The Independent Communications Authority of South Africa (ICASA) has issued the final invitation to apply for new mobile spectrum. Applications are due 31 January 2022, with the announcements of qualifying bidders and commencement of actual auction phase scheduled for 21 February and 8 March respectively.
This follows another three months of consultation on the first and second Information Memorandum published in October and November, and the court order delaying the licence award plans developed in 2020.
Icasa said the new invite considers the issues raised by stakeholders in their challenge to the previous licensing processes (particularly in 2020), as well as the representations received to the first and second IMs. In addressing competition concerns in respect of the 2020 process, along with all the issues raised in the subsequent consultations, the regulator has provided for the auction design to include, among other provisions, spectrum floors and spectrum caps, an opt-in round, and spectrum-sharing provisions.
These provisions are designed to facilitate the entry of new players into the market, and to promote consumer welfare through access to high-quality communication services at affordable and competitive prices, Icasa said. In licensing high-demand spectrum through this process, the regulator aims to ensure the realisation of many of the key policy objectives originally identified in the SA Connect Broadband Policy, particularly as regards the provision of universal and affordable broadband services for all South Africans.
The regulator will make available the status of the coverage maps on the IMT700 and IMT800 spectrum bands in collaboration with the Department of Communications and Digital Technologies before the commencement of the auction. Should the digital migration process not be completed by the time the auction is concluded, Icasa will apply proportional payment formulae for these bands.
As outlined in the notice published in November, the regulator has resolved to separate the auction of high-demand spectrum and the licensing of the Wireless Open Access Network (WOAN).
Telkom concerns
Telkom South Africa said in response to the new invitation that it was concerned by the separation of the two processes and the reasons given by Icasa. According to Telkom's Group Executive: Regulatory Affairs & Government Relations, Siyabonga Mahlangu, licensing of the WOAN is intertwined with, and has a bearing on, the current licensing process.
Mahlangu said Telkom hopes that a further reading of the published invite will show that it has been designed to substantively deliver much needed competition in the sector and lower prices for consumers. Mahlangu added that the expected yield of ZAR 8 billion from the licensing process should be an enabler for further economic growth. However, he noted that the timing proposed by Icasa for the process is tight.
