In what is being touted as evidence that SA`s telecoms market is at last becoming liberalised, the Pretoria High Court yesterday ruled against Telkom`s attempt to have least-cost routing (LCR) declared illegal.
LCR systems enable customers to connect GSM-based equipment to a PABX, which can then take advantage of the better call rates offered when dialling from one cellular device to another or between numbers on the same cellular network.
Telkom`s argument, based on interpretations of key parts of the Telecommunications Act and the licence agreements that govern the country`s cellular operators, has been that LCR is an illegal avoidance of the Telkom network.
In ruling that Telkom`s application be dismissed with costs, High Court judge IWB de Villiers said: "There is no statutory provision which makes the act of such a connection unlawful."
"The clear-sighted ruling by the court that it is a matter of choice for the customer what equipment is connected to the PABX opens up a range of new possibilities for the market," says Mark Taylor, MD of Nashua Mobile, one of a dozen respondents in the case.
"This opens the door for customers who have been losing opportunities to save by routing their calls to cellular networks in an intelligent manner. Savings of between 20% and 40% can be achieved through LCR, which represents millions of rands every month."
He says LCR is an excellent example of how costs can be controlled through the use of smart technology that simultaneously delivers business value and better service.
"We are confident that the judgement will rapidly allow many organisations to take advantage of the full spectrum of LCR services, with an immediate and positive impact on the industry, the national economy and consumers at virtually every level."
Ray Webber, spokesman for the Communications Users Association of SA (CUASA), says the organisation is ecstatic about the ruling, as it at least shows some liberalisation in the telecoms market, particularly as there has been no word on the proposed second national operator.
"This is good for the entire industry, as it will help it to grow. There are a number of providers who have resisted the urge to grow their services while awaiting this judgement, so hopefully there will now be a boom in the market as they begin to expand.
"Our hope now is that Telkom does not decide to appeal this case - which has already been going on for three years - and rather focuses on improving its services to compete with the LCR suppliers," he says.
According to Webber, landlines provide far better connections than cellular ones, which can suffer from dropped calls and interference, but because of the amounts of money saved through LCR, providers are prepared to deal with the problems associated with cellular networks.
"Maybe now, Telkom will bring its pricing into a more competitive range, which would be good for all and sundry," says Webber.
Telkom has stated that it will consider its options once it has had the opportunity to study the detailed judgment.
"The judge did not provide reasons for his decision, but our legal representatives are expecting to receive the full judgement during the course of this week," says Telkom`s group executive for legal services, Mandla Ngcobo.
"Once we have analysed the judgment, we will decide on an appropriate course of action."
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