Network provider Vodacom is expected to spend R1.1 billion in capital on roaming deal with the data-only competitor Rain.
The deal has been opposed by other network operators Cell C and MTN, who also want in on the deal, explains MyBroadband editor Jan Vermeulen.
Vermeulen says Rain operates its own LTE 4G network in the country and it lets Vodacom roam on the network at a price.
This gets around all sorts of regulatory hurdles in South Africa preventing them from sharing outright spectrum.— Jan Vermeulen, Editor - My Broadband
Spectrum is a finite resource. It's the same kind of frequency that this is broadcast on, it's high frequency. So if you don't have more spectrum, you don't have more spectrum.— Jan Vermeulen, Editor - My Broadband
Rain is also loving the deal because Vodacom is like an anchor tenant on its network, a guaranteed monthly income. It's a win-win for both companies.— Jan Vermeulen, Editor - My Broadband
Vermeulen says plans to release wireless spectrum were somehow put on ice and now it is on the new Ramaphosa administration to release the spectrum.
To hear the rest of the conversations, listen below:
This article first appeared on CapeTalk : SA's network providers oppose Vodacom and Rain roaming deal