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ARTICLE · 25 AUGUST 2005

Telecoms Regulations: Big Steps Forward – One Step Back

Cliffe Dekker Hofmeyr
Cliffe Dekker Hofmeyr
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Since the Minister of Communications removed certain statutory restrictions imposed on value added network service licensees (Vans) in September 2004, the industry eagerly anticipated 1 February 2005. This was the effective date for the removal of the restrictions and the opening of the sector to greater competition, with attendant benefits of lower telecommunications service costs and wider consumer choice.

South AfricaMedia, Telecoms, IT, Entertainment
Janet Mackenzie
Janet Mackenzie

Since the Minister of Communications removed certain statutory restrictions imposed on value added network service licensees (Vans) in September 2004, the industry eagerly anticipated 1 February 2005. This was the effective date for the removal of the restrictions and the opening of the sector to greater competition, with attendant benefits of lower telecommunications service costs and wider consumer choice.

The Ministerial Determinations which gave effect to the minister's decision removed three significant service restrictions imposed on Vans under the Telecommunications Act.

One of the most contentious restrictions was the prohibition on voice carriage. As a result of the determinations, Vans are now entitled to provide voice services by means of any protocol and are further able to originate and terminate voice calls on the networks of other operators. Vans will also be entitled to resell spare capacity on their telecommunications facilities and will no longer be required to

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