The South African regulator has published final guidelines for the allocation of new mobile spectrum, in the process reportedly reintroducing a controversial clause insisting that bidders for some frequencies must be 30 percent-owned by the country’s so-called historically disadvantaged individuals (HDIs). According to a report from Telecoms.com, this clause relates to the 2.6GHz and 3.5GHz bands due for auction later this year, which are expected to be used by South African operators for LTE deployment. However, the report notes that many of the largest players in the market – including MTN and Vodacom – could be excluded from bidding on this basis. This means that smaller players could be in a position to snap up the valuable airwaves.

South Africa’s Independent Communications Authority (ICASA) introduced the 30 percent HDI requirement in its initial draft regulations last year, but then withdrew the clause in a later draft (released in October) following significant pressure from the industry. Nevertheless, Telecoms.com notes that the initial announcement led to a “flurry of activity” in the market as larger players rushed to conclude deals with several so-called “empowerment” partners. MTN, for example, implemented a black economic empowerment share scheme valued at £70 million in a bid to sell stock to HDIs. Although the latest ICASA regulations are final they are still subject to further legal challenges, which may mean the spectrum auctions do not take place this year as planned.