South Africa opens applications for new mobile spectrum

News Wireless South Africa 1 OCT 2020
South Africa opens applications for new mobile spectrum

The Independent Communications Authority of South Africa (Icasa) announced it will publish the long-awaited invitations to apply for the licensing of the Wireless Open Access Network (Woan) and new mobile network spectrum no later than 02 October. The regulator plans to make available 406 MHz of spectrum for the provision of mobile broadband services in South Africa, with an auction expected to take place in early 2021. 

The auction will include four lots of 2x5 MHz in the 700 MHz band with a reserve price of ZAR 526.6 million per lot; four lots of 2x5 MHz and one lot of 2x10 MHz in the 800 MHz band for a reserve price each of ZAR 752 million and ZAR 1.1-billion respectively; and 14 lots of 1x10 MHz in the 2,600 MHz band for ZAR 97.8 million per lot. Nine lots of 1x2 MHz, eight lots of 1x10 MHz and one lot of 1x4 MHz in the 3,500 MHz band will be available at a minimum ZAR 9.8 million, ZAR 75.6 million and ZAR 19.6 million respectively.

The 2,300 MHz band has been excluded from the licensing process until a feasibility study and the migration of the fixed services are completed, the regulator said.

The new spectrum licences come with various obligations for the successful bidders in the auction process. These include a requirement to support mobile virtual network operators and to support the Woan through the procurement of a minimum 30 percent national capacity. In addition, various underserviced areas will have to be covered within five years with the new spectrum. 

The Woan will be assigned in blocks of 1x20 MHz the 700 MHz band, 1x30 MHz in the 2,600 MHz band and 1x30 MHz in the 3,500 MHz band. 

In addition, the regulator is imposing spectrum caps to ensure no single player dominates the auction and new entrants have a chance to acquire frequencies. A spectrum cap of 2x21 MHz applies in the sub-1 GHz bands, including existing holdings in this range, and an overall cap of 184 MHz per operator. 

The closing date to apply for the mobile spectrum is 28 December, while the closing date for the Woan is 30 March 2021. ICASA said it would ensure that the current temporary spectrum assignments would remain valid through March while the auction process is completed.  

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