- ISPA has welcomed the Department of Communications and Digital Technologies policy for spectrum.
- The association has however, amplified the need for SMEs to be at the core of the policy’s considerations.
- In the last spectrum auction, six companies spent a collective R14 billion on radio spectrum.
The Internet Service Providers’ Association (ISPA) has called for government to be aware of the needs of SMEs when drafting policy for spectrum.
While ISPA commends the Department of Communications and Digital Technologies for its Next Generation Radio Frequency Spectrum Policy for Economic Development that it issued in May, ISPA says how SMEs access high-demand spectrum isn’t all that clear.
“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 first radio spectrum auction saw Cell C, Liquid Intelligent Technologies, MTN, Rain Networks, Telkom and Vodacom collectively spending R14 billion for spectrum. At these prices, most SMEs can’t even begin to compete with the big dogs.
Of course, there is only so much spectrum to go around, but as ISPA rightly points out, if we’re to encourage competition in the connectivity and telecommunications space, the legislation must facilitate the support of SMEs.
“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,” says ISPA.
The association says that while there are good aspects of the policy, policymakers must be cognisant of new developments that could come to the fore in future. More importantly, ISPA says that the policy needs to be enacted as soon as possible.
The association has also drafted a helpful timeline of the processes that need to be completed before the policy is enacted.
| Deadline | Process |
| 28th May 2025 | Regulatory impact assessment informing the development by the Minister of a technology retirement roadmap |
| 28th May 2025 | ICASA to report to the Minister on a new licensing framework for community networks |
| 28th 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 |
| 28th 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 |
| 28th 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 |
| 31st December 2027 | Preliminary deadline for shutdown of 2G and 3G networks |
| 2028/2029 | Renewal of IMT spectrum licences (other than issued after March 2022) |
The good news is that the Department of Communications and Digital Technologies is aware of the problems SMEs face and hopes this new policy will promote participation in the ICT sector.
One area government notes that SMEs could be helpful is in WiFi networks where SMEs can assist in data provision and other services. However, there may be scope for greater involvement.
“Given the inability of community networks to take off in South Africa, this policy adopts a variation of the implementation model of community networks to those led by SMMEs to allow the development of Mobile Virtual Network Operators (MVNOs), Internet Service Providers (ISPs), Wireless Access/ Internet Service Providers (WASPs/ WISPs) as competitive and viable data service providers,” the DCDT writes.
Government is also eyeing the provision of spectrum specifically for use by SMEs which is great news.
Here’s hoping this forthcoming policy allows for more competition and less dominance in the market from the major players in the telco and connectivity sector.
