South Africa's Communications Minister Solly Malatsi has taken a significant step in shaping the country's telecommunications future by revoking a policy directive that would have led to the licensing of a single wholesale open access network. This move appears to be at odds with the views of his deputy, Mondli Gungubele, who had expressed support for initiatives that would increase investment in the sector and promote greater participation by small and medium-sized enterprises.
The policy directive in question relates to the legacy Wireless Open Access Network (Woan), a concept initiated under the previous minister, Stella Ndabeni-Abrahams. The Woan was intended to be a shared wholesale telecommunications network where a single network infrastructure would be used by multiple retail service providers. However, plans to officially launch and license the national Woan were ultimately delayed and officially scrapped.
Minister Malatsi's decision to revoke the policy directive was announced in a media statement on Friday, which also indicated that the unassigned spectrum would be released back to the Independent Communications Authority of South Africa (Icasa) to license under its statutory powers. The minister stated that spectrum that sits unassigned is not neutral and that every year it remains unused is a year of coverage not extended, congestion not relieved, and investment not made.
Deputy Minister Gungubele, however, seemed unaware of Malatsi's movements on this issue, even though the minister had issued a media statement announcing the formal finalization of an amendment to the 2019 Policy on High Demand Spectrum and Policy Direction on the Licensing of a Woan. Gungubele pointed to the need for more investment in the communications industry and suggested that the government should not be insisting on enforcing equity ownership rules.
The 2022 competitive spectrum auction raised R14.4 billion for the national fiscus while enforcing strict Level 4 BBBEE contributor status and 30% ownership by historically disadvantaged individuals as pre-qualification conditions. Minister Malatsi's primary goal is to decisively kill off a failed policy experiment and release trapped national assets into the economy, relying instead on established mobile network operators to build out infrastructure.
The Vodacom/Maziv merger terms and conditions demonstrate Malatsi's nerve at the table, and it remains to be seen how Icasa will exercise its powers in licensing the released spectrum. The regulator's decisions on how and to whom this spectrum is licensed are expected to be crucial in shaping the future of South Africa's telecommunications sector.
Minister Malatsi has responded to questions from Daily Maverick, stating that the amendment brings finality to the wholesale open access network as conceptualized at the time and that the decisions about how and to whom this spectrum is licensed are for Icasa to make. The minister's move has been seen as a significant step in promoting investment and competition in the sector.
Key points
- Minister Malatsi has revoked a policy directive that would have led to the licensing of a single wholesale open access network.
- The deputy minister, Mondli Gungubele, seemed unaware of Malatsi's movements on this issue.
- The 2022 competitive spectrum auction raised R14.4 billion for the national fiscus.
