The Critical Need for Additional Spectrum Allocation in Mobile Networks

You might be asking yourself, what is spectrum allocation in mobile communication? Before we can speak to this and the critical need for additional allocation in South Africa, let’s start with understanding spectrum allocation. Spectrum allocation is the process of regulating the use of the electromagnetic spectrum and dividing it among various and sometimes competing organisations and interests. Essentially, spectrum is the invisible radio frequencies that wireless signals travel over and its allocation is the portion used for wireless communication in the mobile industry and other sectors for communication.

This topic has recently become something of an extreme interest since the Covid-19 pandemic revealed the state of South Africa’s telecommunications infrastructure – not to mention severely testing its resilience. The sheer increase in data usage alone during the national lockdown resulted in an urgent call for the regulator, the Independent Communications Authority of South Africa (ICASA), to allocate additional spectrum. Without it, our mobile network quality would have significantly deteriorated.

Given that the world, including South Africa, is on the precipice of a fourth industrial revolution, it’s crucial that we explore what spectrum allocation means for both businesses and consumers alike. Not just what is happening around the network providers themselves, but also around the regulatory space that affects the overall network offering.

What we aim to unpack is:

• The current quality and capacity of mobile data services offered.
• Why additional spectrum allocation has faced delays.
• What this means to our mobile networks.
• The fourth industrial revolution.

The Current Quality and Capacity of Mobile Data Services Offered

Unsurprisingly, people and businesses have shifted online over the past year and half in a direct response to the pandemic-induced lockdowns – working from home, using online education, and enjoying increased digital entertainment. This move has driven higher data usage, which has enabled the majority of South African telcoms providers to achieve significant financial success. Case and point, Telkom Mobile’s data traffic went up by 81% and Vodacom reported impressive half-year results that were similarly driven by huge data usage. MTN also experienced exceptional performance, growing their data revenue by 31.9%.

An escapable fact about spectrum, however, is it’s finite nature. There is no other option but to free up more frequencies and allocate additional spectrum, which ICASA did by issuing temporary spectrum to mobile operators, helping mobile networks to increase their network capacity and improve their average speeds. It’s how we as businesses and consumers were (and still are) able to live our lives at home through the use of the internet.

Without this allocation, both capacity and the quality of the mobile data services offered would have suffered enormously. Problematically, ICASA’s temporary fix is just that. Temporary, meaning that the additional spectrum mobile network providers used will expire by no later 30 November 2021. This is sure to have a terrible impact on data supply to consumers and businesses in South Africa.

Why Additional Spectrum Allocation Has Faced Delays

Tellingly, the temporary additional spectrum allocation was always possible and yet no additional spectrum has been allocated for over a decade. Apparently there hasn’t been enough urgency around spectrum allocation in the past, in spite of the fact that South Africa had started planning a transition to digital TV broadcasting in 2009 in a bid to free up capacity. A move that failed to take place and has since not been achieved.

Seemingly, it took a pandemic and the ensuing overload of online traffic to force things along, even if in a temporary capacity. Sadly, there are further delays to allocating sufficient spectrum for the long-term.

This is largely thought to be caused by a few key factors, the biggest of which include delays in government around freeing up more frequencies, general bureacratic red tape, and policy uncertainty at Cabinet level with six ministers of communication in less than as many years. There’s also the added complication of ICASA’s legal battles with telecom giants, MTN and Vodacom, over unfair and faulty regulation processes by ICASA. There are also concerns over ICASA’s ongoing inability to host the spectrum allocation auction over the past year and a half and many are worried that the regulator may miss the new auction deadlines.

ICASA has recently set out a timetable for the licensing of so-called “high-demand spectrum,” stating that it has plans to expedite the long-delayed process. The good news is that the regulator has published a detailed schedule for when it plans to get key aspects of the licensing process concluded, which you can view here.

What This Means To Our Mobile Networks

Realistically, we have already seen and will continue to see a shift back to fixed lines as segments of the economy return to offices. Some think that this will cause mobile data traffic to normalise. However, remote workforces and increases in eCommerce activity aren’t going anywhere, and we were already in need of additional spectrum before the pandemic.

Importantly, mobile network operators have spent large amounts of money to expand infrastructure to cater for the temporary spectrum allocation. The impending expiry of temporary licenses without provision for additional spectrum will clearly result in tremendous costs, as well as condemning the infrastructure to idleness when there are no frequencies available. Importantly, data supply will be affected, which will impact both consumers and businesses, especially since the pandemic isn’t actually over just yet and the fourth industrial revolution is upon us.

The Fourth Industrial Revolution

Speaking of the fourth industrial revolution, which is the fusion of technologies that include artificial intelligence (AI), robotics, cloud computing, and the Internet of Things (IoT) to create high-powered tech tools. These innovations are the integration of our physical and biological worlds and will be used across multiple industries, such as healthcare, education, entertainment, and of course, eCommerce. Think of intelligent robots, gene editing, autonomous vehicles and other digital magic. That’s what is possible in the digital revolution, and it is the telecoms  sector that will provide the building blocks for these developments.

But for South Africa to not get left behind, our telecoms sector simply must strengthen its own capabilities and infrastructure. In short, we absolutely need additional spectrum allocation in the telecoms space so that our mobile networks will be in a position to empower the country to ride into this world order.

Hopefully, this article has shed some light on this technical topic. What can be understood for certain, however, is that Huge Connect will continue to provide unfailing support and dependable Internet solutions and business connectivity for businesses of all sizes and from all industries across South Africa.

Connect with us today and let us help you explore the best connectivity solution for your business.