Icasa has said a request by Blue Label Telecoms for the transfer of control of Cell C's licences, including its spectrum, is a mandatory step and standard procedure, reports Fin24.

This comes amid concerns from a shareholder that assets are being stripped from the company, and that they were not consulted. 

CellSAf, which is black-owned and holds about 7.5% of SA's fourth-biggest mobile operator, lodged an objection over the transfer in December, maintaining it is the rightful part owner of the licences.

This followed an Icasa publication in a Government Gazette earlier that month that it had received an application for transfer of control of various licences of Cell C. Blue Label co-CEO Brett Levy said that this, along with an application to the Competition Commission, was part of the necessary regulatory processes to finally take control of Cell C and involved no physical asset transfers.

Despite this, CellSAf director and company secretary Nomonde Mabuya said the control of the licence was viewed as a key strategic asset, and it still objected.

‘You don't have to be a majority owner to control the licence, as it's owned by multiple shareholders, including CellSAf,’ she said.

'This is the only solid asset we still own as CellSAf, and it cannot be transferred or sold without our approval.'

Mabuya said the spectrum licence was valued at about R6bn to R8bn.

In response to questions, Icasa said the Cell C application was ‘not unique’ and a mandatory step.

Icasa added that asking for public comment was also standard procedure, and it is currently engaged in its analysis of the applications and their supporting documents, as well as of the various stakeholder submissions.

Full Fin24 report