The Department of Communications (DOC) last night released its spectrum policy, which will change the face of Sentech's role in the telecoms industry.
The department's new document mandates the Independent Communications Authority of SA (ICASA) to enforce a “use it or lose it” policy, which industry players say will force the state-owned business to do just that.
“The hording of spectrum by users is not conducive to effective spectrum usage and this practice will be discouraged at all costs,” the document reveals. It also calls on ICASA to be strict when it comes to the usage of scarce spectrum and adds that players with spectrum must make full use of what has been allocated.
While it is not the only operator sitting on spectrum, Sentech has long been in the spotlight for holding onto its massive chunk in the scarce 2.6GHz and 3.5GHz bands. These bands have become known as WiMax spectrum, however, in reality they can be used for many different wireless technologies, including LTE.
The state-owned entity has 50MHz in the 2.6GHz band, which was intended for its consumer wireless broadband offering, but never used. Sentech's one and only consumer broadband product was canned last year, after the company lost millions on the project.
The new policy will, however, force the company to either make use of the spectrum it has been allocated, or it will have to give it up to the multitude of local telcos circling in for a piece of the WiMax action.
Neither Vodacom nor MTN have spectrum in these two bands, and they could use it for a high-speed mobile Internet offering. MWeb has long wanted to offer its own network solution, but needs the spectrum to rollout a WiMax network.
Altech has also indicated that if spectrum was available to it, it would begin rolling out its own network.
Fixing the problem
However, MD of BMI-TechKnowledge Denis Smit says, before the crows dive in for Sentech's spectrum, certain details about the company's future must be made clear. “It is possible that Sentech's role will be announced in the broadband policy the department has finalised,” he says.
He explains that, if Sentech wants to hold onto its spectrum, it will obviously have to begin working on an offering. “However, it will need to sort out its funding crisis before it can even think about getting into the space.”
Sentech has been working closely with the DOC over the last few weeks, and during its budget presentation to the Parliamentary Portfolio Committee on Communications, Sentech said it was working on a possible plan to re-enter the telecoms market.
Smit says with the company's restructuring and reconditioning, it is likely Sentech may just make it back into the telecoms space. “One thing is for sure, it will fight like hell to keep its spectrum,” he adds.
Sentech also has a mandate to provide wireless Internet services to the Dinaledi Schools, which has not yet happened. It will want to keep its spectrum for this project, or risk losing the project to another operator, like Broadband Infraco.
More is better
iBurst CEO Jannie van Zyl has long been vocal about how spectrum should be allocated and used. He says Sentech will have another option at its fingertips. “Sentech could try and find a private partner to rollout a network,” he says.
Freeing up the spectrum that Sentech has will provide space for at least one or two more operators to begin providing networked services, he says. “Even if Sentech puts that spectrum out to tender for a network, at least there will be a network. The minister's provision is a good one and a very good first step,” he adds.
The next phase is now up to ICASA, which will have to produce regulations for the spectrum and then it may well put it up for auction. ICASA will also be responsible fro how much gets allocated to each player.
SA's current problem is that the spectrum is allocated in 15MHz blocks. According to Van Zyl, small blocks like these are not consistent with international technology building standards.
“Currently, if people from overseas bring a WiMax-enabled laptop to the World Cup, they will not be able to connect to our WiMax networks, because our blocks are not compatible with the technology standards.”
Neither the DOC nor Sentech were available to comment on the company's future plans at the time of publication.
Share
