by Hans van de Groenendaal, features editor, EngineerIT
The Independent Communication Authority of South Africa (ICASA) has, over the past few years, been labelled by industry commentators as an organisation that has neither the teeth nor the will to enforce its own regulations or to regulate spectrum effectively to take South Africa on the broadband highway. This changed last week when ICASA swooped on WBS and its subsidiaries iBurst and Broadlink, and seized radio communications equipment from six of the company's sites, leaving thousands of their customers without internet connectivity.
In October 2012 ICASA adopted a hard-line approach to non-compliance with regard to the collection of outstanding radio frequency licence fees. As a result, its inspectors commenced with investigations that led to the crackdown on WBS last week. ICASA's action against WBS forms part of a national drive to recover all outstanding licence fees from electronic communications, broadcasting and postal licensees. To this end, the Authority has been engaging several affected licensees to make payment arrangements for all outstanding radio spectrum licence fees.
ICASA is doing what industry has been asking, if not demanding, the authority to do i.e. to enforce the rules and take action on those who do not comply.
It is not as if WBS was taken by surprise. Discussions have been on-going for some time yet WBS chose to play the waiting game, I presume with the idea that ICASA would not act - which is what most people in the industry expected to be the case.
So what did WBS do? Like our national disease, if we do not like something we run to the courts. The High Court issued an interim order compelling ICASA to return the equipment to WBS. ICASA was quick to issue a statement late that same evening saying that they acknowledged the interim court order to hand back radio communications equipment. This they indeed did. The interim court order is valid until 25 May 2013 but does not exempt WBS from their obligations, as the operator is still required to settle all outstanding radio frequency licence fees.
A war of words erupted in the media, social networks and on talk shows.
WBS alleged that ICASA inspectors had damaged WBS property as they ripped the equipment out.
WBS CEO Thami Mtshali, told Radio 702 that the company is not under any sort of financial risk, despite the almost R60-million ICASA claims it is owed in fees. Although WBS disputes the figure, Mtshali said that WBS and its subsidiary iBurst were not threatened by ICASA's determination to recover unpaid fees.
So what has changed for ICASA to make such a bold move? Last year the Authority received a qualified audit report from the Auditor General and was told to get its house in order and recover outstanding licence fees. Then towards the end of the year councillors were made responsible for the various portfolios and could table items for decisions by the council directly to the council and not via the CEO, where it tended to get bottlenecked. General managers were also given more responsibilities in decision-making.
The public reaction is the most interesting of all. Some agreed with ICASA, others asked how could ICASA take such drastic action and cause the loss of internet connectivity to thousands of users. ICASA merely did what the public has been expecting it to do ... to be an effective regulator. I guess it is case of damned if you do, and damned if you don't!