Pamphlets distributed in the Port Elizabeth area between 19 and 21 February by wireless service provider iBurst were misleading and anti-competitive.
So says the Internet Service Providers' Association (ISPA) in a ruling that suggested the complainants seek financial redress.
Seven complainants in their personal capacity lodged a combined grievance with ISPA in March.
In the application, the complainants note the pamphlets - of which there were 140 000 distributed - maintained that Aerosat, also an ISPA member, was "not licensed" to sell Internet connectivity; [not a holder of] an electronic communications service licence; and an illegal fly-by-night operator which would leave consumers and businesses stranded without Internet connectivity.
"The simple and unavoidable truth of the matter is that Aerosat is a competitor of iBurst's in the Port Elizabeth area and that this pamphlet campaign was undertaken with the primary purpose of unfairly and unlawfully gaining competitive advantage," they said.
In its response to the complaint, iBurst said subsequent to the minister of communications' announcement that "VANS may not self-provide", the company had sought legal advice on the issues. It was of the belief that in the absence of ICASA granting VANS permission to self-provide access services on licensed or unlicensed spectrum, such licensees may not provide wireless Internet services.
"Over the past 12 months, iBurst has received numerous complaints... The volume of these complaints prompted iBurst to take steps to improve the education of consumers to protect them from misleading statements and to defend the credibility of the broadband industry as a whole," said Pearlene Singh, iBurst's head of legal affairs.
The panel was unmoved by this argument and fined iBurst R10 000. It also suggested Aerosat seek legal advice and pursue appropriate damages. It recommended ICASA be notified of the result of its ruling and take advice on whether action is merited.
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