South Africa Scraps Plan for Government-Backed Mobile Network

South Africa Scraps Plan for Government-Backed Mobile Network
Solly Malatsi

South Africa has scrapped plans to establish a government-backed wireless open access network, freeing up high-demand spectrum for licensing to telecommunications operators.

Communications Minister Solly Malatsi formally withdrew the government’s directive requiring certain radio frequencies to be reserved for a Wireless Open Access Network, known as WOAN.

Under the amended High Demand Spectrum Policy, spectrum in the 700 MHz, 800 MHz, 2600 MHz and 3500 MHz bands that had been reserved for the proposed network will now be available for licensing by the Independent Communications Authority of South Africa.

Malatsi said the decision followed years of delays in establishing a national wholesale wireless operator.

“Seven years after the original WOAN policy was issued, no progress has been made in licensing a national wholesale wireless operator,” he said.

He said keeping the spectrum unassigned had limited its potential contribution to network coverage, competition and investment.

“Spectrum that remains unassigned is not a neutral holding position; it represents a continuing, foregone opportunity for coverage, competition and investment,” Malatsi said.

The minister said radio frequency spectrum was a limited national resource that could help operators expand network capacity and reduce the cost of deploying telecommunications infrastructure.

The WOAN proposal dates back to the government’s 2016 National Integrated ICT Policy White Paper, which proposed assigning unallocated spectrum suitable for high-speed mobile services to a wholesale wireless network.

The plan faced resistance from mobile operators, who argued that reserving high-demand spectrum could delay the expansion of 4G and 5G networks.

During the COVID-19 pandemic, Icasa temporarily assigned spectrum to mobile operators to meet increased demand for connectivity.

Operators including Vodacom and MTN subsequently expanded their 5G networks, while their existing 4G network speeds also increased.

In March 2022, Icasa auctioned much of the high-demand spectrum it had made available during the pandemic, raising R14.4 billion for the government.

The WOAN proposal was later incorporated into plans for a State Digital Infrastructure Company, which was expected to combine the infrastructure of Broadband Infraco and Sentech.

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The proposed state-backed entity was also expected to provide backhaul for government connectivity and expand infrastructure in rural, underserved and remote areas.

Under the latest policy amendment, however, the government will instead rely on existing licensed operators and wholesale access arrangements to promote competition.

Malatsi directed Icasa to ensure that operators assigned spectrum provide wholesale access and facilities leasing on reasonable terms.

He said some licensed network operators and service providers had been unable to obtain spectrum because of its scarcity, creating barriers to competition and entry into the telecommunications market.

Malatsi said the government would seek to maximise the socio-economic benefits of spectrum while preventing high-demand frequencies from remaining unassigned for extended periods.

About the Author

Cecilia Attah

Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.