Successful bidders will become mobile virtual network operators (MVNOs), said Keabetswe Modimoeng (pictured), who chairs the Independent Communications Authority of South Africa (Icasa).
The regulator will be licensing high-demand mobile spectrum as well as what Icasa calls Wireless Open Access Network (WOAN).
Successful bidders will have to support the WOAN plan by procuring a minimum 30% national capacity, said Modimoeng.
The mobile spectrum will be in 700, 800, 2,600 and 3,500MHz bands in 34 lots, he added.
“The Authority will make available 406MHz of spectrum for the provision of mobile broadband services in South Africa,” he said. “Given the scarcity of spectrum, this has the potential to shape future competition in mobile markets in South Africa and the extent to which individual national and/or sub-national wholesalers are able to credibly compete with each other.”
He warned: “However, this licensing process is not expected to solve the wholesale and retail competition concerns. The Authority is keenly aware of the need to prevent the spectrum award from worsening the competition concerns in mobile markets identified by the Authority through other processes.”
He added: “This will be done by imposing appropriate obligations and spectrum caps.”
No one will be able to get more than 184MHz, including existing assigned spectrum holdings, he added.
Icasa has allocated a total of 80MHz of spectrum for its WOAN project, in the 700, 800, and 3,500MHz bands.
“The successful licensees shall procure a minimum of 30% national capacity from the WOAN collectively as soon as the WOAN is operational for a period of seven years,” he said.
“The 30% national capacity to be procured from the WOAN will be shared proportionally amongst the successful licensees based on the amount of spectrum acquired from the Auction by each successful licensee.”
The process will result in “better quality of services for all mobile service users, irrespective of the area they reside in within the republic”, said Modimoeng.
