Communications minister Ivy Matsepe-Casaburri says she is consulting legal advisors and will examine all options open to her after the High Court on Friday issued an interdict to prevent her from awarding the third cellular licence.
"The much-awaited judgement which would have paved the way for me to announce the winning bidder has scuppered the process, sending a negative signal to foreign and domestic investors considering SA as a preferred investment destination," the minister said in a statement.
The order by Pretoria High Court judge Nico Coetzee prevents the minister from acting on the final recommendation of the SA Telecommunications Regulatory Authority (SATRA) that the licence be awarded to the Cell C consortium. The SATRA decision will instead be subjected to a full judicial review, and if the selection process is found to be flawed, the newly formed Independent Communications Authority of SA will in all likelihood be tasked to select a new preferred bidder.
Nextcom is confident the ruling is the first step on its path to winning the licence. At a press conference after the ruling, the consortium displayed advertising banners reading: "Equality for all after the revolution. No price discrimination between contract and prepaid."
"We are confident that the process we have set in motion will ultimately ensure that the licence is placed where it belongs, with Nextcom," said CEO Bushy Kelebonye. He characterised the ruling as a victory for the system of government. "We believe this is a major step towards re-establishing confidence in the South African telecommunications industry as an attractive and trustworthy investment destination," he said.
Nextcom said it has not caused the government or the department of communications embarrassment by its court action, and is still in the running for the licence.
While Nextcom anticipates victory, Cell C continues preliminary preparations. Cell C earlier concluded an agreement with MTN and Vodacom which will see it share the high-bandwidth 1800MHz spectrum with the incumbents should it win the licence. In return, Cell C will receive access to the currently used 900MHz spectrum, and the deal is thought to include facility-sharing agreements.
Telia/Telenor Afrozone, the consortium SATRA originally ranked second after Cell C and substantially ahead of Nextcom, kept a low profile in the court case. Consortium chairman Themba Vilakazi expressed mixed feelings at last week`s ruling.
"While we are happy that the rule of law still prevails in SA, we are frustrated by the process and the delays," he said in a statement, also expressing confidence that his consortium is the best qualified to receive the licence.
While legal experts say the race will again be open to all six original bidders, the three consortiums privately agree that Africa Speaks, Five Mobile Networks and Khuluma 084 will not present a challenge.
Related stories:
Cell case to be heard in October
Nextcom granted interdict
Share