Spectrum: Use it or lose it
A ‘use it or lose it’ policy on spectrum allocation, especially in hotly contested bands like WiMax, has been requested by various telecoms players.
Many operators feel that companies like Sentech, which has been allocated a chunk of the available spectrum, are wasting this precious resource by not using it to roll out wireless services.
The solution may therefore be a ‘use it or lose it’ policy where unused spectrum is redistributed to companies that are actively looking to expand their wireless networks.
Such a policy may free up some WiMax spectrum in the 2.5 / 2.6 GHz and 3.5 GHz bands which are a scarce and valuable resource in broadband provisioning.
ICASA Chairman Paris Mashile said that the regulator is definitely considering a ‘use it or lose it’ policy on spectrum as some operators which have been allocated spectrum may simply ‘sit’ on spectrum and therefore not pass the benefits of this resource on to South Africans.
Of the most desired spectrum is in the 2.5 / 2.6 GHz band. Here only Sentech and iBurst have been allocated 50 MHz and 14 MHz of spectrum respectively.
While Vodacom is using iBurst’s spectrum to roll out an extensive WiMax network, Sentech has been widely criticized for not making the most of their spectrum.
Sentech will be a prime target in the case of a ‘use it or lose it’ environment, unless they roll out an extensive WiMax network as the Department of Communications intends for them to do.
Challenges
While a use it or lose it policy may sound like a very logical solution to minimize the risk of unused spectrum, legal challenges remain.
The Electronic Communications Act (ECA) clearly stipulates that an operator may not lose any rights under the new legislation. This may be used by some operators to argue that they received spectrum under the old telecoms act and that taking it away from them means that they are losing rights which they had before the ECA came into effect.
Another challenge facing ICASA is the fair and optimal allocation of the remaining WiMax spectrum. Numerous companies have applied for WiMax spectrum, but it is a limited resource which means that only a handful of companies are likely to be successful recipients.
A particularly tricky issue is establishing how much spectrum must be allocated to each operator. While one option is to allocate smaller amounts of spectrum to more companies, this may mean higher network rollout costs and lower throughput to end users.
It may be better to allocate more spectrum to a smaller number of applicants – a decision which will be of great benefit to the recipients but which will leave more companies unhappy about not being able to play in the WiMax space.
While some operators are optimistic that they may receive spectrum before the end of the year, more realistic estimates are that the process may take between 12 and 18 months to complete.
Loading ...