11 March 2005 Jackie Boitumelo Manche

1. Independent CommunicationsAuthority of South Africa - Presentation to the Portfolio Committee - 11 March 2005 Jackie Boitumelo Manche

2. Overview • Introduction • Strategic Objectives • Review and Outlook • Law, Communications, Consumer Protection and Council Support • Telecommunications • Broadcasting • Engineering and Technology • Budget • Self Funding • Conclusion

3. Powers and Functions • Principal functions include: • Policy development and regulation of broadcasting & telecoms sectors • Establishment and control of tariff structures • Issuance of broadcasting and telecoms licences • Management of the efficient and effective utilisation of radio frequency spectrum • Control and prevention of anti-competitive behaviour by dominant players • Ensure compliance with communications regulatory framework and licence conditions

4. Strategic Objectives ICASA’s strategic objectives are informed by government’s policy directives as well as legislative imperatives: • Promoting affordable delivery of services and universal access • Encouraging investment in the communications sector within a stable and regulatory regime • Encouraging the development of a competitive and effective communications sector • Promoting and facilitating convergence of telecommunications, broadcasting and information technology

5. Strategic Objectives (2) ICASA’s strategic objectives are informed by government’s policy directives as well as legislative imperatives: • Fostering the development of public, commercial and community broadcasting services that are responsive to the needs of the people • Promoting the provision of a diverse range of sound and television broadcasting services on a national, regional and local basis • Bridging the Digital Divide

6. Key Market Issues – 2005 and beyond • Further liberalisation of the telecommunications market consistent with September 2004 policy announcements include: • Technology driven convergence of the broadcasting & telecommunications sectors • VOIP • VANS & PTN • Self provision of infrastructure • Second Network Operator (SNO) • R60 billion telecommunications sector still growing • Convergence legislation • Growth of the broadcasting sector (R7 billion) • Broadcasting sector consolidation in view of market conditions • 2010 World Cup • ICT charter development

7. ICASA Strategy Development “The Journey” Functional independence “Transform ICASA into a fully independent, continually relevant and credible regulator of the South African communications sector” Clear respect in the industry Efficient streamlined processes with total management control A magnet for talent with clear career development path & dynamic work environment

8. In depth understanding of & effective regulation of the communication sector “To transform Itself into a fully independent, continually relevant & credible regulator of the South African communications sector Functional independence World class execution The ICASA Value Drivers The ICASA Value Drivers

9. GOALS • Become the undisputed authority on the communications industry structure • Develop & institute world-class Knowledge Management (KM) system • Effectively regulate the communications sector In-depth understanding & effective regulation of the communications sector “To transform Itself into a fully independent, continually relevant & credible regulator of the South African communications sector Functional independence World class execution of its functions • GOALS • Develop organisational capability • Develop operational excellence • Develop good capital stewardship • GOALS • Establish clear roles and responsibilities between DoC, ICASA & Legislature • Establish clear unambiguous internal governance structure • Establish clear delegation of authority The ICASA Goals

10. Telecommunication Services

11. Major Deliverables for 2005/06 • Finalise revision of the Rate Regime; • Conduct inquiry into Significant Market Power; • Preparation for Convergence; • Revision of Interconnection and Facilities leasing Guidelines; • Preparation for the implementation of mobile COA/CAM;

12. Major Deliverables for 2005/06 • Licensing of- Under Service areas; • Telkom licence amendment; • Licensing of the SNO; • Licensing of Value Added Network Services operators;

13. Broadcasting Services

14. Major Deliverables for 2005/06 • Review of Advertising and Sponsorship regulation • The re-engineering of existing policies to address requirements set by the Convergence Bill • Inquiry into Children and Woman’s programming • Review of commercial free-to-air television and inquiry into commercial free-to-air satellite broadcasting (tv and sound) • Midi TV licence Renewal

15. Major Deliverables for 2005/06 • Licensing of Secondary Markets • Licensing of Nodal Points • Licensing of SABC 4 and SABC 5 (Regional Television) • Licensing of Subscription Broadcasting

16. Engineering and Technology Services

17. Major Deliverables for 2005/2006 • Completion of Project Spectra • Spectrum Management and Planning Tool • Review equipment specifications • Introduction of new standards in conjunction StanSA • Annual Publication of Terrestrial BC frequency plan • Spectrum licensing/fees regulation • Satellite licensing framework

18. Major Deliverables for 2005/2006 • Radio Frequency Spectrum Audit • Update of licence records in order to license new entrants. • Planning of Digital Broadcasting Bands • Develop and effective Broadcasting plan that gradually introduce digital broadcasting and protect the existing and planned services in the band. • Migration of 3G frequency spectrum band • Clear band to licence SNO and Mobile operators • Completion 800 MHz sharing study • Possible introduction of CDMA technology • Alignment of SATFA with Convergence Act

19. Major Deliverables for 2005/2006 • SKA (Square Kilometre Array) Project • ICASA do terrestrial interference surveys for the SKA bid

20. Law, Communications, Consumer Protection And Council Support

21. Major Deliverables for 2005/2006 • Support Council to ensure compliant decisions to minimize litigation • Defend decisions from legal challenge. • Support regulation making processes to implement all policies and projects, including liberalization of markets and convergence legislation, to ensure certainty of the regulatory framework. • Intensify marketing and branding of ICASA • Manage information by creating interactive content on the website; increasing stakeholder liaison and attending media and public enquiries

22. Major Deliverables for 2005/2006 • Intensify outreach programmes with road shows; community workshops; partnerships with consumer bodies; consumer committees and dedicated ICASA consumer days to increase public awareness on telecommunications services and rights • Ensure compliance with the codes of conduct by operators, including the code on the service needs of people with disabilities • Translate all information material into all official languages

23. Major Deliverables for 2005/2006 • Identify major consumer issues to institute public processes and conduct consumer research • Hold public hearings on complaints on ADSL services provided by Telkom • Hold public hearings on installation of services by Telkom • Benchmark ICASA activities with international best practices through international and bilateral participation

28. Convergence Funding for 2005/06 – 2007/08

29. Major Deliverables for 2005/06 The major HR deliverables are as follows: • Continue with implementation of the Performance Management System; • Elimination salary discrepancies and disparities; • Recruit all remaining vacant positions.

30. Major Deliverables for 2005/06 The other major deliverables are as follows: • Upgrade the remaining office facilities; • Address remaining security concerns; • Improve internal document management; • Replace vehicles in the fleet that are no longer cost effective.

31. Licensing Revenue Trends

32. Self Funding • ICASA has previously made a case for the retention of some of the licence fees collected. Argument for self funding is based on following: • Provide sufficient funding for an effective regulator • Allow ICASA to respond to the dynamic regulatory requirements for managed liberalisation, convergence etc. • Augment internal human resource and technical capacity • Reduce reliance on the industry for critical regulatory data and knowledge that can influence regulatory decision making process • Improve collection of revenue as there will be an incentive to improve efficiencies • Detailed empirical research work is currently being undertaken

33. Conclusion • Received VAT funding to 31 March 2005, awaiting deregistration. • Implementation of new Convergence legislation • Licensing of 4th mobile and 3rd fixed line operators • Licensing Community sound broadcasters in all nodal points • Licensing Under Services Area Licensees • Improving capacity of ICASA to enforce compliance through improved legal resources and knowledge, as well as technical capabilities to perform its compliance and monitoring functions properly