MTN South Africa has reportedly threatened a suit action against South Africa’s telecoms regulator – Independent Communications Authority of South Africa (ICASA) – over some unfavourable rules set for an upcoming spectrum auction.
According to reports, the rules allow for only small telecom operators in the country to first bid for desired frequencies in the 3,500 MHz spectrum auction.
The suit by the telecom giant, according a report by South African technology website MyBroadband , is to contest ICASA’s proposal to exclude big network operators such as itself from taking part in the first bidding round because of their large market share.
Known as the “Opt-In” scheme, ICASA plans to use the criteria to ensure smaller telecom operators are able to access the spectrum before larger rivals. ICASA notes that national operators with a retail market share of more than 45 per cent in more than ten municipalities will be unable to bid for spectrums in the first round.
But MTN South Africa has argued that the decision by ICASA could result in tier-two operators (those with less than a market share of 45 per cent in fewer than ten municipalities) taking up all of the 3,500 MHz spectrum made available.
Adding that, it requires the same spectrum to roll out 5G in the country.
“The opt-in scheme deliberately sterilizes tier-one operators from bidding for the spectrum they need to advance 5G network rollout in the country,” said MTN.
MTN further argued that ICASA was undermining its own auction as the country’s largest operators, and therefore those with the most cash, would be unable to bid on certain spectrum.
“The exclusion of tier-one operators from the opt-in round means that ICASA is unable to make a proper assessment of what the market as a whole is willing to pay for the spectrum,” MTN added.
ICASA revealed this week that six companies had already applied to take part in the auction scheduled to begin by the end of March.
Along with the 3,500 MHz, the sale will also include various allocations across the 700 MHz, 800 MHz and 2600 MHz bands.
