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Sipho Maseko. Photo: Cornel van Heerden
- Icasa said the spectrum will be auctioned no later than March 31, 2021, a three-month delay.
- The delay is due to the release of the Covid-19 emergency spectrum and pending issues related to the viability of the Wireless Open Access Network (WOAN).
- However, Telkom CEO Sipho Maseko said that Telkom expected to see innovation in auction design from the new board.
Telkom CEO Sipho Maseko has praised the recently launched invitation to apply for the Open Access Wireless Network and International Mobile Telecommunications spectrum as a much-needed injection for the South African sector and economy.
On Thursday, the Independent Communications Authority of South Africa confirmed that Invitations to Apply (ITAs) for high-demand spectrum were to be published by September 30, 2020. The high-demand spectrum auction, originally scheduled for December this year year, it will now be completed no later than March 31, 2021.
Icasa said that the delay in the process was due to the authority prioritizing the release of the Covid-19 emergency spectrum and pending issues related to the viability of WOAN.
Icasa invited presentations on the impact of the Covid-19 pandemic on the market and that the Icasa city council would consider at the end of the ATIs.
Among other things, the authority had to suspend payment of dividends as a way to conserve cash to finance the purchase of high-demand spectrum.
Maseko said Telkom expected to see innovation in auction design from the new council, as South Africa continues to address the lack of effective competition in the sector.
“We hope that the new council will also consider the impact of the current spectrum trading agreements on the auction design and use the opportunity presented by the ITA to offer effective competition,” Maseko said.
Icasa President Keabetswe Modimoeng said the licensing process requires the authority to act with caution to ensure full compliance with all requirements.
“Icasa has also completed a process to determine the fair economic value of the five spectrum bands that will be available for auction and the spectrum that will be made available to WOAN taking into account the current state of competition in the South African market” . Modimoeng said.
Icasa said that due to time lost as a result of the delay in the issuance of the ITAs, the auction of the high-demand spectrum, which was originally scheduled to take place in December 2020, would be subject to a three-month delay.
