Last week, government concluded the auction of high-demand spectrum for mobile telecommunications – a significant milestone in the reform agenda and one that is expected to drive growth and transformation in the country’s economy, President Cyril Ramaphosa writes in his weekly newsletter to the nation.

“The licensing of spectrum is one of the major reforms that we are implementing to modernise and transform key network industries such as energy, telecommunications, transport and water provision.

"Already much progress has been made in creating new opportunities for investment in electricity generation, freight rail and ports, and in improving the management and quality of the country’s water resources,” he says.

Ramaphosa says the licensing of this new spectrum will be accompanied by agreed social obligations to connect public schools, health facilities and police stations over the next three years.

“Like the mineral wealth that lies beneath our soil, radio spectrum is a valuable national resource that needs to be used for the benefit of all South Africans,” he emphasises.

“Ramaphosa explains that the Competition Commission, through its data services market inquiry in December 2019, found that the cost of data in South Africa was considerably higher than in many other countries.

He notes that the spectrum release is expected to reduce the cost of mobile data, expand network reach to rural and outlying areas and improve network quality.

“Every South African who uses a mobile device will feel the benefits of this reform, especially the poor and those who currently don’t access the Internet due to high costs or a lack of coverage,” acclaims Ramaphosa.

He emphasises that expanding digital access is critical for economic growth.

He elaborates that, for example, cheaper data will enable young people to have greater access to digital platforms to seek job opportunities online, students will be able to access information and educational materials and entrepreneurs will be able to start businesses and reach new markets.

Ramaphosa says that, equally, the availability of this spectrum will contribute to economic transformation. He explains that it will allow many more people, especially those from remote areas and poor communities, to access digital resources and would improve their ability to participate in economic activity.

The use of this spectrum will also enable the roll-out of fifth-generation (5G) telecommunications networks.

“These 5G networks will accelerate the process towards universal connectivity – where all South Africans are connected – and the deployment of the digital technologies and services that are driving the Fourth Industrial Revolution.

“This is a crucial step to bring South Africa back to the cutting edge of digital technology and ensure that our economy remains competitive,” he highlights.

Ramaphosa notes that, over the past year, the process of switching from analogue to digital broadcasting has gathered pace and says that it will soon be completed.

“Digital migration will also free up valuable radio frequency spectrum currently used by broadcasters to be used in the provision of mobile broadband services and other applications. The switch to digital improves the television watching experience, with many more channels and better quality picture and sound,” he acclaims.

“Digital migration will enable a massive leap forward in South Africa’s technological development. For poor households that are currently using an old analogue television, government is providing subsidised set-top boxes to help them make this switch,” he adds.

He lauds the auction of spectrum as an important achievement, noting that it was delayed for many years owing to policy drift, State incapacity and vested interests.

“The fact that we have now completed this process reflects the determination of this administration to undertake – and accelerate – the far-reaching reforms that our economy needs to grow and create jobs,” posits Ramaphosa.