Malatsi scraps WOAN: Icasa freed to license long‑idle spectrum
· Citizen
South Africa has finally broken the spectrum deadlock, with Communications Minister Solly Malatsi signing off amendments that scrap the wholesale open‑access network (WOAN) scheme.
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It comes more than four years after cabinet resolved to abandon it, freeing the Independent Communications Authority of South Africa (Icasa) to license long‑idle high‑demand frequencies and unlock long‑stalled investment.
Amendment
The amendment, published in the Government Gazette on Friday, 25 September, takes immediate effect and returns the spectrum to Icasa for licensing.
It also withdraws the policy direction that instructed the regulator to license the wholesale network, known as the WOAN.
Malatsi said the decision removes a major obstacle to expanding connectivity and investment.
“Spectrum that sits unassigned is not neutral. Every year it remains unused is a year of coverage not extended, congestion not relieved and investment not made. This amendment removes an obstacle.
“The decisions about how and to whom this spectrum is licensed are for the regulator, and they remain entirely with the regulator,” he stressed.
Spectrum
The 2019 policy had set aside spectrum for a single wholesale network, but more than seven years later no such network was licensed, leaving valuable spectrum idle.
The WOAN was the government’s attempt to force competition into the mobile market by creating a wholesale operator from which internet service providers could buy capacity.
Icasa set spectrum aside for it in 2020 – a package that then included 30MHz at 2.6GHz and 30MHz at 3.5GHz – and obliged successful auction bidders to collectively procure at least 30% of national capacity from the WOAN for seven years once it was operational.
Rollout
The rollout of this spectrum release, expected to conclude in the first quarter of 2021, was expected to pave the way for South Africa to migrate to higher-speed wireless broadband (5G).
Studies done by the Icasa and the Competition Commission found that while there were four major mobile players in the country, Vodacom was the biggest player as it owned the most ICT infrastructure across municipalities, followed by MTN, and that other players like Cell C and Telkom often had to approach Vodacom to use its infrastructure, which made it difficult for them to compete.
Icasa suspended the WOAN licensing timetable in November 2021, saying the spectrum would remain set aside.
Draft amendment
A draft amendment was published for comment in 2022 but was not finalised until now.
Malatsi’s party, the DA, said in July 2024, shortly after his appointment, that spectrum set aside for the WOAN should be licensed as soon as possible.
Policy objectives
Policy objectives remain intact. Licensees must still lease networks and provide wholesale capacity, extend universal service to rural and under‑served areas, avoid spectrum concentration, and comply with empowerment requirements.
The amendment also does not affect the requirement under the Next Generation Radio Frequency Spectrum Policy for Economic Development 2024, that spectrum be reserved for the State Digital Infrastructure Company.
Malatsi emphasised the urgency of unlocking growth.
“Every year spectrum remains unused is a year of investment not made. This decision ensures Icasa can now move forward to license spectrum in the public interest,” he said.