Vodacom Pays R5.3 Billion To Acquire Much-Needed Spectrum

VODACOM
Shameel Joosub, VODACOM ceo. Image source. Vodacom Twitter

Vodacom Group announced today it has spent R5.3 billion to acquire the much-needed spectrum to be able to deploy 4G and 5G.

Vodacom’s contribution to the auction proceeds will significantly assist the government in achieving their objectives to unlock the digital economy, with widespread benefits across our society.

Vodacomsaiod in a statement it will pay R5.38 billion for a spectrum portfolio that includes: 2 x 10 MHz in the 700 band MHz, 1 x 80 MHz in the 2600 MHz band and 1 x 10 MHz in the 3500 MHz band.

“This is a momentous day for South Africa. We would like to offer our sincere congratulations to ICASA, the Minister of Communications, the Presidency and all industry stakeholders who have co-operated in bringing this process to fruition in the best interests of all South Africans,” Shameel Joosub, Vodacom Group CEO says.

“Although the spectrum auction pricing was high, Vodacom is pleased with the outcome of the auction, which is a win for all of our customers who can in the coming years benefit from even wider coverage, faster speeds and enhanced network quality. Once the auction process is fully concluded, Vodacom’s immediate focus will be on the deployment of valuable spectrum to extend both 4G and 5G network coverage to more parts of the country and improve quality of service while we continue to address the cost to communicate.

“The licensing of new spectrum in South Africa is also expected to accelerate post pandemic economic recovery and fast track digital inclusion.”

The total amount will be payable by Vodacom South Africa to ICASA within 30 working days
of the regulator’s award announcement.

Also read: MTN SA Splurges R5.2 billion For Much-Needed Spectrum

MTN Group announced today that MTN SA has secured high-demand-spectrum to support its 4G and 5G expansion drive.

During the main phase of the auction, which started on 10 March 2022 and finished
after 58 rounds of bidding, MTN SA acquired a total of 100MHz across the 800MHz,
2 600MHz and 3 500MHz frequency bands.

The company said it will pay a total of R5.2 billion for the spectrum. This compares favourably with global benchmark averages of approximately $0.083MHz-POP – according to Coleago Consulting – for spectrum in similar auctions, said MTN.

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