The South African Spectrum Auction: An Insider View
A review of the recent South African spectrum auction and the learning for other regulators seeking to award spectrum to support the development of mobile broadband and 5G.
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Introduction
Coleago Consulting, leveraging its involvement in the ICASA multi-band spectrum auction in South Africa, offers a comprehensive analysis aimed at distilling valuable insights for regulators and bidders across Africa. This paper supplements Coleago’s previous work on spectrum auctions in Tanzania, Nigeria, and collaboration with BOCRA in Botswana on spectrum management.

Overview of ICASA Auction Process and Key Results
The ICASA auction showcased several strengths and some areas ripe for improvement. The process encompassed a high-level review and culminated in significant outcomes. Notable elements contributing to success were the consultative approach, simultaneous spectrum awards, a strategic reserve price, and the engagement of a reputable advisor for effective auction implementation.
Insights for Other Regulators
Commendable Aspects: ICASA’s success underscores the importance of a consultative process, simultaneous awards, strategic reserve pricing, and expert advisory engagement.
Areas for Improvement & Insights: The paper highlights crucial areas for enhancement and learnings beneficial to other African regulators and bidders:
- Actioning legitimate responses from consultation processes is pivotal
- A transparent and straightforward pre-qualification process is essential
- Reducing regulatory uncertainty is vital for confident spectrum valuation
- Ensuring commercially viable coverage obligations and collaborating with the industry to address rural coverage challenges
- Prudent setting of eligibility points for different lots to mitigate bidding risks
- Selection of an appropriate auction format to ensure efficient spectrum assignment
- Introduction of spectrum trading for optimal spectrum utilisation
Conclusion
ICASA’s largely successful auction presents a model for commendable practices while also offering valuable lessons for improvement. The identified insights provide a roadmap for enhancing future spectrum award processes in Africa, enabling regulators and bidders to navigate complexities effectively and achieve more efficient spectrum allocation and utilisation.
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