SA's second largest cellular operator, MTN, says the Independent Communications Authority of SA (ICASA) should reallocate spectrum that is not being efficiently used by other operators.
There are at least three companies that are not making full use of their frequency allocations, MTN argues.
The spare space should be given to operators that will use it to roll out the latest generation of wireless broadband, while the sector waits for ICASA to allocate more spectrum, says MTN SA MD Karel Pienaar.
ICASA on Monday indefinitely postponed the allocation of high-demand spectrum in the 800MHz and 2.6GHz ranges. It said this was to make sure communications minister Dina Pule's policy direction on high-demand spectrum is “taken into consideration”.
Pienaar says the operator wants interim relief in the meantime and ICASA should allocate it unused spectrum so it can launch long-term evolution. He alleges Neotel, Sentech and Wireless Business Solutions (WBS) have “lots” of spectrum, but are serving fewer customers.
“The spectrum is there,” but operators must show they are using it efficiently, says Pienaar. MTN has 22 million subscribers in SA, of which 10.9 million use its data offerings.
No certainty
Vodacom, Cell C and MTN have been testing the viability of LTE, but are waiting for ICASA to allocate much-needed spectrum as there is not enough space in current allocations.
MTN SA could unveil LTE tomorrow if it had assurance of having access to spectrum, says Pienaar. “There is no use launching and then we run out of spectrum.”
The company has been trialling LTE and is piloting 103 LTE base stations using the technology “in line with its future LTE deployment strategy”. Pienaar says the company has refarmed a lot of its 1.8GHz spectrum to run the trial.
Pienaar says if spectrum is not released in the interim, it will stifle growth and hold back price cuts. On average, MTN SA's data pricing has come down by half in the past year.
A lack of spectrum is the biggest inhibitor to rolling out services and dropping prices, notes Pienaar. He explains that MTN is at the point where it must have more spectrum or else services will become degraded, a point it has already passed in dense areas.
Use it, or else
The Department of Communications previously warned that operators face losing their spectrum if they do not use it.
In the middle of last year, former communications minister Roy Padayachie said the “use it or lose it” policy applies to all entities across the board, regardless of whether they are state-owned or private companies. “We can't have a preference for any institution. We have to apply it equally.”
State-owned signals provider Sentech has been sitting on an allocation of spectrum in the valuable 2.6GHz band for about five years and has not yet used it. The company has said the space will be used for a national wireless broadband network, but this has yet to get off the ground.
Sentech did not immediately respond to a request for comment.
Neotel, which has space in the 800MHz band, has about 70 000 customers in the consumer space. The company was not immediately available to comment this morning.
WBS, which is set to launch a commercial LTE network this year, has about 80 000 customers. CEO Thami Mtshali says the company is using all the spectrum assigned to it by ICASA. WBS supplies frequency to iBurst and Broadlink.
ICASA could not be reached for comment this morning; however, ITWeb is not aware of any instances in which spectrum has been revoked.
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