• MTN South Africa, along with Cell C and Liquid are opposing Vodacom’s recent request to halt spectrum pooling locally.
• Spectrum pooling is a strategy in which multiple radio spectrum users can coexist within a single allocation of space.
• Vodacom has challenged the legality of the deals by filing papers in the High Court.

The allocation of spectrum in South Africa always remains a hotly contested issue and the latest development in the space sees Vodacom look to block any deals related to spectrum pooling.

For those unfamiliar with spectrum pooling, it is a management strategy in which multiple radio users can coexist within a single allocation of spectrum space. Vodacom believes this to be a bad idea, so much so that it filed papers in the South African High Court challenging the legality of the decision taken by the Independent Communications Authority of South Africa (ICASA) to pool spectrum in early 2022.

The choice to pool spectrum came off the back of decisions made during the COVID-19 pandemic, which looked to increase efficiencies in a process that has been long dragged out and left many business and consumers confused as to what the current state of affairs was.

Now MTN South Africa, Cell C, and Liquid have opposed Vodacom’s request to the courts for an urgent interdict to halt spectrum pooling locally.

“MTN remains of the view that the pooling arrangements work to enhance competition in any market and generate efficiencies for all parties involved,” the network provider shared in a release with Hypertext.

“The South African regulatory framework permits parties to apply for such arrangements, and MTN and its partners applied to ICASA in terms of the Electronic Communication Act and received approval. Pursuant to these approvals, MTN designed and deployed its network,” added Marina Madale, MTN South Africa Acting chief Sustainability & Corporate Affairs officer.

As part of its challenging the legality of the decisions made by ICASA, Vodacom alleges MTN, Cell C, and Liquid applied in secret, and with the Authority’s cooperation, to implement an unlawful scheme that would purely benefit each service provider commercially.   

MTN said, however, that it was, “open about its decision to pursue pooling arrangements with other MNOs, and followed the process set out in the Electronic Communications Act and Regulations for ICASA’s approval.”

“Spectrum pooling is an efficient technique to utilise spectrum which has benefits for both licensees and all customer segments. More efficient applications of spectrum advance the industry and benefit the broader public,” added Madale.

MTN is also noting what impact any success Vodacom has in halting spectrum pooling would have on its business. Namely it pointed to the fact that its inability to utilise the pooled spectrum will degrade the quality, speed, capacity of its network.

This would not only impact MTN subscribers, but the subscribers of service providers such as Wholesale Internet Service Providers, Mobile Virtual Network Operator (MVNOs), Mobile Network Operators (MNOs) that roam on the company’s network.

Whether this would indeed be the case is unclear, but MTN is certainly aiming to showcase what an end to spectrum pooling would mean for its customers down the line.

“MTN is opposing Vodacom’s application. In its answering affidavit, we argue that Vodacom has failed to provide evidence to support an interdict of these pooling arrangements.  Given the impact on MTN, its partners, roaming customers, MVNOs, subscribers, and the public, MTN believes that the request for interim relief should be dismissed,” concluded Madale.

It’s unknown if the success of Vodacom’s legal action will fundamentally shift the spectrum landscape in South Africa, but MTN, Cell C, and Liquid are of the opinion that it will.

We will have to wait to see what the High Court rules regarding this matter.