Own Correspondent, Johannesburg | Saturday
SOUTH African telecommunications regulator Icasa has blocked mobile phone operators MTN and Vodacom’s bid for access to a higher capacity, better quality 1800 MHz GSM frequency after public hearings raised competition concerns.
”Spectrum is a scarce national resource…It is the responsibility of all governments and regulators to ensure that all persons have access to the use and benefits of (it),” the Independent Communications Authority of South Africa said.
Citing congestion problems, MTN and Vodacom had applied to have their Global System for Mobile Communications (GSM) 900 spectrum licences amended to include the 1800 frequency.
Icasa had originally proposed allowing the incumbents 1800 MHz access in return for giving up some of their 900 spectrum to future licence holders. A third licence award is pending.
But Icasa decided it could not proceed with the proposed swap now, with competition issues a primary factor in the decision.
The ruling favours third mobile licence bidder NextCom, which argued that in the absence of clear pro-competitive rules in South Africa, due to various legal wrangles over interconnection fees and mandated roaming, the only tool available to Icasa to promote competition was a delay in an additional spectrum award.
Vodacom said it had referred the decision to its lawyers, leaving the door open to a possible court challenge. MTN said it was surprised and disappointed by the news.
”It would seem silly to spend more money on 900 spectrum whereas an investment in 1800 would have been a logical step in the process of technological evolution,” MTN said.
Icasa said in the seven years since getting their licences, MTN – owned by M-Cell – and Vodacom had developed their networks and established large market share.
Between them they have around seven million subscribers. This placed them at a significant advantage to the future owner of the third licence – the award of which has been delayed by more than a year due to legal wrangles.
Icasa was not convinced by the incumbents’ congestion complaints, saying that Vodacom had 363 subscribers per megahertz of frequency, versus big international operators like Deutsche Telekom, with around 543, and Vodafone with 434. – Reuters