/ 1 September 2008

Court rules that carriers can build own networks

South African businesses can look forward to cheaper telecommunications services after the Pretoria High Court ruling that value-added network service (Vans) companies have the right to build their own networks.

The ruling, which was delivered on Friday in favour of JSE-listed technology group Altech, allows hundreds of voice and data carriers to build their own networks, instead of having to rely on Telkom or other large carriers.

Altech said that in 2004, Communications Minister Ivy Matsepe-Casaburri had given Vans licence holders the right to self-provide, reports Business Day.

Icasa originally agreed, but later backtracked.

Business Day quoted Altech CEO Craig Venter as saying the decision would mean a ”dramatic change in the landscape”.

Venter would not say how much Altech would invest in its own network.

Shared infrastructure company Dark Fibre Africa (DFA) welcomed the ruling.

”This is good news for South African businesses and consumers,” said director Richard Came.

DFA is investing about R2-billion in its network over the next three years. It started rolling out the network in metropolitan areas in October last year and has already installed more than 200km of infrastructure in Gauteng, Kwazulu-Natal and Cape Town. – I-Net Bridge