The Independent Communications Authority of South Africa (Icasa) has defended itself against “insinuations” that the ongoing mergers and acquisitions (M&A) in the information and communication technology (ICT) industry were a result of the regulator’s delay in issuing high-demand spectrum.

This followed comments by telecommuni-cations giant Vodacom CEO Shameel Joosub that its R7-billion deal to buy converged communications network operator Neotel was spurred in part by a need to access high-demand spectrum.

“Mobile operators are choking, we need spectrum,” he said at the group’s year-end results presentation last week, adding that the stalled spectrum policy necessitated companies coming up with “innovative ways” of moving forward.

Icasa, in a statement, pointed out that, in 2011, the industry “partly opposed” – on the basis of a lack of policy direction – Icasa’s attempt to “open up” the licensing process for high-demand spectrum through the issue of an invitation to apply.

“This process was subsequently deferred, pending the finalisation of the policy direction,” Icasa noted.

The Department of Communications had not released the long-awaited draft Policy Direction on Spectrum for Broadband, which would guide Icasa on the implementation of spectrum allocation and allow the licensing of the much-coveted 2.6 GHz and 800 MHz band spectrum.

Meanwhile, the authority acknowledged the ongoing reports of other M&A activity in the sector, having

previously expressed its concern over the implications of South Africa’s “unprecedented” market consolidation and questioned the impact any consolidation of the market would have on the state of competition, the cost to communicate and bridging the digital divide.

The authority further pointed out that while consolidation may be a global phenomenon and was now anticipated in the market, the deals might require regulatory approval.

Icasa said it would make “detailed com-ment” on the mergers as soon as it was pre-sented with the substance and details of the deals between the companies.