In the wake of the publication of the long-awaited Policy on High Demand Spectrum and the Policy Direction on the Licensing of a Wireless Open-Access Network (Woan), the Competition Commission on Friday said it planned to remain engaged in the spectrum licensing process.
The Department of Communications and Digital Technologies last week published the policies, with the design and execution of the policy directive now transferring to the Independent Communications Authority of South Africa.
“The commission will specifically engage around how a spectrum licensing process may ensure not only universal coverage, but also access, which requires a level of universal affordability and not just technical availability,” it said in a statement.
While it might be “tempting” to try to maximise revenues by simply auctioning spectrum to the highest bidder to ease pressures on a strained public purse, the commission warned that such short-term thinking would deny South Africa a unique opportunity to bring about lower data costs.
The allocations, it suggested, should ensure affordable data prices immediately, but also take into consideration how relative allocations between operators might shape competition going forward into new generation networks.
“It will also include measures to ensure the commercial and competitive success of the Woan, avoiding some of the difficulties faced by other late entrants, as well as appropriate regulatory oversight of that entity,” the Competition Commission continued.
Welcoming the announcement that the spectrum licensing process will include measures to promote competition, transformation, inclusive growth of the sector and universal access, the commission applauded the prioritisation of the licensing, given that the current lack of spectrum raised network costs and was one factor which contributed to high data prices.
“High demand spectrum is a scarce national resource and its allocation should be done in a manner which ultimately benefits the citizens of the country,” the commission concluded.