Access to the 1800MHz spectrum will help to transform the ICT sector and will assist SA`s three cellular operators to efficiently deal with the growing number of subscribers in the country.
This follows last week`s announcement by communications minister Ivy Matsepe-Casaburri, during her budget speech before Parliament, that both the 1800MHz spectrum and the 2.4GHz-3G spectrum will be opened to existing cellular operators, the second national operator and "underserviced area operators".
In return for access to the new spectrums, operators will be expected to supply four million SIM cards over five years to disadvantaged South Africans, while the industry will also provide 250 000 free phones and numbers to public emergency services in this time period.
Operators will also have to provide Internet links to computers at schools, and public pay phones in accessible places in rural areas and multipurpose community centres.
Yvonne Muthien, group executive of corporate affairs at the MTN Group, says the company welcomes the progress that has been made towards broadening universal telecommunications access, as well as the clarity regarding the allocation of the 1800MHz spectrum.
"The allocation of the additional spectrum will help to facilitate product, capacity and service improvement for our customers," she says.
"MTN considers the fees, terms and conditions associated with the spectrum allocation to be fair and equitable, and will work closely with the government to meet the required community service obligations as stipulated."
She says the minister`s speech marks a significant progression in policy thinking and approach, from mere regulation towards stimulation of industry investment.
"This is in line with global practice, and reflects the growing strength of the South African telecoms industry," says Muthien.
"South Africans have come to rely on mobile communications for security, convenience and reliability, and in a country where safety is a priority, the supply of 250 000 free phones and numbers to public emergency services will no doubt enhance the quality of service provided by these sectors over the next five years."
Telecoms analyst Max Koep, from Deutsche Bank, says that from a market perspective, this is good news, particularly as it is not as expensive as was originally feared.
"It is basically a win-win situation, as the opening of the 1800MHz spectrum will provide the operators with more capacity to ease traffic congestion, while the community obligations will mean that the telecoms capacity in underserviced areas is grown as well," says Koep.
"The operators appear to be happy with the situation, as they are all conducting various community upliftment projects already, so the new obligations are a further extension of these programmes."
He says it is also good news for the industry that another uncertainty has been cleared up with the opening of the new spectrum, and that the obligations on the operators are not too onerous.
"The Department of Communications has adopted a market-oriented approach to the issue, which will help to improve the telecoms industry as a whole, and this has to be seen as a positive step for all concerned."
Vodacom and Cell C could not be contacted for comment at the time of publication.
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