Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      Koos Bekker sells R2.5-billion in Naspers and Prosus shares

      23 December 2025
      Tribunal clears Vumatel's takeover of Herotel - with conditions

      Tribunal clears Vumatel’s takeover of Herotel – with conditions

      23 December 2025
      Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

      Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

      23 December 2025
      Netflix launches Afcon football show, hinting at bigger sports ambitions

      Netflix launches Afcon football show, hinting at bigger sports ambitions

      23 December 2025
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • World
      Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

      Trump space order puts the moon back at centre of US, China rivalry

      19 December 2025
      Warner Bros slams the door on Paramount

      Warner Bros slams the door on Paramount

      17 December 2025
      X moves to block bid to revive Twitter brand

      X moves to block bid to revive Twitter brand

      17 December 2025
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Marian Shinn » Spectrum auction could be Gigaba’s silver bullet

    Spectrum auction could be Gigaba’s silver bullet

    By Marian Shinn24 October 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Malusi Gigaba

    Finance minister Malusi Gigaba could find a silver bullet for his budget woes if he is brave enough to announce the auction of high-demand spectrum in Wednesday’s medium-term budget policy statement.

    In one sentence, he could announce that desperately needed high-demand spectrum would be auctioned as 2018 dawns and that the expected R25bn-40bn in proceeds would be used to roll out mobile broadband connectivity nationwide, switch off the analogue broadcasting signal and free up the Internet-based economy to accelerate South Africa’s international economic competitiveness, create jobs and enable e-government services.

    At the same time, he should announce that minister of telecommunications & postal services Siyabonga Cwele has withdrawn his legal challenge in the high court in Pretoria against communications regulator Icasa’s planned spectrum auction.

    The quick and easy answer to using ICTs to pull us back from the fiscal cliff is within Gigaba’s grasp. He must be bold enough to take it

    He would also need to persuade Cwele to give legal heft to the verbal “agreement” negotiated with the six mobile network operators earlier this year whereby they would — in the main — not need to return spectrum used by them until the end of their current licence period. The should be assigned high-demand spectrum in a fair and transparent manner in line with the National Development Plan and operate in a competitive infrastructure and services environment in parallel to a revised notion of the wireless open-access network (Woan).

    Gigaba would also need to persuade cabinet that the economic acceleration leveraged by efficient ICT use will not come from a years-to-establish, monopolistic wholesale network inefficiently hogging spectrum dished out to connected cronies.

    It can only come through competitive communications networks using leading-edge technology to streamline interactions in the global economy.

    Spectrum scraps

    The networks cannot do this if they are fed the spectrum scraps after the Woan is given the lion’s share of spectrum based on an ill-conceived review of its thumb-sucked future requirements.

    The quick and easy answer to using ICTs to pull us back from the fiscal cliff is within Gigaba’s grasp. He must be bold enough to take it.

    The re-started auction — and its revised terms — would oblige the high-demand spectrum winners to deliver mobile broadband infrastructure to marginalised areas as a priority.

    Siyabonga Cwele

    These obligations on the winners would place the responsibility for facilitating — through financial, human and technical resources — the migration to digital terrestrial television (DTT), including the re-stacking of the spectrum released from analogue broadcasting and the provision of five million government-sponsored decoders to identified indigent households.

    Digital migration and rural infrastructure roll-out would need to be almost complete before the winning bidders could start to leverage the availability of the high-demand spectrum in the lucrative urban areas.

    It would result in a monopoly of ageing ICT infrastructure that no self-respecting company would risk funding as there would be no return on investment. The Woan will be fossilised in the womb

    Coupled to the go-ahead for the spectrum auction must be the modification of the Woan idea, proposed in the national integrated ICT policy white paper, to be piloted on a provincial or regional basis. The Icasa auction plan includes a spectrum set-aside for such networks which will largely cover previously marginalised areas.

    Legally obliging mobile network operators to contribute their established multibillion-rand investments — as the ICT white paper policy wants — into a barely profitable public-private partnership Woan with those who have made little or no investment in ICT infrastructure will dramatically retard South Africa’s progress towards a digitally empowered nation.

    It would result in a monopoly of ageing ICT infrastructure that no self-respecting company would risk funding as there would be no return on investment. The Woan will be fossilised in the womb.

    Encouraging competition in mobile and fixed wholesale networks through investment incentives and a rigorous, independent and pro-consumer-choice regulatory regime will keep prices competitive and facilitate economic inclusion.

    Wholesale and retail

    There also needs to be regulation obliging mobile network providers to split their operations into wholesale and retail divisions to facilitate competition and customer choice.

    Legally protected infrastructure investment by competitive companies is key to leveraging ICT innovation.

    Huawei’s Global Competitive Index of 2017 compared data from 50 countries and grouped them into frontrunners, adopters and starters. It ranked South Africa low down on its adopter nations graph, alongside Columbia and below Mexico, Turkey and Thailand.

    It states that broadband connectivity — mobile and fixed — is no longer the ultimate goal of ICT endeavours. Broadband provision is only the first step to build ICT infrastructure on which to deploy the four core technologies of cloud services, data centres, big data and the Internet of things.

    Author Marian Shinn argues that a spectrum auction would help plug the gaping hole in finance minister Malusi Gigaba’s budget

    The report states that for nations to grasp the economic impact of exploiting these core technologies, a huge investment in infrastructure must be made. It states that for every additional US$1 spent on ICT infrastructure, $3 could be added to a nation’s GDP.

    This enables us to have a peek into the value the spectrum auction will unleash to accelerate economic growth and digital inclusion of all South Africans.

    According to research by BMI-TechKnowledge, the private sector invested about R35bn in fixed and mobile communications infrastructure in 2016 alone. Assuming R1 of infrastructure spend contributes R3 to South Africa’s GDP, this capex boosted our GDP by R105bn last year. Over the past three years (2015/16/17), network infrastructure capex was about R90 billion, delivering a GDP boost of R180bn. Capex grew by about R5bn/year.

    Assuming R1 of infrastructure spend contributes R3 to South Africa’s GDP, this capex boosted our GDP by R105bn last year

    While it is believed that economic and political uncertainty will inhibit infrastructure build this year and next, an investment-friendly regulatory space, bold moves on releasing spectrum and network operators’ publicly stated willingness to bridge the digital divide, could reap major economic and social dividends.

    Statistics South Africa states that the contribution to South Africa’s GDP of the entire ICT sector was R114.5bn (or 3%) in 2014. Its contribution to GDP is larger than agriculture’s and slightly shy of tourism’s 3.1%. It’s a dominant player in our future.

    For Gigaba, releasing high-demand spectrum for auction and giving the operators security of their current and future investments in world-class technology could be one of the silver bullets he needs in his budget armoury.

    • Marian Shinn is shadow minister of telecommunications & postal services and an MP for the Democratic Alliance


    Icasa Malusi Gigaba Marian Shinn Siyabonga Cwele top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleDartcom opens R100m fibre factory in Pretoria
    Next Article AMD disappoints despite sexy new processors

    Related Posts

    Telecoms industry backs Malatsi policy directive, warns on execution - ACT CEO Nomvuyiso Batyi

    Telecoms industry backs Malatsi policy directive, warns on execution

    17 December 2025
    ICT BEE fight deepens as MK, EFF target Malatsi - Colleen Makhubele

    ICT BEE fight deepens as MK, EFF target Malatsi

    15 December 2025
    ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality

    ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

    14 December 2025
    Company News
    Why TechCentral is the most powerful platform for reaching IT decision makers

    Why TechCentral is the most powerful platform for reaching IT decision makers

    17 December 2025
    Business trends to watch in 2026 - Domains.co.za

    Business trends to watch in 2026

    17 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Koos Bekker sells R2.5-billion in Naspers and Prosus shares

    Koos Bekker sells R2.5-billion in Naspers and Prosus shares

    23 December 2025
    Tribunal clears Vumatel's takeover of Herotel - with conditions

    Tribunal clears Vumatel’s takeover of Herotel – with conditions

    23 December 2025
    Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

    Wiocc subsidiary OADC cleared to buy NTT data centres in South Africa

    23 December 2025
    Netflix launches Afcon football show, hinting at bigger sports ambitions

    Netflix launches Afcon football show, hinting at bigger sports ambitions

    23 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}