Telkom anticipates a 280 MHz high-demand spectrum auction in 2025, as predicted by Icasa's timeline. This development comes after a requested postponement due to Icasa's ongoing studies and the challenging economic environment in South Africa. Telkom CEO Serame Taukobong expressed concerns about the lack of clarity from Icasa regarding the spectrum allocation. The situation is further complicated by Vodacom's legal challenge against MTN's spectrum pooling agreements with Cell C and Liquid Intelligent Technologies, which could significantly impact Icasa's licensing process.
Telkom anticipates that the Independent Communications Authority of South Africa ( Icasa ) will release 280 MHz of high-demand radio frequency spectrum this year. This prediction stems from Telkom 's trading update covering the first three quarters of the 2025 financial year. According to the update, Icasa will begin preparations for the next high-demand spectrum licensing process during the current year.
Telkom expects approximately 280 MHz of additional spectrum, encompassing frequencies in both sub-1 GHz and mid-range bands, to be made available for licensing.This spectrum allocation has the potential to significantly enhance the capacity and performance of mobile networks, potentially leading to more affordable data costs in the long run. However, the spectrum auction Telkom refers to was initially planned for late March 2024 but faced delays. In its interim results for the 2023/2024 financial year, Telkom requested a postponement of the licensing process to 2025. The company cited the need for Icasa to complete further studies in preparation for the auction. Furthermore, Telkom argued that the prevailing challenging economic climate, including the persistent effects of load-shedding, would make it particularly difficult for Telkom and other market participants to participate in the auction.Telkom CEO Serame Taukobong previously explained to MyBroadband that mobile operators incur substantial upfront costs in researching spectrum allocations. Taukobong expressed concerns about the lack of clarity from Icasa regarding the spectrum being made available. Icasa subsequently announced in May 2024 its intention to auction the high-demand radio frequency spectrum during its 2025/26 financial year. The first step in Icasa's project plan involves evaluating the competition implications associated with licensing additional high-demand spectrum, including the impact of both direct and indirect spectrum access. Telkom also highlighted Vodacom's review application challenging the spectrum pooling agreements between Cell C, MTN, and Liquid Technologies. The outcome of this application, scheduled for a hearing in the High Court on February 13 and 14, will have a significant bearing on how Icasa conducts the spectrum licensing process. Vodacom filed its legal action against Icasa in June 2024, alleging that the regulator improperly allowed MTN to secretly pool spectrum belonging to Cell C and Liquid Intelligent Technologies with its own. Vodacom asserts that MTN gained an unfair and substantial advantage by accumulating large blocks of valuable spectrum through this practice. Recognizing the vital role spectrum plays as the raw bandwidth used by mobile networks for communication between towers and customer devices, Vodacom contends that MTN's actions have jeopardized fair competition in the market. MTN, in its defense, maintained that spectrum pooling arrangements foster competition and generate efficiencies for all parties involved. It stated that MTN and its pooling partners applied to Icasa to pool spectrum in early 2022, building upon the positive effects observed from temporary spectrum pooling arrangements implemented during the COVID-19 pandemic
SPECTRUM ICASA TELKOM VODACOM MTN CELL C LIQUID TECHNOLOGIES SOUTH AFRICA MOBILE NETWORK DATA COST COMPETITION ECONOMIC ENVIRONMENT LOAD-SHEDDING HIGH COURT
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