Cell C takes Icasa to court over spectrum deposit
Cell C seeks to recover R28.82m it paid during spectrum auction in 2022.
South Africa's telecommunications regulator, Icasa, is facing a legal challenge from Cell C over a spectrum deposit payment. Cell C has filed a lawsuit against Icasa seeking R28.82 million in damages stemming from its participation in the 2022 spectrum auction. According to Icasa's 2025/26 annual report, the regulator sees the damages claim as a liability that depends on the outcome of the court proceedings.
So far, no provision has been recognized as Icasa maintains no present obligation to reimburse Cell C. The spectrum auction, which was widely seen as successful, took place in March 2022 and was the first time in 17 years that new radio frequency spectrum was auctioned to mobile operators. The auction attracted six companies, including Cell C, and generated R14.4 billion in spending by the participants, which went to the government.
Cell C had bid for a 10MHz block of spectrum in the 3 500MHz band and paid a deposit equivalent to 10% of its total bid. However, despite paying the deposit, Cell C encountered difficulties repaying the full spectrum fees owed to Icasa, leading to a forfeiture of a portion of the spectrum.
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