Telecoms regulator, the Independent Communications Authority of SA (Icasa), will oppose MTN’s case over what the mobile operator says is a flawed spectrum auction process that will disadvantage its ability to compete in 5G services.
On Friday, Icasa, which is reviewing MTN’s court application, said it has instructed its “legal representatives to oppose the application”.
Earlier this week SA’s second largest mobile operator lodged a case with the high court, that seeks to change how the auction will be conducted.
Spectrum — the radio waves by which information is transmitted — has not been allocated in SA for close to a decade. The regulator has outlined plans to auction R8bn worth of broadband spectrum. It aims to complete the auction by the end of March.
At the heart of the case is that Icasa has chosen to preclude the country’s two largest operators — MTN and Vodacom — from certain “opt-in” auction rounds in which the 3,500MHz spectrum band will be on offer. This specific band is necessary for 5G usage. MTN fears that rivals such as Telkom, Cell C, Liquid Telecom and Rain could take up much of this 5G spectrum leaving very little or nothing on the table for MTN and Vodacom.
That would make it almost impossible for MTN to compete in a market where 5G has started to take off.
When asked if Vodacom would join or support MTN’s case, a spokesperson for SA’s largest mobile operator said, “We are examining MTN’s papers in light of the legal processes already under way. We will be in a position to provide comment in due course.”
Icasa pointed out that it has been in constant communication with MTN on the issues raised in its court application. “It is unfortunate that MTN has elected to proceed with instituting legal proceedings against the authority under these circumstances,” said the regulator.
In its court papers, MTN did say it had been in communication with Icasa but felt it had exhausted every procedural channel open to it to seek clarity on the tiering classifications and the opt-in round structure, and is now left with no other option but to seek relief from the courts.
In a statement, Dr Keabetswe Modimoeng, Icasa chair, said: “This latest litigation attempt is characteristic of either impatience or a subtle desire to channel the authority’s decision-making outlook. However, we remain steadfast and will defend the process against these challenges.”
SA’s last big set of spectrum was allocated in 2004 and 2005, enabling Vodacom and MTN to roll out their 3G networks. Cell C followed in 2011.
Modimoeng stressed the economic importance of going through with the process, adding that “at this stage, industry players and all stakeholders need to reflect on the extent to which their commercial interests ought to override patriotic considerations”.
Icasa is also facing legal action from fixed-line operator Telkom, which filed its own case with the high court seeking to stop the spectrum allocation process until Icasa fixes issues that it says are flawed. Keeping the same tone, the regulator said earlier this month that it would move forward with the auction despite the Telkom case.
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