Vodacom, SA's largest cellular provider, is set to fight the Independent Communications Authority of SA (ICASA) over the regulator's claim that it is allegedly owed R77.8 million for overdue licensing fees, reports the Sunday Times.
According to the newspaper, it is understood that ICASA wants settle the dispute to avoid being embarrassed in court.
In recent weeks ICASA, under the chairmanship of Stephen Mncube, has been painted as lacking regulatory muscle for failing to demand that Internet service provider Wireless Business Services pay R65 million it owes for spectrum it has used, and is instead trying to reach a settlement, says the paper.
Regarding the Vodacom dispute, the problem reportedly arose after ICASA changed its mind over licensing fees for the 2011/12 financial year.
Quoting Vodacom spokesperson, Richard Boorman, the paper says ICASA reviewed its spectrum licence fees in August 2010 to level the playing field between state-owned companies and private entities. Before this, private companies were paying substantially more than state-owned companies, he said.
Boorman said ICASA gave the company an implementation date for the revised fee structure of April 2011 and Vodacom paid fees according to this schedule. However, ICASA later postponed implementation of the new fee schedule by a year.
The newspaper cites insiders as saying this could be because ICASA realised that Telkom, which is 39% government owned, would have to pay more at a time when it was trying to launch its mobile arm.
Administrative incentive pricing of spectrum through regulations was introduced by ICASA in August 2010. Although implementation was delayed, the new regime came into effect last April.
It seeks to incentivise spectrum users to make the most effective and efficient use of radio frequency spectrum using higher frequencies and coverage in rural areas.
Previously, before the administrative incentive pricing structure came into effect, Telkom's annual licence fees cost it R37.47 million. This cost, according to an ICASA presentation, increased to R922.5 million.
Unfair
For Vodacom the new fee structure meant it saved about R77.8 million, which it is now refusing to pay, says the paper. Boorman is quoted as saying it believes the last minute revision to delay the implementation date by a year was unlawful.
ICASA claims it postponed the new fee structure because it did not have the equipment to correctly calculate the fees under the new rules. Sunday Times reports ICASA is now seeking to settle the matter privately with Vodacom, for if it loses in court, it could open the way for other operators to claim back fees they paid for that year. No court date has been set at this stage.
Earlier this month Cell C hit out at the ICASA for its lack of response to its urgent query regarding outstanding licence fees - an act the operator says is damaging its reputation.
This followed a statement by Democratic Alliance shadow communications minister Marian Shinn which outlined ICASA licensees' outstanding fees (more than R480 million, as confirmed by ICASA). However, Cell C said it had never been advised by ICASA that it owes any amount in outstanding licence fees.
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