Spectrum wars: Telkom wants Icasa to look into current spectrum trading deals, here’s why

Telkom, one of South Africa's leading telecommunications companies, is calling on the Independent Communications Authority of South Africa (Icasa) to thoroughly review current spectrum trading deals to ensure fair competition in the market. The move comes in the wake of mounting pressure on mobile networks to reduce data prices after a report revealed that South Africa has some of the most expensive data prices in Africa. In a recent interview with CNBC Africa, Siyabonga Mahlangu, Group Executive for Regulatory Affairs at Telkom, highlighted the importance of transparent and equitable allocation of spectrum. Mahlangu emphasized that while Telkom welcomes the licensing of new spectrum, there are significant gaps in the current process that need to be addressed. One of the key concerns raised by Telkom is the anti-competitive market structure identified by the Competition Commission and Icasa. Mahlangu stressed the need for a clear strategy on how to tackle this issue to ensure a level playing field for all operators in the industry. Critics of Telkom have pointed out that the company has been allocated a significant amount of spectrum compared to other operators, such as MTN and Vodacom. However, Mahlangu defended Telkom's spectrum usage, highlighting the unique challenges the company faces. He explained that Telkom lacks crucial sub-one gigahertz spectrum, which limits its ability to cover long distances with fewer base stations, impacting its competitiveness. Moreover, Mahlangu noted that spectrum allocation is not one-size-fits-all and varies based on factors such as network size and subscriber base. He emphasized the importance of operators' ability to monetize spectrum effectively, which has been hindered by the dominance of incumbents in the market. The recent trend of spectrum trading deals, with companies like Rain, CELSI, Liquid, and Vertical entering into partnerships to enhance their 5G capabilities, has raised concerns about the competitive landscape. Mahlangu highlighted the need for Icasa to analyze these transactions to prevent monopolistic practices that could stifle competition and innovation in the industry. Responding to criticisms from the communications workers' union regarding potential job cuts at Telkom, Mahlangu emphasized that spectrum allocation plays a crucial role in shaping the future of the telecommunications market. He reiterated that decisions on spectrum licensing will determine the industry's dynamics and players, emphasizing the need for a transparent and inclusive process. In conclusion, Telkom's push for greater scrutiny of spectrum trading deals aligns with efforts to promote fair competition and affordability in South Africa's telecommunications sector. As the industry awaits further developments in spectrum allocation, the outcome of these deliberations will shape the future landscape of telecommunications in the country.