Vox, IS fight Autopage

Johannesburg, 25 Apr 2008

Value-added network service providers (VANS) Vox Telecoms and Internet Solutions will oppose Altech Autopage's high court application for an interdict to be brought against the Independent Communications Authority of SA (ICASA).

This week, ITWeb revealed Autopage had launched an urgent application to halt the licence conversion process currently under way by ICASA.

The application also cited communications minister Ivy Matsepe-Casaburri, ICASA chairman Paris Mashile, and 24 VANS as respondents. The latter are companies that either participated or indicated their willingness to participate in the ICASA licence conversion hearings of 17 to 19 March.

Yesterday, Vox and IS said they had initiated proceeding to oppose this application as it would "just delay proceedings further".

Cheeky move

IS CEO Angus MacRobert says the company is disappointed that Altech chose to take this stance.

"All this is going to do is stifle a process that the Department of Communications (DOC) and ICASA are trying to run as best they can. It also means the liberalisation of the telecommunications market is going to be slowed down."

Vox CEO Doug Reed agrees: "This is a blessing for the fixed-line monopoly player and other incumbents; it plays right into their hands of holding on for as long as possible."

Late to the game

The premise of Autopage's and an earlier application for clarity by the Wireless Access Providers' Association submission is that VANS should be allowed to self-provide.

However, Reed and MacRobert accuse the company of trying to jump into a process that is already under way.

Says MacRobert: "Autopage is a 'Johnny come lately' which is just trying to get in on the process in whichever way it can. They say they have the money to be able to self-provide so for that reason they should be given a licence. On the same premise, Anglo American could demand a licence."

A source close to ICASA agrees, speculating Autopage chose to take legal action because the operator "missed the boat".

"Autopage entered the market late, and didn't study the provisions of the EC [Electronic Communications] Act thoroughly to understand the opportunities it presents the company. Companies that are aware of the opportunities are busy winning customers; they are not wasting time and money in a futile legal challenge. Autopage had ample opportunity to challenge the terms and conditions of the licences.

"If the company was up to date with its game, why didn't it challenge the minister's clarification in 2006? Why didn't they challenge the VANS regulations that were published after this declaration?"

However, Altech CEO Craig Venter says the action is based on a flawed licence process.

"The whole process from licence to spectrum allocation is flawed. It should adhere to what is laid out in the EC Act. More than that I can't say; this is a legal process and the matter is sub judice," he notes.

Heading to court

Law firm Routledge-Modise, in association with Evershed, says it has served notice on behalf of Vox and IS of their intention to oppose.

Director Jenny Stolp says the firm is now taking instructions from the clients and preparing the required answering affidavit.

"We are due to file the answering affidavits next Wednesday; however, this may be difficult given the amount of work involved and the public holidays. The hearing on this matter is scheduled to take place on 13 May."

ICASA and the DOC have also served notice of their intentions to oppose the application.

However, Reed yesterday hinted the regulator may not have the financial resources required to mount a vigorous defence. Vox's actions would help the regulator get through this process, he explained.

Gateway Communications COO Mike van den Bergh says the company is "mulling its options" and will make a decision after it meets with its lawyers later today.

(Additional reporting by Damaria Senne and Paul Vecchiatto.)