South African carriers can now build own networks

More than 300 data and voice carriers in South Africa can now build their own networks after the High Court ruled against Communications Minister Ivy Matsepe-Casaburri on Oct. 30.

Last month, Matsepe-Casaburri dragged the country's telecom sector regulator, the Independent Communications Authority of South Africa, to court to prevent it from issuing new licenses to the operators, as directed by the High Court.

But Pretoria High Court Acting Judge Norman Davis refused to let the minister appeal his original decision, which allowed the companies to build their own networks as an alternative to purchasing backbone from government-run service providers Telkom and Neotel.

Under the ruling, any company holding a VANS (value-added network service) license will be allowed to build its own networks.

The failed appeal by the minister further raises hopes for cheaper telecommunication and Internet services in South Africa.