SA’s telecom regulator has extended its deadline for feedback on a plan to issue new radio frequency spectrum after requests to do so from industry players.
On Monday, the Independent Communications Authority of SA (Icasa) said it had extended the deadline from September 19 to September 30.
In August, Icasa announced its intention to start the second phase of the licensing process to make spectrum available to bidders.
This comes after Icasa reached a milestone in March, raising R14.4bn in the country’s first spectrum auction since 2004/2005. With the bulk of spectrum already auctioned, this round is expected to raise less.
Regarding the extension for feedback, Icasa said “the change is in response to requests from some stakeholders, and it allows everyone to engage the IM [information memorandum] and make meaningful contributions”.
The IM sets out the regulator’s proposal for the auction, how it will be conducted and which radio frequencies will be on offer.
The regulator, which is looking at spectrum in the low- and mid-frequency bands, is inviting comment and feedback on its proposal from industry players.
“No further extension shall be granted,” said Icasa.
The extension could be seen as a setback for the likes of Telkom, which has been eying some of the frequency bands on offer, particularly those below 1,000MHz, which help to cover large areas thereby reducing the need to build expensive cellphone towers.
Mobile operators have long argued that the high cost of communication in SA is down to a lack of spectrum, with the issue becoming known as the “spectrum crunch”.
The upcoming auction is expected to increase capacity for local players when it comes to 5G communication technology.
The country’s two largest operators, Vodacom and MTN — which have more than 70-million customers between them in the local market — launched their commercial 5G services on temporary spectrum in 2020.
Without suitable radio waves to offer new technologies and cover long distances, mobile operators have had to build more cellphone towers and other infrastructure in SA than they would typically need to, thus increasing operating costs, which are then passed on to consumers as higher data charges.
This new round of licensing comes at a time when the regulator is trying to fill in gaps in its leadership. CEO Willington Ngwepe is set to step down at the end of his term in October. The telecom veteran was recently hired by MTN as chief of staff in the group CEO’s office.
This news comes three months after former chair Keabetswe Modimoeng resigned.
Icasa is also grappling with moving the country from analogue to digital television, a process referred to as digital migration. This issue has meant operators like Telkom are unable to use some of the spectrum acquired in March as it is still held by broadcasters.
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