Minister of Telecommunications and Postal Services, Siyabonga Cwele plans take legal action against communications regulator Icasa, after it prematurely set a broadband spectrum sale into motion.
Cwele wants to prevent Icasa from bidding off broadband spectrum licenses to South African companies, with the minimum bidding price set at R3bn, explains TechCentral's Duncan McLeod.
McLeod says it appears that Icasa did not consult with the ministry before inviting applications to the spectrum auction.
He suggest that there may be conflicting government authority on the matter.
It appears that Icasa got support from somewhere else in government, but certainly not from the Telecomms department.— Duncan McLeod, TechCentral Editor
The Telecomms department is set to release a draft policy on integrated ICT that would outline the state's plan on allocating broadband spectrum.
McLeod says that the department may offer alternative allocation processes when the white paper is released.
Listen to the full conversation from The Midday Report with Stephen Grootes: