Vodacom alleges that Icasa allowed MTN to secretly pool spectrum belonging to Cell C and Liquid Intelligent Technologies with its own.<\/p>\n
It said MTN\u00a0amassed large blocks of precious spectrum this way, giving it a huge and unfair advantage.<\/p>\n
Spectrum is the lifeblood of any wireless network carrier. It is the raw bandwidth they use to communicate between their towers and customer devices like smartphones.<\/p>\n
In a media statement issued on Thursday, MTN characterised its opposition of Vodacom\u2019s lawsuit as standing up for everyday South Africans.<\/p>\n
Cell C and Liquid Intelligent Technologies have joined MTN\u2019s opposition to Vodacom\u2019s interdict application.<\/p>\n
MTN warned that if Vodacom\u2019s interdict succeeds, it would degrade the quality, speed, and capacity of MTN\u2019s network, impacting a substantial portion of the population.<\/p>\n
It won\u2019t just be MTN subscribers impacted, but also wholesale Internet Service Providers, Mobile Virtual Network Operators (MVNOs), its public and private sector customers, and members of the public who are reliant on these entities.<\/p>\n
Operators that roam on the MTN network like Cell C and Telkom will also be affected, it warned.<\/p>\n
\u201cAdditionally, the effect of Vodacom\u2019s application could fundamentally result in an industry-wide shift in the spectrum landscape in South Africa,\u201d warned MTN.<\/p>\n
\u201cIt could potentially also impact the use and transmission of radio frequency spectrum by any parties in the industry who share frequencies.\u201d<\/p>\n
MTN South Africa\u2019s acting chief sustainability and corporate affairs officer, Marina Madale, said they argue in their responding papers that Vodacom has failed to provide evidence to support an interdict.<\/p>\n
\u201cGiven the impact on MTN, its partners, roaming customers, MVNOs, subscribers, and the public, MTN believes that the request for interim relief should be dismissed,\u201d she said.<\/p>\n
In addition to the interdict, Vodacom has asked the court to review Icasa\u2019s approvals of MTN\u2019s spectrum pooling applications.<\/p>\n
\u201cThis was all done in secret, without any notice to Vodacom (or the public), and without any opportunity afforded to comment and make representations on whether this ought to be allowed,\u201d Vodacom argued.<\/p>\n
Vodacom also argued that the pooling agreements constitute notifiable mergers that should have been lodged with the Competition Commission.<\/p>\n
Since Icasa did not follow proper procedure and Vodacom believes the agreements were unlawful, it wants the approvals set aside.<\/p>\n
MTN argued that spectrum pooling arrangements enhance competition in any market and generate efficiencies for all parties involved.<\/p>\n
\u201cMTN and its pooling partners applied to Icasa to pool spectrum in early 2022, leveraging off the positive impact of temporary spectrum pooling arrangements that were approved during the Covid\u201319 pandemic,\u201d it explained.<\/p>\n
While the Covid\u201319 regulations enabled expedited approvals, MTN said these types of arrangements are not new and commonplace in other markets.<\/p>\n
\u201cThe South African regulatory framework permits parties to apply for such arrangements, and MTN and its partners applied to Icasa in terms of the Electronic Communication Act and received approval,\u201d Madale said.<\/p>\n
\u201cPursuant to these approvals, MTN designed and deployed its network.\u201d<\/p>\n
MTN denied Vodacom\u2019s allegations that the applications with Cell C and Liquid were done in secret to implement an unlawful scheme purely for their own commercial benefit.<\/p>\n
\u201cMTN was open about its decision to pursue pooling arrangements with other mobile network operators, and followed the process set out in the Electronic Communications Act and Regulations,\u201d it said.<\/p>\n
Madale said spectrum pooling is an efficient technique to use spectrum, which has benefits for customers and licensees like MTN, Cell C, and Liquid.<\/p>\n
\u201cMore efficient applications of spectrum advance the industry and benefit the broader public.\u201d<\/p>\n
![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2023\/03\/Shameel-Joosub-and-Charles-Molapisi-in-meeting-with-Minister-of-Electricity-Kgosientsho-Ramokgopa-sardonic-smiles.jpg\")
<\/a>Vodacom CEO Shameel Joosub and MTN SA CEO Charles Molapisi on the left, in a meeting with electricity minister Kgosientsho Ramokgopa in 2023<\/p><\/div>\n
By attacking MTN\u2019s spectrum pooling arrangements, Vodacom may have fired the first shots in a war of mutually assured regulatory destruction<\/a>.<\/p>\n Nearly all of South Africa\u2019s major network operators have some deals operating in regulatory grey areas.<\/p>\n Vodacom\u2019s secret deal<\/a>\u00a0involving Cell C\u2019s contract subscriber base is one such arrangement that could face increased scrutiny in response to its attack on Icasa and MTN.<\/p>\n In addition to its deal with Cell C, Vodacom has agreements with Liquid and Rain involving their spectrum \u2014 albeit with no pooling. Curiously, this wasn\u2019t mentioned in its court papers.<\/p>\n