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MTN's spectrum application comes under fire

MTN's spectrum application comes under fire

Photo by Bloomberg

21st August 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Telecommunications group MTN's bid for high-demand spectrum faced opposition from its rivals on Wednesday.

The group had applied for 5 MHz of time division duplex (TDD) radio frequency spectrum in the 2010 MHz to 2015 MHz band to support increasingly high data volumes.

However, at public hearings held by the Independent Communications Authority of South Africa (Icasa), Cell C head of regulatory affairs Mothibi Ramusi said the application was irregular and inappropriate in terms of the Electronic Communications Act – a view shared by Vodacom – and the high-demand spectrum would give MTN an unfair and unjustified competitive advantage.

The band could be used to further roll-out a long-term evolution (LTE) network in South Africa, which was currently being expanded to meet rapidly increasing data traffic and enable mobile operators to regain the lost ground in voice traffic.

All four of South Africa's mobile operators were currently operating, expanding or developing their own LTE networks on refarmed spectrum, as the parties continue to await Icasa's licensing of the 2.6 GHz and 800 MHz band spectrum.

However, Icasa questioned the operators on their potential plans for the 2010 MHz to 2015 MHz band, to which the operators responded that they would require certainty on whether they would receive the 5 MHz before developing and rolling out suitable equipment in a rapidly changing technological world.

Vodacom currently had a 5 MHz TDD spectrum allocation of its own, which the company admitted remained unused, noting that technology supporting the range was only now emerging.

Cell C added that MTN's intentions for the remaining unused band were unclear, rejecting the possibility of MTN providing last mile access where LTE and fibre were not feasible.

As MTN already had a 5 MHz assignment in the 2100 range, the block should rather be allocated to a wholesale open access network for broadband services, ensuring the most efficient and fairest use of the spectrum, the rival mobile operator noted.

To do otherwise would create barriers for government's ambitions of nationwide broadband roll-out, the group warned.

Neotel tabled its concerns that the awarding of the 5 MHz in the 2100 band could conflict with its "deemed rights" to access the third-generation frequency spectrum.

The group wanted clarity on what would happen to these rights should Icasa approve the application.

Vodacom further criticised the “insufficient” seven-day timeframe given by the authority for rivals to comment on the "serious" matter of the application.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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