Hundreds of companies across SA are illegally tapping into spectrum and then on-selling it to end-users, making a tidy profit in the process.
The situation, says a lawyer in the sector, has arisen because the state is not acting quickly enough to free up more frequency, frustrating companies that want to compete.
In addition, the Independent Communications Authority of SA (ICASA) has the power, but not the capacity, to clamp down on illegal spectrum use.
Up in the air
Dominic Cull, owner of Ellipsis Regulatory Solutions, says there is widespread illegal use of spectrum. However, he notes this is not surprising, as the state has yet to allocate more spectrum; a process that has been several years in the making.
Late last year, the Department of Communications (DOC) said it would soon make a decision on allocating space in the 2.6GHz range. However, the DOC has dropped the idea of allocating space in 800MHz for now.
The 800MHz range is currently used by broadcasters, but more space is expected to be freed up once SA moves to digital television. SA is only likely to allocate space in the so-called digital dividend after it migrates to digital TV.
Cull says the lack of available spectrum creates a situation similar to that in the US when alcohol was banned, which led to an underground market flourishing. He notes that it is easy to misappropriate spectrum and it is difficult to clamp down on its use, as no-one will notice, as the frequency is not being used by the licence-holder.
An analysis of spectrum, using monitoring equipment, will indicate it is being illegally used without licences all over, says Cull. Although ICASA has the legal framework that allows it to clamp down on such use, it would need sufficient budget and capacity, he notes.
Cull adds that the illegal use of spectrum means that companies are essentially using it for free. "If you're not going to open it up, you're going to get leakage around the side. It's not ICASA's fault."
Much of the spectrum that is being illegally used is around the sides of the exempt Industrial, Scientific and Medical 2.5GHz and 5.8GHz bands, says Cull. He adds that this underground industry is profitable, but also competitive.
Easy to do
One of the more prominent cases of alleged illegal spectrum use is the dispute between Screamer Telecoms and Sentech. Screamer argues it has an agreement that allows it to use spectrum in Sentech's coveted 2.6GHz band, but Sentech has denied there is any such arrangement, and alleges Screamer was using its spectrum illegally.
The issue is currently with ICASA's Complaints and Compliance Committee for adjudication.
An industry insider, who asked not to be named, says illegal use of spectrum is widespread across SA, and there are hundreds of companies in SA that have set up networks and are not paying for the frequency.
The insider says "it's everywhere," referring to the proliferation of entities that are profiting from not paying for spectrum use. He explains that companies set up towers, which then break out onto managed ADSL lines, and the connectivity is then on-sold, and the only expense for the firm is the cost of the ADSL bandwidth.
ICASA spokesman Paseka Maleka could not immediately comment on whether the illegal use of spectrum was an issue, as he was awaiting statistics. He did note, however, that the question of sufficient funding and capacity has always been an issue for ICASA.
Share