Icasa to finally auction off high-demand spectrum

After almost a decade, communications regulator the Independent Communications Authority of South Africa (Icasa) is expected to auction off high-demand spectrum.

The auction will take place on Tuesday and will be conducted through the opt-in process and is only open to tier-2 operators which includes Cell C, Liquid Telecoms, Rain Networks and Telkom.

Vodacom and MTN are described as tier-1 operators.

Icasa said the radio frequency spectrum in the 700 MHz, 800 MHz, 2600 MHz, and 3500 MHz bands is made available through this licensing process for the purposes of providing national broadband wireless access services to all South Africans.

In demand: 5G

The 3500 MHz is the 5G spectrum band which many companies would be vying for as they seek to roll out new generation technologies and boost capacity.

The regulator said only two bidders can win a bid for the spectrum in the opt-in auction and once a bidder is successful, the spectrum that has been won will be combined with its existing spectrum.

Icasa said the main auction will start on 10 March 2022 and will be conducted using an online auction platform.

All six qualified bidders will be eligible to bid for spectrum in this stage.

Icasa said following the conclusion of the main stage, it will conduct an in-person assignment phase with all qualified bidders.

“This is an administrative process to determine the frequency assignment position of the lots won in the opt-in auction and the main stage. There will be one clear business day between the conclusion of the main stage and the start of the frequency assignment phase. This phase will be concluded in a single day.”

Icasa Chairperson, Dr Keabetswe Modimoeng, said its public interest mandate requires the regulator to be thorough in its approach to licensing and regulatory interventions.

“We urge all bidders to work collaboratively with us for the benefit of all South Africans so that the assignment of the high demand spectrum can make a meaningful contribution to the country with economic spin-offs, and benefits to the citizens and the overall business environment.”

Billions to be added to fiscus

Icasa previously stated that the auction reserve prices will generate a minimum of R8 billion for the fiscus.

Meanwhile, the auction process has been marred by several legal challenges and a case lodged by Telkom against the process is set for 11 to 14 April.

Telkom approached the high court in Pretoria in December seeking urgent temporary relief.

According to reports, one of Telkom’s main arguments is that Icasa issued the Invitations to Apply (ITA) fully aware that the 700MHz and 800MHz bands used by analogue television broadcasters are not yet available for use by mobile operators.

It is unclear if the outcome of the case would impact the results of the auction.

ALSO READ: Broadcast codes do not cover GBV, says expert