Page 92 - SAMENA Trends - December 2020

REGULATORY & POLICY UPDATES SAMENA TRENDS

South African President Cyril Ramaphosa has signed regulator plans to complete the country’s auction of
performance agreements with all of his cabinet high demand spectrum. All licensees which have been
ministers, detailing the targets they will need to meet assigned temporary spectrum and wish to continue
over the medium-term. With reference to the mobile using it for the extended period will be required to pay
sector, Stella Ndabeni-Abrahams, the Minister for prescribed spectrum license fees. In releasing the
Communications and Digital Technologies, has been initial temporary spectrum to meet high demand for
tasked with issuing a ‘policy direction’ for 5G by services during the emergency/lockdown situation,
December 2021. In addition, the minister must ensure ICASA did not require any spectrum fee payments,
that 5G rollouts are underway by March 2024. The but its chairperson Keabetswe Modimoeng now
document also states that Ndabeni-Abrahams must explains: ‘We are aware that licensees generated and
cut the current cost of mobile data by 50% by 2024, reported revenue growth during this period. We have
with a view to ensuring that South Africa is in the therefore resolved that, in addition to fulfilment of the
‘top ten’ African countries in terms of pricing for 1GB obligations imposed with the release of temporary
of data. Finally, President Ramaphosa has asked the spectrum, the extended use of spectrum must be
Minister to guarantee that 80% of the population will at a fee as provided for in the amended regulations.’
have access to some form of internet connectivity by ICASA plans to license the 700MHz and 800MHz bands
2024. (December 9, 2020) commsupdate.com (‘digital dividend’ frequencies currently occupied by TV
broadcasters), alongside spectrum in the 2300MHz,
The Independent Communications Authority of South 2600MHz and 3500MHz bands. Specifically, ICASA
Africa (ICASA) has approved the amendment of the ICT plans to award 60MHz (2×30MHz) in the 700MHz band,
COVID-19 National State of Disaster Regulations to 60MHz (2×30MHz) in the 800MHz band, 40MHz in the
extend the validity period of the temporary assignment 2300MHz band, 170MHz in the 2600MHz band, and
of radio frequency spectrum from 30 November 2020 116MHz in the 3500MHz band.
to ‘no later than 31 March 2021’, by which date the (December 1, 2020) commsupdate.com

The Ministry of Science and ICT (MSIT) has published a operator rolls out by 2022. Indeed, according to the
detailed policy plan for the reallocation of frequencies policy plan, while operators would face the KRW3.17
which are currently used for 3G and 4G services, but trillion charge if they can each construct 120,000 5G
are scheduled to expire in June 2021. The pricing base stations by the aforementioned date, the figure
for the spectrum remains some way above what the would rise to as much as KRW3.77 trillion were they to
South Korea nation’s three mobile network operators (MNOs) – deploy between 60,000 and 80,000 sites; for reference,
SK Telecom, KT Corp and LG Uplus – had hoped to according to government data, as of August 2020 each
pay. With both sides having been locked in a fierce of the three MNOs were said to have installed between
debate over the pricing for some months, the MNOs 40,000 and 50,000 5G base stations over the past two
had proposed paying KRW1.65 trillion (USD1.5 years. Commenting on its plans, the MSIT was cited
billion) for the frequency reallocations. Now though, as saying: ‘As the value of LTE frequency fluctuates
the MSIT has suggested a price almost double that based on 5G investment, the redistribution price was
– KRW3.17 trillion – and even then, that figure could determined based on the level of 5G base station
rise dependent on how many 5G base stations each instalment.’ (December 1, 2020) The Korea Herald

Spain will invest 4.3 billion euros ($5.15 billion) on spokeswoman, said after a weekly cabinet meeting.
deploying next-generation 5G telecoms technology Spain also expects companies will invest around 24
and extending broadband coverage by 2025, the billion euros on 5G technology in the country by 2025,
government announced recently. . A total of 883 Montero added. Spain's 5G rollout would require 6
million euros is already in next year's budget, which billion euros in infrastructure investment, the head of
Spain parliament is set to approve in the coming weeks and domestic market leader Telefonica's Spanish business
includes investments to extend broadband to rural said last week. Industry body GSMA estimates
areas. "The goal is that everyone, regardless of where telecoms operators worldwide will spend 78% of a
they live, enjoys the benefits of these advances in projected $1.14 trillion in capital expenditure over the
connectivity under a plan which is particularly relevant next five years on 5G.’
for rural Spain"," Maria Jesus Montero, a government (December 2, 2020) zawya.com

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