Telecommunications and Postal Services Minister Dr Siyabonga Cwele and the Independent Communications Authority of South Africa (Icasa) council have agreed to settle the court matter involving Icasa’s July 2016 invitation to apply for the allocation of high-demand spectrum.

In terms of the settlement agreement, Icasa will withdraw the invitation to apply and the Minister will also withdraw his legal challenge against it.

This settlement agreement is in line with President Cyril Ramaphosa’s call last week to “initiate the process for the allocation of high-demand radio spectrum to enable licensing”.

The agreement is a product of consultations between the Minister, the Department of Telecommunications and Postal Services and Icasa. As a result of the settlement, the Minister started consultations with Icasa on a draft policy direction for the licensing of high-demand spectrum and intends issuing the draft policy direction for public comment.

This policy direction will be issued in terms of the provisions of the Electronic Communications Act (ECA).

The Minister intends to direct Icasa to issue an invitation to apply, accept and consider applications for an electronic communications network service licence and radio frequency spectrum licence to provide wholesale open access, while ensuring its sustainability and viability, and taking into account the outcomes of the study conducted by the Council for Scientific and Industrial Research.

Moreover, the Minister intends to direct Icasa to issue an invitation to apply, accept and consider applications for electronic communications network service (ECNS) licences and radio frequency spectrum licences for unassigned high-demand spectrum not reserved for assignment to the ECNS licence holders that provide wholesale open access.

At the end of the public consultation process, and after considering the final policy and policy directions issued by the Minister, Icasa will start the licensing process for the assignment of high-demand spectrum.

The processes and procedures are in keeping with the provisions of the ECA, which will govern and continue to apply to the process of licensing high-demand spectrum.

“We are determined to move with speed to transform the sector to enable greater participation of black women, the youth, people with disabilities, [as well as] small, medium-sized and microenterprises,” the Minister said.

“We shall continue to consult with all stakeholders to ensure that we roll out modern telecommunications infrastructure and services at affordable costs to all citizens of our country. South Africa is open for investment in the information and communication technology (ICT) sector.

“Accordingly, the settlement agreement and the subsequent policy direction will contribute to improving investor confidence,” he added.

Icasa chairperson Rubben Mohlaloga echoed the Minister’s comments and committed to ensuring that the authority is always ready to execute its mandate to promote competition and facilitate transformation in the ICT sector.

“The authority is indeed pleased that the impasse over the licensing of high-demand spectrum has finally been resolved. It is our . . . view that the settlement of the 2016 litigation and pending consultation process on the policy direction provides much-needed certainty for the sector to thrive,” he elaborated, noting that the authority would ensure that it executed its mandate in a manner that promoted competition, facilitated transformation of the sector and provided a regulatory environment that encouraged investment in the sector.