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Johannesburg - Industry players have questioned the decision by the
Independent Communications Authority of South Africa (Icasa) to delay
the allocation of radio frequency for data services, saying the reason
given for the postponement is nonsensical.
Icasa earlier undertook to auction frequency allocation in the 2.6GHz and 3.5GHz range. It said the reason for the delay was because it was unhappy with the technical desirability of the spectrum, and wanted to make the frequency available for more sophisticated, next-generation network technologies.
Icasa has said it is returning all applications for the spectrum auction and plans to have a new process in place before the end of the year.
Vodacom CEO Pieter Uys previously told Fin24.com the firm is licensed to operate its GSM cellular network in the 2.1GHz spectrum - although it could do more with lower frequencies.
The lower a frequency, the higher its efficiency. This is because the waves are longer, allowing the frequency to travel further and achieve better penetration of walls and other obstacles.
Higher frequencies are usable, but less desirable.
Bidders wanting to provide next-generation technologies will more likely be interested in the 800MHz and 900MHz frequencies used by the SABC, e.TV and Multichoice for their analogue broadcast television channels.
Some of these frequencies will become available once the migration to digital terrestrial television is completed - another process delayed by the regulator.
MD of research and consulting firm World Wide Worx Strategy Steven Ambrose said on Wednesday he doubted Icasa's reasoning on the postponement, and that it does not make sense.
He was also critical of allocating spectrum to the highest bidder.
"The days of making huge money for the fiscus by auctioning off apparently valuable spectrum are along gone. It's not a valid model anymore," Ambrose said.
"This shouldn't be a money-making exercise. It's about universal access, empowerment, reaching under-serviced areas and other issues."
Instead, he suggested the regulator should consider which business plans are best able to utilise the spectrum for both their needs and those of consumers.
- Fin24.com
Icasa earlier undertook to auction frequency allocation in the 2.6GHz and 3.5GHz range. It said the reason for the delay was because it was unhappy with the technical desirability of the spectrum, and wanted to make the frequency available for more sophisticated, next-generation network technologies.
Icasa has said it is returning all applications for the spectrum auction and plans to have a new process in place before the end of the year.
Vodacom CEO Pieter Uys previously told Fin24.com the firm is licensed to operate its GSM cellular network in the 2.1GHz spectrum - although it could do more with lower frequencies.
The lower a frequency, the higher its efficiency. This is because the waves are longer, allowing the frequency to travel further and achieve better penetration of walls and other obstacles.
Higher frequencies are usable, but less desirable.
Bidders wanting to provide next-generation technologies will more likely be interested in the 800MHz and 900MHz frequencies used by the SABC, e.TV and Multichoice for their analogue broadcast television channels.
Some of these frequencies will become available once the migration to digital terrestrial television is completed - another process delayed by the regulator.
MD of research and consulting firm World Wide Worx Strategy Steven Ambrose said on Wednesday he doubted Icasa's reasoning on the postponement, and that it does not make sense.
He was also critical of allocating spectrum to the highest bidder.
"The days of making huge money for the fiscus by auctioning off apparently valuable spectrum are along gone. It's not a valid model anymore," Ambrose said.
"This shouldn't be a money-making exercise. It's about universal access, empowerment, reaching under-serviced areas and other issues."
Instead, he suggested the regulator should consider which business plans are best able to utilise the spectrum for both their needs and those of consumers.
- Fin24.com
