The Independent Communications Authority of South Africa (Icasa) is planning to appoint a service provider, or multiple providers, by next month to oversee the country’s upcoming auction for radio frequency spectrum.
Despite this, Icasa has yet to finalise a date for the auction, which had previously been pushed to 2024 at the request of bidders needing additional preparation time. The regulator aims to conduct the auction for new high-demand radio frequencies during the 2026/2027 financial year.
During a briefing to parliament’s portfolio committee on communications and digital technologies, Icasa CEO Tshiamo Maluleka-Disemelo stated, “We have advertised the bid, received responses, and are currently assessing these companies. We expect to appoint a winner by the end of February, or at the latest, in March. The chosen entity or entities will help us manage the spectrum evaluation process, create an information memorandum outlining the auction rules, and enlist auditors and legal advisors. This funding will cover those expenses.”
Icasa’s most recent spectrum auction, the only one held to date, occurred in March 2022, generating US$898 million for the national treasury, which surpassed the anticipated US$499 million. Six operators, including Vodacom, MTN, Telkom, Rain, Cell C, and Liquid Intelligent Technologies, participated. Vodacom and MTN notably invested substantially, securing significant portions of mid-band spectrum in the 2.6 GHz and 3.5 GHz bands, which are essential for 5G deployment. Rain and Telkom gained access in an initial opt-in round, while Cell C and Liquid also secured portions of the spectrum.
The previous auction was marked by controversy, including legal actions from Telkom, which sought to block the proceedings, resulting in a year-long delay following a court interdict in 2021. Additionally, Cell C failed to pay the US$17 million owed for the 10 MHz in the 3.5 GHz band and relinquished its spectrum.
The upcoming auction could feature bands including 750 MHz, 800 MHz, 1.5 GHz, 2.3 GHz, 3.3 GHz, and 3.5 GHz. A significant unresolved issue remains regarding the allocation of the upper 6GHz band, which is contested by mobile operators desiring it for 5G capabilities and the Wi-Fi industry advocating for unlicensed access.
During her presentation about Icasa’s financial performance for the first two quarters of the fiscal year, Maluleka-Disemelo also discussed forthcoming regulations and policies. She addressed previous complaints from MPs regarding the regulator’s focus on operational matters.
Icasa’s legal team is developing draft satellite regulations to be submitted to the council soon. The organisation is also “confident” that new signal distribution regulations aimed at improving competition in terrestrial broadcasting will be finalised and published by the end of March.
While Icasa achieved 77% of its targets in the first quarter and improved to 89% in the second, Communications Minister Solly Malatsi pointed out that there remains “room for improvement” in the last two quarters.
