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
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      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
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      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
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      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
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      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
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 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 » In-depth » Does spectrum auction really favour ‘duopoly’?

    Does spectrum auction really favour ‘duopoly’?

    By Duncan McLeod28 July 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Tim Parle
    Tim Parle

    Cell C warned earlier this week that communications regulator Icasa’s proposed spectrum auction would serve only to entrench the dominance of South Africa’s two largest mobile operators, Vodacom and MTN. But does this claim stand up to scrutiny?

    Cell C’s chief legal officer, Graham Mackinnon, claimed that Icasa’s invitation to apply (ITA) to participate in an auction to bid for spectrum in the 700MHz, 800MHz and 2,6GHz bands is skewed in favour of the country’s two big incumbents and disfavours smaller players.

    “The ITA contemplates two very attractive spectrum lots relative to other lots that, on an auction, would go to the bidders with the deepest pockets. This would favour and further entrench the current Vodacom/MTN duopoly,” Mackinnon said on Tuesday.

    To ascertain whether Cell C’s claim stands up to scrutiny, TechCentral asked spectrum expert Tim Parle — who is senior telecommunications consultant at BMI-TechKnowledge — for his view.

    For the planned auction, Icasa has reserved five lots of spectrum. The first, Lot A, is for later allocation, with a further four lots — B, C, D and E — to be auctioned off in January 2017.

    Parle explained that Lots B, C and D have the same total spectrum, at 60MHz each, while Lot E has only 40MHz.

    Lot A is off the table for the time being, possibly being reserved for some future wireless open-access network — the merits of which are “debatable”, Parle said.

    “Lot C and D are very similar with their allocations in the 800MHz and 2,6GHz bands, and none in the 700MHz band,” he said.

    “Lot B’s sub-1GHz spectrum is split across the 700MHz and 800MHz bands with the narrowest allocations in the process at only 5+5MHz of paired spectrum in each band,” Parle continued. “This has bearing on the channel bandwidths used and operators may find these to be too narrow and restrictive to offer high-speed services…”

    Parle explained that operators prefer “contiguous bandwidth” — speed decreases with less contiguous bandwidth, although techniques such as “carrier aggregation” pool different information streams to offset this somewhat.

    “This splitting does make life for the operator in Lot B somewhat more challenging than for those with Lot C and Lot D,” he said.

    “There are several differences. For example, the operator would have to use multiband antennas and dual radios to operate in both bands. [However, the] use of multiband antennas is becoming commonplace as tower space gets increasingly limited.

    “The operator may choose to deploy 700MHz in one area, and 800MHz in others, and both only in selected areas as demand grows (and technology advances).

    “There may be a minor premium in terms of the mechanical issues (weight and size, surface area/wind loading) to accommodate another, lower frequency band in the unit,” he said.

    “There are other knock-on effects, too. For example, the operator would also have to have a slightly higher spares inventory with incremental logistics costs.”

    On the positive side, however, Lot B has the lowest frequencies in the 800MHz range, lowest in the 2,6GHz range and second lowest in the 700MHz range.

    “Lower frequency spectrum propagates further, so arguably Lot B is marginally more advantageous to the operator: more customers can be served, with lower capital and operating costs,” Parle said.

    This is, however, only in theory, and reality will be that there will be advantages in some areas and disadvantages in others.”

    Then there’s Lot E, which Parle said has the “benefit of a mid-sized allocation (10MHz+10MHz) at 700MHz”, but which has the drawback of having the smallest allocation in the 2,6GHz band with half the bandwidth at only 10MHz+10MHz.

    “This could be used to complement the existing spectrum holdings of any of our mobile network operators, but with some limitations in terms of the services that they will be able to offer.”

    tower-640

    Parle said operators having spectrum assets in both the 700MHz and 800MHz bands is not unusual.

    “Orange in France and Vodafone in Germany are two good examples. Given the emerging market in Europe and elsewhere, it can be taken for granted that equipment vendors (base stations and handsets/devices) will be working on multiband devices covering the 700MHz, 800MHz, 900MHz, 1,8GHz, 2,6GHz and other bands to be ready for market towards the end of the decade. It remains to be seen how big the premium will be, if any, to support two or three sub-1GHz frequencies in a single device.”

    In conclusion, Parle said Lots B, C and D each provide 60MHz of sub-1GHz and 2,6GHz spectrum, while Lot E only provides 40MHz. “One can argue that, on the basis of simplicity, with their contiguous spectrum, Lot C and Lot D tie for first place.

    “Lot B could be seen as being less desirable as its sub-1GHz spectrum is split across two bands. However, it is far from being a distant third place. Lot E may come fourth, but it still has value.

    “As was evident in the auctions in Europe, some operators will pay a premium for where they see the more value — largely as a function of their current spectrum holdings, market share, aspirations and depth of pockets. Overall, Icasa has done a credible job of splitting the available spectrum more or less evenly.”  — © 2016 NewsCentral Media



    Cell C Graham Mackinnon Icasa MTN Tim Parle Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleInside Facebook’s insane growth
    Next Article Google now more than just an ad business

    Related Posts

    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Building trust in a digital world: Vodacom Business's approach to security

    Building trust in a digital world – the Vodacom Business approach to security

    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
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    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

    Subscribe to Updates

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

    Latest Posts
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    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
    © 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}