The spectrum auction, which is seen as something of a panacea for many of South Africa’s communications problems, has been mooted for more than a decade.
Regulator Icasa said the auction will lead to the enhancement of competition in the mobile services sector, increasing broadband connectivity and coverage, as well as bridging the digital divide between urban and rural access to mobile broadband networks. It is also broadly expected to reduce the costs of mobile data in the country.
Icasa will kick off this official process with an opt-in auction on 8 March 2022. The opt-in auction consists of a single bidding round where eligible bidders may submit bids to achieve a minimum spectrum portfolio (MSPs).
Only ‘tier-2 operators’ are eligible to participate in the opt-in auction – this excludes major players Vodacom and MTN. Once a bidder is successful, the spectrum that has been ‘won’ will be combined with its existing spectrum holdings. Only two bidders can win spectrum in the opt-in auction, Icasa said.
