Telkom and the spectrum battle

Telkom said on Tuesday it is proceeding with its litigation against the regulator over the spectrum licensing process, despite the fixed-line operator having submitted an application to participate in the auction. 

Last month, Telkom filed a court action challenging the Independent Communications Authority of SA’s (Icasa) spectrum auction process, saying that if it continues as it is, it will affect its ability to compete.

It withdrew its urgent interdict but is proceeding with another part of its application which deals with issues such as the terms of auction and the inclusion of the spectrum used by broadcasters. 

On Tuesday Telkom said: “It is in the interest of all parties for the regulator to proceed with the licensing process mindful of the impending hearing of part B of Telkom’s application and its bearing on the validity of the auction process.”

Telkom has requested the matter be set down for hearing from March 1 to 4, with the judge expected to advise the dates next Tuesday.

On Monday Icasa said Telkom, MTN, Vodacom, Rain, Cell C and Liquid Intelligent Technologies have submitted applications to participate in the spectrum.

Icasa said it will announce the qualified bidders on February 21 2022.  

“This will mark the next critical milestone in the effort of the authority to finally release this much-needed economic stimulus input,” it said.  

In the court papers, Telkom has bemoaned the structure of the spectrum auction and said it will limit it to acquire a total of 42MHz, which will affect its ability to compete.

It also complained about the inclusion of the spectrum band below 1GHz, which is occupied by broadcasters who are in the process of moving to a digital platform that will release that spectrum. 

Spectrum below the 1GHz bands offers superior geographic coverage and is more suitable when connecting rural communities. 

Telkom’s rivals are opposing the application and have accused the fixed-line operator of wanting to preserve its competitive advantage, given it has more spectrum than other companies. 

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