5G regulation and law in South Africa

In South Africa, 5G deployment has been progressing steadily. Major telecom operators like Vodacom, MTN, and Rain have been rolling out 5G services across various cities 1 .

)As to SA 5G networks, the deployment is still in theearly stages. Most of the current 5G networks in South Africa are non-standalone (NSA), which means they rely on existing 4G infrastructure for certain functions. However, there are plans to transition to SA 5G, which will enable more advanced features and better performance. In 2022, nationally, 5G coverage stood at 20%, however, by 2023, it surged to 38.42%, marking a substantial increase within a year. As of 2023, in respect to urban population coverage, Gauteng was the most widely covered province with 69% 5G coverage and the Free State province the lowest with 17%. 

Several measures are being implemented to ensure that a wide range of operators and industrial companies, from small to large, have access to frequencies: 2

Spectrum Auctions

The Independent Communications Authority of South Africa (ICASA) conducts spectrum auctions to allocate frequencies transparently and competitively. For example, the 2022 spectrum auction saw six mobile and fixed network providers, including both large and smaller operators, successfully bid for spectrum in various frequency bands.

Spectrum Sharing

ICASA is considering regulations to facilitate spectrum sharing, which allows multiple users to access the same frequency bands without causing interference. This approach can help smaller operators and industrial companies gain access to necessary frequencies.

License-Exempt Spectrum

Certain frequency bands are allocated for unlicensed use, enabling smaller operators and industrial companies to deploy wireless technologies without needing individual licenses. This is particularly beneficial for Wi-Fi and IoT applications.

Dynamic Spectrum Access

ICASA is exploring dynamic spectrum access and opportunistic spectrum management, which allows for more efficient use of available frequencies. This can help ensure that spectrum is utilized optimally and is accessible to a broader range of users.

Regulatory Support

ICASA provides regulatory support and incentives for new entrants and smaller operators. This includes measures like reduced licensing fees and technical assistance, which help level the playing field and encourage competition.

Industry Collaboration

ICASA encourages collaboration between traditional telecom operators and industrial companies. This can involve partnerships where industrial companies use licensed spectrum through agreements with telecom operators, benefiting from their extensive networks and expertise.

These measures collectively aim to create a balanced and inclusive spectrum management environment, fostering innovation and competition across the telecommunications industry in South Africa.

In South Africa, ICASA has conducted several public tenders to award spectrum licenses.

The most notable recent tender was the March 2022 spectrum auction, which allocated high-demand radio frequency spectrum to six qualified bidders: Vodacom, MTN, Telkom, Rain, Liquid Telecom, and Cell C. 3 3

Key Outcomes of the 2022 Spectrum Auction:

• Vodacom: Acquired spectrum in the 700MHz, 2600MHz, and 3500MHz bands.
• MTN: Secured spectrum in the 800MHz, 2600MHz, and 3500MHz bands.
• Telkom: Obtained spectrum in the 800MHz and 3500MHz bands.
• Rain: Acquired spectrum in the 700MHz and 2600MHz bands.
• Liquid Telecom: Secured spectrum in the 3500MHz band.
• Cell C: Obtained spectrum in the 2600MHz band

ICASA uses several criteria to award spectrum licenses during public tenders. These criteria ensure a fair and competitive process, promoting efficient use of  spectrum and fostering competition 4 . Here are some key criteria ICASA considers:

Market-Based Approach

ICASA employs a market-based approach, including auctions and beauty contests, to allocate spectrum. This approach ensures that spectrum is awarded to those who value it most and can use it efficiently.

Financial Capability

Applicants must demonstrate financial capability to deploy and maintain the network infrastructure. This includes providing financial statements and proof of funding.

Technical Capability

Applicants need to demonstrate technical expertise and readiness to deploy spectrum. This involves submitting detailed technical plans and timelines for network roll-out.

Coverage and Roll-out Obligations

ICASA sets specific coverage and roll-out obligations to ensure that spectrum is used to expand network coverage, especially in underserved and rural areas. Applicants must commit to meeting these obligations within specified timeframes.

Empowerment Obligations

Successful bidders are often required to support Mobile Virtual Network Operators (MVNOs) and the Wireless Open Access Network (WOAN). This includes procuring a minimum percentage of national capacity from the WOAN.

Competition Assessment

ICASA conducts a competition assessment to ensure that spectrum allocation does not lead to market dominance or anti-competitive behaviour. This helps maintain a competitive market environment.

Compliance with Regulatory Requirements

Applicants must comply with all regulatory requirements, including licensing fees,approval of equipment types, and adherence to technical standards.

These criteria help ICASA ensure that spectrum is allocated efficiently and equitably, promoting the development of South Africa's telecommunications infrastructure.

The conditions for spectrum licenses issued by ICASA are designed to ensure efficient and fair use of the radio frequency spectrum 5 . Key conditions are:

Compliance with Technical Standards

Licensees must ensure that all radio equipment used is type-approved by ICASA and complies with the technical standards specified in the license.

Coverage and Roll-out Obligations

Licensees are required to meet specific coverage and roll-out obligations, particularly in underserved and rural areas. This ensures that the benefits of the spectrum are widely distributed.

Spectrum Fees

Licensees must pay spectrum fees as determined by ICASA. These fees are typically based on the amount of spectrum allocated and the frequency band.  

Use It or Lose It

Licensees must actively use allocated spectrum. If the spectrum is not used within a specified period, ICASA may revoke the license.

Interference Management

Licensees must manage and mitigate any interference caused by their use of the spectrum. They are also required to coordinate with other spectrum users to avoid harmful interference.

Reporting and Compliance

Licensees must regularly report to ICASA on their use of the spectrum and compliance with license conditions. This includes providing technical and operational data as requested: 

Empowerment Obligations

Licensees may be required to support initiatives such as the Wireless Open Access Network (WOAN) and Mobile Virtual Network Operators (MVNOs), promoting broader access to telecommunications services.

Renewal and Transfer

Spectrum licenses are typically issued for a fixed term and must be renewed periodically. Licensees must also obtain ICASA's approval to transfer or lease their spectrum rights.

These conditions help ensure that spectrum is used efficiently and equitably, promoting the development of South Africa's telecommunications infrastructure

The price of spectrum is determined through a combination of regulatory frameworks and market-based mechanisms, primarily managed by ICASA. An overview of how spectrum pricing is calculated:

Spectrum Auctions

ICASA conducts spectrum auctions in which operators bid for available spectrum. The price is determined by the highest bid for each frequency band. For example, during the 2022 spectrum auction, the average price paid per megahertz was approximately ZAR 47m (USD2.63m) 6  

Spectrum Fees 7

ICASA also sets annual spectrum fees based on several factors, including:

• Frequency Band: Different frequency bands have different base prices. Lower-frequency bands, which offer better coverage and penetration, typically cost more than higher frequency bands.
• Bandwidth: The amount of spectrum (in MHz) allocated to an operator.
• Geographical Area: The area covered by the spectrum license, with urban areas generally costing more than rural areas.

Administrative Pricing

For certain spectrum bands, ICASA may use administrative pricing, which involves setting prices based on the economic value of the spectrum and the cost of managing and regulating it.

Spectrum Sharing and Leasing

Operators can also share or lease spectrum, which can influence overall cost. ICASA’s regulations facilitate these arrangements to ensure efficient use of the spectrum.

Dynamic Spectrum Access

ICASA is exploring dynamic spectrum access, which allows for more flexible and efficient use of spectrum. This can involve real-time pricing based on demand and availability.

 Implementation of 5G projects in South Africa has faced several challenges. One of the primary issues is the high cost of infrastructure, which includes the need for extensive small-cell technology and fibrenetworks. Additionally, spectrum allocation has been a complex and sometimes delayed process, impacting the roll-out schedule. Regulatory hurdles  8 have also posed significant challenges, with delays in establishing a clear framework for 5G deployment. Furthermore, security concerns regarding the safety and integrity of 5G networks have been a critical issue, necessitating robust security standards and measures.

There have been no specific legal decisions or case law reported regarding non-compliance with 5G concessions obligations in South Africa. ICASA has been actively monitoring the deployment and compliance of 5G projects, but no formal rulings on non-compliance have been issued.

South Africa has a long-term spectrum plan managed by ICASA 9 . This plan includes future spectrum allocations and tenders to ensure efficient use of spectrum resources and support the deployment of advanced communication technologies like 5G. ICASA regularly publishes updates and consultation documents related to the long-term spectrum outlook.

The Electronic Communications Act, 2005 (ECA), and related legislation in South Africa regulate spectrum and licensing conditions, which continue to apply to 5G deployment. Specifically, the ECA outlines the control and management of the radio frequency spectrum, the licensing framework for electronic communications services, and the conditions for granting and renewing licenses. For example, Section 30 of the ECA deals with control of the radio frequency spectrum, while Section 31 addresses requirements for obtaining a radio frequency spectrum license 10

In South Africa, agreements have been established to facilitate 5G network and spectrum sharing. These arrangements involve partnerships that enable access to key frequency bands, such as the 3.5 GHz spectrum, to support the deployment of 5G networks 11 .

These partnerships help optimize the use of available spectrum and reduce costs associated with rolling out 5G infrastructure.

ICASA has established regulations to encourage 5G network and spectrum sharing. These regulations include guidelines for leasing spectrum to other operators and allowing multiple operators to use the same spectrum bands, as well as supporting infrastructure sharing to reduce costs and improve efficiency. ICASA's regulatory framework  12  ensures that these sharing arrangements are fair and beneficial to all parties involved, ultimately enhancing the deployment and accessibility of 5G services across the country.

The rules for granting competitors access to new 5G networks are outlined by ICASA. These rules are designed to promote competition and ensure fair access to 5G infrastructure. Key points and relevant sections from the legislation and guidelines: 

Open Access Requirements

ICASA mandates that operators provide open access to their networks. This is detailed in the ECA, specifically in Section 43, which requires network operators to offer access to their electronic communications facilities on an open and non-discriminatory basis. 

Infrastructure Sharing

The ECA in Section 44 also covers infrastructure sharing.. This section requires operators to share infrastructure such as towers and base stations to reduce costs and improve efficiency

Roaming Agreements

Section 45 of the ECA addresses national roaming agreements. Operators must enter into roaming agreements with competitors, allowing smaller operators to use the networks of larger operators to provide nationwide coverage.

Spectrum Leasing

ICASA's regulations permit spectrum leasing, enabling operators to lease their spectrum to other service providers. This is covered under the Radio Frequency Spectrum Regulations, 2015, specifically in Regulation 15.

Wholesale Access

The ECA in Section 67 mandates that larger operators offer wholesale access to their networks. This allows smaller operators and MVNOs to purchase network capacity at wholesale rates. 

Regulatory Oversight

The ICASA ensures compliance with these rules through regular monitoring and reporting requirements. Operators must submit reports on compliance with access and sharing obligations, as outlined in the ICASA Compliance Manual.

There have been several comments and concerns regarding 5G cybersecurity and the use of Chinese technology, particularly from Huawei, in South Africa: 

Security Concerns 13 : There are significant concerns about the potential cybersecurity risks associated with using Huawei technology. Critics argue that Huawei's equipment could be used for espionage or cyberattacks due to vulnerabilities that might be intentionally introduced. 

Regulatory Responses 14 : The South African government and regulatory bodies like ICASA have been cautious but have not imposed outright bans on Chinese technology. Instead, they focus on ensuring that all 5G equipment meets stringent security standards. 

Economic and Practical Considerations: Despite the security concerns, Huawei remains a popular choice due to its cost-effectiveness and reliability. Many African countries, including South Africa, continue to use Huawei technology to build their 5G network

There are discussions and early-stage developments regarding 6G in South Africa 15 , although the country is still primarily focused on expanding its 5G infrastructure. Major telecom companies like Nokia, Ericsson, and Huawei are already involved in global 6G research and have indicated interest in extending these developments to South Africa. However, the country faces significant challenges in rolling out 6G, including infrastructure costs, regulatory hurdles, and ongoing issues like load shedding. Despite these challenges, 6G is expected to be commercially available around 2030, with the next phase of developing standards starting soon.

ICASA Annual Report 2022/2023