State-owned telecommunications operator Telecom Namibia has won the first round in the court battle against Internet service provider (ISP) MWeb Namibia, concerning the state utility's control over the ADSL backbone in the southern African country.
MWeb Namibia mounted a case with the Namibian courts on 5 April, challenging Telecom Namibia's monopoly over the local loop of the ADSL broadband network.
MWeb Namibia challenged Telecom Namibia for taking advantage of the monopoly by charging Namibian ISPs retail prices for access to the ADSL backbone, making it impossible for them to compete in the ADSL market, according to local Namibian newspapers.
"Telecom Namibia owns and operates the infrastructure whereby ADSL is delivered and refuses second-tier ISPs access to it at a wholesale price," explains Marc Gregan, MD of MWeb Namibia.
This means second-tier ISPs (dial-up service providers) are charged the same price for access to ADSL as business and home-use customers.
"This makes it rather impossible for ISPs to make any profit," says Gregan.
ADSL monopoly
The three judges that presided over the matter decided it was not urgent and the case was dismissed with costs in favour of Telecom Namibia on Monday, says Oiva Angula, head of corporate communications at Telecom Namibia.
MWeb would have to resubmit its papers to court all over again if it wishes to continue, says Angula.
The Namibian constitution stipulates Telecom Namibia has the rights over bandwidth dissemination through the ownership of technology, which has prevented MWeb from rolling out an independent ADSL network.
"Constitutionally, Telecom Namibia is doing nothing wrong, but their monopoly over the ADSL market is wrong, as competitive consumer prices are being kept at an abnormal high," says Gregan.
There has been continued pressure on the Ministry of Communication since 1992 to create a Competition Act, but nothing has come of it so far, he adds.
Gregan says MWeb Namibia will not be bullied over this issue. "We are appealing to the Constitutional Court and waiting for upcoming court dates."
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