The South African communications minister recently announced a new policy aimed at preventing companies from hoarding radio frequency spectrum. This new policy, published in the Government Gazette, outlines regulations for the assignment of high-demand spectrum by the Independent Communications Authority of South Africa (Icasa).
This policy aims to ensure that licensees do not stockpile spectrum that could otherwise be utilised more effectively. Licensees will be given the freedom to choose the technology used to provide specific services, which is in line with the “liberalisation of spectrum use” principle. However, Icasa will monitor the usage of the assigned spectrum to guarantee efficient utilisation.
The policy also introduces a “use-it-or-lose-it” principle, stating that any unused spectrum for 24 months will be subject to reassignment. This is a significant shift from the previous approach, which employed financial incentives to discourage spectrum hoarding.
The success of this approach was demonstrated when telecommunications companies like Telkom and state-owned entity Sentech adapted to the new pricing regime and made decisions to return unused spectrum to Icasa.
Telkom, for instance, announced that the new fees would significantly increase its spectrum costs, prompting the company to review its spectrum usage and migrate to next-generation technologies. Similarly, Sentech cited the considerable cost increase as a major factor in their decision to return 2.6GHz and 3.5GHz spectrum to Icasa.
Overall, the new policy is designed to promote more efficient and equitable use of radio frequency spectrum in South Africa, benefitting various industries reliant on this valuable resource.
