Vodacom has quietly finalised the sale of its 24% stake in Wireless Business Solutions (WBS) Holdings to the company’s other shareholders.

The cellular operator hopes its disposal of its shareholding in iBurst’s parent company will clear the way for it to successfully bid for radio frequency spectrum in the 2,6GHz and 3,5GHz ranges.

Vodacom is just one of the many SA operators jostling for the coveted 2,6GHz and 3,5GHz spectrum. It has been talking about selling its stake in WBS since May.

The operators need access to this spectrum to roll out next-generation mobile broadband networks based on technologies such as WiMax or long-term evolution (LTE).

In addition to the spectrum frequency issue, Vodacom noted that it would be difficult from a regulatory perspective to increase its shareholding above 25% in a company it increasingly competes with.

WBS has not yet disclosed what its new shareholding structure looks like. However, major shareholders in the company include the Brett Levy Consortium, a business led by Blue Label Telecoms co-CEO Brett Levy; and Richtrau, which is controlled by well-known businessman Thami Mtshali.

The Independent Communications Authority of SA (Icasa) has warned that no company that directly or indirectly owns spectrum in 2,6GHz and 3,5GHz bands will be eligible to take part in the planned auction of spectrum in the 2,6GHz and 3,5GHz ranges.

Vodacom acquired an equity interest in WBS several years ago to gain access to the company’s spectrum in the 2,6GHz range. It invested about R100m in building 100 WiMax base stations on behalf of WBS.

But cutting ties with WBS will not necessarily make it easy for Vodacom to win the spectrum it desires. Icasa says that it wants to license new players to make SA’s telecommunications industry more competitive. Another sticking point is Icasa’s insistence that only companies with 30% or more of their equity in the hands of black shareholders need apply.

Both Vodacom and MTN have engaged in broad-based empowerment deals over the last year. However, it is unclear whether the deals will be enough for them to enter the race for spectrum. — Candice Jones, TechCentral