Least-cost routing case begins today

Johannesburg, 07 Oct 2003

Nedtel, Nashua Mobile, Orion Telecom and MTN will oppose Telkom`s application in the Pretoria High Court to have the sale, distribution and use of least-cost routing (LCR) equipment prohibited.

The case begins today and is expected to last until the end of the week, when it is hoped a judgement on the legalities of the hotly debated issue of LCR will be forthcoming.

Telkom maintains that LCR involves the illegal circumvention of its network. It is achieved through dedicated circuits, or through a data terminal interface (DTI) 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.

The initial injunction was brought against MTN, Vodacom and other players in 2000. However, Telkom has since reached an agreement with Vodacom - of which it owns 50% - although it has continued to pursue the remaining users of LCR.

The Communications Users` Association of SA (CUASA) released a statement after the case was postponed in March, slamming the monopoly`s legal action against LCR providers.

CUASA accused Telkom of double standards and an "inclination to adopt predatory profiteering practices" by continuing its legal battle.

"How can Telkom possibly expect anyone to take its legal bid against LCR providers seriously if it settled in the same matter with Vodacom, of which it owns 50%?" said CUASA spokesman Ray Webber in the statement.

"It should be clear to anyone that Telkom simply wants to return to a protective legal framework where it is entitled to extort profits in any way it deems fit. This attitude flies in the face of any sector `liberalisation` and comes, once again, at the expense of the consumer."

On the other hand, Telkom`s COO, Shawn McKenzie, was quoted at this year`s SA Telecommunications, Networks and Applications Conference, as saying: "It is the same as someone working out how to drive my car - just because they`ve worked it out doesn`t mean I should let them drive it.

"We need to sit down with the players that want to use LCR and work out costs and charges that will be reasonable for everyone involved, but until that is done, I see no reason to let someone use our network, just because they`ve figured out a way to."