Judgement awaited on least-cost routing

By Rodney Weidemann for Telkom

Johannesburg, 13 Oct 2003

Last week, arguments were heard in the Pretoria High Court regarding Telkom`s application to have the sale, distribution and use of least-cost routing (LCR) equipment prohibited, and judgement is expected to be handed down sometime next month.

The application, which was opposed by Nedtel, Nashua Mobile, Orion Telecom and MTN, maintains that LCR involves the illegal circumvention of Telkom`s network.

The initial injunction was brought against MTN, Vodacom and other players in 2000, although Telkom later reached an agreement with Vodacom - of which it owns 50% - while continuing to pursue the remaining users of LCR, much to the disgust of many industry players.

LCR is achieved through dedicated circuits, or through a data terminal interface device connected to a company PABX or private telecommunications network that dials or links directly into a mobile telecommunications network and circumvents Telkom`s network.

According to Andrew Weldrick, Telkom`s senior manager for media relations, the opposing arguments were heard by Tuesday last week, which was quicker than both sides had anticipated.

"After the arguments were heard, judgement was reserved, and although we have no clear indication when the judge will make his decision, we expect it to be sometime in November."

Ray Webber, a spokesman for the Communications Users Association of SA (CUASA), which believes that LCR should be legal, says the organisation is holding thumbs and waiting.

"We would like to see LCR declared legal with no caveat on its use. We find it difficult to understand how operators with the same licence conditions - namely Vodacom and MTN - can be treated differently by the monopoly," says Webber.

He says CUASA does not understand how Telkom can possibly expect anyone to take its legal bid against LCR providers seriously when it has already settled in the same matter with Vodacom, which it holds shares in.

"While we are hopeful that the judgement will favour LCR providers, we do anticipate that the losing side - whether it is Telkom or the providers - will lodge an appeal against the judge`s ruling," he says.

Asked whether Telkom would appeal if the judgement went against the incumbent, Weldrick says: "Let`s wait and see what the judgement is first. It wouldn`t really be prudent to speculate on the next step until everyone knows where they stand."