Government wants to take Vodacom and MTN’s mobile spectrum back

The Minister of Telecommunications and Postal Services is planning on taking back spectrum licences issued to mobile operators, according to industry sources.

Vodacom, MTN, Cell C, Telkom, and others will have to give back the spectrum they use for their mobile networks if an unpublished draft spectrum policy is passed.

Their spectrum will be combined with unused frequency bands to roll out a wholesale open-access wireless network for South Africa that all operators will have to use.

The Ministry stated it would recall operators’ spectrum licences because it does not think the wholesale network will get traction with established operators if it is rolled out in parallel to their networks.

Minister vs ICASA

News of the draft spectrum policy comes after Minister Siyabonga Cwele filed court papers against industry regulator ICASA.

The action followed ICASA issuing an invitation to apply (ITA) for frequency spectrum ideal for LTE and 4G networks.

ICASA’s ITA outlines a plan to auction four lots of spectrum comprised of frequencies in the 700-800MHz and 2,600MHz bands. It has kept a fifth lot in reserve.

Each of the four lots has a reserve price of R3 billion.

“Impolite” ICASA

It is understood that ICASA issued its ITA knowing it was at odds with the Minister’s planned spectrum policy.

The Minister shared the policy with ICASA in its draft form, asking the regulator to put whatever spectrum assignment plans it had on hold.

Among the proposals in the policy are:

• A wireless open-access network run by a Special Purpose Vehicle (SPV), which has no direct government ownership.
• The network is restricted to providing wholesale services only.
• All spectrum for mobile broadband access services will be assigned to the SPV.

“ICASA extended an impolite middle finger in the Minister’s general direction and issued an ITA,” said Dominic Cull of Ellipsis Regulatory Solutions.

Cull was addressing delegates at the 2016 iWeek conference.

He said the Minister was not informed about the ITA before it was issued.

“If not unlawful, it was certainly very rude,” said Cull. The Minister met with ICASA to ask it to take back the ITA. When it refused, he took ICASA to court.

More on South Africa’s spectrum

ICASA stands ground on spectrum auction, extends deadline

ICASA spectrum fight, the courts must decide: Minister

Why Minister Siyabonga Cwele is suing Icasa