GSMA Calls on ICASA to Support Mobile Broadband Services in South Africa

New report forecasts Mobile Broadband to generate ZAR 72 billion and 28,000 jobs by 2015

CAPE TOWN, South Africa, November 10, 2010 - The GSMA today called upon South African communications regulator ICASA,
along with the country's government, to act now and make key decisions on
mobile spectrum allocation and taxation policy. According to the findings of
an independent report by analyst firm Analysys Mason, commissioned by the
GSMA, spectrum allocation and the levying of additional taxes on mobile
services are the major barriers to wider Mobile Broadband deployment and the
launch of Long-Term Evolution (LTE), the next generation broadband technology
in South Africa.

The South African Government has set national coverage targets of
universal broadband access by 2019, with at least 15 percent household
penetration. With South Africa's relatively poor fixed line infrastructure,
the role played by Mobile Broadband in meeting these targets will be
significant. Mobile Broadband is also a key driver of social and economic
advancement. The Analysys Mason report forecasts that Mobile Broadband and
related industries will generate 1.8 percent of South Africa's GDP (ZAR 72
billion) and as many as 28,000 jobs by 2015. Yet this can only be possible if
roadblocks to Mobile Broadband deployment are removed.

"The new Minister for Communications has this opportunity to make crucial
decisions that will enable South Africa to benefit from the power of
connecting people and businesses with state of the art mobile technology,"
said GSMA spokesperson, Ross Bateson, speaking at AfricaCom in Cape Town. "It
is imperative that ICASA provides clarity over future spectrum release plans
and offers assurances that spectrum awards will follow international best
practice. Harmonised spectrum allocations must be made to bring South Africa
in line with the rest of the world, and to maintain the momentum of HSPA and
hasten the arrival of LTE."

HSPA is leading the way in the South African broadband market, currently
connecting 62% of broadband subscribers. The technology is, at present, the
most cost-effective broadband solution for the country, offering fast
deployment and low capex investment per subscriber. HSPA also provides
operators with a natural evolution path to LTE, if the appropriate spectrum
is made available. LTE deployments in harmonised spectrum bands benefit from
large economies of scale which drive down equipment and handset costs,
providing affordable high-speed internet connectivity and access to critical
new services for millions of people in both rural and urban areas.

The global mobile industry favours ITU Option 1* for 2.6 GHz spectrum
harmonisation for the deployment of LTE, which has been adopted by the
majority of mobile operators worldwide. However, a legacy allocation of
spectrum in this band to Sentech, which has remained dormant and unused for
many years, currently blocks ICASA from allocating this spectrum for mobile.
In order to give South African consumers and businesses the most
cost-effective access to broadband, and to help the South African government
achieve its national broadband coverage targets, spectrum in the 2.6 GHz band
must be re-allocated for the deployment of LTE as soon as possible.

On the issue of taxation, the Analysys Mason report also states that
additional taxes are making Mobile Broadband services too expensive for many
South Africans. The South African government has implemented a taxation
approach that actively reduces Mobile Broadband penetration by putting an
economic burden on the purchase of handsets and services. A reduction in
these 'special' taxes will translate into higher Mobile Broadband service
adoption and more wealth creation reflected in additional GDP growth.

Notes to editors

*ITU Option 1 (ITU-R M.1036-3), for 2.6GHz spectrum allocation dictates
that 2 X 70 MHz FDD (2500 MHz - 2570 MHz paired with 2620 MHz - 2690 MHz) be
allocated to Mobile Broadband deployment, and 50 MHz is allocated to TDD
(2570 MHz - 2620 MHz).

About the GSMA

The GSMA represents the interests of the worldwide mobile communications
industry. Spanning 219 countries, the GSMA unites nearly 800 of the world's
mobile operators, as well as more than 200 companies in the broader mobile
ecosystem, including handset makers, software companies, equipment providers,
Internet companies, and media and entertainment organisations. The GSMA is
focused on innovating, incubating and creating new opportunities for its
membership, all with the end goal of driving the growth of the mobile
communications industry.

For more information, please visit Mobile World Live, the new online
portal for the mobile communications industry, at
www.mobileworldlive.com or the GSMA corporate website at
www.gsmworld.com.

GSMA, Roger Hislop, or Sarah Rice, both of Sentient Communications, +27-21-422-4275, press at gsm.org