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Resources Media alerts and statements Telecommunications regulator delays auction of radio frequencies | Telecommunications regulator delays auction of radio frequencies |
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South Africa Communiqué 22 July 2010 Telecommunications regulator delays auction of radio frequencies The Independent Communications Authority of South Africa (Icasa) has suspended its plans to issue four radio frequency licences, after companies objected to its auction process. The spectrum can be used to build wireless broadband networks that cover large areas and transmit high volumes of traffic cheaply. This will also increase competition in the market. Companies were concerned about the lack of information on the auction, hence the delay. However, Siyabonga Madyibi a regulatory director at Internet Solutions said the company was disappointed that the process would be delayed further. Adding that the invitation to apply had contained basic rules of auctioning that were not properly explained. Icasa would consult the industry before finalising the licensing process, pressing that the spectrum regulations that required companies to be 30% Black owned would remain. Icasa chairman Stephen Mncube said the issuing of new licences for these “highly sought spectra” should be matched by a roll-out of infrastructure to achieve universal service and access. BACKGROUND The Independent Communications Authority of South Africa (Icasa) has extended the deadline for the scarce radio frequency spectrum licences to the end of July 2010. Companies such as Vodacom, iBurst, Internet Solutions and Skyrove have shown interest in bidding for one of the four licences. Companies bidding for licences have to be 30% black-owned, have R70 000 non-refundable participation fee and a R250 000 refundable auction fee, this will be South Africa’s first spectrum auction. Internet Solutions has raised concerns about the lack of information on the model of auction that will be adopted by Icasa and whether companies that have already been allocated licences in the spectrum would be allowed to apply for more. It wants those companies to be disqualified, adding that the objective of allocating additional spectrum in these two bands (2.6GHz, 3.5GHz) had always been to encourage more equitable distribution of spectrum, which would increase competition in this environment. Also, should these players be allowed to participate in the auction they would eliminate the chances of new entrants acquiring spectrum and reinforce their dominant positions. Therefore, the biggest losers will be the consumers who will suffer as there will never be real competition in the sector. This e-mail address is being protected from spam bots, you need JavaScript enabled to view it |
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