Despite already having access to large chunks of what is considered scarce spectrum, both Telkom and Sentech want the opportunity to bid for what is left.
Spectrum in the 2.5GHz and 3.6GHz bands has become a hot commodity for the telecoms industry, since access to it could increase broadband reach and allow for new network roll-outs for many operators.
The Independent Communications Authority of SA (ICASA) held public hearings this week with several interested operators looking to get their hands on the spectrum.
All the incumbents have already been allocated spectrum in the range; however, this hasn't stopped them from looking for more.
WiMax at Polokwane
Sentech's executive for regulatory affairs, Dingane Dube, pointed out to ICASA that the current iteration of the draft regulation prevents it from competing for additional spectrum. “It is prejudicial to those who have spectrum already,” he said.
The state-owned business has long been lambasted for sitting on a whopping 50MHz in the 2.6MHz band, which was intended for its consumer wireless broadband offering, but never used. Last year, Sentech announced its MyWireless consumer product would be canned, and followed through by dumping it earlier this year. While ICASA has promised a “use it or lose it” policy for scarce spectrum, Sentech vehemently defended its possession of the spectrum.
Dube went as far as citing the ANC Polokwane conference, which took place before the elections this year, saying the ANC still values Sentech and will support national broadband network roll-outs.
Meeting goals
Telkom's presentation to the regulator was equally heated and the company called on the regulator to allow the incumbents access to the spectrum auction.
Executive for technology regulations, Richard Majoor, defended Telkom's right to the spectrum, saying the incumbents are best placed to establish networks. He said incumbents are also in a better position to meet government's development requirements.
Telkom already has a WiMax offering running in the 3.6GHz band, and many of the smaller operators are calling to have the incumbents prevented from accessing the available spectrum.
Change your spots
The current decision document, released by ICASA earlier this year, shows it intends to auction the spectrum in blocks of 30MHz. It also dropped the initial requirement of 51% black empowerment equity to 30%.
However, Majoor said 30% is only a means to keep the incumbents from entering the auction, since none of the big five operators have the required empowerment credentials. The company called on ICASA to re-evaluate the requirement.
However, Mashile lambasted Telkom: “You are dinosaurs that have been around for a long time. You need to subject yourselves to the regulatory environment. Adapt or die.”
Mashile added that he had already bowed to the request of businesses to drop the empowerment requirement from 51% to 30%. “What do you want us to do now? Drop it to nothing?” he demanded of the Telkom team.
ICASA expects to have the regulations finalised by the end of the year; however, it is still concerned that the process will be dogged by legal applications from the incumbent operators.
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