STAATSKOERANT, 24 JANUARIE 2014
No. 37261
absence of predatory pricing. In South Africa, SMP lies with operators who derive their
power from the historic oligopolistic nature of the market. Therefore confrontations about
SMP will always be with similar operators.
Long term and high level policy interventions must be consistently applied to ensure that
Significant Market Power does not hinder the opening of the market and the success of new
entrants through abusing their market power and entrenched roles.
5.2.4.1.4 Numbering
The Authority is required to make regulations for a numbering plan and for efficient use and
allocations of numbers. The regulations must provide for number portability based on a
national number portability database. The numbering plan cannot be discriminatory.
5.2.4.1.5 Spectrum
The current legislative environment promotes the efficient use of the scarce radio frequency
spectrum and its allocation to many different users in various communications fields.
There are a number of ways in which the Regulatory Authority authorizes access to the
spectrum by the different operators. These could include a "beauty contest" competitive
bidding process based on best use, lottery allocation involving random selection, or an
auction in which the highest bidder wins. ICASA favours a technology-neutral allocation on
the grounds that, among others, an efficient technology should not be penalized. In some
other countries, spectrum is assigned on the basis of need, although eligibility criteria may
be set. Blocks of spectrum may be assigned to eligible licensees on a first-come- first served
basis. Further requests can be entertained based on demand.
5.2.5 Spectrum Pricing
In general, the role of pricing in a market is to guide the users in making decisions to use the
spectrum resources more efficiently. It follows that the approach to pricing should reflect the
scarcity, besides incentivising efficiency in use. It is therefore important to decide upon the
objectives that the pricing policy should achieve.
5.2.5.1 Management of spectrum
The management of the radio spectrum is a combination of administrative, regulatory and
technical procedures to ensure the efficient operation of radio communication equipment and
services. Simply stated, spectrum management is the overall process of regulating and
administering access to and use of the radio frequency spectrum. A primary goal of
spectrum management is to ensure optimal use of the radio spectrum, in social, economic
and technical terms. The RF spectrum is a national resource, much like water, land, gas and
minerals. Unlike these, however, RF is reusable. The purpose of spectrum management is
to mitigate radio spectrum pollution and maximize the benefits of usable radio spectrum.
The International Telecommunication Union (ITU) constitution recognizes "the sovereign
right of each State to regulate its telecommunication". Effective spectrum management
requires regulation at national, regional and global levels.
Because access to the radio frequency spectrum is vital to meet national political, cultural,
social and economic objectives, it is in the national interest for nations to participate in
international cooperative processes: to be good international citizens.
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