SA's cabinet approves spectrum policy, here’s what it means is for consumers

South Africa's cabinet recently approved the new spectrum policy proposed by The Department of Communication, paving the way for significant changes in the country's telecommunications sector. The policy, which focuses on the allocation of high demand spectrum, is expected to bring positive outcomes for both the market and consumers, although the implementation process will take some time to unfold. To shed light on the implications of this new policy, Dobek Pater, Director of Business Development at Africa Analysis, joined CNBC Africa for an insightful discussion. One of the key aspects of the new spectrum policy is the directive given by the Minister of Communications to ICASA, the Market Regulatory Authority, to allocate high demand spectrum to enhance the delivery of 4G mobile services on a national scale. This move aims to address issues such as network congestion in urban areas and expand coverage to underserved regions across the country. By enabling better service delivery through the deployment of high demand spectrum, consumers can expect improved connectivity and enhanced network performance. Furthermore, the introduction of a Wireless Open Access Network (WOAN) is set to revolutionize the telecommunications landscape in South Africa. The WOAN will operate as a wholesale operator, providing national infrastructure to facilitate greater competition at the retail level. This initiative is designed to empower a broader range of service providers, fostering increased competition in the market and ultimately driving down prices for consumers. While the implementation of the new spectrum policy is anticipated to bring about positive changes, consumers may have to wait until at least the second half of 2020 to see tangible results. The process of allocating spectrum and establishing the necessary infrastructure will take time, delaying the immediate impact on pricing and service offerings. However, with the prospect of increased competition and regulatory interventions, the overall outlook for consumers looks promising in the coming years. In a statement during the interview, Dobek Pater highlighted the ongoing price reductions in the market driven by competitive forces and regulatory interventions. He emphasized that the government's objective through the new spectrum policy is to create a more level playing field for service providers, leading to further price reductions and enhanced service quality. While acknowledging the anticipation surrounding the policy changes, Pater advised consumers to exercise patience and expect gradual improvements in pricing and service delivery over the next few years. As South Africa gears up for a transformative shift in its telecommunications sector, the approval of the new spectrum policy marks a significant milestone in the country's quest for improved connectivity, enhanced competition, and consumer-friendly pricing structures. With the promise of a more dynamic and competitive market on the horizon, consumers can look forward to a brighter future in the realm of telecommunications.