Access Alert: South Africa’s Next Generation Spectrum Policy – paving the way to enhanced connectivity

In September 2022, South Africa’s Department of Communications and Digital Technologies (DCDT) introduced its Next Generation Radio Frequency Spectrum Policy, marking a significant step towards modernising the country’s digital infrastructure. The policy aims to streamline spectrum allocation and licensing across various sectors, including fixed mobile, broadcasting, aeronautical and marine communication, research and development, and community access.

The policy’s primary objective is to foster equitable and just allocation practices, thereby promoting sectoral transformation and enhancing digital connectivity, particularly in remote regions. This initiative addresses the limitations identified in the 2016 National Information and Communications Technology White Paper and prepares for the amendment of relevant sections of the Electronic Communications Act, 2005 (Act 36 of 2005).

Key issues addressed by the policy include:

• Unclear roles and responsibilities between the Minister and the Independent Communications Authority of South Africa (ICASA), which contributed to inefficiencies.
• Gaps in the spectrum management regime.
• An exclusive spectrum regime that benefits a few larger players.
• Inefficiencies in extending broadband access to rural, remote, and underserved areas.

The policy advocates for the formulation of explicit guidelines governing spectrum utilisation, licence fee structures, the liberalisation of spectrum usage, and the establishment of a robust regulatory framework for spectrum sharing and trading.

One of the policy’s most ambitious goals is the phasing out of 2G and 3G networks to reallocate radio frequency spectrum for alternative uses while transitioning residents to newer technologies. However, the government missed its initial deadline for banning 2G devices by June 2023 and also missed the extended deadline of 31 December 2023.

On 29 November 2023, the Cabinet endorsed the final iteration of the Next Generation Radio Frequency Spectrum Policy. This policy, approved following the conclusion of the
WRC-23 on 15 December 2023, significantly influences South Africa’s regulatory framework and spectrum policy.

The DCDT has announced an extension of the deadline for the shutdown of South Africa’s 2G and 3G networks by two years. Both networks will now be phased out entirely by 31 December 2027, with the switch-off process set to begin on 1 June 2025. This decision allows for operator discretion and reflects some operators’ intentions to begin phasing out 3G in June 2024.

However, these dates are contingent upon the results of a risk impact assessment study, to be released within a year of the final publication of the next-generation radio frequency spectrum policy. This extension underscores the complexity of the transition and the need for careful planning and execution to ensure a smooth transition for all stakeholders. It also highlights the importance of risk impact assessments in informing policy decisions and timelines.

A delay in the switch-off has both positive and negative implications for South Africa. On one hand, it allows more time for the operators, consumers, and ICASA to prepare for the transition and to ensure that no one is left behind or disconnected. It also gives more time for the development and deployment of alternative network infrastructure, such as Wi-Fi networks, that can provide affordable and accessible connectivity to underserved areas.

On the other hand, delays or further missed deadlines could cause South Africa to lag behind other countries in terms of adopting and benefiting from the latest mobile technologies. These technologies offer faster speeds, lower latency, higher capacity, and more advanced services and applications, supporting sectors and industries such as health, education, agriculture, transport, energy, and public safety. This could affect South Africa’s ability to attract foreign investment, trade opportunities, social benefits, innovation partnerships, and tourism inflows.

It is important that ICASA adopts a proactive approach to ensure the switch-off is completed by 2027, which can be achieved by taking the following steps:

• Conducting regular consultations and engagements with all stakeholders involved in the switch-off process.
• Providing clear guidelines and timelines for the switch-off process, including the criteria for determining which areas are ready for switch-off and which areas need more support or intervention.
• Monitoring and enforcing compliance with the switch-off process by all operators and ensuring that they adhere to their license conditions and obligations.
• Facilitating coordination and collaboration among operators to share infrastructure and resources where possible to reduce costs and duplication.
• Providing incentives and support for operators to invest in newer technologies and upgrade their networks where needed.
• Educating and informing consumers on the benefits of newer technologies and how to access them.
• Addressing any challenges or barriers that may arise during the switch-off process, such as technical issues, legal disputes, social resistance, or environmental concerns.

Whilst the policy is progressive and represents a significant step in modernising South Africa’s digital infrastructure, its implementation will require careful planning, coordination, and flexibility to ensure that the benefits of digital transformation are equitably distributed across the country. However, the policy’s success will ultimately depend on how well it is implemented and enforced by ICASA, how well it responds to the changing needs and demands of the market, and the government’s ability to balance the needs of various stakeholders and manage risks effectively.

If you would like to learn more about South Africa’s planned spectrum policy transition and how it will impact your business, please contact Wydeman Coetzee at [email protected].