Johannesburg — TELECOMS companies were celebrating at the weekend when a bid by Communications Minister Ivy Matsepe-Casaburri to challenge a high court verdict allowing them to build their own networks was rejected.

Now voice and data carriers are hoping the minister will not make a last-ditch effort to prevent them from building their own facilities, but will finally relent and let the revolution begin.

Acting Judge Norman Davis refused to let the minister appeal against his decision that about 300 companies - including internet service providers - are entitled to network-building licences, ending the need to lease their bandwidth from dominant players such as Telkom.

"We are absolutely ecstatic," said John Holdsworth, CEO of Electronic Communications Networks (ECN).

"It's a major court victory and a watershed moment for the telecoms industry. We are going to see massive, massive changes."

Holdsworth said the verdict was timely because ECN suffered a network collapse on Friday when lines it leased from Neotel failed.

"It's really important that we are allowed to self-provide so we can take control of our own destiny," he said. "It's also really important that the Independent Communications Authority of SA (Icasa) moves very swiftly to issue the licences so we can build our own network and give customers a good service."

No company would build a national network to rival Telkom's infrastructure, he said, but they would build their own facilities in strategic areas and continue leasing lines from Telkom where necessary.

However, Matsepe-Casaburri may escalate her battle by petitioning either the chief justice or the judge president for leave to appeal. Telecoms lawyer Mike Silber said it would be a shame if she continued to fight. The original verdict was a well-considered judgment, and another appeal would stifle the industry.

"It would be a great pity if the minister appeals, but she seems adamant that this judgment interferes with her policy of managed liberalisation. My view is that this is the intended outcome of managed liberalisation," he said.

The minister may capitulate as she would need to convince the judges that there was a reasonable prospect of the judgment being overturned -- and her grounds for appeal were negligible, Silber said. "Saying 'the case didn't go my way' isn't really grounds for appeal."

In the meantime, Icasa could be uncharacteristically pro-active and swiftly issue the new licences, Silber said. "If Icasa implements the licences before she gets an answer we could see real liberalisation and real competition being introduced for once."

The original court case was brought by Altech, which said the now-defunct licences to offer value added network services (Vans) should automatically convert into a new format that bestows the right to build a network.

Davis agreed, and his decision granted the same right to every other Vans licensee.

Altech CEO Craig Venter said by refusing to let the minister appeal, Davis indicated there was little prospect of another court reaching a different conclusion.