Proudly sponsored by

Telkom reaches out-of-court settlement in spectrum dispute with Icasa

Group says settlement brings an end to its high court litigation over the licensing of high demand spectrum.  
Image: Waldo Swiegers / Bloomberg

Telkom confirmed in a JSE Sens statement on Friday that it has reached an out-of-court settlement with the Independent Communications Authority of South Africa (Icasa) in relation to its high demand spectrum dispute with the regulator.

“Shareholders are advised that Telkom and Icasa have reached an out-of-court settlement which brings to an end the high court litigation over the licensing of high demand spectrum,” it said.

The settlement comes as a surprise, considering Telkom insisting in a Sens update just over a week ago that it planned to continue with its litigation against Icasa.

Read: Telkom hedges its bets by continuing court action despite spectrum win

“The settlement addresses the two principal complaints that led to Telkom adopting the legal route, namely; the unfair restriction on Telkom to bid for spectrum in the past auction and the need for Icasa to consider the competitive effect of spectrum arrangements in the licensing of unassigned spectrum.”

“The parties have agreed that Telkom will withdraw the court application and that each party will pay its own legal costs,” the group added.

In return, Icasa has undertaken to:

  • commence with the licensing of the spectrum that remained unassigned in the auction by no later than 30 June 2022 and that this licensing process will be concluded within the current financial year;
  • in its licensing of the unassigned 800MHz, it will have regard to the outcome of the auction, the imbalances in the sub-1GHz and the need to promote competition in the post auction dispensation; and
  • conduct a study on the impact of a possible secondary market of spectrum on competition and, if necessary, provide an adequate and enabling regulatory framework.

“Telkom has, in good faith, entered into a forward-looking settlement providing Icasa the opportunity to resolve current market challenges identified by competition authorities while allowing operators to focus on the business of providing superior service to their customers,” the group noted.

Read:
Why Cyril is going after Telkom
Ramaphosa orders wide-ranging probe into Telkom

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us: