Icasa turns down WBS offer

THE Independent Communications Authority of SA on Friday refused to accept a R45m settlement offered by Wireless Business Solutions.

THE Independent Communications Authority of SA (Icasa) on Friday refused to accept a R45m settlement offered by Wireless Business Solutions (WBS), signalling its intention to recover the full amount owed.

The regulator last week seized WBS’s key communications equipment from six sites, which caused downtime for its subscribers in Gauteng who use WBS’s iBurst and Broadlink services.

Icasa has accused WBS of using the radio frequency spectrum unlawfully and owing almost R60m in unpaid licence fees.

Icasa refused the settlement minutes before WBS won an urgent high court interdict against the regulator, which was ordered to return the seized equipment.

WBS had wanted to settle with the regulator over two years.

The company offered to pay R1m upon signing the agreement; R1m monthly until March next year; and R2m monthly from April next year until March 2015; and a final payment of R9m.

“WBS will pay … Icasa the sum of R45m in full and final settlement of all issues between the parties in relation to the seizure and licence fees that may be owing in respect of WBS’s radio frequency spectrum licences,” read the settlement.

The wireless service provider also wanted Icasa not to prejudice it in future dealings, including applications for new licences.

Icasa lawyer Michael Motsoeneng said on Friday: “There is no settlement, it seems. We’ll let them get the interdict for them to get the equipment, and thereafter fight for the money due.”

Icasa is seeking spectrum licence fees owed by WBS and also alleges that the service provider has contravened sections of the Electronic Communications Act by its “possession and use of radio apparatus to transmit and/or receive a radio signal without a valid frequency spectrum licence” in the 1.8GHz, 2.6GHz, 5.9GHz, 10.5GHz, 15GHz and 26GHz bands.

The regulator was granted a search and seizure warrant from the court on March 7 authorising it to raid WBS facilities and to seize equipment required to transmit or receive radio signals within the spectrum bands in question.

WBS CEO Thami Lawrence Mtshali denied the charges. “WBS was granted radio frequency spectrum licences by Icasa in respect of all the six frequency spectrums and has been operating under these licences for several years,” he said in his affidavit to the court.