Minister Siyabonga Cwele\u2019s bid to interdict and set aside a planned spectrum auction for high-speed broadband in South Africa has been upheld by the North Gauteng High Court.<\/p>\n
Judge Roland Sutherland on Friday morning ruled that the minister of telecoms\u2019 interdict application against the Independent Communication Authority of South Africa (Icasa) is upheld.<\/p>\n
Cwele\u2019s office earlier this year asked the North Gauteng High Court to interdict and set aside the Icasa planned spectrum auction.Cell C\u2019s application to interdict Icasa from proceeding with the spectrum auction was also granted.<\/p>\n
\u201cIcasa is interdicted and prevented from implementing the licencing steps and processes referred to or contemplated in the invitation to apply in notice 438 of 2016,\u201d read part of the judgment.<\/p>\n
\u201cIcasa is interdicted from accepting bids in terms of the said invitation to apply and from taking any of the steps set out in the invitation to apply to advance the invitation to apply or any similar steps, pending an application to Cell C to launch review proceedings in respect the invitation to apply, provided the review application is served by 14 October 2016,\u201d added the judgment.<\/p>\n
\u201cCosts, including the costs of two counsel, are to be costs in one or other review,\u201d added the judgment.<\/p>\n
Icasa\u2019s legal team also responded to the judgment.<\/p>\n
\u201cWe note and accept the judgment. We are looking forward to part B of the review application and that\u2019s where we\u2019ll take it from,\u201d\u00a0Rubben Mohlaloga, acting chair of Icasa, told Fin24.<\/p>\n
Icasa, then, is set to stop all action on the spectrum auction until the review process. It\u2019s currently unclear when this review process will take place.In July, Icasa invited applicants to apply for 700MHz, 800MHz and 2.6GHz spectrum licences, which will boost the rollout of faster LTE broadband.<\/p>\n
But Cwele fought the auction on grounds that government\u2019s policy regarding spectrum, at that stage, had not yet been finalised and that the sale risks only benefitting big companies with deep pockets.<\/p>\n
Subsequently, the court explained that if Icasa\u2019s spectrum auction had to go ahead, the process could put businesses at risk.<\/p>\n
\u201cThe potential for harm in the interim period is said to be that if the industry actors participate in the process initiated by the ITA [invitation to apply] they must put up R3m entrance fees and R100m guarantees, prepare detailed presentations and expend funds to get ready to bid,\u201d read\u00a0Judge Sutherland\u2019s judgment.<\/p>\n
\u201cThis exercise would involve raising capital from investors against and uncertain prospect, engaging experts to advise on an uncertain set of possibilities, and drawing up business plans of great complexity,\u201d the judgment noted.<\/p>\n
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