Outcome of the Ministry of Communications’ industry engagement on the spectrum licencing process

2 April 2019

Earlier today, Minister Stella Ndabeni-Abrahams and Deputy Minister Pinky Kekana met with captains of the Information and Communication Technology (ICT) industry to deliberate and finalise consultations on their interpretation of the spectrum licencing process as defined by the law. This follows on the written submissions previously made by the sector on this matter.

Licensing of high-demand spectrum is deemed necessary to lessen resource constraints experienced by incumbent mobile operators, enable transformation of a historically vertically integrated market, level the playing field and enable new entrants into the market. Further, it will contribute to reducing the cost to communicate and drive universal services and access.

Addressing the meeting, Minister Ndabeni-Abrahams mentioned that whilst stakeholders might not agree on all aspects as contained in the Electronic Communications Act (ECA), they must strive to find consensus that ensures that high demand spectrum is eventually licensed. She further said, “since the advent of mobile broadband, spectrum has turned out to be both a competitive and an anti-competitive tool for incumbent network operators and a barrier to entry for new entrants.”

“Some spectrum lies un-utilised or underutilised in time or space and we would like to change that by making sure that spectrum is effectively and efficiently licensed in order to address not only revenue generation, but to also ensure inclusive participation,” added Ndabeni-Abrahams.

Whilst discussions were robust, the meeting was in accord that the spectrum policy directive and licencing processes must be swiftly finalised as they will propel the industry forward; as well as enable effective and efficient delivery of the Fourth Industrial Revolution imperatives that require wireless networks as connectivity enablers. Further, common ground should be reached between the policymaker and regulator to ensure that the process is concluded and spectrum is duly allocated timeously.

Deputy Minister Pinky Kekana emphasised the importance of this process, as pronounced by both President Cyril Ramaphosa and Finance Minister, Tito Mboweni in the 2019 State of the Nation Address and Budget Speech respectively.

Minister Ndabeni-Abrahams concluded the engagement by highlighting that government cannot be excluded from this important process of spectrum licensing given the strategic implications of spectrum not only in the sector but in the economy as a whole. Further, that the licensing of high demand spectrum is the main catalyst for the digital economy.

The final policy directive on spectrum allocation will be issued by end of April 2019.

Nthabeleng Mokitimi-Dlamini
Cell: 073 222 5522
E-mail: ndlamini@dtps.gov.za

Media Statement date: 
Tuesday, April 2, 2019