Globe Internet Ltd offended that MACRA “scared” its customers when imposing regulatory sanctions on the company

* Globe Internet using frequencies in the 700 MHz frequency band from April 1, 2022 without a frequency spectrum licence from MACRA

* Further warns customers that use wireless internet services may be affected when the sanction becomes operational

* MACRA maintains it is only protecting the interests of the customers by ensuring that they are not inconvenienced

* The statement that MACRA has issued is within the mandate of raising proper awareness around communication services

By Duncan Mlanjira

In the public notice in which Malawi Communications Regulatory Authority (MACRA) announced that was imposing regulatory sanctions on Global Internet Limited for “illegal usage of spectrum”, the Authority went further to alert the company’s customers that they may be affected when the sanction would become operational from August 17, 2022.

MACRA accuses Global Internet of using frequencies in the 700MHz frequency band from April 1, 2022, “without a frequency spectrum licence from MACRA, which is contrary to section 83(2) of the Communications Act, 2016”.

The public notice, dated July 21 and signed by Director General, Daud Suleman, says following a hearing on the matter with Globe Internet, MACRA has, in “pursuant to sections 195(1) and (2) of the Communications Act, imposed the sanctions” on the company, that include:

(i) A fine of K74,938,006.58 for illegal usage of spectrum in the 700 MHz bands to be paid by 17th August 2022;

(ii) To cease and desist from the usage of frequencies in the 700Mhz band and to surrender the frequencies to the Authority by 17th August 2022; and

(iii) To account for the revenue generated during the illegal usage of frequencies in the 700MHz band.

Thus, MACRA went ahead to warn the general public that since “Globe Internet Limited can no longer operate in the 700 MHz band” from August 17 when the sanction becomes operational, “some of its customers may be affected — those that use wireless internet services from Globe, which was delivered using the said frequency”.

When contacted, Globe Internet’s Chief Commercial Officer, Elias Imaan said “it is unfortunate that as a regulator, MACRA can go to the extent of scaring customers without really considering all the implications of such actions and general statements”.

“This has come as a surprise to Globe,” he said, while assuring the public — especially its current customers — that the company is “in the process of seeking an alternative solution for the subscribers on this service. Our Corporate business and those on fibre network will remain intact.”

Imaan explained that Globe Internet had been using the said frequency (700MHz) in Band 17 since 2018 “to provide wireless services in the urban centres of Blantyre, Lilongwe, Mzuzu and Zomba. Our usage of the Spectrum was duly licensed and the applicable fees were paid for in full up until March 31, 2022.”

Imaan further suspects that MACRA “would like to auction the spectrum in question to the telco industry” and as such they asked Globe Internet to vacate the band beyond March 31st.

“Before this date, we requested MACRA to give us a bit more time as our migration process was not concluded. We did not get the official response despite our follow ups until this month when we are told to vacate by 17th August, 2022.

“Yes, we have been fined, however we feel the fine is misplaced as it considers us as a national operator when in fact we operate in the small pockets of the cities mentioned above,” Imaan said.

When MACRA was contacted that Globe Internet Ltd said they have been using the 700MHz frequency in Band 17 since 2018 to provide wireless services in the urban centres of Blantyre, Lilongwe, Mzuzu and Zomba, Communication Manager, Zadziko Mankhambo said the company was “using the spectrum under temporary license that MACRA issued to facilitate for them to move out”.

“Instead they have been trying to extend that temporary license by means that are not acceptable. They overstayed their stay in borrowed robes.

“MACRA manages spectrum on behalf of Malawians, how and when it administratively operate the management of spectrum is an internal arrangement within.

“However, the case with Globe is different. They used spectrum without a valid license and they obtained usage of the same without following proper procedures,” he said, while emphasizing that Globe was “not initially allocated that spectrum — they took over from another licensed operator.”

On the accusation that MACRA would like to auction the spectrum in question to the telco industry, he said: “That’s untrue — MACRA has always requested Globe to vacate the band but they kept on investing on it despite being told that they are on illegal spectrum band.

“MACRA could not legalise an irregularity that Globe had committed, hence this decision has been arrived at following numerous engagement between Globe and MACRA.”

On the fine being deemed by Globe as being misplaced, Mankhambo maintained that “the fine is an application of the actual fee of proper usage of that specific band”.

 

“Regardless of geolocation of scope of usage, any spectrum must be used under license. Globe ought to have known better that the band they operated on was illegal.”

Asked why they had to warn the company’s customers that way when the onus was on Globe Internet itself, he said Mankhambo said MACRA is only protecting the interests of the customers by ensuring that the public should “be on standby to ensure that they are not inconvenienced when the restrictions kick in”.

“The statement that MACRA has issued is within the mandate of its powers of protecting consumers and raising proper awareness around communication services,” he said.