The government has set aside more than R1bn to cover the final phase of SA’s move from analogue to digital television, in an effort to complete the long-delayed auction and allocation of new radio frequency spectrum to mobile operators scheduled for March.
Earlier in the week, the Independent Communications Authority of SA (Icasa) said Cell C, Rain, Telkom, MTN, Liquid Telecom and Vodacom had been granted formal permission to participate in the auction, which is an integral part of President Cyril Ramaphosa’s technology-backed economic agenda.
Though finance minister Enoch Godongwana made no direct mention of the spectrum auction in his budget speech on Wednesday, according to the Treasury’s estimates of national expenditure, the department of communications & digital technologies will over the medium term “mainly focus on implementing the broadcasting digital migration policy to release high‐demand spectrum”.
With a total budget of R7.7bn, expenditure for the department is expected to decrease at an average annual rate of 13.3%, from R3.9bn in 2021/2022 to R2.5bn in 2024/2025 after a one‐off allocation of R1.1bn in 2021/2022 for migration of broadcasting to digital technology.
Icasa, which is in charge of conducting the auction, will receive an additional R300m for 2022/2023, which has been earmarked for “strengthening regulatory capacity and licensing spectrum”.
In December Icasa issued an invitation to apply document, which sets out how mobile operators will bid for the airwaves through which data is transmitted.
Icasa has been redrafting its plan for the spectrum auction after an agreement with mobile operators, which was endorsed by the high court in September. The regulator plans to auction about R8bn worth of broadband spectrum this year, but the March deadline is under threat from legal battles over the process.
In the latest challenge, Telkom filed an application with the high court to review and set aside the regulator’s invitation to apply, citing a number of flaws in the proposal. The case is set to be heard in mid-April, but Icasa appears to be pressing ahead with its plans for the time being.
Alongside the spectrum allocation, the migration of TV broadcasting to digital platforms from analogue technology is expected to be completed in the 2021/2022 financial year under the guidance of communications & digital technologies minister Khumbudzo Ntshavheni.
The switch to digital TV has long been a thorn in the government’s side. While the process will clear the frequency spectrum now occupied by broadcasters, allowing for faster wireless broadband services and other applications, broadcasters are reluctant to relinquish their existing frequencies until the migration process is completed.
The Universal Service and Access Fund has been allocated R386.7m over the medium term, mostly for “implementing activities” related to broadcasting digital migration.
“Over the medium term, the fund will focus on concluding the broadcasting digital migration project, which will ensure the release of much‐needed spectrum,” said National Treasury.
The Universal Service and Access Fund’s sole mandate is to subsidise ICT equipment and services, and electronic communications and broadcasting networks for needy people in underserviced areas. The fund is managed by the Universal Service and Access Agency of SA.
Update: February 24 2022
This story has been updated with additional information.
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