ICASA commits to spectrum allocation date
Following months of uncertainty regarding the allocation of scarce spectrum \the Independent Communications Authority of South Africa (ICASA) has committed to a date by which the process will be finalised.
ICASA is currently sitting on 126 MHz of spectrum in the valuable 2.6 GHz band which is yet to be allocated. Despite issuing draft regulations for the licensing of this scarce resource in July 2009, very little progress has been made since then.
Within these draft regulations the Regulator stipulated that it would license four new players with 30 MHz each in the 2.6 GHz band. The qualifying criteria however involves factors such as 30% BEE equity and that the company in question is not affiliated with or hold more than 5% in another applicant in the same band. ICASA’s ‘draft’ requirements knocked cellular operator Vodacom out of the running due to the fact that it owns 24.9% of WBS/iBurst which already has 15 MHz of 2.6 GHz spectrum.
ICASA commits to allocation time frame
A spokesperson for the Regulator revealed that the additional “spectrum will be allocated through a process which will be finalised by the end of May 2010”.
This is good news for prospective spectrum holders such as iBurst, who currently has 15MHz of WiMax spectrum and has applied for an additional 15MHz. Although the Regulator has yet to confirm which players will be awarded spectrum it seems likely that iBurst will be awarded the additional 15MHz it applied for, given that it complies with the stipulations set forth by ICASA.
Due to ICASA’s suggested time frame it seems unlikely that iBurst will be able to bring its embedded WiMax product offering, in conjunction with Intel, to market before the beginning of the FIFA 2010 World Cup – something which Intel Manager for Market Development within the WiMAX Program Office, Gavin Coetzer said they had hoped to achieve. It was previously indicated that 30 MHz of WiMax spectrum is needed for a successful launch.
Auction process
ICASA said that the auction process they have selected is an internationally recognised system and they are currently in the process of acquiring an experienced professional to assist with its implementation.
“Most countries have assigned this part of the spectrum through some form of Auction mechanism. Our draft regulations suggests that Auction forms part of the selection process. We have never in the past assigned radio spectrum through an Auction. Therefore; ICASA is in a process of acquiring a professional assistant with an appropriate Auction design.”
Sentech
Given the Minister of Communication’s recent admission that state owned provider Sentech is in dire financial straits, it is unclear what ICASA will choose to do with the company’s largely dormant WiMax spectrum.
The Ministerial Task Team which probed Sentech did however make a recommendation that private partnerships be formed with the company in the future.
Such an agreement is supposedly already in place whereby Screamer Telecoms uses Sentech’s dormant spectrum to offer wireless broadband services. Arrangements such as these, between Sentech and private entities may become more prevalent in future.
ICASA commits to spectrum allocation date << Discussion
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