Cell C seeks to recover spectrum auction deposit from Icasa in South Africa court case

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Cell C seeks Icasa auction refund

Highlights

Cell C is suing Icasa to recover R28.82 million, the 10% deposit paid during the March 2022 spectrum auction for a 3 500MHz block.
Icasa disclosed in its 2025/26 annual report that no reimbursement is expected and no provision has been recognised for Cell C's claim.
Cell C previously faced financial pressures settling spectrum fees, entered a payment arrangement with Icasa in February 2024, and subsequently forfeited unused spectrum.

Spectrum dispute centres on 2022 auction deposit

As reported by Moneyweb, Cell C has instituted legal proceedings against the Independent Communications Authority of South Africa to recover R28.82 million linked to a deposit it paid during the March 2022 spectrum auction.

Icasa disclosed the claim in its 2025/26 annual report, where it said the matter is under assessment by the authority's legal advisers and that the outcome cannot yet be determined. The regulator said no provision has been recognised because management does not view a present obligation as confirmed, and it added that no reimbursement is expected.

During the 2022 auction, Cell C bid R288.2 million for a 10MHz block in the 3 500MHz band. An industry source told Moneyweb the operator had to pay a deposit equal to 10% of its total bid to participate in the auction, matching the amount now being sought in court.

Cell C confirmed it is involved in ongoing legal proceedings with Icasa over the deposit paid for spectrum awarded in the 2022 process. The company said it would not comment on the merits of the case because the matter is before the courts.

Regulatory and sector implications in South Africa

The case emerges after a spectrum auction that was widely viewed as a major milestone for South Africa's mobile industry. It was the first significant permanent spectrum allocation since 2005, and six companies, Cell C, Liquid Intelligent Technologies, MTN, Rain, Telkom and Vodacom, spent a combined R14.4 billion on new spectrum over 58 bidding rounds.

The release of new spectrum formed part of President Cyril Ramaphosa's reform agenda aimed at supporting private investment, economic growth and job creation. Expanded spectrum availability was also expected to improve service quality for consumers through faster data speeds, fewer dropped calls and potentially lower mobile data costs.

Cell C's court action comes after the operator had struggled to settle the full spectrum fees owed to Icasa. TechCentral previously reported that Cell C faced financial and liquidity pressure around those payments, and the company said in February 2024 that it had entered a payment arrangement with the regulator while an undisclosed balance was still under negotiation.

Cell C later forfeited a large portion of the spectrum to Icasa, saying it was no longer required and did not fit its turnaround strategy, according to TechCentral. The operator said the current proceedings are unrelated to its 2024 voluntary surrender of certain microwave-link spectrum and added that it remains committed to constructive engagement with Icasa and South Africa's regulatory framework.

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