Johannesburg - Sharing is caring: This is the message sent to mobile networks by the government’s new Integrated Information and Communication Policy White Paper, which has been approved by the Cabinet and will be gazetted this week.
The White Paper directs spectrum owners to work in collaboration instead of spectrum being assigned to individual firms for a set period. Mobile networks will have to collaborate to roll-out network infrastructure.
The minister of telecommunications and postal services, Siyabonga Cwele, said the policy aimed to facilitate infrastructure sharing, address market concentration and that it was applicable to all networks. “Entities that control critical resources will be obliged to provide access to essential facilities at regulated, cost-based prices.”
The government has allocated R2.5 billion to roll out broadband networks over the next three years.
Last month Minister of Science and Technology, Naledi Pandor, said the government had put in place a dedicated broadband war-room aimed at fast-tracking the roll-out of high-speed internet across the country within the next four years.
Pandor said R26bn was set to be spent this year on upgrading telecoms infrastructure and networks by private sector and state-owned entities.
Richard Hurst, a research director at Market Monitor, said while the policy had good elements, he warned that it might dry investment in the sector. “The real challenge will be to entice the right investment in the infrastructure. Right now the people who have the know-how are the high profile mobile network operators.”
He said the question was who would be the third party that would control and re-sell the radio spectrum to the mobile operators?
Hurst said he believed the networks would formulate a plan to challenge this policy.
Lower prices
MTN and Vodacom in particular have spent billions on their infrastructure.
Byron Kennedy, a Vodacom spokesman, said it welcomed network competition and greater access to spectrum as it would lower prices.
“Vodacom has invested R38bn in infrastructure in South Africa over the past five years alone,” Kennedy said. He said R8bn had been earmarked to be spent this financial year.
MTN was studying the White Paper.
Cwele has pointed to Rwanda’s shared spectrum model as one his department would like to emulate.
Hurst, however, said most countries that had a shared spectrum model had since retreated from the model as it proved to be detrimental to investment in the ICT sector.
“Countries such as Kenya and Russia have backtracked from similar policy positions because it put them on a back foot in terms of investment in mobile broadband development.”
BUSINESS REPORT