Despite Telkom having more high-demand spectrum than any of its competitors, the telco has appealed to the Independent Communications Authority of SA (ICASA) to give it first pick at the spectrum that will be freed up with digital migration.
Speaking on the state of competition in the ICT sector at ICASA's high-level inquiry hearings yesterday, Telkom regulatory executive Siyabonga Mahlangu said the company deserved to be prioritised when it comes to awarding spectrum in the sub-1GHz bands (digital dividend bands of 700MHz and 800MHz).
"Telkom Mobile is the only mobile operator without sub-1GHz spectrum, meaning its costs are higher and it is harder for Telkom Mobile to compete with other mobile operators and to establish itself in the market.
"To level the playing field, ICASA should ensure Telkom Mobile has access to the digital dividend spectrum prior to any further allocations," said Mahlangu.
He argued, in a small market, spectrum should be allocated to ensure efficiency - and not be too widely dispersed - since making use of spectrum requires intensive capital investment.
"As per SA Connect, open-access conditions should be imposed on newly-allocated spectrum, so that those not allocated spectrum are not necessarily excluded from the market.
"If spectrum is allocated to new operators for use specifically in urban areas, then ICASA should ensure that spectrum is also made available to existing operators to utilise in the rural and underserved areas."
Mahlangu said promotion of competition requires all operators to be on an equal footing and said Telkom wanted to be given first option on sub-1GHz spectrum, before the regulator auctions it off. "We don't have anything below 1GHz [and] feel the board is skewed against us in terms of 700MHz and 800MHz spectrum. We want to be put on the same pedestal as everyone else."
In response to this, ICASA councillor William Stucke pointed out Telkom has more high-demand spectrum in its possession than MTN, Vodacom and Neotel put together.
The 700MHz and 800MHz bands currently belong to terrestrial broadcasting entities. The aim is to have this spectrum freed up when SA finally moves off analogue television. This process, which is meant to be completed in line with the International Telecommunication Union's mid-2015 deadline, has repeatedly stalled.
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