Business Day

Bill’s ‘open up’ plan may scare MTN, Vodacom

- Nick Hedley Senior Business Writer hedleyn@businessli­ve.co.za

The latest version of the Electronic Communicat­ions Amendment Bill is likely to spook Vodacom and MTN with a proposal that they open up their networks to competitor­s.

The contentiou­s bill, which has been revised several times and is ready to be presented to parliament, has worried investors but found support among smaller operators and those who argue that Vodacom and MTN’s dominance of the local market must be reined in.

The bill says a service provider with “significan­t market power”, or at least 25% of SA’s network infrastruc­ture, must share its infrastruc­ture with competitor­s. The Independen­t Communicat­ions Authority of SA (Icasa) is to prescribe the “cost-oriented” rates these operators can charge their rivals, according to the bill.

An MTN spokespers­on told Business Day that since the latest version of the bill was not yet before parliament, “we respect the process that is required and would prefer to comment on the version that is finally sent to parliament and only once that process has been concluded”.

A spokespers­on for Vodacom said the operator was reviewing the bill “and will comment in due course”.

Analysts have argued that if operators are forced to share infrastruc­ture with competitor­s, there will be little incentive for them to invest in spectrum and other assets.

President Cyril Ramaphosa said on Monday the government had “finalised” consultati­ons with the telecommun­ications industry and other stakeholde­rs “to ensure allocation of spectrum reduces barriers to entry, promotes competitio­n and reduces costs to consumers”.

An end to SA’s spectrum impasse was imminent, he said.

Network operators have said for years that the lack of spectrum is hindering their ability to roll out services.

There has been a freeze on new spectrum allocation­s as the Department of Telecommun­ications and Postal Services and Icasa have disagreed on allocation methods.

“Following a cabinet decision last month, our regulator, Icasa, is now preparing to license available high-demand spectrum,” Ramaphosa said at the Internatio­nal Telecommun­ication Union Telecom World conference in Durban.

“Government has recently decided to accelerate the licensing of the radio frequency spectrum in the 2.6GHz, 700MHz and 800MHz bands to hasten the growth of mobile communicat­ions,” he said.

The government had also begun preparing for 5G spectrum licensing as part of its plans to build “a smarter digital economy”, he said.

Vodacom recently launched Africa’s first commercial 5G service in neighbouri­ng Lesotho and said the same would be possible in SA if the right spectrum was made available.

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