The fate of valuable broadband spectrum will be decided on Tuesday when the regulator, the Independent Communications Authority of SA (Icasa), meets to discuss whether to go ahead with a planned auction.
Industry insiders say the auction, for radio frequency spectrum in the 2,6GHz and 3,5GHz bands could be canned. The spectrum is ideal for providing the next generation of wireless broadband services.
Almost every SA telecommunications operator has shown interest in getting access to the bands.
However, senior industry insiders say the auction could either be scrapped or put on hold.
Communications minister Siphiwe Nyanda is said to be concerned that the invitation to apply sent out by Icasa is not compatible with the spectrum policy issued by the department.
It’s understood the minister wants the spectrum in the hands of smaller operators and not the large, incumbent players.
A well-placed Icasa source says the invitation to apply will probably have to be rewritten, which could delay the process by months.
The department has not commented on the matter. However, Nyanda has met with Icasa to discuss a way forward.
“Council is discussing the matter tomorrow in council meeting, and we hope to call a media briefing on Wednesday,” says Icasa spokesman Jubie Matlou.
The spectrum licensing process has already caused consternation among operators. In a recent interview with TechCentral, Vodacom Group CEO Pieter Uys warned that the cellphone giant could walk away from the auction process if the rules of engagement were not changed. Cell C CEO Lars Reichelt has also expressed concerns.
Vodacom, like the other mobile providers, wants to use the spectrum to roll out long-term evolution (LTE) networks. LTE is an evolution of the third-generation mobile networks already deployed by the cellphone operators and will pave the way for the introduction in a few years of fourth-generation services.
Vodacom’s concern is that the regulator is being unrealistic in its expectation of bidders. Icasa requires successful bidders to cover 50% of the country’s population within two years of them receiving the spectrum, which Uys says is not feasible.
The outcome of Tuesday’s council meeting could reveal whether Vodacom goes out for the spectrum, or waits for the “digital dividend” — spectrum that will be made available after television broadcasters migrate from analogue to digital.
Telkom has already bowed out of the race for the scarce spectrum, and MTN has been tightlipped on its plans.
If the mobile operators walk away from the bidding, it could put Icasa in a bind as few other industry players have the financial wherewithal to build national networks in a short period of time.
All operators hoping to participate in the auction are expected to have their applications in by 30 July. — Candice Jones, TechCentral
- Subscribe to our free daily newsletter
- Follow us on Twitter or on Facebook
