The Independent Communications Authority of South Africa (Icasa) has issued the final Invitation to Apply (ITA) for the licensing process for the International Mobile Telecommunications (IMT) spectrum.

Interested stakeholders are required to submit their applications by January 31, 2022, with the announcements of qualifying bidders and start of the actual auction phase scheduled for February 21 and March 8 respectively.

This followed a more than three-month consultation process and the publication of the first and second Information Memorandum (IM) on October 1 and November 15, respectively.

Icasa has considered the issues raised by stakeholders in their challenge to the previous licensing processes, particularly the 2020 ITA, as well as the representations received to the first and second IMs.

“The publication of the first and second IM was done to ensure that stakeholders can have a clearer preview of the intended licensing process and associated licensing conditions and be afforded the opportunity to make representations to the authority on what the final licensing process and conditions should entail. The authority is grateful for the representations received and has fully considered those views in their entirety,” said Icasa chairperson Dr Keabetswe Modimoeng.

Icasa has provided for the auction design in the ITA to include spectrum floors and spectrum caps, the opt-in round and spectrum-sharing provisions, besides others, which are designed to facilitate the entry of new players into the market and to promote consumer welfare through access to high-quality communication services at affordable and competitive prices.

“Taking into account the ongoing broadcasting digital migration process, the authority will make available the status of the coverage maps on the IMT 700 and IMT 800 spectrum bands in collaboration with the Department of Communications and Digital Technologies before the commencement of the auction,” he explained.

Should the digital migration process not be completed by the time the auction is concluded, Icasa will apply proportional payment formulae for IMT 700 and IMT 800 bands.

“In licensing of high-demand spectrum through this ITA, the authority aims to ensure the realisation of many of the key policy objectives originally identified in the South Africa Connect Broadband Policy, particularly as regards the provision of universal and affordable broadband services for all South Africans,” Modimoeng continued.

“We urge all industry stakeholders to embrace this licensing process and the auction, as this is the most open and transparent way in which spectrum will be permanently awarded. All the other provisional spectrum arrangements remain interim and will end at the stipulated and communicated dates,” he concluded.

The combined auction reserve prices will yield a minimum of R8-billion for the national fiscus, including enhanced obligations for the benefit of consumers and society-at-large.