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
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.
The End of Telecoms History? – Not Quite!
At the European 5G conference, Stefan Zehle highlighted that differences in mobile data usage across countries result from variations in price and network availability. While European policymakers celebrate 89% 5G coverage, gaps in both outdoor and indoor connectivity limit usage. William Webb’s prediction that data traffic will plateau at 20 GB per user per month by 2027 seems unlikely, given that top users already exceed 100 GB. To fully realise 5G’s potential, policymakers must address these coverage issues in a cost-effective manner.
Insights from a Strategic Spectrum Review
The mobile industry has accumulated a fragmented spectrum portfolio, consisting of various frequency bands that are sub-optimally allocated for modern technologies like 4G and 5G. As operators transition from legacy technologies such as 2G and 3G to newer, bandwidth-intensive solutions, the need for contiguous spectrum blocks has become critical.
The End of Telecoms History? Not Really
In his book The End of Telecoms History, William Webb uses extrapolation of mobile data usage growth curves to claim that mobile data user requirements are nearly met
and that we have all we need
. He predicts mobile data usage to plateau at around 15-20 Gbytes/user/month
. Webb claims that no further investment in 5G capacity is needed and that the only remaining problem is ubiquity, notably in-building coverage. This article provides evidence that, while the author makes some good points, his analysis with regards to mobile data usage is flawed and hence the conclusions he draws are quite wrong.
Mobile Network, Spectrum, and Public Policy Outlook to 2030
The report is based on the Coleago report ‘Mobile Services, Spectrum and Network Evolution to 2025’ (March 2021), updated to align with the latest developments as well as with market projections to 2030. It provides a review for telecoms regulators and mobile operators of key global developments, insights, trends, and best international practices, to inform future spectrum policy and management as well as operator strategies.
