Clarity on WiMax spectrum expected

By Candice Jones, ITWeb online telecoms editor

Johannesburg, 02 Mar 2009

The much-anticipated Independent Communications Authority of SA (ICASA) report on the allocation of WiMax can be expected to be published this month.

This is according to ICASA spokesman Sekgoela Sekgoela, who says the authority has looked through all the submissions by interested players. Many industry hopefuls are eagerly anticipating the report, after the initial decision around WiMax spectrum allocation left them without hope of receiving any.

In the document, ICASA decided to auction 2.6GHz and 3.5GHz bands (commonly used as WiMax spectrum) to bidders, but not before it held a 'beauty contest' to whittle down the list of eligible players.

The authority's beauty contest and expected auction of the limited available spectrum was slammed by industry. Following the criticism, the regulator took submissions from the various players and proceeded to draft a new process based on the feedback.

Stiff BEE

Value added network providers (now electronic communications network service providers), universal service access licensees and telecommunications incumbents all participated in hearings last year.

ICASA intended to hold a beauty contest that required companies to present a 51% BEE ownership, which would have discounted almost all of the companies hoping to bid for the spectrum. After the contest, the spectrum would be auctioned to those who fit the bill.

However, the authority's prescribed regulations hit the first hurdle after an industry outcry over the steep BEE requirements, which forced it back to the drawing board. The regulations have to pass before public comment and parliamentary agreement before they can be implemented.

According to ICASA spokesman Sekgoela Sekgoela, the new document outlining ICASA's changes to the initial decision will be available “sometime this month”.

New race?

Most of the incumbent operators are already running commercial WiMax services, since all have already been allocated spectrum. Sekgoela says these licences have also been tagged with stipulations and an outline framework already exists for these businesses.

Two-fifths of the 3.5GHz spectrum was allocated to Telkom, Sentech and Neotel, leaving three-fifths for further allocation. Spectrum licences in the 2.6GHz band were allocated to Sentech and iBurst, leaving 126MHz available for others to snap up.

Companies like Internet Solutions and MWeb were hoping to be in the running for spectrum. Both companies pinned their hopes on WiMax to compete with the incumbents. However, the 51% BEE requirement shot them out of the race.

These companies will be hoping that ICASA's report will relax the stiff entry requirement for the beauty contest.