The Independent Communications Authority of SA (ICASA) has published the new radio frequency spectrum regulations.
“They act as an umbrella set of radio frequency spectrum regulations that are in principle applicable to all areas of the radio frequency spectrum and to all types of licensed services,” says ICASA.
Dominic Cull, owner of Ellipsis Regulatory Solutions, welcomed the new regulations, stating they are “long overdue”.
“It's high time that the regulations were examined and updated since the landscape has completely changed in the last five years, let alone since the original regulations were drawn up under the Telecommunications Act.”
The new spectrum licensing regime establishes the framework through which ICASA may allocate and assign radio frequency spectrum under the national radio frequency plan.
“The regulations ensure transparent, fair and efficient procedures and processes for radio frequency spectrum licence applications. They further allow greater flexibility, such that special conditions and procedures for specific frequency bands can be applied,” ICASA said in a statement.
Structured approach
“These regulations are in line with the requirements of the Electronic Communications Act and offer a far more structured approach to the management of spectrum,” explains Cull.
Among others, the regulations set out the principles and procedures for frequency coordination, where spectrum is assigned on a shared basis, and dispute resolution mechanisms with regard to shared spectrum.
“There are some interesting provisions, such as those regarding the transfer and sub-leasing of spectrum. This has the potential to liberalise spectrum in SA and ensure that new players get their hands on some spectrum,” says Cull.
Improved availability
When the draft regulations were released by ICASA last year, the Internet Service Providers' Association (ISPA) also welcomed them.
“We are especially pleased to note the proposal to introduce spectrum trading and the sub-leasing of spectrum on a non-profit basis in SA,” said ISPA GM Ant Brooks.
“Allowing licence-holders to trade in spectrum licences and the sub-lease licensed frequency has the potential to have a massive impact on the availability of spectrum for the provision of broadband and other services.”
Sticky stipulation
The controversial 30% historically-disadvantaged individuals (HDI) ownership requirement, which was excluded from the draft regulations, has been reintroduced in the final version.
The regulations state: “An applicant shall be disqualified from the application process where such applicant has less than 30% direct ownership by historically-disadvantaged individuals.”
This stipulation is critical in extending the opportunity to apply for spectrum to smaller players and was seen as a critical component to grow empowerment in the industry. This has been a cause for concern for some of the big telcos in the past, with analysts speculating that none of the top telcos would meet the requirement.
“I expect that there will be quite a lot of opposition to this requirement, since it may disqualify some major players,” notes Cull.
“I'm not sure exactly what the current HDI ratings of MTN, Cell C and Vodacom are, but I would imagine that they will fall short of the 30% required.”
Cull added that he does not believe ICASA should be entitled to impose the HDI requirement at such a late stage in the process, and that HDI requirements should rather come into effect from the very beginning when operators have to apply for service licences.
“Overall, these regulations are a significant step forward, especially the inclusion of radio spectrum trading and the sub-leasing of spectrum on a non-profit basis in SA,” says Cull.
“It's great to finally have updated regulations that are created for the present rather than the 1950s.”
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