More concerns over wasting LTE spectrum
New Cell C CEO Alan Knott-Craig has raised concerns that ICASA’s spectrum assignment plans may result in wasting valuable LTE spectrum.
The Independent Communications Authority of South Africa (ICASA) unveiled their spectrum assignment plan for the 2.6 GHz and 800 MHz bands in December 2011.
The regulator plans to exclude existing wireless operators from the process which means that Vodacom, MTN, Cell C, Telkom (8ta) and Neotel cannot directly apply for LTE spectrum.
New Cell C CEO Alan Knott-Craig said that based on past decisions by ICASA, he is concerned that valuable LTE spectrum will be wasted.
“Out of the 8 spectrum blocks discussed in the draft ITA the existing network operators can only apply for one [as a wholesale provider],” said Knott Craig.
“Not only is that absurd, but it is quite unusual, as in other markets it has been viewed that it is indeed the existing operators that can utilise the additional spectrum most cost effectively and thus offer services to customers at the lowest prices.”
Alan Knott-Craig
“More spectrum per operator means better quality, higher speeds and lower prices. More operators and less spectrum for each operator simply entrenches the status quo of iffy service and relatively high prices. Until we all understand that properly, we won’t be joining the high-speed, low-price data world any time soon.”
Knott-Craig however highlights that there is still an opportunity to review ICASA’s proposal, and that it is important to ensure that sensible spectrum management principles are adhered to from the outset.
“If the regulator gets it right, the entire country will benefit. If the regulator gets it wrong, it all goes clunk!” Knott-Craig concluded.
Vodacom CEO Pieter Uys called on ICASA for certainty on spectrum allocation, and while not bluntly stating that spectrum may be wasted with smaller players he did say that it will be in good hands if given to Vodacom.
“Vodacom is uniquely placed to make use of more spectrum to roll out affordable internet access to more people across the whole country,” said Uys.
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