Warning for complexes and estates in South Africa

Industry experts have warned that estates, complexes, and other residential areas run through centralised decision-making are harming residents and potentially property values by limiting choice when it comes to fundamental service providers.

The Internet Service Providers’ Association (ISPA) most recently flagged this in relation to fiber and internet services.

According to ISPA chair Sasha Booth-Beharilal, estate owners and tenants value fibre infrastructure that provides a neutral platform for ISPs to compete.

“First should be competition at the fibre infrastructure level that allows for non-exclusive fibre connectivity,” said Sasha Booth-Beharilal.

“More than one fibre provider is ideal. At the very least, homeowners’ associations, body corporates and property developers should reject any potential fibre installation that does not allow for multiple Internet Service Providers (ISPs) to compete at the customer-facing level.”

Enabling consumers to choose which ISP they buy internet access has been in line with official policy since at least 2016, when the government outlined the right of consumers to choose their service providers as a key requirement of the National Integrated ICT Policy White Paper.

“When estate managers, body corporates and others make promises with regards to choosing open access providers, these assurances must be reduced to writing and clauses to this effect must always be inserted in any written agreements with planned fibre providers,” said Booth-Beharilal.

IPSA added that lifestyle, gold, wildlife and equestrian estates are extremely popular choices for South Africans, with many using high-speed fibre optic cables to enable remote working.

Fibre makes it easier to rent and sell properties and can increase the value of a property.

“Open access commitments must be kept on body corporate meeting agendas, and residents must scrutinise fibre rollout agreements within communities before trenching begins,” Booth-Beharilal says.

ISPA added that open access means fair competition, which allows consumers to choose quality and affordable communications.

“In ISPA’s view, closed networks – or entering into an exclusive arrangement with one provider – are contrary to the ideal of a level internet services playing field that values innovation and competition,” concludes Booth-Beharilal.

Not the first time

This call from IPSA is not new. The previous chair, Graham Beneke, stated that in 2018, representatives of gated communities, estates, and business parks are gradually taking a hard line with fibre providers.

Many called for a level playing field for broadband infrastructure providers, accusing many of not doing business transparently.

“There’s a clear trend towards homeowners’ associations, body corporates, residents’ associations and property developers rejecting any potential fibre installation that does not allow for multiple broadband service providers to compete for owners’ and tenants’ business,” said Beneke in 2018.

“It’s imperative communities choose open access providers and that clauses to this effect are always inserted in any written agreements with planned fibre providers.”

However, many networks did not want to provide a platform for competition at the service levels and actively opposed it.

The fibre issues are just one of a plethora of risks that tenants and owners in gated communities should worry about.

Real Estate Business Owners of South Africa (Rebosa) noted that some Homeowners Associations (HOAs) are also involved in unlawful profit-making practices that could negatively affect the sale of a property.

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