The Communications Users Association of SA (CUASA) has welcomed last week's High Court judgement that clears up the meaning of an uncertain ministerial determination to confirm that VANS can indeed self-provide.
"While not everyone will be pleased by the ruling, overall the decision is likely to increase liberalisation and competition in the market - and that's ultimately going to be a good thing for South African business and consumers," CUASA chairman Edwin Thompson says in a statement.
"There is no doubt that the High Court's ruling will be of great significance to the VANS industry and to the ongoing liberalisation and deregulation of the telecommunications industry in SA."
Thompson explains that the future telecommunications landscape was, in many ways, dependant on decisions coming out of these hearings.
"One can only hope that such decisions do indeed recognise the critical need for further deregulation of the industry and the freeing up of resources to enable the rapid reduction in telecommunication costs going forward."
Communications minister Ivy Matsepe-Casaburri made a ministerial determination in 2004, which indicated that VANS would be able to build their own networks. The Independent Communications Authority of SA (ICASA) initially interpreted the determination as confirmation that VANS would be able to self-provide, but the minister later said she had never intended this to be the case.
"With the exception of a possibility of an appeal from ICASA, the matter is now settled and we can hopefully look forward to greater freedom and competition in the South African ICT industry," Thompson says. "However, on the downside, the decision may possibly lead to a measure of 'chaos' while new network operators scramble to provide infrastructure.
"It's also possible that this judgement could lead to an increase in the load placed on ICASA, particularly regarding the allocation of spectrum for the provision of generally wireless telecommunications infrastructure. It is likely that an initial rush to self-provide infrastructure will be followed by a period of consolidation, as has been the case with other aspects of the telecommunications industry."
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