TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentralTechCentral
    NEWSLETTER
    • News

      Eskom to impose more load shedding

      17 August 2022

      Tiger Brands to go solar – to start with four manufacturing plants

      17 August 2022

      Google buys into African e-logistics firm Lori Systems

      17 August 2022

      A new normal is dividing the global chip industry

      17 August 2022

      MTN hires outgoing Icasa CEO Willington Ngwepe into top role

      16 August 2022
    • World

      Chip makers are flashing a big warning for the global economy

      17 August 2022

      Semiconductor boom turns to bust

      16 August 2022

      Tencent plans to offload R400-billion Meituan stake: sources

      16 August 2022

      Ether leaps higher on verge of Merge

      16 August 2022

      Institutions eye crypto but retail investors remain nervous

      15 August 2022
    • In-depth

      African unicorn Flutterwave battles fires on multiple fronts

      11 August 2022

      The length of Earth’s days has been increasing – and no one knows why

      7 August 2022

      As Facebook fades, the Mad Men of advertising stage a comeback

      2 August 2022

      Crypto breaks the rules. That’s the point

      27 July 2022

      E-mail scams are getting chillingly personal

      17 July 2022
    • Podcasts

      Qush on infosec: why prevention is always better than cure

      11 August 2022

      e4’s Adri Führi on encouraging more women into tech careers

      10 August 2022

      How South Africa can woo more women into tech

      4 August 2022

      Book and check-in via WhatsApp? FlySafair is on it

      28 July 2022

      Interview: Why Dell’s next-gen PowerEdge servers change the game

      28 July 2022
    • Opinion

      No reason South Africa should have a shortage of electricity: Ramaphosa

      11 July 2022

      Ntshavheni’s bias against the private sector

      8 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022
    • Company Hubs
      • 1-grid
      • Africa Data Centres
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»News»Telkom warns over ‘dangerous’ spectrum auction

    Telkom warns over ‘dangerous’ spectrum auction

    News By Duncan McLeod13 November 2018
    Facebook Twitter LinkedIn WhatsApp Telegram Email
    Sipho Maseko

    Telkom Group CEO Sipho Maseko has warned that data prices might not come down if South Africa chooses an auction as the model for licensing so-called “high-demand” spectrum in the 700MHz, 800MHz and 2.6GHz bands.

    Communications regulator Icasa is set to license spectrum in the three key radio bands by the end of March next year, though it’s not yet clear how this process will be managed. Government has, however, indicated that a spectrum auction may be used to license access to commercial entities other than the planned wholesale open-access network, or Woan.

    “I personally think it’s a very dangerous policy to say you’re auctioning spectrum as a means to close the fiscal deficit,” Maseko said at Telkom’s interim results presentation in Pretoria on Tuesday.

    I personally think it’s a very dangerous policy to say you’re auctioning spectrum as a means to close the fiscal deficit

    If that is what government wants to do, it must be set out in policy and mustn’t only apply it to the telecommunications sector.

    “Then you must auction mining rights, then you must auction a lot of things. You can’t just concentrate the fiscal deficit only to the telco sector,” he said.

    “The auction is not the principle in itself, but what is the outcome you want to achieve? If it’s more competition — a rebalanced, competitive play — then you will have low data prices. But it will be difficult to auction spectrum for R3-billion to R5-billion and then want data prices to still come down. It’s not going to happen, because those that bid in an auction need to be able to monetise and amortise the spend.”

    ‘Cash-ready’

    However, if government and Icasa decide to auction the spectrum — rather than choosing another model such as a “beauty contest” — Telkom will be ready to participate, Maseko said.

    “We have already started with initiatives to improve on our gearing and release more cash, so we are cash-ready if that scenario plays itself out.”

    He expressed doubt that the release of spectrum will happen in the first quarter of 2019 as planned. “The legislation still needs to be finalised, the policy direction still needs to be finalised. It still needs to be taken through a consultation process,” he said.  — © 2018 NewsCentral Media

    Icasa Sipho Maseko Telkom top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleMTN set to relaunch Mobile Money in South Africa
    Next Article MTN sees ‘great progress’ in resolving Nigeria woes

    Related Posts

    Eskom to impose more load shedding

    17 August 2022

    Top cybersecurity challenge is inadequate identification of key risks

    17 August 2022

    Acrobat Sign and Microsoft accelerate digital transformation

    17 August 2022
    Add A Comment

    Comments are closed.

    Promoted

    Top cybersecurity challenge is inadequate identification of key risks

    17 August 2022

    Acrobat Sign and Microsoft accelerate digital transformation

    17 August 2022

    HPE SimpliVity: addressing SMBs’ data conundrums

    16 August 2022
    Opinion

    No reason South Africa should have a shortage of electricity: Ramaphosa

    11 July 2022

    Ntshavheni’s bias against the private sector

    8 July 2022

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Subscribe to Updates

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

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.