South African telecommunication companies are trying to settle a wireless spectrum auction dispute with the industry regulator out of court to avoid a prolonged legal battle.<\/p>\n
\u201cMediation efforts\u201d are underway to find a simpler and faster way forward, MTN Group Ltd chief executive officer Ralph Mupita said in an interview.<\/p>\n
The Johannesburg-based company, which has the second-most subscribers in the country, and smaller operator Telkom SA SOC Ltd have both appealed to courts about the planned structure of the auction.<\/p>\n
\u201cDiscussions are encouraging and we need to find each other between now and the middle of September,\u201d Mupita said. \u201cWe want a solution soon, and we are heavily invested to find it out of court.\u201d<\/p>\n
South African market leader Vodacom Group Ltd and MTN have long called for more spectrum to expand their data services and boost revenue, and the plan was approved in October last year after years of delays.<\/p>\n
The government sees the move as a way to attract investment and help revive a stagnant economy, and both sides say the plan will bring down prices — a matter that\u2019s led to regulator sanctions and social media protests.<\/p>\n
Speedy Agreement<\/strong><\/p>\n The Independent Communications Authority of South Africa will give an update on the spectrum licensing process and settlement negotiations by Sept. 7, a spokesman said in an emailed response to questions.<\/p>\n MTN argues that Icasa\u2019s desire to prioritize smaller operators means the carrier will be shut out of bidding for new 5G spectrum. Telkom\u2019s issue is that two bandwidths coveted by the former state monopoly are occupied by broadcasters and there\u2019s no plan to make them available.<\/p>\n Vodacom also stressed the importance of a speedy agreement. The carrier, which is majority-owned by Vodafone Group Plc in the UK, hasn\u2019t formally objected to the terms of the auction.<\/p>\n \u201cThere has been a lot of momentum on spectrum, and a lot of discussions and let’s pray that the settlement discussions can yield a result,\u201d CEO Shameel Joosub said. \u201cWith the courts, it can drag out for years, ultimately to the detriment of consumers.\u201d<\/p>\n South African president Cyril Ramaphosa in June criticized the decision to make a legal appeal against the auction, saying further spectrum delays are against the interests of the population.<\/p>\n
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