Communications regulator Icasa has moved to deflect criticism that consolidation in South Africa’s telecommunications industry is a result of its failure to award new radio frequency spectrum licences.
In a statement, Icasa says there have been “insinuations in the media to the effect that some of these developments are as a result of Icasa’s delay in allocating or making more spectrum available to the industry”.
“Be that as it may, it is equally important to note that in 2011, Icasa attempted to open up the licensing process for high-demand spectrum (2,6GHz and 800MHz bands) by issuing an invitation to apply; and the industry partly opposed this process on the basis of a lack of a policy direction [from government]. This process was subsequently deferred pending the finalisation of the policy direction,” Icasa says.
That licensing process sought to facilitate the introduction of new national and rural providers of electronic communications, including broadband operators, and ensure that participating licensees contribute to broad-based black economic empowerment, the authority adds.
Icasa says, too, that potential mergers and acquisitions — Vodacom and Neotel, and Telkom and Business Connexion — “may require” its approval.
“While operators have been in discussions, and some have informed the authority of their intentions, none of these transactions has come before Icasa,” it says.
“The authority is aware of what is currently before the Competition Commission and in accordance with our institutional arrangements with the commission we will collaborate [with it]. However, that in no way negates the regulatory approvals required from Icasa.” — © 2014 NewsCentral Media