Neotel complaint moves ahead

Neotel, SA's second national operator, says its complaint against Telkom is being dealt with by the Independent Communications Authority of SA's (ICASA's) complaints unit.

In March, the operator lodged a complaint with the industry regulator against Telkom's refusal to free up access to parts of the local loop. Neotel argued that Telkom had refused to lease its last mile to its competitor.

Angus Hay, GM of strategic business development at Neotel, says the company has “received word from ICASA that their Complaints and Compliance Committee (CCC) is dealing with our recent complaint in respect of Telkom's refusal to provide access to its copper local loop facilities”.

This week, ICASA indicated it would follow a phased approach to local loop unbundling (LLU), with the first major step - bitstream - to be in place by next November.

However, should the operator win its case against Telkom, this could potentially fast-track the process of unbundling the local loop.

ICASA spokesman Paseka Maleka explains that the CCC will hold hearings, although no date has yet been set, before handing its recommendations to the authority's council. The CCC has 90 days from the hearings to submit its findings, he adds.

Hay says ICASA indicated during the LLU hearings that it believes LLU is merely a kind of facilities leasing, and is covered by the facilities leasing regulations, which is the basis of the complaint.

Neotel's complaint, a copy of which is in ITWeb's possession, asks ICASA to force Telkom to provide access to the last mile at two locations in Johannesburg's northern suburbs and “any additional locations Neotel may specify from time to time”.

The second national operator argues that Telkom's refusal to give it access breaches the Electronic Communications Act, because Neotel will have to buy last mile managed solutions from Telkom as an interim measure.

However, Telkom argues in its responding letters that Neotel's request relates to local loop unbundling, which is “currently enjoying the attention of the regulator”. Telkom's letter to Neotel adds: “The process is still some way from being finalised... In the circumstances, the request from Neotel is somewhat premature.”

Hay says Neotel is disappointed that LLU will not be happening in the foreseeable future, and that its benefits to end-users and the broader South African economy will not be seen soon.