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
      Top SA computer scientist on IBM's chip breakthrough - Francesco Petruccione

      Top SA computer scientist on IBM’s chip breakthrough

      26 June 2026
      Telcos agree plan to tighten Sim registration under Rica

      Telcos agree plan to tighten Sim registration under Rica

      26 June 2026
      Gigabit fibre arrives in Joburg township for R5/day - Alan Knott-Craig

      Gigabit fibre arrives in Joburg township for R5/day

      26 June 2026
      Standard Bank deal cuts the dollar out of China trade

      Standard Bank deal cuts the dollar out of China trade

      26 June 2026
      Starlink lines up a frontal assault on mobile operators

      Starlink lines up a frontal assault on mobile operators

      26 June 2026
    • World

      SK Hynix ends Samsung’s 26-year reign at the top

      22 June 2026
      Google on the hook for what its AI tells users, court rules

      Google on the hook for what its AI tells users, court rules

      15 June 2026
      How Russians juggle VPNs to outwit the Kremlin

      How Russians juggle VPNs to outwit the Kremlin

      15 June 2026
      Amazon CEO flagged Anthropic AI risks to Washington - Andy Jassy

      Amazon CEO flagged Anthropic AI risks to Washington

      14 June 2026
      Trouble at Xbox

      Trouble at Xbox

      11 June 2026
    • In-depth
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
    • TCS
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E6: ‘A flawless Alfa and a bakkie that divides’

      17 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E5: ‘A Bentley of the bush and a car that swims’

      8 June 2026
      TCS | Charge's R1.8-billion bet on an off-grid EV future - Charge chairman Joubert Roux

      TCS | Charge’s R1.8-billion bet on an off-grid EV future

      18 May 2026
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
    • Opinion
      The pivot South Africa's MVNOs cannot afford to miss

      The pivot South Africa’s MVNOs cannot afford to miss

      23 June 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      Brazil’s online gambling crackdown is a lesson for South Africa

      22 June 2026
      Finish the job Mandela started - Farzam Ehsani

      Finish the job Mandela started

      18 June 2026
      The author, Fanie van Rooyen

      The US just showed it can switch off our AI

      17 June 2026
      The pivot South Africa's MVNOs cannot afford to miss

      The clock is ticking on South African banks’ biggest advantage

      9 June 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • 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

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Cell C Graham Mackinnon Icasa MTN Tim Parle Vodacom
    WhatsApp YouTube
    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

    Telcos agree plan to tighten Sim registration under Rica

    Telcos agree plan to tighten Sim registration under Rica

    26 June 2026
    Vodacom bundles Amazon Prime across its post-paid base

    Vodacom bundles Amazon Prime across its post-paid base

    25 June 2026
    Absa's silence and the MVNO move no bank has made

    Absa’s silence and the banking MVNO move no one has tried

    24 June 2026
    Company News
    Kaspersky's blueprint for industrial cyber resilience

    Kaspersky’s blueprint for industrial cyber resilience

    25 June 2026
    The spaza is not informal - it is foundational - Lesaka Technologies Lincoln Mali

    The spaza is not informal – it is foundational

    24 June 2026
    A smarter way to buy or renew your Red Hat subscriptions - LSD Open

    A smarter way to buy or renew your Red Hat subscriptions

    22 June 2026
    Opinion
    The pivot South Africa's MVNOs cannot afford to miss

    The pivot South Africa’s MVNOs cannot afford to miss

    23 June 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    Brazil’s online gambling crackdown is a lesson for South Africa

    22 June 2026
    Finish the job Mandela started - Farzam Ehsani

    Finish the job Mandela started

    18 June 2026

    Subscribe to Updates

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

    Latest Posts
    Top SA computer scientist on IBM's chip breakthrough - Francesco Petruccione

    Top SA computer scientist on IBM’s chip breakthrough

    26 June 2026
    Telcos agree plan to tighten Sim registration under Rica

    Telcos agree plan to tighten Sim registration under Rica

    26 June 2026
    Gigabit fibre arrives in Joburg township for R5/day - Alan Knott-Craig

    Gigabit fibre arrives in Joburg township for R5/day

    26 June 2026
    Standard Bank deal cuts the dollar out of China trade

    Standard Bank deal cuts the dollar out of China trade

    26 June 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}