The South African communications regulator today made a range of temporary spectrum allocations in accordance with the ongoing Covid-19 National State of Disaster. In doing so the Independent Communications Authority of South Africa (ICASA) reversed its stance that it was no longer necessary for temporary spectrum to be issued. It had resolved to oppose a lawsuit by Telkom to cancel its withdrawal of such spectrum issued in the early months of the pandemic
It said in October: “ICASA believes that the circumstances and considerations that informed the issuing of the radio frequency spectrum at the onset of the pandemic never contemplated that the spectrum would be licensed on a long-term or semi-permanent basis. The Authority will therefore be derelict in its duty if it were, by default, to perpetuate what is now becoming an anti-competitive, unfair, and unjust spectrum licensing regime, under the guise of pandemic relief.”
Its stance was widely condemned, and today’s announcement came as little surprise. The new licenses are valid until 30 June 2022, or three months after the termination of the National State of Disaster, if that comes first.
The full Icasa statement reads:
The Independent Communications Authority of South Africa (ICASA/the Authority) has concluded its analysis of applications for provisional assignment of radiofrequency spectrum under the new ICT COVID-19 National State of Disaster Regulations, 2021, and resolved to grant licences to six (6) electronic communications network operators.
The licences are valid for a period of seven (7) months, commencing from 1 December 2021, and ending on 30 June 2022 – or three months after the termination of the National State of Disaster – whichever comes first.
By the closing date on 17 November 2021, the Authority had received 6 applications, from: Rain Networks, Vodacom, Cell C, Telkom, Liquid Intelligence Technologies, and MTN.
All the applications for provisional spectrum assignments were considered in accordance with the criteria and conditions stipulated in the ICT COVID-19 National State of Disaster Regulations.
The licences are issued in respect of radio frequency spectrum for the 700 MHz, 800 MHz, 2300 MHz, 2600 MHz and 3500 MHz bands.
Provisional assignments in the 700/800 MHz band
The Authority received four (4) applications for provisional radio frequency spectrum assignment in the IMT700 band from: MTN, Telkom, Vodacom and Rain Networks.
Upon consideration of the applications, the following assignments of provisional spectrum were granted in the IMT700 MHz band:
- MTN = 10 MHz;
- Telkom = 20 MHz;
- Vodacom = 10 MHz
- Rain Networks = 20 MHz.
The Authority received five (5) applications for provisional radio frequency spectrum assignment in the IMT800 band from: MTN, Telkom, Vodacom, Rain Networks and Cell C.
Upon consideration of the applications, the following assignments of provisional spectrum were granted in the IMT800 band:
- MTN = 10 MHz;
- Telkom = 20 MHz;
- Vodacom = 10 MHz; 4. Cell C = 20 MHz.
Since analogue and digital television broadcasting services still occupy parts of the 700 MHz and 800 MHz radio frequency bands, the Authority urges licensees to share and co-ordinate usage in these frequency bands through a geographic separation of International Mobile Telecommunication (IMT) Systems and Broadcasting Services in affected areas, and in accordance with the Terrestrial Broadcasting Frequency Plan, 2013, as published.
Provisional assignment in the 2300 MHz band
The Authority received only one (1) application for provisional radio frequency spectrum assignment in the IMT2300 band, from Telkom.
To this end, Telkom was duly awarded 40 MHz of provisional spectrum in this band.
Provisional assignments in the 2600 MHz band
The Authority received five (5) applications for provisional radio frequency spectrum assignment in the IMT2600 band from: Telkom, MTN, Vodacom, Rain Networks, and
Cell C.
Upon consideration of the applications, the following assignments for provisional spectrum were granted in the IMT2600 band:
- Telkom = 10 MHz;
- MTN = 40 MHz;
- Vodacom = 40 MHz;
- Rain Networks = 60 MHz;
- Cell C = 20 MHz.
Provisional assignments in the 3500 MHz band
The Authority received five (5) applications for provisional RFS assignments in the IMT3500 band from: Telkom, MTN, Vodacom, Liquid Intelligent Technologies, Rain Networks and Cell C.
Upon consideration of the applications, the following assignments for provisional spectrum were granted in the IMT3500 band:
- Telkom = 12 MHz;
- MTN = 40 MHz;
- Vodacom = 40 MHz;
- Liquid Intelligent Technologies = 4 MHz;
- Cell C = 20 MHz.
The Chairperson of ICASA, Dr Keabetswe Modimoeng expressed his gratitude to all the applicants, and emphasised the need to use these provisional assignments as a step towards urgently finalising the permanent high-demand spectrum licensing process.
‘This provisional spectrum assignment remains an interim measure, intended to improve communication services for consumers in the intervening period, with the goal being to permanently license the spectrum through an auction commencing in March 2022. This provisional licensing phase attempts temporarily to address competition concerns and levy appropriate fees, but a more all-inclusive regime will be yielded through a competitive bidding approach, ‘ says Dr Modimoeng.
All licensees will be required to pay a spectrum acquisition fee, as well as a spectrum usage fee, in addition to the up-front application fee. Through this provisional spectrum assignment arrangement and its related fees (for acquisition, spectrum usage and application), the Authority will in the short term raise about R200 million for the national fiscus.
This provisional radio frequency spectrum regime is confirmation that the temporary spectrum issued in April 2020 ceases to exist on 30 November 2021, and that the provisional spectrum assignment arrangement becomes effective from 1 December 2021.