South Africa WOAN Withdrawal: Spectrum Sharing Principles Remain

• The South African government has withdrawn the Wireless Open Access Network (WOAN) licensing direction.
• Despite the WOAN's withdrawal, core principles of open access, wholesale capacity, and rural connectivity obligations remain.
• ICASA is taking a firm stance against licensed spectrum that is not actively deployed.
• Infrastructure sharing is crucial for economic viability, especially in rural and underserved areas.
• Efficient utilization of both spectrum and network infrastructure is a key focus for the telecommunications sector.

While spectrum rights are essential to support investment in telecommunications infrastructure, they are inextricably linked to a corresponding responsibility to deploy and utilize that spectrum effectively.

The South African telecommunications landscape is currently navigating significant shifts following the recent withdrawal of the licensing direction for the Wireless Open Access Network (WOAN). This policy reversal has reignited discussions within the sector, particularly concerning the fate of the radio frequency spectrum that had been specifically reserved for the WOAN. A central point of contention revolves around which entities will ultimately gain access to this valuable spectrum, especially within the coveted sub-5GHz bands, and whether this reallocation could foster the entry of new market participants.

While the allocation of this spectrum and the potential for new entrants are critical considerations, the more profound aspect of this policy adjustment lies in the government's decision to uphold several foundational principles that were integral to the original WOAN concept. This indicates a continued commitment to certain regulatory objectives, even as the specific mechanism for achieving them has been discarded. The focus now shifts from *who* gets the spectrum to *how* efficiently both spectrum and existing network infrastructure are utilized across the nation.

Despite the formal withdrawal of the WOAN, the South African government has explicitly maintained several core principles that underpinned its initial vision for an open access network. These enduring regulatory expectations include clear obligations for telecommunications licensees regarding the leasing of network facilities and infrastructure. Furthermore, there is a continued emphasis on the provision of wholesale capacity to other licensed operators, ensuring a more competitive and accessible market environment.

Crucially, these principles also extend to a persistent focus on improving telecommunications access in South Africa's rural and underserved areas. This commitment underscores the government's objective to bridge the digital divide, recognizing that universal access remains a paramount goal. Therefore, even without the WOAN, the imperative for better infrastructure utilization and shared resources has not diminished; rather, it has been reframed as a broader industry responsibility.

The economics of telecommunications network deployment, particularly outside densely populated urban centers, make infrastructure sharing an increasingly vital strategy. Building comprehensive networks involves substantial capital expenditure for components such as high sites, radio equipment, fiber optic cables, backhaul links, power infrastructure, security, and ongoing maintenance. In regions with lower customer density, the commercial viability of duplicating such extensive infrastructure becomes significantly challenging.

South African operators already engage in various forms of infrastructure sharing, demonstrating its practical benefits. Common practices include the co-location of equipment on shared towers, the leasing of fiber and backhaul capacity, and the active buying and selling of wholesale services. Internet Service Providers (ISPs), for instance, frequently build their service offerings upon infrastructure they do not own. The current challenge is to evolve these existing models into more intelligent and widespread sharing arrangements, especially in areas where redundant infrastructure build-out is not commercially sensible. This approach ensures that companies investing in networks receive appropriate returns, while those seeking access can enter markets more economically than if they had to construct every component themselves.

The Independent Communications Authority of South Africa (ICASA) has adopted an increasingly firm stance regarding spectrum that has been licensed but remains undeployed. This position is entirely understandable, given that radio frequency spectrum is a finite and scarce national resource. Its economic value to the country is significantly diminished if it is merely held by licensees without being actively put to use to provide services. While spectrum rights are essential to support investment in telecommunications infrastructure, they are inextricably linked to a corresponding responsibility to deploy and utilize that spectrum effectively.

This principle of efficient utilization extends beyond just spectrum to encompass all telecommunications infrastructure. The goal is to maximize the benefits for the broader economy and society. By fostering an environment where more service providers can enter various geographic markets, customers gain greater choice, and network investment can reach further, particularly into underserved communities. The conversation around spectrum allocation should not devolve into debates about the superiority of one technology over another, as different frequency bands and network types serve distinct purposes. Lower-frequency spectrum, for example, is well-suited for broad geographic coverage, while higher-frequency licensed spectrum provides significant capacity over more targeted distances. Fibre remains crucial in many contexts, and satellite technology is also emerging as a key player in expanding connectivity.

Lawyers and compliance officers in the South African telecommunications sector must advise clients on the enduring regulatory expectations for spectrum deployment and infrastructure sharing, despite the WOAN's withdrawal. This includes understanding obligations for network leasing and wholesale capacity provision, and mitigating risks associated with undeployed spectrum as ICASA maintains a firm stance.

Source: Original reporting via VO Connect's managing director