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Marketing & Media News South Africa

Icasa's frequency issuing delay enrages telecoms

Government information technology company Sentech sits idle with technology that promises not only greater connectivity, but increases the speed of doing business and can contribute millions to the economy, Fin24 reports.

Mobile telephony companies are fuming at the loss of business opportunities from the delay in the issuing to telecoms companies of two high-demand frequencies ideal for the implementation of 4G signal for commercial use. 4G networks are the successors to the current and most commonly used 3G network.

The two spectrums at the heart of the heated battle are the 800MHz and the 2.6GHz. They are the two spectrums on which 4G networks can best operate. The frequencies are yet to be issued by telecommunications regulator Independent Communications Authority of SA (Icasa) and telecoms companies complain that state-owned companies (such as Sentech and Neotel), which do not use the valuable public resource, have been allocated the much-prized frequency and this is a disadvantage to the economy, the public and companies.

MTN has called Sentech and Neotel "spectrum hoarders", with no capacity to roll out the high-demand frequency for 4G use. Telecoms analysts have also accused the government and Icasa of nationalising frequency and stunting the national GDP growth. Icasa received 20 submissions from companies wishing to bid for the use of the two spectrums for 4G networks, but spokesperson Paseka Maleka says that the regulator delayed the issuing of the spectrum to ensure Communications Minister Dina Pule's forthcoming policy recommendations on high-demand frequency are taken into consideration, Fin24 says.

Read the full article on www.fin24.com.

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