Hopes fade for cheaper telecom in South Africa

Hopes for cheaper telecommunication services in South Africa are fading following Minister of Communication Ivy Matsepe-Casaburri's decision to drag the country's telecom sector regulator to court to prevent it from issuing a new license to Altech.

Matsepe-Casaburri wants the court to stop the Independent Communications Authority of South Africa (ICASA) from issuing licenses to Altech and other voice and data carriers that would allow them to build their own networks, expected to bring down the cost of communication.

Two months ago, the Pretoria High Court ruled that "any company holding a VANS (value-added network service) licenses had a right to build its own network rather than purchase backbone from government-run service providers Telkom and Neotel.

ICASA indicated after the ruling that it was ready to start issuing new licenses but backtracked once Matsepe-Casaburri decided to challenge the High Court's decision.

Altech, however, warned that ICASA would be in contempt of court if it refused to issue new licenses as directed by the court.

Matsepe-Casaburri's court appeal will be considered on Oct. 30.