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Writer's pictureMilllenia

South Africa’s cellular networks “playing games” to stall R8 billion auction


Consumers must start pressuring South Africa’s mobile network operators, or the spectrum auction scheduled for March 2022 could be derailed.


Radio frequency spectrum is the raw network capacity operators use for cellphones to communicate with their towers. It is the lifeblood of a cellular network.


The Independent Communications Authority of South Africa (Icasa) issued spectrum auction guidelines on Friday, 10 December. The regulator issued the final Invitation To Apply (ITA), and the auction is scheduled to take place in March.


According to Icasa chairperson Keabetswe Modimoeng, the combined auction reserve prices would contribute at least R8 billion to the national fiscus.


However, Dominic Cull of Ellipsis Regulatory Solutions told City Press there are concerns the big players don’t really want the auction to take place because they’ve already received provisional spectrum.


“Games are being played here. Consumers need to make themselves heard if these games continue, because we’re paying ridiculous prices.”


Operators’ deadline to apply for these new spectrum licences and access the auction is 16:00 on 31 January 2022.


Cull explained the need for pressure from the public.


“Cellphone and Internet users must realise that the auction is essential for data prices to come down and enable better connections overall,” City Press quoted Cull as saying.


Telkom regulatory affairs head Siyabonga Mahlangu expressed early concerns with Icasa’s latest attempt to hold a spectrum auction.


Mahlangu said they were concerned that the big operators—Vodacom and MTN—would get large proportions of spectrum, leaving little for South Africa’s controversial Wireless Open Access Network (Woan).


According to Cull, Mahlangu’s concerns could be an early indication that the spectrum auction in March might be hindered.


Telkom, MTN, and E-tv took Icasa to court earlier this year over the spectrum auction, and the process was halted.


Telkom raised concerns that some of the spectrum was still occupied by TV broadcasters because of South Africa’s slow digital migration process.


At the same time, MTN took issue with how Icasa was conducting the auction.


MyBroadband understands that Telkom and MTN were ready to settle with Icasa and allow the spectrum auction to continue under certain conditions, but E-tv refused the settlement agreement.


As a result, Icasa consented to a Pretoria High Court order which set aside the previous Invitation To Apply (ITA), forcing the regulator back to the drawing board.


Icasa said at the time that it chose to consent to the order to avoid protracted litigation.


South Africa’s cellular network operators got new temporary spectrum in November 2021.


Icasa said it made the assignments under the new ICT Covid-19 National State of Disaster Regulations.


https://mybroadband.co.za/news/cellular/428044-south-africas-cellular-networks-playing-games-to-stall-r8-billion-auction.html


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