South Africa's telecommunications regulator, Icasa has postponed the planned auction of mobile spectrum to May in the face of fierce government opposition, reports Bloomberg. The sale process has been moved from January, according to a revised plan by the Independent Communications Authority of South Africa. The regulator has also eased requirements for black ownership of bidding companies, intended to help those discriminated against during apartheid. Icasa plans to refund winners of the auction if the sale has to be cancelled following legal action planned by the government.
The telecommunications ministry is against the sale, arguing that South Africa’s biggest operators, including MTN and Vodacom, will benefit at the expense of smaller competitors. A case to prevent the planned auction will be heard in the North Gauteng High Court in Pretoria starting on 27 September. Icasa said in July it plans to sell five blocks of spectrum starting at ZAR 3 billion each to help extend internet access. The government wants the plan to be scrapped in favour of a system where telecommunications infrastructure is shared equally among market participants.
