Sunday Times

Spectrum sell-off would show serious intent

- Asha Speckman

It seemed too good to be true that the government would auction radio frequency spectrum by April this year. Authoritie­s have after all made a string of broken promises in this regard over nearly a decade. Another postponeme­nt, this time at the behest of communicat­ions minister Stella Ndabeni-Abrahams, earlier this month vindicated the sceptics.

The auction of highdemand spectrum ensures that extra spectrum is allocated fairly between establishe­d and newer entrants into the telecoms market.

It is necessary that cellphone network providers get the spectrum to satisfy growing consumer demand for high-speed technologi­es. The government also intends to build a wholesale open-access network to which it will sell access to various service providers and so stimulate competitio­n.

This would generate new enterprise­s, lead to job creation and hopefully lower data costs for consumers. The authority aimed to start issuing next-generation technology — 5G — licences to telecoms operators by

2020. Last year President Cyril Ramaphosa said the government wanted to accelerate the licensing “to hasten the growth of mobile communicat­ions”.

In recent years, as tax revenue growth has slowed and several large state-owned companies have approached the National Treasury with the begging bowl, the Treasury has eyed the spectrum auction as an opportunit­y to raise much-needed cash. Spectrum auctions are common worldwide

and fetch top dollar. Recently, Canada’s auction of 600MHz spectrum realised C$3.47bn (R36.3bn). SA could likely see higher proceeds as it auctions spectrum in the 2.6GHz and 3.5GHz bands, some of which had been lying fallow at government-owned signal distributo­r Sentech before the agency returned the spectrum in 2013 because of the high fees to keep it.

Continued delays could see SA miss the window of opportunit­y for tech progress. This is what Andile Ngcaba, a “techpreneu­r”, former Dimension Data chair and a former director-general of the department of communicat­ions, cautioned as long ago as 2011. Then, Ngcaba urged speedier allocation of additional spectrum. His pleas fell on deaf ears, so Ngcaba moved to Silicon Valley in the US in 2017, though temporaril­y, to focus on 5G technology. The risk remains that other tech bright sparks may migrate, plying their talent elsewhere.

The delays in auctioning spectrum have in part been due to a revolving door of communicat­ions ministers and squabbles over policy direction between the ministry and industry, often playing out in court.

The current communicat­ions minister, Ndabeni-Abrahams, has postponed the auction for further consultati­on with the industry. She has promised a final policy directive on spectrum allocation by the end of this month.

And as SA heads to the polls next month, what better incentive for the minister to stick to the deadline and show that the government is finally serious about spectrum?

Treasury has eyed the spectrum auction as an opportunit­y to raise muchneeded cash

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