Telecommunications operators and service providers wanting to bid for scarce radio frequency spectrum that can be used to build next-generation wireless broadband networks have been given more time to prepare.

The deadline to respond to an invitation to apply (ITA) to participate in an upcoming spectrum auction — the first of its kind in SA — has been moved back by more than a month, from 25 June to 30 July.

The industry regulator, the Independent Communications Authority of SA (Icasa), published the a notice detailing the extension in the Government Gazette on Tuesday.

It’s understood that the mobile operators asked for the extension to ensure they could prepare adequately ahead of the planned auction, which is expected to take place in the next few months.

The spectrum in question — in the 2,6GHz and 3,5GHz bands — is highly prized as it can be used to roll out the next generation of mobile broadband services. The mobile operators are particularly keen on the 2,6GHz band, which they want to use to build networks that conform to the successor wireless technology to the 3G networks they already operate.

But the invitation to apply poses unique challenges for the mobile licensees, none of which meets the 30% minimum equity requirements set out by Icasa. According to the ITA, the only companies entitled to bid are those that have at least 30% of their equity in the hands of historically disadvantaged individuals.

The mobile operators may buy smaller, black-owned players with the necessary network licences in order to qualify. Some bidders are already privately expressing concern, however, that this could amount to fronting.

The process of auctioning off the spectrum has been met with strong criticism from a number of quarters. Regulatory expert Dominic Cull of Ellipsis Regulatory Solutions has slammed Icasa for not, among other things, providing clarity on how the auction will work. — Duncan McLeod, TechCentral

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