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Six telcos apply for spectrum as ICASA readies for auction

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 01 Feb 2022

Cell C, MTN, Vodacom, Telkom, Rain Networks and Liquid Telecoms have tendered applications for the International Mobile Telecommunications spectrum licences, also known as high-demand spectrum, marking a milestone towards the auctioning of spectrum scheduled for March.

The telecoms regulator, the Independent Communications Authority of South Africa (ICASA), announced yesterday that it had received the six applications.

This follows a false start of the process, when Telkom protested against certain aspects of the planned licensing roadmap.

Telkom was “concerned” by the separation of the publications of the invitation to apply (ITA) and the reasons given by ICASA to separate the licensing process of the wireless open access network (WOAN).

ICASA had resolved to separate the auction of high-demand spectrum and the licensing of the WOAN, saying the spectrum set aside for the WOAN will be licensed in due course, following engagements with the relevant stakeholders.

Nonetheless, Telkom subsequently backed down, paving the way for ICASA to continue with its plans to auction.

“In terms of the published timetable for this licensing process, the authority will announce the qualified bidders on 21 February 2022. This will mark the next critical milestone in the effort of the authority to finally release this much-needed economic stimulus input,” said ICASA in statement.

ICASA chairperson Dr Keabetswe Modimoeng comments: “We thank all applicants for participating in the process. We intend to finally see the licensing of high-demand spectrum through to completion to ensure all South Africans have access to a wide range of communications services, including data services, at affordable prices.

“We value each milestone in this process, especially considering the mammoth legal challenges we have encountered along the way. Ultimately, public interest should prevail, as this process will yield positive spinoffs for the industry and society at large.”

In licensing of high-demand spectrum through this ITA, ICASA aims to ensure the realisation of many of the key policy objectives originally identified in the SA Connect broadband policy, particularly as regards the provision of universal and affordable broadband services for all South Africans.

Also, politicians and business people believe spectrum allocation and hastened digital migration can solve SA’s rising number of joblessness.

SA is lagging behind its peers on spectrum and digital migration due to scores of challenges that led to delays in two of government’s most important programmes of action, which many believe may bring economic prosperity and create employment opportunities.

The telcos also previously cautioned government that the perpetual spectrum delays are a zero-sum game for South Africans and is not in the interests of consumers or the telecoms industry.

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