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- Government has published a new draft policy document that could introduce spectrum trading to South Africa.
- Trading would allow operators to buy and sell, as well as lease, unused spectrum.
- Licensed spectrum that is unused for a period of more than 24 months may also be reallocated.
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Government has published a new draft policy document that could introduce spectrum trading to South Africa.
Trading would allow operators to buy and sell, as well as lease, unused spectrum.
Spectrum trading would also enable new telecommunication operators to enter the wireless market, especially those who couldn't participate in the assignment of spectrum through auction.
The Next Generation Radio Frequency Spectrum Policy for Economic Development, also known as the spectrum policy, was published by the Minister of Communications and Digital Technologies, Khumbudzo Ntshavheni, on Thursday.
It also proposes a "use it or lose it" principle for spectrum holders, in a bid to address the hoarding of unused frequencies.
Licensed spectrum that is unused for a period of more than 24 months may be reallocated.
"The spectrum policy supports [...] efficiency in utilisation of spectrum resource and, given the scarcity and value of spectrum to national development, hoarding of spectrum is not permissible," the document states.
Speaking about the significance of the policy, Ntshavheni highlighted that the country faces a spectrum shortage due to insufficient allocation for mobile services.
Ntshavheni said the current spectrum regime excludes SMMEs and new entrants in the data market "in favour of a few market players" and that the policy aims to promote the participation of new entrants to the ICT sector.
She said the situation impacts consumers, who suffer due to high communication and data costs.
"Through making spectrum available for use timeously, the government expects to continuously address the high cost to communicate experienced by South Africans.
"We continue to experience a connectivity divide resulting in the perpetual exclusion of rural, remote and underserved communities in the country. By making spectrum available, we will enable the telecommunications sector to build resilient networks in all geographic locations of our country," she said.
The trading of spectrum has been on the government's radar for years, and the system was part of the 2013 Electronic Communications Amendment Bill. The process was also mooted in the ANC'S discussion documents when the party prepared for its policy conference in July this year.
The government describes radio frequency spectrum as a finite resource that is vital to the growth of the country's digital economy.
"The regulator must set standard operating rules, and terms and conditions applicable for trading, sharing, and sub-letting of the spectrum," reads the document.
The communications regulator, Icasa, is empowered to allocate and assign radio frequency spectrum. The primary method of allocation is through auction. In March the state-owned entity concluded its long-awaited auction of spectrum, which saw the country's largest network operators bid for various frequencies for a combined R14.4 billion.
It was the country's first auction of spectrum in 17 years.
Interested parties have been given 30 days to submit comments on the proposed spectrum policy.
