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Question of the Day: How do you normally pay for purchases in stores?
Scarce Spectrum Auction: the best option
- Thread starter rpm
- Start date
Shake&Bake
Party Liaison
Off the top of my head, I prefer the "use it or lose it" scenario.
At least it'll force the operators into covering the required 50% of the country and once they've done that; for financial reasons, they'd have to roll out more to get ROI.
Sentech is a prime example of how spectrum has been wasted, but then again, if you take into account how Screamer Telecoms has rolled out their network, then Screamer has likely met the requirement for Sentech wrt to coverage.
At least it'll force the operators into covering the required 50% of the country and once they've done that; for financial reasons, they'd have to roll out more to get ROI.
Sentech is a prime example of how spectrum has been wasted, but then again, if you take into account how Screamer Telecoms has rolled out their network, then Screamer has likely met the requirement for Sentech wrt to coverage.
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Senior Member
The real question is whether an auction is the right thing to do at all. Whilst it is possible to design an auction that may allow an outsider to win, the likelihood is very high that the bidders who place the highest value on the spectrum will win. In other words, it's likely that incumbents (e.g. Vodacom, MTN) will win any auction, either to use the spectrum themselves (which, in fairness, is quite likely) or simply to prevent others from getting it (for two years).
Do you think ICASA has realised that this is the likely outcome? The only way for a startup company to win an auction like this would be effectively to bankrupt itself before it starts. Is this really what ICASA wants?
Do you think ICASA has realised that this is the likely outcome? The only way for a startup company to win an auction like this would be effectively to bankrupt itself before it starts. Is this really what ICASA wants?