Telkom SA SOC Ltd\u2019s attempt to prevent South Africa\u2019s long-awaited release of additional broadband spectrum risks stalling the momentum of president Cyril Ramaphosa\u2019s economic reform agenda.<\/p>\n
The company has filed an urgent court application to prevent the regulator, the Independent Communications Authority of South Africa, from auctioning spectrum in March, a move that could further delay attempts to unlock investments in broadband and lower data costs.<\/p>\n
Telkom opposes the regulator\u2019s decision to include sub 1 Gigahertz spectrum in the auction as it\u2019s currently subject to a separate legal challenge, it said in a statement on Wednesday. The court proceeding is set to start March 14 and its outcome \u201cwill have a material impact on the availability of spectrum in this band,\u201d it said.<\/p>\n
It\u2019s also seeking clarity on a directive that would allow smaller telecommunications operators to apply for licenses to be part of a wireless open-access network. The policy aims to facilitate market entry for those who are unable to compete for spectrum against bigger operators.<\/p>\n
The Minister of Communications and Digital Technologies, Khumbudzo Ntshavheni, will engage Telkom and other stakeholders in a bid to reach an out-of-court settlement and avoid further delays, her department said Thursday in a statement.<\/p>\n
Finishing the process to release spectrum by March 31, is important to \u201creap the benefits of the digital dividend in the country\u2019s quest for post-Covid-19 pandemic economic recovery, job creation and transforming South Africa into a digital economy,\u201d it said.<\/p>\n
Ramaphosa included the spectrum auction in a 2020 plan to revive the coronavirus-battered economy. Other reforms including bolstering electricity generation by independent power producers and steps to ease port congestion are showing progress.<\/p>\n