SA Telecoms Companies Allowed to Keep Broadband Spectrum

According to reports from Reuters, Minister Siyabonga Cwele, the minister of communications announced on Wednesday that six South African telecoms companies, including MTN Group and Vodacom, would be allowed to keep their broadband radio spectrum licences until they expire in 2028. The consent came after the companies agreed to buy a minimum 30 percent of the government’s new Wireless Open Access Network (WOAN).

Reports from EWN indicate that Minister Cwele revealed to reporters that an agreement was reached with operators on May 19, after they initially opposed a government plan forcing them to give up their broadband spectrum and share a national network instead.

This has seen an end to any uncertainty over a policy which has been criticised by industry. The policy has also been delaying the roll out of WOAN’s after the government suggested that mobile operators would not get any new frequencies and needed to hand back what they had.

“The key, important thing is the return of spectrum,” said Cwele ahead of his ministry’ budget vote speech in parliament.

He added that, “For you to lay down your network on the basis you have spectrum, and then if your spectrum is removed, it may affect your continuing investment and cause uncertainty,” he said. ahead of his ministry’s budget vote speech in parliament.

As the state aims to drive down high data process which seem to continually halt business development, the creation of a single open-access network plays a pivotal role in their attempts to roll out mobile broadband access in Africa’s most industrialised economy.

Telkom, MultiSource Telecom, Cell C and Liquid Telecom are among the other telecoms companies who join MTN and Vodacom in the newly formed agreement.

Staff Writer