Wireless open access network licensing direction withdrawn

• Minister Solly Malatsi has formally withdrawn the policy reservation for a Wireless Open Access Network (WOAN) in South Africa.
• This decision frees up high-demand spectrum, which has remained largely unassigned for seven years, for licensing by ICASA.
• The WOAN concept, introduced in 2017 and approved in 2019, aimed to boost competition and lower data prices but faced skepticism and repeated delays.
• Key policy objectives for spectrum assignment, such as network leasing, universal access, and empowerment requirements, are retained despite the WOAN's abandonment.
• The amendment does not affect the 2024 policy requiring ICASA to set aside spectrum for the State Digital Infrastructure Company.

This significant decision, confirmed by Communications and Digital Technologies Minister Solly Malatsi, concludes a seven-year period during which the identified spectrum remained largely unassigned due to the unimplemented WOAN model.

The South African government has officially abandoned its long-standing policy reservation for a Wireless Open Access Network (WOAN), a move that immediately frees up crucial spectrum for licensing by the Independent Communications Authority of South Africa (ICASA). This significant decision, confirmed by Communications and Digital Technologies Minister Solly Malatsi, concludes a seven-year period during which the identified spectrum remained largely unassigned due to the unimplemented WOAN model. The original policy on high-demand spectrum and the specific direction for licensing a WOAN were first established in 2019.

Minister Malatsi's department issued a statement on Friday, confirming the withdrawal of the requirement that certain high-demand spectrum must first be set aside for a WOAN. Consequently, the spectrum previously earmarked for this purpose is now available for ICASA to proceed with its licensing processes. Malatsi emphasized the economic cost of inaction, stating that "Spectrum that sits unassigned is not neutral," and that every year it remains unused represents lost opportunities for extended coverage, relieved congestion, and vital investment. This amendment, he noted, effectively removes a key obstacle, leaving the decisions regarding spectrum allocation entirely to the regulator.

The concept of a Wireless Open Access Network first gained prominence in 2017, when the government gazetted its National Integrated ICT Policy White Paper. This initiative aimed to overhaul the existing framework for telecoms spectrum allocation in South Africa, advocating for an "open access regime" with the goal of fostering greater competition within the telecommunications market and ultimately reducing data prices for consumers. In 2019, Cabinet formally approved the policy on high-demand spectrum and the specific directive for licensing a WOAN, which envisioned setting aside spectrum for a singular wholesale network.

However, the WOAN model was met with considerable skepticism from its inception, partly due to its mixed track record in other countries where similar implementations had failed to yield desired results. Industry bodies, including the GSM Association, voiced concerns, cautioning that WOAN models often did not deliver on promises of improved coverage, increased competition, or lower consumer prices, with many struggling to even get off the ground. Despite these reservations, ICASA announced in November 2021 that it was reviewing the timelines for the WOAN's licensing, even releasing a truncated timetable that included a consultative document and setting a March 2022 deadline for both the WOAN and permanent International Mobile Telecommunications spectrum licensing. Yet, in March 2022, Cabinet ultimately put South Africa's plan to license the WOAN on hold, even as ICASA had already commenced the auction process for high-demand radio frequency spectrum.

The formal abandonment of the Wireless Open Access Network withdrawal policy clears the way for ICASA to proceed with high-demand spectrum licensing in ZA. While a draft amendment to withdraw the reservation was initially published for public comment in March 2022, it was not finalized at that time. The recent gazetted amendment now completes this process, ensuring the spectrum can be assigned rather than remaining tied to an unimplemented WOAN model. This development is crucial for mobile operators and wireless service providers who have consistently advocated for the release of more spectrum to enable the rollout of high-speed mobile and broadband services, enhance network capabilities, and provide superior services to customers.

Crucially, the withdrawal of the WOAN policy does not signify a complete departure from all original strategic objectives for telecoms spectrum allocation South Africa. The department's statement confirms that several key policy objectives applicable to the assignment of high-demand spectrum are being retained. These include the obligation for licensees to lease networks and facilities, as well as to provide wholesale capacity to other licensees, all under the oversight of the authority. Furthermore, universal access and universal service obligations in rural and underserviced areas remain a priority, alongside a prohibition on any single entity controlling the spectrum and a requirement for compliance with empowerment criteria.

The decision by Minister Solly Malatsi to abandon the WOAN policy underscores a pragmatic shift towards unlocking critical resources for the nation's digital economy. The unassigned spectrum has long been identified as a bottleneck, preventing advancements in connectivity and digital inclusion. With this obstacle removed, ICASA is now empowered to accelerate the assignment of this valuable resource, which is expected to stimulate investment and improve telecommunications services across the country.

It is also important to note that this amendment specifically does not impact a separate requirement outlined in the next-generation radio frequency spectrum policy for economic development, published in 2024. Under this policy, ICASA is still mandated to set aside spectrum for the exclusive use by the State Digital Infrastructure Company. This ensures that while the broader WOAN model has been discarded, specific provisions for state-led digital infrastructure development continue to be upheld within the evolving framework for South Africa's telecommunications sector.

This withdrawal removes a significant regulatory obstacle for high-demand spectrum licensing in South Africa, signaling that ICASA will proceed with assigning this spectrum. Lawyers and compliance officers in telecommunications companies should prepare for upcoming licensing rounds and ensure their clients understand the retained policy objectives, including universal access, network leasing obligations, and empowerment requirements, for future applications.

Source: Original reporting via industry reports.