Operators to keep spectrum

Mobile operators received a temporary reprieve on Wednesday, with Telecommunications and Postal Services Minister Siyabonga Cwele announcing they will not be compelled to surrender their existing highdemand spectrum at this stage.

There was no urgency in forcing operators to return the spectrum until the end of the current licence period, Cwele said. The reprieve would ensure investment certainty.

The government’s controversial National Integrated ICT Policy white paper, published in September 2016, had proposed, among other things, that spectrum already allocated to mobile operators be recovered and a ban placed on the trading of frequencies in popular bands.

A key proposal was that the spectrum be pooled and made available to a new wholesale open-access network operator to be owned by any licensee interested in participating as an investor and shareholder.

Mobile giants including Vodacom and MTN, raised concern about the proposal that many saw as unconstitutional. On the other hand, smaller players in the sector cautiously welcomed the move.

Cwele did not rule out a return of spectrum being enforced in the future, though.

Agreement that there was no urgency for licensees to return high-demand spectrum until the end of the licence period was reached at a meeting with stakeholders last week, he said.

“In return, the licensees committed to buy at least 30% of the existing capacity of the wireless open-access network to ensure its viability,” said Cwele.

In view of the levels of investment in the 4G network, he had undertaken to conduct an urgent study to determine if the wireless open-access network would use all highdemand spectrum for 4G.

Any remaining spectrum would be licensed to operators with rural coverage obligations, Cwele said. In such a case, the licensees further undertook to buy at least 50% of this network capacity.