Even after South Africa’s mobile network operators pledged close to R14.5 billion to buy high-demand spectrum, the crucial network capacity is still not available.
The Independent Communications Authority has unduly delayed the making available of electromagnetic spectrum in high-demand frequency bands.
The Act of Parliament which established Icasa stipulates that Icasa must achieve the objects of the Electronic Communications Act , which include promoting competition in the communications sector, ensuring efficient use of the radio spectrum, encouraging investment, promoting consumers’ interests, and refraining from undue interference in licensees’ commercial activities.
The failure to allocate new spectrum to the largest operators has increased the capital expenditure required to expand network capacity to continue to meet the rapid growth in demand. The second round was open to all bidders, including the largest. But a “spectrum cap” was imposed in that no bidder could be granted licences for more than 18% of the total spectrum in the auction. The auction was due to take place by the end of March 2021.
As before, larger operators were disqualified from participating in the opt-in round. Yet, importantly, this time, the opt-in round did not include 3,500 MHz spectrum. And that round’s “minimum spectrum portfolio” was smaller than before.
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