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27June 2024
MTN stands up for South Africans in opposing a bid to halt spectrum pooling
MTN South Africa, Cell C and Liquid have opposed Vodacom’s request to the courts for an urgent interdict to halt spectrum pooling in South Africa.
MTN remains of the view that the pooling arrangements work to enhance competition in any market and generate efficiencies for all parties involved.
MTN and its pooling partners applied to the Independent Communications Authority of South Africa (ICASA) to pool spectrum in early 2022, leveraging off the positive impact of temporary spectrum pooling arrangements that were approved during the COVID-19 pandemic.
While the COVID-19 regulations made provision for expedited approval processes for applications such as spectrum sharing / pooling, the mechanisms for these types of arrangements are not new and they are commonplace in other markets. “The South African regulatory framework permits parties to apply for such arrangements, and MTN and its partners applied to ICASA in terms of the Electronic Communication Act and received approval. Pursuant to these approvals, MTN designed and deployed its network,” said Marina Madale, MTN South Africa Acting Chief Sustainability & Corporate Affairs Officer.
In May 2024, Vodacom challenged the legality of these deals, filing papers in the High Court requesting an interdict against the pooling arrangements between MTN, Cell C and Liquid, pending a review of ICASA’s decision.
Vodacom alleges that MTN, Cell C and Liquid applied in secret, and seemingly with ICASA’s cooperation, to implement an unlawful scheme purely for their own commercial benefit. However, MTN was open about its decision to pursue pooling arrangements with other MNOs, and followed the process set out in the Electronic Communications Act and Regulations for ICASA’s approval.
“Spectrum pooling is an efficient technique to utilise spectrum which has benefits for both licensees and all customer segments. More efficient applications of spectrum advance the industry and benefit the broader public,” she added.
Should Vodacom's application for an interdict succeed, MTN’s ability to utilise the pooled spectrum will degrade the quality, speed, capacity of MTN’s network, impacting a substantial portion of the population – not only subscribers of MTN, but also subscribers of service providers such as Wholesale Internet Service Providers, Mobile Virtual Network Operator (MVNOs), Mobile Network Operators (MNOs) that roam on the MTN network, its respective public and private sector customers, and members of the public who are reliant on these entities.
Additionally, the effect of Vodacom’s application could fundamentally result in an industry-wide shift in the spectrum landscape in South Africa. It could potentially also impact the use and transmission of radio frequency spectrum by any parties in the industry who share frequency.
“MTN is opposing Vodacom’s application. In its answering affidavit, we argue that Vodacom has failed to provide evidence to support an interdict of these pooling arrangements. Given the impact on MTN, its partners, roaming customers, MVNOs, subscribers, and the public, MTN believes that the request for interim relief should be dismissed”, she concluded.
-End-
ISSUED BY:
Leigh-Ann Chetty, Senior Manager: Public Relations, MTN SA
Cell: 083 209 1310
E-mail: Leigh-Ann.Chetty@mtn.com
Mthokozisi Ndlovu, Manager: Communications and Public Relations, MTN SA
Cell: 083 209 2683
E-mail: Mthokozisi.Ndlovu@mtn.com
About the MTN South Africa
Launched in 1994, MTN South Africa is a subsidiary of MTN Group, a leading emerging market operator with a clear vision to lead the delivery of a bold new digital world to our customers. We are inspired by our belief that everyone deserves the benefits of a modern connected life. The MTN Group is listed on the JSE Securities Exchange in South Africa under the share code àMTNá. Our strategy is Ambition 2025: Leading digital solutions for Africaás progress.
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