Digital economy feature Part 1: 5G will boost economy

Communications regulator Icasa has finally invited mobile operators to apply to bid for spectrum for 4G and next-generation 5G networks from 02 October, with the country’s first-ever auctions expected to take place by the end of March 2021. Allocation of frequency bands for wireless communication is seen as key to expanding broadband services, especially 5G in South Africa, where the high cost of telecommunications is a barrier to doing business.To bid for all spectrum bands available, the total reserve price is set at R2.65bn, which is below the R3bn reserve price announced in 2016. These numbers are not directly comparable, given the spectrum slots announced are significantly different to those announced in the original 2016 ITA. Good news for the operators is that 4 slots in the valuable 700Mhz/800Mhz will be available (albeit only 2x5Mhz slots), which most likely reduces pricing tension given only 4 MNOs in operation (although they could face competition from other ISPs/wholesale operators). Arthur Goldstuck MD of World Wide Worx, explains to Michael Avery how it all comes together.