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- President Cyril Ramaphosa has admitted that the delay of the broadband spectrum auction was due to state incapacity.
- The auction was finalised last week and six mobile operators paid R14.4 billion for new spectrum.
- Ramaphosa said that the licensing of additional spectrum would be accompanied by agreed social obligations to connect public schools, health facilities, and police stations to the internet over the next three years.
President Cyril Ramaphosa has hailed the conclusion of the broadband spectrum auction as an "important achievement", but admitted that its delay was due to state incapacity.
The Independent Communications Authority of South Africa (Icasa) collected R14.4 billion from the auction, which saw six mobile operators making bids for radio frequency bands that should propel the rollout of new generation technologies and help drive down the cost of data.
"The auction of spectrum is an important achievement. It was delayed for many years due to the policy drift, state incapacity, and vested interests that were a feature of the era of state capture," said Ramaphosa in his weekly newsletter.
"The fact that we have now completed this process reflects the determination of this administration to undertake – and accelerate– the far-reaching reforms that our economy needs to grow and create jobs."
The spectrum allocation was the first in 17 years, and the process had over the years been delayed by administrative hold-ups under different communication ministers and court challenges between the government, Icasa and some operators.
The revenue raised from the auction will go to the national fiscus.
Network operators Cell C, Liquid, MTN, Rain Networks, Telkom, and Vodacom took part in the bidding process. MTN and Vodacom have confirmed that the new spectrum will boost the rollout of their 5G networks.
"The spectrum release is expected to reduce the cost of mobile data, expand network reach to rural and outlying areas, and improve network quality," said Ramaphosa.
He added that allocation was one of the priority reforms included in Operation Vulindlela, which is a joint initiative of the Presidency and National Treasury to accelerate the implementation of structural reforms and support economic growth.
"Expanding digital access is critical for economic growth. Cheaper data means that young people will have greater access to digital platforms to seek job opportunities online."
Ramaphosa added that the licensing of additional spectrum would be accompanied by agreed social obligations to connect public schools, health facilities, and police stations to the internet over the next three years.
