Page 3 - EngineerIT April 2022

FROM THE EDITOR'S DESK

It is a strange world…

For many years South Africans have suffered from expensive While Telkom has been able to secure the much-needed sub
access to the internet as well as limited access to broadband. 1 GHz in the spectrum auction, which it had not owned before,
For years, ministers of communication upon ministers of the company feels that it is constrained in its ability to acquire
communication have debated how spectrum should be the amount of spectrum it needs to compete effectively.
allocated. Discussions about auctions, “beauty contests”,
a WOAN and other schemes to empower newcomers to It is somewhat ironic that with more spectrum than its
the industry were the order of the day. Eventually, last year competitors (Vodacom and MTN) before the auction,
ICASA settled for an auction, just to be slapped with a court Telkom Mobile has not managed to make major inroads
interdict by Telkom and MTN. The minister of communication into the mobile market. The question should be asked if
and digital services was moved aside, and a new minster Telkom is not barking up the wrong tree and should rather
was appointed with a clear mandate that the auctions must spend more of its energies on customer service which,
go ahead, and the TV digital migration process must be from the many complaints on social media and talk radio,
completed by 31 March 2022. seems seriously lacking.

Minister Ntshavheni delivered on her mandate and the Telkom said that the company is persisting with its court
auctions went ahead, with revenue totalling more than application to ensure that the licensing of spectrum
R14.4 billion, which will go to the national fiscus. This is promotes effective competition in the mobile market, in line
the total amount generated from the Opt-In phase auction, with the objective of the Electronic Communications Act.
which took place on 8 March 2022, and the main auction Telkom’s application is set down for hearing from April 11 to
stage, which commenced on 10 March 2022 and concluded 14 and this outcome could in turn impact the auction and its
on 17 March 2022. outcome. May common sense prevail!

The main auction stage comprised 58 rounds of bidding Despite this, Telkom said that its acquisition of 22 MHz of
between the six bidders. 3 500 MHz – the addition of which will bolster the group’s
existing 28 MHz of 3 500 MHz to achieve a total of 50 MHz
ICASA confirms that there was one unsold spectrum lot of contiguous spectrum in this band – will enable it to advance
2x10MHz in the IMT800 band. This lot will still be licensed by to an enhanced fifth-generation position.
the authority in future. Here are the results:
Another strange situation is the State of Disaster. The current
Bidder 700 800 2600 3500 TOTAL (ZAR) 5G networks were set up under these regulations when
Telkom 20 22 2 113 615 407.10 type approval of equipment was waived. The unintended
Liquid Telecom 4 111 000 000.00 consequence of not renewing the State of Disaster is that all 5G
Cell C 10 288 200 000.00 networks will become illegal! A tough one for ICASA and SABS.
Rain 20 20 1 431 374 105.50
MTN 20 40 40 5 152 100 000.00 A strange world we live in, indeed! Enjoy reading this edition
Vodacom 20 80 10 5 381 600 000.00 of EngineerIT.
Unsold 20
Sub-total Revenue 14 477 889 512.60 Best wishes

All set and done! But not so! While Telkom participated in Hans van de Groenendaal
the auctions and spent over R2 billion to secure 20 MHz of Editor
800 MHz and 22 MHz of 3 500 MHz, the company is still going hansv@nowmedia.co.za
ahead with its court application to declare the auction illegal. 082 781 4631

EngineerIT | April 2022 | 1