Spectrum auction to continue despite Telkom's upcoming court challenge

The telecom regulator said on Tuesday it was proceeding with the spectrum auction, after Telkom’s announcement that its court application opposing the process will be heard in the second week of April.

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

It later 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.

Icasa plans to complete the auction before the end of March.

“The timetable outlined by the authority remains unchanged. As matters stand, the auction is planned to take place during March 2022,” said Icasa’s spokesperson Paseka Maleka.

However, in a terse statement after a meeting with the judge, the regulator and other companies involved in the spectrum process, Telkom said Icasa “would now be expected to carefully consider the prudence of proceeding with the auction, mindful that the outcome of the hearing of Part B of Telkom’s application may have a material affect on the process and outcomes of the auction”.

“Telkom has always reserved its rights to reinstate Part A of its application should this become necessary at any point,” the company said.

It added that it was “pleased with the co-operation from the parties in reaching agreement on expediting the court process to finalise the hearing of the merits of its arguments against the spectrum process”.

Spectrum is needed for the rollout of superfast technologies and taking broadband to rural areas. Designated according to frequency band, spectrum is used to provide services such as broadcasting, mobile phone networks, fixed telecommunications, satellite broadcasting, short wave radio services, aviation and defence.

Telkom, Vodacom, MTN, Cell C, Liquid Intelligent Technologies and Rain have applied to participate in the auction, which has been delayed by more than a decade due to a number of issues include litigation and changes in policy. Icasa said it will announce the qualified bidders on February 21 with the auction expected to take place early March.

Business Times