ICASA looks for spectrum auction partner
The Independent Communications Authority of South Africa (ICASA) released regulations in May on how it will grant radio frequency spectrum licences for competing applications or instances where there is insufficient spectrum available to accommodate demand.
ICASA has also opened applications for 2.6 GHz and 3.5 GHz spectrum. After the spectrum applications have been filtered to ensure that they meet the minimum requirements laid down by ICASA, a standard ascending-price closed-bid auction where applicants bid against each other will start.
The initial application deadline of 25 June has been extended by ICASA. The regulator announced in Government Gazette 33276 that it has extended the closing date for submissions of applications for spectrum in the 2.6 GHz and 3.5 GHz bands to 30 July 2010.
The auction process has been criticized by some industry players for its lack of clarity, and ICASA has now invited service providers to bid to assist the regulator with the ‘preparation and facilitation of an auction as well as to produce a report on the auction for radio frequency spectrum’.
There is currently a great deal of uncertainty as to how much the various operators are willing to bid for valuable 2.6 GHz spectrum – which can be used for both WiMax and LTE network rollouts – but initial speculation suggests that bids of tens of millions or even hundreds of millions can be expected.
With such high spectrum bids it may be tempting for operators to discuss an upper limit for bidding, but in its regulations ICASA makes it clear that any applicant who tries to collude with other applicants will be disqualified from the process.
ICASA spectrum auction << give your views
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