South African telecommunications operators are likely to come to blows over the allocation of WiMax spectrum, once the Independent Communications Authority of SA (ICASA) finalises its allocation criteria, say some industry sources.
A spokesman for a small telecoms operator says ICASA's allocation criteria is likely to be challenged, as many operators need the spectrum and argue they can use it more effectively. He notes his company is among those that would challenge ICASA's decision if it loses out.
Telecoms operators will also pick on each other, repeatedly reporting each other to ICASA for alleged infractions, he adds.
Underserviced area licensee (USAL) Thinta Thinta COO Sbonelo Mvuyana supports this position, saying he is also prepared to fight for his share of the spectrum. Thinta Thinta has already been allocated CDMA spectrum.
Mvuyana argues that WiMax spectrum should be allocated regionally, to ensure those who deliver services to underserviced areas get their share. Mobile operators should not receive any spectrum, as they already have 3G/HSDPA, he says.
Neotel head of strategy Angus Hay said at the recent GovTech 2007 conference that spectrum should be sold. Operators need to make a strong business case to make the use of spectrum commercially viable, he noted.
Vodacom ISP CTO Thami Msimango agreed, adding that the recipient operator needed to have the resources to use the spectrum effectively.
BMI-TechKnowledge senior analyst Richard Hurst says there is bound to be tension once WiMax spectrum is allocated. There is huge demand for that band, and a large chunk of it has already been allocated to Telkom, Sentech and iBurst, he notes. "Maybe it won't be much of a war, and we won't come to blows, but we will get huffy."
No decisions yet
Meanwhile, ICASA councillor Marcia Socikwa says the regulator has still not made a decision as to how it will allocate the spectrum. The discussion is ongoing, she says.
However, she does not completely rule out an auction method of allocating spectrum, saying: "An auction is not a bad idea, particularly when it's not just based on costs. We would still look at proposed coverage."
Socikwa adds ICASA has made some principle decisions regarding spectrum allocation, including issues of price. "We agreed spectrum fees should at least cover administration costs."
ICASA will also ensure available spectrum is allocated to address the widest services and reach maximum people, she says. ICASA is aware that mobile operators are also competing for limited bands, she adds.
Socikwa says, while there is no clear dispute resolution mechanism on spectrum issues, ICASA will deal with disputes swiftly, on an ad hoc basis.
Previously, it was understood USALs would have their WiMax allocation set aside. ICASA spokesman Sekgoela Sekgoela said he was not sure how the integration of USALs into provincial entities, as outlined by communications minister Ivy Matsepe-Casaburri, in May, would affect this move.
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