Telecommunications industry loses billions of rands on the back of regulatory uncertainty

18th October 2018

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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The South African telecommunications industry needs regulatory certainty or it will continue to lose billions of rands in investment, Vodacom Group CEO Shameel Joosub warned on Thursday.

Speaking during a question and answer panel at the MyBroadband conference, in Midrand, he explained that the industry lost up to R140-billion in investment in the last two years – half to two-thirds of which was owing to regulatory uncertainty.

While discussions over the role the wireless open-access network (WOAN) is playing and the spectrum allocations it will require have mostly been put to bed, mixed messages have been emerging from meetings between government and the public sector over allocations, he claimed.

“We are not dealing with the issues that can provide clarity to the sector,” he said, pointing to uncertainty over fourth-generation (4G) and fifth-generation (5G) spectrum allocation rearing its head again.

“The same principles should apply to 4G as they do to 5G, it is just different technology. If we go through the same debacle with 5G as we did with 4G, we will fall behind.”

“Choose a path, but provide certainty,” he asserted.

Recently, movement has been seen in resolving a years-long limbo over the high-demand spectrum licensing and allocation, with expectations that it could possibly be fully resolved by this time next year.

In August, Cabinet approved the study conducted by the Council for Scientific and Industrial Research (CSIR) to determine the spectrum requirements for the proposed WOAN envisaged in the Integrated ICT Policy White Paper, which was approved by Cabinet in September 2016.

The CSIR study has confirmed that a portion of the radio frequency spectrum can be allocated to the WOAN, with excess capacity going to the industry.

In addition, the legal matter between the Department of Telecommunications and Postal Services (DTPS) and the Independent Communications Authority of South Africa (Icasa) had been resolved, with the duo working on a draft policy direction for the licensing of high-demand spectrum and intent on issuing the draft policy direction for public comment.

The DTPS also intends directing Icasa to issue an invitation to apply, accept and consider applications for an electronic communications network service licence and radio frequency spectrum licence to provide wholesale open access, while ensuring its sustainability and viability, and taking into account the outcomes of the study conducted by the CSIR.

However, Joosub further pointed out that, even with licensing and allocation certainty, the country still needed to await the conclusion of the much-delayed digital terrestrial migration, which would release the coveted spectrum from the broadcasting bands.

“Spectrum will not be available next year,” Joosub added.

Edited by Creamer Media Reporter

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