Learning From Best Practice Spectrum Management in Botswana
The Botswana Communications Regulatory Authority conducted a review of its spectrum management strategy to align with international best practice. The Authority was advised by Coleago and in this paper, Project Director Graham Friend highlights the lessons to be learned for other regulators in developing markets.
In 2019, the Botswana Communications Regulatory Authority (BOCRA) embarked on modernising its spectrum management strategy to align with global best practices. The initiative, guided by Coleago Consulting, aimed to develop practical recommendations tailored to Botswana’s small market, limited resources, and policy goals. The project focused on areas such as spectrum assignment, pricing, rural coverage, spectrum trading, license renewal, and duration.
Key recommendations included:
New Spectrum Assignment: A transparent, demand-based approach, with auctions implemented when demand exceeds supply. The use of simple auction designs, such as Tanzania’s 700 MHz auction, was encouraged.
Spectrum Pricing: BOCRA adopted a model inspired by the UK’s Ofcom, distinguishing between spectrum access fees and annual usage fees. Prices were to be based on market value, with excess demand addressed through Administered Incentive Pricing (AIP) for congested frequencies. A five-year phased implementation will allow operators time to adapt.
Additional Recommendations:
These included network sharing, coverage obligations in licenses, and spectrum trading. Key policy goals, such as promoting investment, rural coverage, and affordable broadband, were consistently considered throughout the process.
The adoption of this spectrum management strategy is expected to enhance the efficiency of spectrum use, encourage investment, and provide a sustainable model that supports the National Broadband Strategy, ensuring broader access to ICT services across Botswana.
This work provides a valuable case study for other regulators in developing markets, showcasing how strategic alignment with global best practices can foster economic growth, consumer protection, and innovation in the telecommunications sector.
Other insights
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The Polish 700 and 800 MHz Spectrum Auction: Insights and Global Lessons
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The Case for Strategic Spectrum Renewal
As spectrum licences approach their expiry date, a strategic approach to spectrum renewal is crucial. Traditional presumption of renewal in favour of incumbents may no longer serve the industry’s needs. Instead, a more strategic approach to renewal can optimise spectrum assignments and improve spectral efficiency by up to 40%.
Best Practice Spectrum Management
The principles of best practice spectrum management are well established and their implementation can enhance the socio-economic value of spectrum and how much operators are prepared to pay to acquire new spectrum. Whilst most regulators in developed markets have adopted best practice, the same cannot be said for developing markets. Coleago recently studied the regulatory environments in 16 African markets and recorded the extent to which best practice had been adopted.