The Independent Communications Authority of South Africa (Icasa) and Telkom have reached an agreement to end the litigation over the high demand radio frequency spectrum licensing process.

Under the agreement, Telkom agreed to withdraw the legal application, while Icasa agreed to issue an Information Memorandum (IM) by June 30 for the licensing of the unsold sub-1 GHz lot from the International Mobile Telecommunications (IMT) spectrum auction and any other IMT spectrum that is presently available for licensing, except for the spectrum currently set aside for the Wireless Open Access Network.

The two parties have been having discussions to bring an end to the ongoing litigation due to be heard from April 11 to 14.

Telkom Group CEO Serame Taukobong said that the settlement addresses Telkom’s principal complaints and provides challenger operators like Telkom further opportunity to acquire sub 1 spectrum to compete with established players.

“Telkom has, in good faith, entered into a forward-looking settlement, providing Icasa the opportunity to resolve current market challenges identified by competition authorities while allowing operators to focus on the business of providing superior service to their customers.”

Icasa will consider the spectrum holdings emanating from the recently concluded auction, including the imbalances in the sub-1 GHz bands, and the impact of the outcome of the auction on competition in the mobile market.

The authority intends to conclude the envisaged licensing process by the end of March 2023.

In addition, Icasa will undertake an inquiry into the existence of a secondary market for spectrum, which will consider the findings of the Mobile Broadband Services Inquiry, as well as the outcome of the recently concluded auction and any spectrum arrangements emanating therefrom.

The inquiry will include the assessment of whether there is a need for regulatory intervention.

“We are indeed happy to have reached this stage with Telkom. This is indeed an epitome of the power of cordial dialogue where everyone has the same vision of building an inclusive digital society. We look forward to a new chapter of our public interest regulatory work with this litigation finally behind us,” said Icasa chairperson Dr Keabetswe Modimoeng.