About
Subscribe

Vodacom, ICASA settle the score

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 28 Oct 2013
Vodacom and ICASA have put a licence fee issue - dating back to 2011 - to rest.
Vodacom and ICASA have put a licence fee issue - dating back to 2011 - to rest.

The Independent Communications Authority of SA (ICASA) has one less operator at loggerheads with it over licensing fees, since a R77.8 million matter between the authority and Vodacom has been closed.

Vodacom remains tight-lipped, saying only that the spectrum-related dispute has been closed "by mutual agreement". Spokesperson Richard Boorman says the terms of the agreement are confidential.

Earlier this year, Cell C also had a go at ICASA for what it said was a lack of response to an urgent query regarding outstanding licence fees.

While the dispute with Vodacom dates back to 2011, the issue began in August 2010, when ICASA published new spectrum fee that were set to be instituted as of 1 April the following year. Boorman says these changes were intended to level the playing field, because mobile players were paying significantly more than Telkom for equivalent chunks of spectrum.

"On 10 March 2011, just prior to the implementation date of the new fees, ICASA attempted to postpone the implementation of the new fees by one year. The argument from our side was that the notice to set aside the original implementation date had no legal weight."

Vodacom had, in the meantime, been paying fees according to the revised schedule. While the reason for ICASA's postponement of the new fee set was not evinced, industry insiders speculated that a possible reason was that the authority realised Telkom - 39% owned by government - would end up paying more at a time when it was busy with plans to launch its mobile arm, 8ta. ICASA claimed the delay had to do with equipment and fee calculation issues.

For Vodacom, the new fee structure would have meant a saving of about R77.8 million, which it then declined to pay. ICASA was reported to be considering an out-of-court settlement to avoid the pains of a legal process.

A reliable source says the matter was withdrawn as far back as 2 September. ICASA did not comment or provide further details by the time of publication.

Share