Case Law[2026] ZAGPPHC 2South Africa
Octotel (Pty) Ltd v Chairperson, Independent Communications Authority of South Africa and Others (Review) (039586/2023) [2026] ZAGPPHC 2 (13 January 2026)
High Court of South Africa (Gauteng Division, Pretoria)
13 January 2026
Headnotes
Telkom’s complaint and recommended extensive
Judgment
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## Octotel (Pty) Ltd v Chairperson, Independent Communications Authority of South Africa and Others (Review) (039586/2023) [2026] ZAGPPHC 2 (13 January 2026)
Octotel (Pty) Ltd v Chairperson, Independent Communications Authority of South Africa and Others (Review) (039586/2023) [2026] ZAGPPHC 2 (13 January 2026)
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sino date 13 January 2026
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE NO:
039586/2023
1)
REPORTABLE: NO
2)
OF INTEREST TO OTHER JUDGES: NO
3)
REVISED.
DATE:
13 January 2026
SIGNATURE
In
the matter between:
OCTOTEL
(PTY) LTD
Applicant
and
THE
CHAIRPERSON, INDEPENDENT
COMMUNICATIONS
AUTHORITY OF SOUTH AFRICA
First
Respondent
INDEPENDENT
COMMUNICATIONS AUTHORITY OF
SOUTH
AFRICA
Second
Respondent
COMPLAINTS
AND COMPLIANCE COMMITTEE
Third
Respondent
TELKOM
SA SOC LTD
Fourth
Respondent
JUDGMENT
This
judgment is handed down electronically by circulation to the
parties/their legal representatives by email and by uploading
to
Caselines. The date and time of hand-down is deemed to be
10:00am on 13 January 2026.
MOJAPELO AJ
INTRODUCTION
1.
This is a review under the Promotion of Administrative Justice Act
3
of 2000 (“PAJA”) of a decision by the Council of the
Independent Communications Authority of South Africa (“ICASA”
or “the Authority”) to approve the recommendations of its
Complaints and Compliance Committee (“CCC”) in
Telkom
SA SOC Ltd v Octotel (Pty) Ltd
(CCC
Case 344/2019).
2.
In its complaint to ICASA, Telkom alleged that Octotel had
contravened
s 43 of the Electronic Communications Act 36 of 2005
(“ECA”), read with Regulation 3 of the Electronic
Communications
Facilities Leasing Regulations, 2010 (“Leasing
Regulations”), by installing its fibre optic cables in certain
underground
passive infrastructure, ducts, manholes and related
facilities at three residential estates in the Western Cape, without
first
leasing those facilities from Telkom.
3.
The CCC upheld Telkom’s complaint and recommended extensive
relief against Octotel, including interdicts, a duty to negotiate and
conclude a facilities lease with Telkom, and, failing agreement,
an
obligation to remove Octotel’s fibre from “Telkom’s
infrastructure” in each estate. On 31 October 2022,
the ICASA
Council approved all of these recommendations save for the
administrative fine proposed in para 105.5 of the CCC judgment.
4.
Octotel seeks an order:
4.1.
Reviewing and setting aside ICASA’s decision taken under ss
17D–17E
of the ICASA Act 13 of 2000 (“ICASA Act”)
to approve the CCC’s recommendations;
4.2.
to the extent necessary, reviewing and setting aside the CCC’s
findings
and recommendations as the reasons for ICASA’s
decision; and
4.3.
substituting ICASA’s decision with an order dismissing Telkom’s
complaint in its entirety.
5.
Octotel relies primarily on PAJA s 6(2)(d), (e)(iii), (f)(ii), (h)
and (i); in the alternative, on the constitutional principle of
legality.
6.
The central questions are:
6.1.
What is the proper interpretation of s 43 of the ECA, read with the
Leasing
Regulations?
6.2.
Did ICASA (acting through the CCC) err in law in treating s 43 as
imposing
a positive obligation on a newcomer ECNS licensee to lease
facilities from an incumbent (“facility seeker”
obligation),
and in its treatment of ownership and control of the
facilities?
6.3.
Were the CCC’s factual findings, particularly on who owned the
facilities,
who had the right to control access, whether Telkom
“established” the infrastructure, and the position in
Sandown,
materially wrong on uncontentious and objectively verifiable
facts?
6.4.
If reviewable irregularities are established, what is the appropriate
remedy:
remittal or substitution?
THE
PARTIES AND FACTUAL BACKGROUND
7.
Octotel is an ECNS licensee which operates an open-access fibre
network
in Cape Town, serving in excess of 180 000 homes and
businesses.
8.
Telkom is an incumbent ECNS and ECS licensee, historically the
dominant
fixed line operator (
Telkom
SA SOC Ltd v Chairperson, ICASA and Others
[2020]
ZAGPPHC 443 (“
Telkom v ICASA
”)
paras 3–4).
9.
The estates concerned are Kleinbron Park (Brackenfell), Sandown
Estate
(Big Bay) and Dune Ridge Estate (Big Bay Boulevard,
Bloubergstrand).
10.
Between about 2004 and 2007, underground ducts and manholes were
installed at these
estates for multiple purposes: telecommunications,
electricity and water. Two installation models were used:
10.1.
Under the “Supply and Deliver” model, Telkom supplied
certain materials (e.g. Telkom-branded
110mm green ducts and manhole
covers) at its cost, while the developer bore the trenching,
installation and maintenance costs.
10.2.
Under the “Developer Installation” model, the developer
procured and installed all
the infrastructure, at its own cost,
albeit to Telkom’s specifications.
11.
It was common cause that in both models, the construction work,
trenching and installation
were “at no cost to Telkom”;
the developers carried those costs and the ongoing maintenance
obligations.
12.
After installation and certification, Telkom installed its copper
cables in Kleinbron
Park and Dune Ridge and used the existing
infrastructure there to provide fixed-line services. In Sandown, it
likewise installed
copper and used certain existing ducts; later,
Octotel installed its own parallel network in that estate.
13.
In 2017–2018, Octotel, with the consent of the relevant
homeowners’ associations
(“HOAs”), installed its
fibre network:
13.1.
In Sandown, by trenching and constructing its own ducts and manholes,
a handful of “last mile”
links (5 out of 149) were
initially run through Telkom’s existing last mile
connections by subcontractors in error,
but this was corrected when
brought to Octotel’s attention. By the time of the CCC hearing,
all Octotel’s fibres ran
exclusively through its own ducts.
13.2.
In Dune Ridge and Kleinbron Park, Octotel used the pre-existing ducts
and manholes in common
with Telkom, having obtained HOA consent.
There was no allegation that Octotel interfered with Telkom’s
services or imposed
costs on Telkom.
14.
Telkom first objected in 2019, long after Octotel had completed or
substantially completed
its installations: about 13 months after
commencement in Dune Ridge and 16 months in Kleinbron Park.
15.
Telkom’s complaint, lodged in May 2019, alleged that Octotel
had unlawfully
accessed and installed its fibre in Telkom’s
ducts and related infrastructure in all three estates, in
contravention of s
43 of the ECA and Regulation 3 of the Leasing
Regulations, by failing to submit a leasing request, conclude a
lease, or follow
the s 43 dispute resolution process.
THE
IMPUGNED CCC JUDGMENT AND ICASA’S DECISION
16.
The CCC’s judgment is set out in detail in the record and is
attached to ICASA’s
decision letter.
17.
For present purposes, the key findings are:
17.1.
Trigger and duty under s 43: The CCC held that although on a
“plain reading”
s 43(1) appears to place the obligation
on the “electronic communications facilities provider” to
lease “on request”,
the “actual trigger” for
s 43 is the decision by any ECNS licensee to gain access to existing
facilities, and that
once such a decision is made the facility seeker
is obliged to approach the licensee “who established the
infrastructure”
and request a lease. Gaining access without
following that process was held to be a contravention by the facility
seeker.
17.2.
Ownership “irrelevant”: The CCC repeatedly stated
that ownership of the underground
passive infrastructure is not
relevant to the application of s 43, relying inter alia on
Telkom
v ICASA
and on the assertion
that s 43 does not mention ownership.
17.3.
Right to control access / “established the infrastructure”: The
CCC held that
Telkom “established the right to control access
to the infrastructure irrespective of the model adopted”
because (a)
the infrastructure was built to its plans and
specifications; (b) Telkom supervised, tested and certified the
works; and (c) Telkom
installed and used its copper within the ducts,
and recorded the assets on its Netplan system. From this, it is
inferred that Telkom
had the right to control access and was thus the
relevant facility provider for s 43 purposes.
17.4.
HOAs’ ownership rejected: Despite stating that ownership
was irrelevant, the CCC
went on to hold that the HOAs were not the
owners of the underground passive infrastructure. It rejected
common law accession,
held that Telkom’s role and the
alleged hand over from developers meant Telkom remained the
owner, and treated the HOAs’
limited participation in the CCC
proceedings as corroboration that they did not own the
infrastructure.
17.5.
Dennegeur distinguished: The CCC held that
Dennegeur
Estate Home Owners Association and Another v Telkom SA SOC Ltd and
Another
[2019] ZASCA 37
;
2019
(4) SA 451
(SCA) (“
Dennegeur
”)
was irrelevant because it concerned the
mandament
van spolie
under s 22 of the
ECA, and possession, whereas the present matter concerns the
regulatory framework of s 43 and not possession.
17.6.
Sandown: The CCC accepted that Octotel had constructed its own
ducts and manholes in Sandown,
and that the use of Telkom’s
last mile facilities in 5 of 149 cases had been an error by
subcontractors which Octotel
had rectified. Nevertheless, it held
that Octotel “should be held liable” for this error and
treated Sandown as part
of a contravention of s 43, warranting the
full suite of orders in para 105.
18.
ICASA’s letter of 3 November 2022 records that the Council:
18.1.
Approved all of the CCC’s recommendations save for para 105.5
(the fine); and
18.2.
Attached the CCC judgment as Annexure A and gave no separate reasons,
thereby engaging Rule
10(2) of the CCC Rules with the result that,
absent other reasons, “the reasons put forward by the CCC are
deemed to also
be the reasons of Council”.
19.
It is therefore common cause that the lawfulness of ICASA’s
decision stands
or falls with the lawfulness of the CCC’s
reasons.
THE
LEGAL FRAMEWORK
The
ECA and the Leasing Regulations
20.
Section 2 of the ECA sets out the Act’s objects, which include
promoting universal
access, competition, efficient use of resources,
and the interests of consumers in price, quality and variety of
services (
Telkom v ICASA
para
34).
21.
Section 43 provides:
“
43
Obligation to lease electronic communications facilities
(1)
Subject to section 44(5) and (6), an electronic communications
network service licensee must, on
request, lease electronic
communications facilities to any other person licensed in terms of
this Act … in accordance with
the terms and conditions of an
electronic communications facilities leasing agreement entered into
between the parties, unless
such request is unreasonable.
…
(4)
For purposes of subsection (1), a request is
reasonable where the Authority determines that the requested
lease
…
(a)
is technically and financially feasible; and
(b)
will promote the efficient use of electronic
communication network and services
.”
22.
Section 44(3)–(5) makes clear that the Leasing Regulations may,
among other
things, require an ECNS licensee “to negotiate and
enter into an electronic communications facilities leasing agreement
with
an applicant for an individual licence”, and may exempt
certain licensees (with <25% market share) from the
obligation
to lease in terms of s 43(1).
23.
Regulation 3 of the Leasing Regulations prescribes the content of a
request for facilities
(Reg 3(1)), the timeframe for the provider’s
response (7 days: Reg 3(2)), and the timeframe for concluding an
agreement (45–60
days: Reg 3(3))
24.
In
Telkom v ICASA
,
Tuchten J analysed the scheme of s 43 and the Regulations,
emphasising that:
24.1.
Section 43 is “a radical departure from the common law”
in that an incumbent may
no longer “hug its infrastructure to
its corporate breast” but must lease facilities to competitors
where reasonable
and feasible, because that is “good for the
country” (para 35);
24.2.
Section 43(1) makes it mandatory “for any licensee to lease …
to any other person
who qualifies … and requests such a
lease unless such request is unreasonable. The default position is
therefore that
a licensee asked for a lease must in principle …
conclude a lease with a qualified person” (para 36);
24.3.
The statute contemplates a two stage process: a
reasonableness stage under s 43(2)–(4),
followed, if the
request is reasonable, by a negotiation stage under s 43(5) (paras 6,
39–42); and
24.4.
ICASA’s role at the reasonableness stage is to determine
whether the request is technically
and economically feasible and
whether granting it will promote efficient use; the review court’s
role is not to decide
the merits anew but to ask whether ICASA’s
determinations were made on reasonable grounds (paras 39, 46–54).
25.
Telkom v ICASA
thus
confirms that the primary obligation created by s 43 is on the
requested licensee (the facility provider) to
lease, upon a
reasonable request from a facility seeker, and does not itself
expressly impose a free-standing statutory duty on
the seeker to
request or to lease.
ICASA
Act and PAJA
26.
The CCC is established under s 17A of the ICASA Act. Under s 17B(a),
it must investigate
and, where appropriate, hear complaints and
allegations of non-compliance with the ECA. After a hearing, it must
submit its findings
and recommendations, together with the record, to
the Authority for decision (s 17D). Under s 17E, ICASA must make the
decision
and must consider all relevant matters, including the CCC’s
recommendations.
27.
The decision of ICASA Council approving the CCC’s
recommendations is an administrative
action under PAJA. PAJA s
6(2)(d), (e)(iii), (f)(ii), (h) and (i) permit review where, inter
alia:
27.1.
The action “was materially influenced by an error of law”;
27.2.
Relevant considerations were not taken into account, or irrelevant
ones were;
27.3.
The action is not rationally connected to the information before the
administrator, or is unreasonable;
or
27.4.
Mandatory procedures were not complied with, or the action is
otherwise unconstitutional or
unlawful.
28.
As explained in
Hirt &
Carter (Pty) Ltd v Arntsen NO and Others
[2021]
ZASCA 85
paras 29–30, a material error of law arises where a
statutory criterion is wrongly interpreted and, on the correct
approach,
the facts do not support the decision; similarly where the
administrator asks itself the wrong question or bases its decision on
matters not prescribed by the statute.
29.
Material mistakes of fact are likewise reviewable where the
decision maker fails
to consider “uncontentious and
objectively verifiable” facts that are material, and which
would probably have led to
a different outcome:
Pepcor
Retirement Fund v FSB
2003 (6)
SA 38
(SCA) paras 47–48;
South
Durban Community Environmental Alliance v MEC for Economic
Development, Tourism and Environmental Affairs
2020
(4) SA 453
(SCA) paras 23–24;
Airports
Company SA v Tswelokgotso
2019
(1) SA 204
(GJ) para 12.
30.
The Constitutional Court has stressed that judicial deference does
not require courts
to “rubber stamp” decisions that
are not reasonably supported by the facts or that are not reasonable
in light
of the reasons given:
Bato
Star Fishing (Pty) Ltd v Minister of Environmental Affairs and
Others
[2004] ZACC 15
;
2004 (4) SA 490
(CC)
paras 44–48;
Democratic
Alliance v President of the Republic of South Africa
2013
(1) SA 248
(CC) paras 38–40.
ISSUES
FOR DETERMINATION
31.
Against that framework, the principal issues are:
31.1.
First: Did ICASA (through the CCC) commit material errors of law
in its interpretation
of s 43 and the Leasing Regulations, in
particular by:
31.1.1.
Reading s 43 as imposing a positive obligation on the facility
seeker
to lease;
31.1.2.
Treating ownership as irrelevant and effectively displacing
common law accession;
31.1.3.
Equating Telkom’s role in “establishing”
infrastructure with a right to control access, absent proof of
contractual or statutory rights; and
31.1.4.
Treating
Dennegeur
as
irrelevant?
31.2.
Second: Did the CCC make material mistakes of fact concerning
who owned the infrastructure,
who in fact controlled access, whether
Telkom “established” the facilities and incurred costs,
and the factual position
in Sandown, which render ICASA’s
decision reviewable under PAJA s 6(2)(e), (f) and (h)?
31.3.
Third: If reviewable irregularities are found, what relief is
just and equitable: remittal
to ICASA, or substitution by this Court
under PAJA s 8(1)(c)(ii)(aa) as discussed in
Trencon
Construction (Pty) Ltd v IDC
2015
(5) SA 245
(CC) paras 47, 51–52?
I
turn to the main grounds.
INTERPRETATION
OF SECTION 43 AND THE “OBLIGATION TO LEASE”
The
principles of interpretation
32.
The settled approach to interpreting legal documents whether
contracts, statutes,
or other instruments requires a unitary exercise
considering the triad of text, context, and purpose. In
Natal
Joint Municipal Pension Fund v Endumeni Municipality
2012
(4) SA 593
(SCA), the Supreme Court of Appeal established that
interpretation is an objective process of attributing meaning to
words used,
read in light of the document as a whole and the
circumstances attendant upon its coming into existence. A sensible,
businesslike
meaning is to be preferred over one that leads to
insensible results or undermines the document's apparent purpose.
33.
This triad must not be applied mechanically. As clarified in
Capitec
Bank Holdings Ltd v Coral Lagoon Investments 194 (Pty) Ltd
2022
(1) SA 100
(SCA), the interpretative enterprise relies on the
relationship between the words used, the concepts expressed, and the
place of
the contested provision within the scheme of the instrument
as a whole to determine a coherent and salient interpretation.
34.
Furthermore, where statutory interpretation is concerned, the SCA
in
Davids v Minister of Defence
and Military Veterans
[2024]
ZASCA 105
reiterated that the process must be holistic and conducted
in a manner that preserves constitutional validity. Where multiple
meanings
are possible, the court must privilege the interpretation
that best protects and promotes constitutional rights.
35.
Modern jurisprudence represents a decisive break from the "golden
rule,"
which previously restricted interpretation to the
literal, grammatical meaning unless it yielded an absurdity. Under
the current
"unitary" approach, text, context, and purpose
are weighed from the outset, with no single factor trumping the
others.
36.
The Constitutional Court in
University
of Johannesburg v Auckland Park Theological Seminary
2021
(6) SA 1
(CC) reaffirmed this shift, criticizing any approach that
excludes contextual evidence on the basis that the text is
"unambiguous."
The Court held that context is always
admissible and relevant, as reverting to a literalist approach would
set South African law
back by decades.
Does
s 43 impose a duty on the facility seeker to lease?
37.
The CCC’s core interpretive move was to treat the “actual
trigger”
for s 43 as the decision by any ECNS licensee to gain
access to existing infrastructure, and to infer a legal obligation on
that
licensee (the facility seeker) to request and conclude a lease
with the licensee “who established the infrastructure”,
failing which the seeker is in contravention.
38.
This reading is not borne out by the text, context, or purpose of the
provision.
39.
Textually, s 43(1):
39.1.
Is framed in the imperative “must … lease” in
relation to the
provider
,
not the seeker;
39.2.
Is expressly conditioned “on request”; and
39.3.
Defines unreasonableness with reference to the provider’s
refusal or failure to lease
where technically and economically
feasible (s 43(4);
Telkom v
ICASA
paras 5, 39–45).
40.
To read into s 43 a free-standing statutory duty on a facility seeker
not to access
infrastructure at all unless it has first requested a
lease from “whoever established the infrastructure” is to
ignore
and render redundant the words “on request” and to
invert the direction of the obligation. That offends the principle
that statutory language should, where possible, be given meaning that
avoids redundancy:
Case v
Minister of Safety and Security; Curtis v Minister of Safety and
Security
[1996] ZACC 7
;
1996 (3) SA 617
(CC) para
57.
41.
Contextually, s 44 confirms that the Leasing Regulations are aimed at
the obligation
of an ECNS licensee to negotiate and enter
into leasing agreements “with an applicant” (s
44(3)(l)) and even
provides for exemptions from “the obligation
to lease” in s 43(1) (s 44(5)–(6)). That obligation is
the obligation
of the
incumbent
to
make its facilities available, not of the newcomer to lease:
Telkom
v ICASA
paras 34–36.
42.
In
Telkom v ICASA
,
Tuchten J described the purpose of s 43 as follows (paras 34–36):
“
Section
43 … [is] a radical departure from the common law. Before the
enactment of the measure, an industry participant might
hug its
infrastructure to its corporate breast and deploy it solely for its
own selfish benefit. Not any longer. Section 43 provides
for the
promotion of fair competition, equitable access to the industry and
the benefit of the public generally … If it
is reasonable to
do so … an industry participant in the position of Telkom must
lease out its electronic communications
facilities even to its
competitors and aspirant competitors. It must do this because …
doing so would be good for the
country.
…
Section
43(1) makes it mandatory for any licensee to lease [facilities]
to any other person who qualifies … and requests
such a
lease unless such request is unreasonable. The default position
is therefore that a licensee asked for a lease must
in principle …
conclude a lease…” (my emphasis).
43.
This passage, consistently with
Endumeni
,
places the emphasis squarely on the incumbent’s obligation to
lease “on request”. It does not support
the
CCC’s further step of locating a statutory contravention in the
seeker’s omission to request a lease before making
any
use
of facilities, irrespective of ownership or control.
44.
That is not to say that a newcomer may “barge in” onto
another’s
infrastructure with impunity. Its conduct remains
constrained by s 22 of the ECA and the common law, as explained
in
City of Tshwane Metropolitan
Municipality v Link Africa (Pty) Ltd
2015
(6) SA 440
(CC) (“
Link Africa
”)
paras 166, 189. The landowner and any possessor or rights holder
retain remedies under property and servitude law.
But the mere fact
of using existing ducts, without having requested a lease from a
rival ECNS, does
not
,
in my view, by itself constitute a contravention of s 43.
45.
The CCC’s reasoning at paras 88–91 conflates the policy
desirability of
routing sharing through a regulated lease with the
creation of a statutory crime like prohibition on any sharing
without such
a lease. Section 43, properly construed, does not go
that far. It creates:
45.1.
A duty on a facility provider to lease where reasonably
requested;
45.2.
A right (but not a duty) on a seeker to request and, where
appropriate, to have ICASA
determine reasonableness; and
45.3.
A framework for ICASA to impose terms or a lease where a provider is
unwilling to negotiate
(s 43(5)).
46.
The CCC thus asked itself the wrong legal question when it framed the
issue as whether
Octotel, by deciding to share existing underground
passive infrastructure and not requesting a lease from Telkom,
“contravened”
s 43. Under
Hirt
& Carter
(paras 29–30),
that is a material error of law: the statutory criterion for
non-compliance under s 43 was mis characterised,
and on the
correct interpretation, the facts do not support a finding of
contravention.
47.
ICASA’s decision, which simply adopts the CCC’s reasons,
was therefore
“materially influenced by an error of law”
and is reviewable under PAJA s 6(2)(d).
48.
This conclusion is sufficient to dispose of Telkom’s complaint
on the footing
that s 43, as a matter of law, does not render a
facility seeker’s unauthorised use of facilities a
contravention of that
section. But given the importance of the issues
and the other pleaded grounds, it is also appropriate to address the
remaining
interpretive and factual complaints.
Ownership,
common law accession and the role of HOAs
49.
The CCC paradoxically treated ownership as “not relevant”
to s 43, yet
nevertheless held that the HOAs were not owners and that
Telkom was. It did so by invoking a supposed “departure from
the
common law” and by treating statutory policy as displacing
accession.
50.
Section 43 does not refer to ownership at all. As the CCC and
Telkom
v ICASA
correctly note, an ECNS
licensee can be obliged to lease facilities it does not own (e.g.
those it leases from another or
uses under servitudal rights).
Ownership is therefore not a jurisdictional requirement for
being a facility provider
under s 43.
51.
But it does not follow that ownership is irrelevant for all
purposes. Whether
Telkom in fact had “electronic communications
facilities” capable of being leased, and whether it had any
right to
control access to, and to exclude others from, the ducts and
manholes in issue, plainly depends on the existing rights of owners
and other right holders. Common law accession remains the
starting point: ducts and manholes installed in and intended
to
remain part of immovable property accede to the land and are owned by
the landowner, absent agreement to the contrary.
52.
The CCC’s reasoning at paras 52–55, rejecting accession
in this context
on the basis that it would require ICASA to “abandon
any regulatory powers it has over the underground passive
infrastructure”
and would lead to a “free for all”,
is not persuasive. As Octotel points out:
52.1.
ICASA’s regulatory powers are over
licensees
and
the
leasing of
facilities
between them. Those
powers are not dependent on ICASA or licence holders being
owners of the infrastructure.
52.2.
Recognising that, by accession, the HOAs are the “default”
owners of the ducts and
manholes simply means that, unless and until
ownership is contractually ceded, an ECNS licensee cannot lease
out those
facilities to another as if they were its own. It does
not deprive ICASA of jurisdiction over licensing, conduct obligations
or
disputes under ss 22, 43 or 44.
52.3.
The spectre of a “free for all” is addressed by
s 22, which requires ECNS
licensees to exercise their servitutal
rights “
civiliter modo
”,
with notice and compensation where appropriate (
Link
Africa
paras 142, 152, 189).
Owners and possessor licensees retain common-law remedies
(interdicts, damages, spoliation).
53.
The CCC’s dismissal of accession, and its conclusion that
Telkom was the owner
of the facilities, rested on evidential
foundations which, as I discuss below, were themselves flawed. For
present purposes, it
suffices to say that:
53.1.
There is no textual basis in s 43 or s 22 of the ECA for abrogating
accession.
53.2.
The CCC’s attempt to do so was a further material error of law
and led it to ask itself
who “owned” the ducts for
purposes of s 43 on an incorrect legal premise. This, too, is
reviewable under PAJA s 6(2)(d),
and also colours the rationality of
its reasoning under
Democratic
Alliance
(paras 38–40)
and
Rusternburg Platinum
2007
(1) SA 576
(SCA) para 34, as endorsed in
Sidumo
2008
(2) SA 24
(CC).
Right
to control access and the notion of “established”
infrastructure
54.
The CCC further held that Telkom “established the right to
control access”
to the underground infrastructure by virtue of
its role in specifying, supervising and certifying the works, even
where it paid
none of the construction or maintenance costs.
55.
Control of access to property is, at common law, an incident of
ownership and, to
some extent, possession. Absent:
55.1.
A contractual cession from the owner (e.g. HOA) to the ECNS licensee;
55.2.
A statutory vesting (e.g. a statutory servitude in favour of the
licensee broader than s 22’s
entry rights); or
55.3.
Facts establishing possession in the legal sense (actual control with
the intention to possess).
A
licensee does not acquire a general right to exclude others from
infrastructure merely because it participated in specifying or
supervising its installation.
56.
The CCC, however, expressly declined to require proof of any
contractual right to
control access, or evidence of Telkom’s
actual control at the time Octotel sought access. Instead, it treated
Telkom’s
historical involvement in “establishing”
the network as sufficient in itself.
57.
That again is a misdirection in law. Section 43 does not deem the
party that first
“established” facilities in the sense of
having persuaded developers to install ducts consistent with its
specifications,
to have perpetual, exclusive control over access to
those ducts, to the exclusion of both owners and other ECNS
licensees. Nor
does it convert engineering oversight and long past
installation into a general right of veto over all subsequent uses of
that physical space, especially where:
57.1.
The infrastructure was built and is maintained at the
developers’/HOAs’ cost;
57.2.
The HOAs control physical access to the estates and have, in
practice, authorised Octotel to
use the ducts; and
57.3.
Telkom has not manifested ongoing physical control (e.g. locked,
marked manholes; prompt response
to third-party access), as the
evidence here shows.
58.
By equating “established the infrastructure” with “has
a right to
control access” without requiring proof of any
underlying legal right, the CCC again applied the wrong legal test.
That is
a further material error of law under PAJA s 6(2)(d), and
also led it to disregard relevant considerations, namely, the HOAs’
rights, the actual patterns of control, and the allocation of costs
(PAJA s 6(2)(e)(iii)).
The
relevance of
Dennegeur
59.
The CCC held
Dennegeur
to
be “clearly distinguishable” and essentially irrelevant
because it concerned the
mandament
van spolie
and s 22 of the ECA.
While the cause of action there was indeed spoliation, the SCA’s
analysis of Telkom’s rights
under s 22, and of what constitutes
possession of duct “airspace”, is plainly relevant to the
present dispute about
who has rights to control access to unused duct
capacity.
60.
In
Dennegeur
,
the SCA held that:
60.1.
Telkom’s quasi possession under s 22 extended only to the
space actually occupied
by its cables;
60.2.
A mere intention to reserve additional duct space for future use did
not give Telkom quasi-possession
of the entire infrastructure; and
60.3.
Telkom was not in possession of the vacant duct space that Vodacom
had used.
61.
That reasoning undermines, rather than supports, the CCC’s
conclusion that Telkom
enjoyed a general right to control all unused
duct space in the estates, merely by virtue of its existing copper
cables and its
role in planning the infrastructure.
While
Dennegeur
does
not directly decide issues under s 43, it is highly relevant to the
factual and legal assessment of who, as a matter
of property and
possession, controls access to the ducts and on what basis.
62.
The CCC’s dismissal of
Dennegeur
as
irrelevant was therefore a further legal misdirection. It led the CCC
to ignore relevant considerations and to fail to
grapple with a
closely analogous factual scenario involving Telkom, HOAs, ducts and
rival ECNS licensees. This is reviewable under
PAJA s 6(2)(d) and
(e)(iii).
MATERIAL
MISTAKES OF FACT
63.
As indicated, PAJA also permits review where “irrelevant
considerations were
taken into account or relevant considerations
were not considered” (s 6(2)(e)(iii)), or the decision is “not
rationally
connected to the information” or “is so
unreasonable that no reasonable person could have so exercised the
power”
(s 6(2)(f)(ii), (h)).
64.
The present case is not one of weighing contested technical
prognoses, as in
Bato Star
.
Many of the facts concerning ownership, control, costs and the
Sandown position were either common cause or objectively verifiable
from contemporaneous documents.
65.
In
Tswelokgotso
(para
12) and
South Durban
(paras
23–24), the courts held that where such material, objectively
verifiable facts are misconstrued or ignored, the
resulting decision
is reviewable.
66.
In my view, the CCC committed several such material mistakes, which
ICASA then adopted
as its own:
Who
in fact owned the facilities
67.
Telkom produced no written agreements with the developers or HOAs for
any of the three
estates to prove that ownership of the ducts and
manholes had been ceded to it. Telkom’s own witness, Mr Hagan,
accepted
that in prior matters where documentary proof of ownership
was lacking, Telkom acknowledged that it could not assert ownership.
68.
Yet the CCC inferred ownership in Telkom from:
68.1.
Telkom’s evidence that after certification, the infrastructure
was “handed over”
to Telkom and recorded in its Netplan
assets register; and
68.2.
The absence of HOAs’ participation in the CCC proceedings,
which was taken as an indication
that “even the HOA knows that
it does not own the infrastructure”.
69.
That inference is contradicted by the objective record:
69.1.
Telkom’s asset register produced in the CCC proceedings
recorded copper cables at Sandown
only, under the supply and deliver
model, and reflected no infrastructure assets in Kleinbron Park or
Dune Ridge.
69.2.
Telkom expressly acknowledged in its own evidence that it did not own
the infrastructure in
Dune Ridge, yet the CCC treated it as the owner
there too.
69.3.
The HOAs’ reluctance to participate was equally consistent with
a wish to avoid costly
litigation and potential friction with service
providers and cannot rationally be treated as proof of their lack of
ownership.
70.
In these circumstances, the CCC’s factual conclusion that
Telkom “retained
ownership” of all the underground
passive infrastructure in all three estates lacked any proper
evidential basis and conflicted
with the contemporaneous asset
records. It was a material mistake of fact of the kind described
in
Pepcor
and
South
Durban
, and it materially informed
the CCC’s and thus ICASA’s conclusions about Telkom’s
entitlement to “lease”
those facilities under s 43.
Who
in fact had the right to control access
71.
The CCC further concluded that Telkom had the right to control access
in each estate,
largely on the basis of:
71.1.
Its role in planning and approving the infrastructure;
71.2.
The presence of its copper cables in ducts; and
71.3.
Evidence that a Telkom branded duct was observed at Kleinbron
Park in one inspection.
72.
The CCC discounted, or ignored, uncontentious facts pointing the
other way:
72.1.
In Kleinbron Park, the manholes (other than one heavy main manhole
near an Openserve box) were
unmarked and unlocked; they could be
opened easily and bore no Telkom branding. Octotel accessed them with
HOA consent and without
any manifestation of Telkom’s physical
control; Telkom only complained some 16 months after Octotel
commenced work.
72.2.
In Dune Ridge, Telkom produced no documentary proof of ownership or
control; there was evidence
of Telkom’s copper cables, but no
evidence that Telkom physically controlled the manholes or that it
had ever objected to
HOA authorised use before Octotel’s
arrival.
72.3.
In Sandown, it was common cause that Octotel had installed
its
own
ducts
and manholes and, by the time of the CCC hearing, had entirely ceased
to use Telkom’s ducts.
72.4.
In all estates, HOAs had in practice controlled access to the estates
and had authorised Octotel’s
use of the ducts.
73.
The CCC’s failure to confront these objective facts, and its
willingness to
infer a general right of control from limited and
historically remote involvement, again constitutes a material mistake
of fact
and an irrational failure to consider relevant
considerations, reviewable under PAJA s 6(2)(e)(iii), (f)(ii) and
(h).
Whether
Telkom “established” the facilities and incurred costs
74.
The CCC held that in all three estates Telkom had “established”
the infrastructure
and “played a significant role” in
doing so, irrespective of the model, and that the costs incurred by
Telkom in planning,
supervising and certifying works, though not
quantified, were such that it could not be said its role was
“insignificant”.
75.
It is common cause, however, that:
75.1.
All trenching, construction and installation costs were borne by the
developers;
75.2.
Maintenance costs were and are borne by the developers/HOAs; and
75.3.
Telkom did not produce evidence of any actual costs incurred in
planning, supervision, certification
or otherwise in these specific
estates.
76.
The CCC’s reliance on alleged “incidental costs”
that are nowhere
quantified or evidenced in the record, to support
the conclusion that Telkom “established” the
infrastructure in a
legally relevant sense, is speculation rather
than fact finding. Under
Tswelokgotso
and
South
Durban
, that kind of evidential
lacuna cannot support material factual findings adverse to another
party.
77.
The mischaracterisation of Telkom’s contribution, and the
failure to grapple
with the developers’ and HOAs’
dominant financial role, are further material mistakes of fact
feeding into the misapplication
of s 43.
The
Sandown orders
78.
The position in Sandown is particularly stark. The CCC accepted that:
78.1.
Octotel had installed its own ducts and manholes, at its own cost;
78.2.
The erroneous use of 5 Telkom last mile connections had been
corrected; and
78.3.
By the time of the hearing, none of Octotel’s fibres ran
through Telkom’s ducts.
79.
Nonetheless, the CCC:
79.1.
Found that Octotel had contravened s 43 in respect of
Sandown and “should be
held liable”; and
79.2.
Recommended that ICASA direct Octotel, inter alia, to desist from
installing its fibre in Telkom’s
infrastructure in Sandown
(para 105.2), to enter into lease negotiations with Telkom concerning
“underground passive infrastructure
in the affected estate”
(para 105.3), and, failing agreement, to vacate its fibre from
“Telkom’s infrastructure
within each of the above
estates” (para 105.4).
80.
The text of paras 105.2–105.4 plainly includes Sandown as an
“affected
estate” (para 105.1) and cites Sandown by name
in para 105.2. Attempts in the answering affidavits to re interpret
these
orders as inapplicable to Sandown cannot cure their objective
meaning.
81.
On the common cause facts, by the time ICASA took its decision
there was no
continuing shared use of Telkom’s ducts by
Octotel in Sandown, and thus no conceivable basis for:
81.1.
A finding that Octotel had contravened s 43 in Sandown on the CCC’s
own reasoning; or
81.2.
Forward looking orders requiring Octotel to desist from
installing in Telkom ducts there,
to negotiate a lease over Sandown
infrastructure, or to vacate its fibre from “Telkom’s
infrastructure” in that
estate.
82.
To impose such orders in the face of those uncontentious facts is, in
my view, irrational
in the
Democratic
Alliance
sense: the means (orders)
bear no rational relationship to the purpose of addressing any
contravention in Sandown; they are not
supported by the factual
substratum. This alone would justify reviewing and setting aside
ICASA’s decision as regards Sandown
under PAJA s 6(2)(f)(ii)
and (h).
Overall
assessment under PAJA
83.
Putting the pieces together:
83.1.
ICASA, via the CCC’s reasons it adopted, misinterpreted s 43 in
several material respects,
notably by (a) treating the facility
seeker as subject to a statutory duty to lease and as capable of
“contravening”
s 43 merely by making unauthorised use,
and (b) displacing common law accession and equating
“establishing” infrastructure
with a right to control
access without proof of underlying rights.
83.2.
Those errors influenced the entire approach to Telkom’s
complaint, including the characterisation
of Octotel’s conduct
as a breach of s 43 rather than, at most, a matter governed by
property law, servitude rights under
s 22, and contractual
arrangements with HOAs.
83.3.
The CCC made further material mistakes of fact about ownership,
control, cost contribution and
Sandown, in circumstances where the
relevant facts were largely uncontentious and objectively verifiable.
83.4.
Taken cumulatively, these errors render ICASA’s decision not
only materially influenced
by errors of law (PAJA s 6(2)(d)), but
also unreasonable and irrational in light of the record and the
explanatory reasons (s 6(2)(f)(ii),
(h)) and tainted by failures to
consider relevant considerations (s 6(2)(e)(iii)).
84.
In my view, on the correct interpretation of s 43 and on the true
facts:
84.1.
Telkom’s complaint that Octotel contravened s 43 in any of the
three estates cannot succeed
as a matter of law;
84.2.
At most, Telkom may have recourse under property or servitude law in
respect of unauthorised
use of infrastructure it genuinely owns or
controls, a matter for the ordinary courts, not for ICASA acting on a
misreading of
s 43; and
84.3.
ICASA ought, on a proper application of the law to the facts, to have
dismissed the complaint.
The
question then is appropriate relief.
REMEDY
AND SUBSTITUTION
85.
Under PAJA s 8(1)(c)(ii)(aa), a court may substitute its own decision
for that of
the administrator in “exceptional cases”,
having regard to the separation of powers and the factors set out
in
Trencon
(paras
47, 51–54): whether the court is in as good a position as the
administrator, whether the decision is a foregone
conclusion, delay,
potential bias or incompetence, and the overall justice and equity of
substitution.
86.
Applying those principles:
86.1.
The dispute turns centrally on the interpretation of s 43 and
the application of that
interpretation to largely uncontentious
facts. That is quintessentially a legal exercise in relation to which
this Court is as
well placed as ICASA; special technical expertise
plays little role at this stage (
Trencon
para
47).
86.2.
Once s 43 is correctly interpreted as not imposing a free standing
obligation on a facility
seeker to lease, and the true facts about
ownership, control and Sandown are accepted, the outcome is, in my
view, essentially
a foregone conclusion: Telkom’s complaint,
framed solely as a contravention of s 43 read with Regulation 3, must
be dismissed.
86.3.
The dispute has been pending since May 2019. To remit the matter to
ICASA for reconsideration,
after ICASA has already demonstrated a
material misreading of its own statute in this context, would cause
further delay and costs,
contrary to the requirements of just and
equitable relief.
86.4.
Octotel has also raised legitimate concerns, supported by passages in
the record, about ICASA’s
selective and inaccurate presentation
of the evidence and an apparent predisposition in favour of Telkom in
its answering affidavit.
While I stop short of making any definitive
finding of bias or incompetence, these concerns weigh against
remittal to the same
decision maker.
87.
In these circumstances, I am satisfied that this is an exceptional
case warranting
substitution, and that a just and equitable order is
to set aside ICASA’s decision and substitute it with an order
dismissing
Telkom’s complaint.
88.
Nothing in this judgment prevents Telkom from asserting whatever
rights it may have
under the common law or under s 22 of the ECA in
appropriate proceedings. This judgment decides only that ICASA’s
decision,
based on the CCC’s reasoning, cannot stand as a
finding of contravention of s 43.
Order
89.
The following order is made:
1.
The decision of the Council of the Independent Communications
Authority of South Africa, taken on or about 31 October 2022 and
communicated to Octotel on 3 November 2022, approving the
recommendations
of the Complaints and Compliance Committee in
Telkom
SA SOC Ltd v Octotel (Pty) Ltd
(CCC
Case No. 344/2019), is declared unlawful and is reviewed and set
aside.
2.
To the extent necessary, the findings and recommendations of
the
Complaints and Compliance Committee in that matter are likewise
reviewed and set aside.
3.
In terms of PAJA s 8(1)(c)(ii)(aa), ICASA’s decision is
substituted with the following:
“
Telkom
SA SOC Ltd’s complaint against Octotel (Pty) Ltd, alleging
contraventions of
section 43
of the
Electronic Communications Act 36
of 2005
read with Regulation 3 of the Electronic Communications
Facilities Leasing Regulations, 2010, is dismissed.”
4.
The first and second respondents (the Chairperson of ICASA and
ICASA)
and the fourth respondent (Telkom SA SOC Ltd) are ordered, jointly
and severally, the one paying the others to be absolved,
to pay the
applicant’s costs, including the costs of two counsel where so
employed.
MM
MOJAPELO
ACTING
JUDGE
HIGH
COURT GAUTENG DIVISION, PRETORIA
13
JANUARY 2026
APPEARANCES
Date
of Hearing
:
06
February 2025
Date
of Judgement
:
13
January 2026
Applicant
: Paul
Farlam SC (with him J Bleazard)
Instructed by C & A
Friedlander Attorneys, Claremont
First
to third Respondent :
Buhle Lekokotla (with her M
Ngutla)
Instructed by H M Chaane,
Centurion
Fourth
Respondent
:
Benny
Makola SC (with him M Lengane)
Instructed by Werksmans,
Sandton
sino noindex
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