Closing arguments in the complaint against Screamer Telecommunications will only be heard next month, as the hearing overran the three days it was initially set to take.
Last week, the Independent Communications Authority of SA's (ICASA's) Complaints and Compliance Committee (CCC) heard arguments from both Screamer and ICASA's lawyer about allegations that Screamer was using spectrum illegally.
The parties have agreed to submit closing arguments in writing before the matter resumes on 28 October, at which point closing arguments will be heard.
ICASA took Screamer to task over an agreement it had to use about 10MHz of Sentech's allocation in the 2.6GHz band. Sentech had the space for years and was planning to use it to roll out a national network before handing it back to ICASA, pending clarity from government as to what role state-owned entities will play in the broadband space.
ICASA became aware of the deal as far back as 2009, but only told Screamer to stop its "illegal" activities in 2010, while the charge sheet was only formulated two years later.
The regulator's arguments hinged on its belief that Screamer was using the spectrum illegally as it did not, at the time, have the necessary licence to use it. Screamer argues that its behaviour is not unusual and is akin to companies such as Virgin Mobile offering services by being a virtual provider, piggybacking off another operator.
Screamer CEO Gavin Hart said this behaviour was legal and that such "creative" deals are commonplace. Its legal representative, advocate Mark Wesley, said Screamer had not contravened the Electronic Communications Act (ECA).
Committee member Nomveliso Ntanjana suggested ICASA should probe whether agreements, such as Virgin Mobile's one, are legal under the ECA. CCC chairman Wandile Tutani said, with the filed closing arguments, the matter and the law will become clear.
Under the deal, Screamer built, operated and maintained a network through which it served clients and paid Sentech a fee for using its spectrum, said Hart.
After Screamer was stopped from using the spectrum, about two years ago, its client base fell from 2 500 to 1 500, said Hart under cross-examination. In mid-2011, ICASA raided the company's premises and confiscated its equipment.
Hart is still contemplating going to the High Court over Sentech's effective cancellation of the contract. Screamer has made a provision for about R7 million that is still due to Sentech under the deal, but was never invoiced again, he said.
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