Expect lower data prices — Ramaphosa
President Cyril Ramaphosa has stated that licensing of new radio frequency spectrum is expected to reduce mobile data prices, expand network coverage to rural and outlying areas, and improve cellular network quality.
“Every South African who uses a mobile device will feel the benefits of this reform,” Ramaphosa wrote in his weekly letter to citizens.
It will especially benefit the poor and those who currently don’t access the Internet due to high costs or a lack of coverage, he said.
Ramaphosa also acknowledged that South Africa’s licensing of additional spectrum to mobile operators was delayed for nearly two decades due to state failures.
“It was delayed for many years due to the policy drift, state incapacity and vested interests that were a feature of the era of state capture,” Ramaphosa stated.
“The fact that we have now completed this process reflects the determination of this administration to undertake — and accelerate — the far-reaching reforms that our economy needs to grow and create jobs.”
The Independent Communications Authority of South Africa (Icasa) concluded its high-demand spectrum auction last week.
All six bidders in the auction walked away with additional spectrum, committing just under R14.5 billion. Icasa was hoping to raise at least R8 billion.
The table below summarises the spectrum each network operator won, and how much they bid.
| Spectrum auction outcome | |||||
|---|---|---|---|---|---|
| Bidder | 700 (MHz) | 800 (MHz) | 2600 (MHz) | 3500 (MHz) | Total |
| Telkom | – | 20 | – | 22 | R2,113,615,407.10 |
| Liquid Telecom | – | – | – | 4 | R111,000,000.00 |
| Cell C | – | – | – | 10 | R288,200,000.00 |
| Rain | 20 | – | 20 | – | R1,431,374,105.50 |
| MTN | – | 20 | 40 | 40 | R5,152,100,000.00 |
| Vodacom | 20 | – | 80 | 10 | R5,381,600,000.00 |
| Unsold | – | 20 | – | – | – |
| Total Revenue Generated | R14,477,889,512.60 | ||||
While the auction was a success, the High Court may still declare it invalid. Telkom has brought a case against Icasa, which is being heard in the Pretoria High Court at the start of April.
This has not stopped Ramaphosa, Icasa, communications minister Khumbudzo Ntshavheni, and other bidders from enjoying the victory.
“The auction of spectrum is an important achievement,” Ramaphosa said.
“The licensing of spectrum is one of the major reforms that we are implementing to modernise and transform key network industries such as energy, telecommunications, transport and water provision.”
Ramaphosa said that much progress has been made in creating new opportunities for investment in electricity generation, freight rail and ports, and in improving the management and quality of the country’s water resources.
“The licensing of this new spectrum will be accompanied by agreed social obligations to connect public schools, health facilities and police stations over the next three years,” he continued.
“Like the mineral wealth that lies beneath our soil, radio spectrum is a valuable national resource that needs to be used for the benefit of all South Africans.”
Ramaphosa said that expanding digital access is critical for economic growth.
“Cheaper data means that young people will have greater access to digital platforms to seek job opportunities online. Students will be able to access information and educational materials. Entrepreneurs will be able to start businesses and reach new markets,” he said.
“Equally, the availability of this spectrum will contribute to economic transformation. It will allow many more people, especially those from remote areas and poor communities, to access digital resources and will improve their ability to participate in economic activity.”
Ramaphosa noted that this spectrum will enable the rollout of 5G networks.
“These 5G networks will accelerate the process towards universal connectivity — where all South Africans are connected — and the deployment of the digital technologies and services that are driving the fourth industrial revolution,” he said.
“This is a crucial step to bring South Africa back to the cutting edge of digital technology and ensure that our economy remains competitive.”
Now read: Spectrum chaos in South Africa
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