The GSM Association (GSMA) says SA would have lost out on billions in economic growth if the high-demand frequency allocation went ahead the way the Independent Communication Authority of SA (ICASA) was planning.
The association, in its submission on the draft frequency plan and invitation to apply, says the proposed allocation would drop the value of the economy by between R450 billion and R510 billion between 2014 and 2025.
The GSMA says instead of creating more competition and doubling the number of mobile players, ICASA should allocate more spectrum to current operators. Doing so would add about 500 000 jobs to the sector, it says.
The association says mobile broadband can stimulate economic growth and social development in SA over the next 15 years. “But for this potential to be realised more spectrum is required.”
It says ICASA's proposals for allocating frequency in the high-demand 800MHz and 2 600MHz ranges are “fundamentally out of line with international best practice for assignment of spectrum for mobile broadband use”.
In addition, says the GSMA, the proposal would double the number of mobile operators and assign spectrum to “entities, which have a poor track record to date in using spectrum efficiently”.
ICASA's proposals are also likely to result in “limited and inefficient use of new spectrum by entrants who have little or no expertise in providing mobile services and have limited access to capital markets to make the substantial investments required”.
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