Independent Communications Authority of South Africa - Highlights and Controversies

Highlights and Controversies

ICASA inherited a number of challenges from SATRA including :-

• The licensing of the third mobile cellular network operator (MCNO), Cell C. In February 2000, a little less than five months before ICASA was formed, SATRA declared Cell C as a winning bidder of the third mobile cellular network operator. NextCom, one of the losing bidders, engaged ICASA in a number of court interdicts alleging that the decision to award Cell C was not fair and was influenced by the National Executive. In June 2001, NextCom withdrew from a judicial review that was ordered by the High Court allowing Cell C to continue its operations.
• ICASA's intervention on the use of the 1800 MHz frequency band by issuing the GSM 1800 license only to Cell C after the incumbent Vodacom and MTN threatened to go to court to claim the use of this band.
• The conversion of the VANS licenses issued through the repealed Telecommunications Act to the new ECNS or ECS licenses provisioned in the EC Act resulted in a court interdict where Altech challenged ICASA on its decision to exclude it on the list of the new ECNS licensees. Altech’s claim was that all the VANS licensees be granted the ECNS licenses as per the EC Act. The High Court judgment ruled in favour of Altech resulting in all the VANS licensees being granted ECNS licenses.
• The listing and unbundling of Vodacom shares raised a number of questions regarding the role and independence of ICASA as the sector regulator.Vodacom exercised its right as granted by the Electronic Communications Network Services license issued by ICASA to unilaterally sell its shares without the involvement of ICASA or Minister of Communications as it was the case in the previous licensing regime. This was not well received by the Trade Union, COSATU, which challenged the decision made by ICASA to clear the Vodacom share transaction.This transaction resulted in ICASA’s independence status being questioned as it was influenced by COSATU to rescind its initial decision allowing Vodacom to unbundle its shares.