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Spectrum auction ends, Cell C queries WOAN process

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 18 Mar 2022

As telcos celebrate the allocation of spectrum at the just-ended auction, Cell C is seeking answers as to how the regulator will parcel out the wholesale open access network (WOAN).

Commenting on the just-concluded spectrum allocation process by the Independent Communications Authority of South Africa (ICASA), Cell C says in many respects, the outcome was unexpected and it is pleased the process is complete as it was long overdue.

“The question now is how will the WOAN spectrum be dealt with?” Cell C asks, seeking a roadmap of the process.

The licensing of WOAN spectrum has vexed many in the telecoms space, which has led to raging debate in the country.

The ongoing wrangling was further fuelled last week by Cabinet, which proposed amendments to remove the requirements to license the WOAN. Cell C has now joined the likes of Telkom, which has also been seeking clarity on the WOAN licensing.

The current set rules by ICASA demand that applicants for WOAN spectrum must be at least 70% owned by South African citizens and at least 50% black-owned. They must also be at least 20% owned by black women.

For the time being, various operators have reacted to the spectrum auction held on 10 March, which comprised 58 rounds of bidding between the six bidders.

“This is a significant milestone, not only for MTN and the telecommunication industry at large, but also for South Africa’s digital future. Spectrum is the lifeblood of our industry and is key to reliable and extensive connectivity for our customers across the country,” says MTN SA CEO Charles Molapisi.

“Our multibillion-rand investment in this much-needed spectrum is also an important injection of cash into the national fiscus. In anticipation of the spectrum allocation, we had undertaken a modernisation of our network to ensure we would be ready to leverage this spectrum to the connectivity benefit of South Africans as quickly as possible.”

MTN successfully secured the 2x10MHz in 800MHz, 40MHz of 2 600MHz and 40MHz of 3 500MHz band.

Telkom picked up the 20MHz at 800MHz and 22MHz at 3.5GHz bands, Rain clinched the 20MHz at 700MHz and 20MHz at 2.6GHz, while Cell C settled for the 10MHz at 3.5GHz.

Similalry, Vodacom’s spectrum portfolio includes 2 x 10MHz in the 700 band MHz, 1 x 80MHz in the 2 600MHz band and 1 x 10MHz in the 3 500MHz band.

Shameel Joosub, Vodacom Group CEO, also welcomed the auction, calling it “a momentous day for South Africa”, while congratulating ICASA, the minister of communications and the presidency.

“Although the spectrum auction pricing was high, Vodacom is pleased with the outcome of the auction, which is a win for all of our customers who can in the coming years benefit from even wider coverage, faster speeds and enhanced network quality,” he comments.

“Once the auction process is fully concluded, Vodacom’s immediate focus will be on the deployment of valuable spectrum to extend both 4G and 5G network coverage to more parts of the country and improve quality of service, while we continue to address the cost to communicate. The licensing of new spectrum in South Africa is also expected to accelerate post-pandemic economic recovery and fast-track digital inclusion.”

“Liquid Intelligent Technologies SA would like to congratulate ICASA, the Ministry of Communication and Digital Technologies and the Presidency on the successful completion of the spectrum allocation process,” says Deon Geyser CEO of Liquid Intelligent Technologies South Africa.

“This is a significant milestone for South Africa, as the public and private sectors continue to collaborate to build a digital economy.

“We are pleased with the outcome of the process. The additional capacity received through the process has ensured our customers can experience our world-class digital services offering backed by reliable and seamless high-speed connectivity. Liquid SA firmly believes access to high-speed connectivity and digital services is vital to reduce the digital divide in South Africa.”

When approached by ITWeb for reaction to the auction, Telkom promised to comment but hadn’t done so by the time of publication.

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