Press Release:

SA’s New Spectrum Policy Must Make Spectrum Available for SMMEs

Published on: 2024-09-09

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The Department of Communications and Digital Communications should be commended for its “Next Generation Radio Frequency Spectrum Policy for Economic Development” issued in May 2024. However, it remains unclear how exactly SMMEs will get access to high-demand spectrum.

That’s according to ISPA, South Africa’s official internet Industry Representative Body, which welcomes the focus on promoting greater access to growth-boosting licenced wireless last mile connectivity. The International Telecommunications Union (ITU) refers to this type of connectivity as IMT (International Mobile Telecommunications) spectrum and acknowledges its role in economic development.

The challenge in implementing the Policy will be finding mechanisms for emerging participants other than the established players such as Vodacom, MTN and Telkom to gain access to high-demand spectrum.

“There is an urgent need to enable SMMEs to provide affordable, mobile data  connectivity using high-demand spectrum. Therefore, the Policy needs to make the fastest possible transition into law. Efficient allocation and assignment of scarce spectrum will help fuel South Africa’s expected economic rebound,” says ISPA chair, Sasha Booth-Beharilal.

The Policy sets out in broad terms how the government intends to manage spectrum to meet certain overarching objectives which include ensuring affordable access to telecommunications services, developing digital infrastructure to stimulate growth and development and promoting competition, all the while ensuring the equitable distribution of the scarce spectrum resource.

The Policy correctly recognises that time, technology, markets and consumers have marched on since the current legislative framework came into effect in 2006. New developments must now be accommodated in the ECA in terms of an amendment to the Act.

Perhaps most importantly, the Policy expresses support for the allocation of further spectrum for Wi-Fi networks and requires that the Minister from time to time considers incentives to stimulate investment in Wi-Fi network deployments for lower income areas.

Wi-Fi is central to the government’s connectivity plans and widely-used for in-dwelling distribution and extending the benefits of higher ISP speeds throughout local areas.

Encouragingly, the Policy supports community networks as a means to address universal internet service challenges, sets out progressive measures to lower the cost to communicate and for the provision of a monthly free data allocation for indigent households. Determinations about qualification criteria are to be set out in regulations.

ISPA has prepared a table setting out the deadlines in the Policy and will be noting progress with interest:

Deadline

Process

28 May 2025

Regulatory impact assessment informing the development by the Minister of a technology retirement roadmap

28 May 2025

ICASA to report to the Minister on a new licensing framework for community networks

28 May 2025

ICASA is required to report to the Minister on a framework for the release of spectrum for community use and identify IMT spectrum that can be designated for transformation objectives of community networks, including conditions for the distribution of free basic data to the determined beneficiaries

28 May 2025

ICASA to make recommendations to the Minister on the options for the consolidation of government user networks for the purposes of efficient spectrum usage

28 May 2025

ICASA to review / develop a universal service obligations (USOs) regulatory framework to fully realise the intended positive outcomes from USOs given to mobile network operators

28 May 2027

Ministerial policy direction on shutdown of 2G and 3G networks

31 December 2027

Preliminary deadline for shutdown of 2G and 3G networks

2028/2029

Renewal of IMT spectrum licences (other than issued after March 2022)

To have a positive, real-world impact on SA’s telecoms sector licensees, the new Policy must be enacted into legislation without unnecessary delay.

Founded in 1996, ISPA is the only internet Industry Representative Body (IRB) officially recognised by the Department of Communications and Digital Technologies (DCDT). ISPA advocates for an open, free, and competitive internet landscape.

Further Information

For further information, please contact the ISPA secretariat on the Contact ISPA page.