Shares in SA’s telecommunications companies rose on Friday after President Cyril Ramaphosa said the long-delayed spectrum licensing process will start within weeks.Spectrum allocations were initially halted because the department of telecommunications and postal services disagreed with the Independent Communications Authority of SA on allocation methods.
MTN’s shares, which dipped below R70 in September 2018 because of its regulatory troubles in Nigeria, were 1.4% up at R109.33 shortly after noon on Friday. Vodacom, which said earlier in the day it would sell its enterprise operations in five African markets, was 0.4% down at R125.12. “Unfortunately, gaining full access to the relevant spectrum bands is likely to take time, hence the big two mobile operators continue to enter into roaming arrangements to bridge that gap,” he said. “The timing of the required data price cuts compared to the benefit of lower-cost broadband spectrum access is likely to prove challenging for the mobile operators over the near term.”
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