The Independent Communications Authority of South Africa (Icasa) has reiterated plans to start the long-awaited auction of the International Mobile Telecommunications (IMT) spectrum, or high-demand spectrum, on March 8.

Radio frequency spectrum in the 700 MHz, 800 MHz, 2.6 GHz and 3.5 GHz bands will be made available through this licensing process for the purposes of providing national broadband wireless access services to all South Africans. There are six qualified bidders for the auction, it says.

“The importance of this licensing process lies mainly in the enhancement of competition in the mobile services sector, increasing broadband connectivity and coverage, as well as bridging the digital divide between urban and rural access to mobile broadband networks,” Icasa says.

Icasa will start the official process with an opt-in auction on March 8, which consists of a single bidding round where eligible bidders may submit bids to achieve a minimum spectrum portfolio.

Only tier-two operators are eligible to participate in the opt-in auction and to bid for packages that, if the bidder is successful, will ensure that when combined with its existing IMT spectrum holdings, the bidder has access to a minimum spectrum portfolio of 2x10 MHz in sub-1 GHz and 60 MHz above 1 GHz.

Only two bidders can win spectrum to achieve the minimum spectrum portfolio in the opt-in auction. The four eligible bidders are Cell C, Liquid Telecoms, Rain Networks and Telkom.

“Bidders will submit their bids in person between 10:00 to 12:00 on March 8. The round will close early if bids from all qualified bidders were received before the scheduled end of the bidding window. Up to two authorised representatives of each qualified bidder, regardless of whether they are eligible to bid in the opt-in auction, will be allowed to observe and monitor the process.”

Bid evaluation will be carried out in front of all authorised representatives and following the close of the bid submission window. Icasa will make a public announcement at the end of the opt-in auction, including the winners, the amount of spectrum they won and the amount they will need to pay, the authority says.

MAIN AUCTION
The main spectrum auction will start on March 10 and will be conducted using an online auction platform. All six qualified bidders will be eligible to bid for spectrum in this stage. Bidding is normally scheduled on business days between 09:00 and 17:00.

“As the main stage [auction] is conducted in multiple bidding rounds and will end when bidders do not submit any newer bids, or waivers, a public announcement will be made after the conclusion of the Main Stage [auction], including the winners for each lot, as well as the amount that they will need to pay," says Icasa chairperson Dr Keabetswe Modimoeng.

Additionally, following the conclusion of the main stage auction, Icasa will conduct an in-person assignment phase with all qualified bidders. This is an administrative process to determine the frequency assignment position of the lots won in the opt-in auction and the main stage.

There will be one business day between the conclusion of the main stage and the start of the frequency assignment phase, which will be concluded in a single day.

“Our public interest mandate requires of us to be thorough in our approach to licensing and regulatory interventions. We continue to take the necessary care in this spectrum auction process to ensure that there are no irreversible anti-competitive effects for the industry and the market.

“We, therefore, urge all bidders to work collaboratively with us for the benefit of all South Africans so that the assignment of the high demand spectrum can make a meaningful contribution to the country, with economic spin-offs and benefits to the citizens, as well as the overall business environment,” says Modimoeng.

Meanwhile, the Icasa head office, in Centurion, is currently inaccessible to the public until further notice owing to the ongoing spectrum auction process, but its services are available through telephone and email.