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SACF supports spectrum licensing

Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba, IT in government editor
Johannesburg, 27 Oct 2017

Correction

The SA Communications Forum has clarified that it supports the licensing of spectrum not an auction. ITWeb apologises for these errors.

The South African Communications Forum (SACF) says licensing spectrum must be prioritised in order to deliver communications services and enable SA's economic growth.

The SACF supports the urgent licensing of high-demand spectrum as operators not having access to this spectrum has a significant economic impact for the country, says SACF MD Katharina Pillay.

This week, National Treasury released a document along with the Medium-Term Budget Policy Statement that pointed to the economic benefits of a well-designed telecoms spectrum auction.

The document further hints at a possible spectrum auction in the near future. "Lack of radio frequency limits the ability of businesses to deploy new technologies and contributes to the high cost of broadband.

"A well-designed spectrum auction can promote transformation and improve competition as new participants enter the market," say parts of the document.

Mobile operators and wireless service providers have, for years, been asking for more spectrum to be released by government so they can roll-out high-speed mobile and broadband services, improve their networks and provide better services to customers.

According to Pillay, access to spectrum is essential for operators to aggressively deliver broadband services which are necessary to contribute to much-needed economic growth.

Pillay explains: "Every extra day that spectrum is not released further negatively impacts economic growth. Despite this, there are various regulatory attempts to drive down prices which increase compliance costs without relieving the growing pressure on existing operators, or enabling the entrance of new operators. Access to spectrum is a key contributor to providing affordable services in a competitive environment.

A new report shows National Treasury is weighing options for a spectrum auction.
A new report shows National Treasury is weighing options for a spectrum auction.

"The industry is looking for certainty, transparency and fairness in the licensing of spectrum. Urgency is essential, as no high-demand spectrum has been licensed for over a decade."

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