The South African government is proposing that the hoarding of scarce spectrum by telcos should not be tolerated.
This was revealed when communications and digital technologies minister Khumbudzo Ntshavheni gazetted a draft policy document on spectrum allocation.
According to the minister, the “Next-Generation Radio Frequency Spectrum Draft Policy” has been approved by Cabinet and is now up for public comment.
Through this policy, government aims to promote long-term public interest derived from the use of spectrum as a finite natural resource.
The draft policy comes after telecoms regulator the Independent Communications Authority of South Africa (ICASA) announced last month that it is preparing to license more low- and mid-frequency spectrum to providers of broadband services.
In the document, the minister says government is looking to discourage the hoarding and misuse of spectrum by the operators.
The spectrum policy supports effective and efficient utilisation of spectrum resources, and given the scarcity and value of spectrum to national development, hoarding of spectrum is not permissible, states the draft policy.
“The regulator should put measures in place that prevent hoarding of spectrum, including mechanisms for the implementation of the ‘use it or lose it’ principle,” it reads.
According to the proposal, licensed spectrum that is unused for a period of more than 24 months will be subjected to the use it or lose it principle.
Other options
While hoarding will not be allowed, the policy document paves the way for operators to trade and share spectrum.
“To promote economic development, market-based approaches such as spectrum trading spectrum sharing, dynamic spectrum access use, and spectrum ‘subletting’ and/or sharing between licensees, which ensures public policy gains in the use of spectrum, are permitted with prior approval of the regulator,” the document says.
It adds ICASA must set standard operating rules, as well as terms and conditions applicable for trading, sharing and subletting of spectrum.
“The spectrum holder must follow the rules, and terms and conditions in consultation with the regulator. The regulator, together with the Competition Commission, should ascertain that an ECNS holder acquiring spectrum in any manner prescribed in, for example, mergers and acquisitions, will not have a negative impact on competition and have an unfair advantage over smaller competitors.
“The regulator must put in place a regulatory framework which clarifies spectrum trading rules between licensees, and promote approaches that prohibit monopolisation of spectrum, dominance and anti-competitive behaviours in the market.”
The draft also says emerging technologies are enabling more efficient use of spectrum, either limiting the power to avoid interference to primary users, or tapping into spectrum that is unused at a given time and geographic location.
“To promote spectrum efficiency, co-ordination for the purpose of spectrum sharing and the use of technologies that will enable greater spectrum sharing amongst different users is permitted with the prior approval of the regulator.”
To harness rapid technological advances and changes, the policy document proposes that the re-farming of spectrum for use by a different technology is permitted.
According to the GSM Association, “re-farming” is the term used for the process governing the repurposing of frequency bands that have historically been allocated for 2G mobile services (using GSM technology) for new-generation mobile technologies, including third-generation (using UMTS technology) and fourth-generation (using LTE technology).
The draft policy notes the re-farmed spectrum will be treated in terms of its new use to the extent possible, and respective spectrum fees and obligations will be imposed accordingly.
It adds that migration of services from one band to another and/or in-band is promoted for efficiency of spectrum use and other national interests.
“To address costs incurred during migration of users, the regulator will put in place transitional arrangements or measures to provide certainty for current users of spectrum to ensure minimum service interruption, while acknowledging that a change in technology may have cost implications for licensed users.”
Farewell to 2G, 3G
The document also gives a timeline on the “sunset of 2G and 3G networks” in South Africa.
The following section provides preliminary dates for sunset of 2G networks:
(a) The prohibition of the licensing of 2G devices – 30 June 2023
(b) Prohibition of new connections or activation of 2G devices on networks – 31 December 2023
(c) Shutdown of 2G services – 31 March 2024
(d) Shutdown of 2G network – 30 June 2024
The following section provides preliminary dates for sunset of 3G networks:
(a) The prohibition of the licensing of 3G devices – 31 March 2024
(b) Prohibition of connections or activation of 3G on networks – 30 September 2024
(c) Shutdown of 3G services – 31 December 2024
(d) Shutdown of 3G network – 30 March 2025
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