Local Internet service provider (ISP) Screamer's illegal use of Sentech's allocated spectrum was not authorised by the Department of Communications (DOC), says communications minister Siphiwe Nyanda.
Some R14 million worth of irregular expenditure by Sentech involves Screamer, a company that was using Sentech spectrum to resell its own services - a practice that is against the law - according to Sentech chairman Quraysh Patel.
Nyanda commissioned a ministerial task team in July last year to interrogate, review and advise on corrective measures required to ensure Sentech continues to operate a sustainable business, says the DOC.
“Furthermore, to ensure that Sentech continues to provide strategic support to the implementation of the government's programme of action, the ministerial task team was tasked to look into Sentech's operational business model, governance structures, business sustainability, etc.”
It adds that one of the identified anomalies found by the task team in Sentech's business was the illegal operational model, which was used as a revenue generator in some of its business units or divisions.
The department says the board was given responsibility to deal with this matter as part of the Sentech implementation and corrective plan, and that there's an ongoing investigation conducted by the new board members.
“It must also be recorded that it is neither the minister of communications' jurisdiction nor the Department of Communications to authorise such an illegal operation as suggested by some of the media reports - such an operation is not in line with the spectrum policy.”
Nyanda is confident the responsible authority will take actions against illegal operations - “particularly those that are abusing spectrum policy directives as pronounced by my ministry”.
Screamer was one of the first smaller ISPs to offer WiMax solutions, a move that made many in the industry nervous.
It is an open secret that Screamer uses Sentech's available WiMax-suitable spectrum to run its network. With the DOC calling on the regulator to push a use it or lose it policy, Screamer's focus on its WiMax offering may save Sentech from losing the spectrum.
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