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Govt won't force return of spectrum

Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba, IT in government editor
Johannesburg, 24 May 2017
Telecoms and postal services minister Siyabonga Cwele.
Telecoms and postal services minister Siyabonga Cwele.

Operators will not be forced to surrender their existing high demand spectrum as proposed in the National Integrated ICT Policy White Paper.

This was announced by minister in the Department of Telecommunications and Postal Services (DTPS) Siyabonga Cwele, ahead of his budget vote address in Parliament today.

According to Cwele, the agreement was reached following the last meeting between the DTPS and stakeholders that was held on 19 May.

There is general agreement with the thrust of the policy and the need to implement it without delay, he states.

Most of the discussion focused on how best we implement wireless open access network (WOAN) and the allocation of and the return of the high demand spectrum, according to Cwele.

"There may be no urgency to return the current high demand spectrum from licensees until the end of the current licence period to ensure investment certainty.

"In return, the licensees committed to buy at least 30% of the existing capacity of WOAN [wireless open access network] to ensure its viability."

The White Paper proposes a shake-up to previous policy frameworks with regards to spectrum allocation and the return of high demand spectrum from the current licensees, which resulted in widespread panic in the market. It favours the deployment of a WOAN.

After three years in the making, the White Paper was finalised and published in September 2016. The new policy is supposed to replace the separate White Papers on telecommunication (1996) and postal services (1998).

In light of this agreement, the minister has also committed to conduct an urgent high level study to determine if WOAN will utilise all high demand spectrum for the 4G network.

"If there will be remaining spectrum it will be licenced to operators with rural coverage obligations. In such case, the licensees further committed to buy at least 50% of WOAN capacity.

"It is important to realise that without WOAN, the new entrants, particularly black entrepreneurs and SMMEs, will find it impossible to enter this industry."

He also reiterated that the DTPS intends to finalise the implementation plan of the ICT Policy White Paper.

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