Challenging the Rise of Fibre Monopolies in South African Complexes and Estates

The ongoing issue of residential complexes and estates in South Africa dictating terms by limiting homeowners to a single Internet Service Provider (ISP) has sparked serious concerns among industry experts and legal authorities. This trend, indicative of potential anti-competitive behavior, raises the question as to whether property owners are being denied the right to choose the best deals available in the market.

Marina Constas, a director at BBM Attorneys, has openly criticized the apparent laxity of the South African legislation in mandating the freedom for homeowners to select their preferred ISP. She pointed out the stark contrast with countries like Australia, where such policies are enshrined in legislation.

Constas's dissatisfaction extends to the existing recourse for these complaints, highlighting the ineffectiveness of the Community Schemes Ombud Service (CSOS) in addressing the specific concerns related to ISP choices in complexes and estates.

Backing her up, the Internet Service Providers' Association (ISPA) has voiced similar concerns, with chair Sasha Booth-Beharilal emphasizing that non-exclusive fibre connectivity and the subsequent competition among ISPs should be a standard for residential communities. Such competition benefits consumers by providing high-quality services at affordable rates and is a key component in ensuring universal service and access.

Despite guidelines highlighted in the 2016 National Integrated ICT Policy White Paper favoring open networks and ISP level competition, the practice remains unenforced by any official act. This leaves the power dynamics skewed in favor of certain fibre providers, potentially brushing against the grain of the competition board's standards.

ISPA continues to champion open access fibre installations and encourages homeowners' associations and body corporates to demand written promises from fibre providers to ensure competitive access. As high-speed fibre connectivity becomes a fundamental part of contemporary living, the importance of keeping open access commitments and scrutinizing fibre rollout agreements in communal living areas cannot be overstated.

This concern aligns with the Digital Council Africa's view that fibre connectivity is not just a luxury but an essential component that enhances remote working capabilities, home automation, advanced security systems, and potentially, property values. Open access, supported by fair competition, is seen as a win-win scenario for both consumers and the market.