Spectrum auction ‘ray of hope’ for SA

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The Independent Communications Authority of South Africa (ICASA) has recently revealed that it had managed to raise R14.4 billion from the country’s hugely successful spectrum auction process, which began on 10 March 2022.

North West University Economics Professor, Waldo Krugell, tells the OFM Business Hour that the success of this previously embattled process is a ray of hope for South Africa’s economy.

However, Krugell cautions that this doesn’t mean the end for the process.

For one, Telkom is still challenging the process via the country’s legal system – the outcome of which is still pending. There is also the matter of moving from analogue to digital television broadcasts that needs to be completed to ensure the spectrum is available.

Also Read: Temporary spectrum pressure test for mobile operators [https://www.ofm.co.za/article/business/311175/-ofmbusinesshour-temporary-spectrum-pressure-test-for-mobile-operators]

ICASA says the main auction stage comprised of 58 rounds of bidding between six bidders. The authority further confirms that there was one unsold spectrum lot. This list will still be licensed by ICASA in future.

The next stage of this process will be the assignment round which the authority says is an administrative process and will take place on 22 March 2022 [LINK: ICASA concludes successful spectrum auction and collects more than R14.4 billion proceeds — Independent Communications Authority of South Africa], to determine the actual spectrum ranges to be assigned.

Previously on The Business Hour, the Chief Executive Officer of telecommunications company, Ignition Group, Valde Ferradaz said he doesn’t believe that spectrum was always a part of government’s economic agenda from the beginning.

He added that telecommunications companies have been pleading with government to come to the table regarding spectrum allocation for more than ten years, a clear indicator that the issue over high data costs isn’t one that began recently.
22 Mar 2022 8AM English South Africa Business · Daily News

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