge Norman Davis will bring this chapter to an end so that the telecom industry can move forward in an environment characterised by regulatory certainty and by a fair and even playing ground," Silber added.

Icasa, the regulator for the South African communications sector, is now required to issue all Vans licences issued prior to 19 July 2008 with an individual electronic communications network service (IECNS) licence as well as an appropriate electronic communications service (ECS) licence.

Lower prices

However, because the minister still has the right to petition the Supreme Court of Appeal before 21 November 2008, it is advisable to wait until after this date before the matter can be regarded as settled.

But what does this ruling mean to the average internet user?

According to Ispa regulatory advisor Dominic Cull, Judge Davis's ruling will open South Africa's telecoms market to much greater competition which will lead to lower prices to the consumer.

"The smaller industry players (Vans providers) will finally be able to convert their current licences to IECNS licences, which will allow them to roll out and operate their own telecommunications network throughout South Africa," Cull explained to News24 on Tuesday.

"They will no longer be dependent on big companies like Telkom and Vodacom," he added.

"Though it's still too early to tell, it's likely that we will see some of the larger Vans (such as MWeb, Internet Solutions and Vox) move aggressively into the network provision space and this should mean greater choice and lower prices," Cull said.

In short, greater freedom in the telecom market will mean more money in your pocket.

- News24