Icasa announces spectrum auction dates
The Independent Communications Authority of South Africa (Icasa) has issued the final Invitation To Apply (ITA) for the licencing of International Mobile Telecommunications (IMT) spectrum, also known as high-demand spectrum.
The deadline to apply for licencing of the spectrum is 16:00 on 31 January 2022.
The qualifying bidders will then be announced on 21 February 2022, while the auction will take place on 8 March 2022.
Icasa said the framing of the new ITA has considered issues raised by stakeholders in their challenge to the previous licensing processes.
That resulted in the delay of the spectrum auction initially set to take place in March this year.
Several stakeholders — including Telkom and MTN — took Icasa to court over the spectrum auction.
Telkom raised concerns that some of the spectrum was still occupied by TV broadcasters because of South Africa’s slow digital migration process. At the same time, MTN took issue with how Icasa was conducting the auction.
Icasa ultimately consented to a Pretoria High Court order which set aside the previous ITA and forced Icasa back to the drawing board.
Following the order, Icasa spent three months consulting with stakeholders by publishing the two information memorandums (IMs).
“The publication of the first and second IM was done to ensure that stakeholders can have a clearer preview of the intended licensing process and associated licensing conditions — and be afforded the opportunity to make representations to the Authority on what the final licensing process and conditions should entail,” Icasa explained.
“In addressing competition concerns in respect of the 2020 ITA, along with all the issues raised in the subsequent consultations through the two IMs, the Authority has provided for the auction design to include, among other provisions: spectrum floors and spectrum caps, the opt-in round, and spectrum-sharing provisions.”
“These provisions are designed to facilitate the entry of new players into the market and to promote consumer welfare through access to high-quality communication services at affordable and competitive prices,” Icasa added.
Icasa chairperson Keabetswe Modimoeng said the Authority was grateful for the representations received and “fully considered those views in their entirety”.
Icasa added it would work with the Department of Communications and Digital Technologies to provide coverage maps for 700MHz and 800MHz spectrum bands based on progress in the analogue switch-off.
“Should the digital migration process not be completed by the time the auction is concluded, the Authority will apply proportional payment formulae for IMT700 and IMT800 bands,” Icasa said.
Icasa confirmed its resolution to separate the high-demand spectrum auction and the licensing of the Wireless Open Access Network (WOAN).
“We urge all industry stakeholders to embrace this licensing process, and the auction, as this is the most open and transparent way in which spectrum will be permanently awarded,” Modimoeng said.
“All the other provisional spectrum arrangements remain interim and will end at the stipulated and communicated dates.”
Modimoeng added the combined auction reserve prices would yield a minimum of R8 billion to the national fiscus.
The Authority said the ITA would be published in the Government Gazette today.
Loading ...