RICA legislation registration requirements: Cellphone operators' progress reports, Protection of Constitutional Democracy against Terrorism and Related Activities Act proclamations

Meeting report

Regulation of Interception of Communication and Provision of Communication-related Information Act (RICA) requirements around registration of subscribers: Cellphone operators’ briefings
Presentation by Cell C
Ms Phila Mtya, Regulatory Compliance Advisor, Cell C, said that Cell C had, since February 2009, been training staff and salespersons on the new requirements of the Regulation of Interception of Communications and Provision of Communication-Related Information Act (RICA), and had trained more than 3000 sales agents. Cell C had partnered with various vendors. A total of 6 467 devices had been distributed. The implications of the Act included the possibility that subscribers without proper documentation, even if this was through no fault of their own, would be disconnected from the network. Many subscribers did not have proof of addresses. They relied on letters from their Chiefs, churches, schools or businesses to provide an address. Many of these addresses were not verifiable.

Ms Mtya said that Cell C had set up various promotions and competitions to encourage subscribers to register. Advertisements had been placed in the national media. A service was made available where agents would call on subscribers at their home or place of business. Cell C had been aggressive in taking initiatives to rural and under-serviced communities. Mobile trucks called “GIG RIGs” had been sent to outlying areas. Entertainment was presented, to draw people, who were then encouraged to register.

Ms Mtya said that, overall, 81% of the Cell C subscriber base had been registered. This was made up of 78% of prepaid customers, 91% of post-paid customers and 98% on the Control Chat scheme. In terms of the provinces, the highest rates on non-registration were in KwaZulu-Natal (27.8%) and Gauteng (24.6%). The best achievement was in the Northern Cape, where only 1.5% of subscribers had not registered. In terms of the different areas, 13.5% of unregistered subscribers were in agricultural areas, 9.9% in tribal areas, 7.7% in sparse areas and 8.7% in townships.

Ms Mtya sketched the way forward. The new cut-off date should be communicated to customers. The RICA registration footprint should be aligned with the geographic spread of non registered customers. A new RICA campaign should be launched with weekly reminders to customers. Cell C recommended that the Department of Justice and Constitutional Development (DoJCD) should establish a task team to facilitate the process of providing access to identity documents and postal services. This task team should involve the Department of Communications (DoC), Department of Home Affairs (DHA) and all operators. The DoJCD should ensure that the Post Office roll out plan was shared with all stakeholders. The challenges of undocumented subscribers in rural areas should be addressed with the National House of Traditional Leaders and the Department of Cooperative Government and Traditional Affairs (COGTA). Cell C was prepared to make network services available to the DHA to facilitate the process.

Discussion
The Chairperson asked about the relevance of the pictures presented by Cell C showing people being brought together. He asked about the statistics on subscribers in Limpopo. In the presentation, figures were given of various sectors, and he asked what the figure of 40% represented. He was concerned as to why the presentation was only being made now. The deadline for registration had already had to be moved from December 2010 to June 2011.

The Chairperson asked what was meant by the reference to shares. He wanted to know what the problem was in the rural areas, and why this was of such concern. He asked how the process of verification was proceeding and if the networks needed any assistance from Parliament.  He asked what the process entailed. He questioned the provision of percentages rather than actual numbers of unregistered subscribers.

Ms Mtya said that the number of subscribers could be provided but she was reluctant to do this in an open forum, as the information was commercially sensitive. The GIG RIG trucks were a means of taking the registration campaign to the people. There were ongoing campaigns and competitions to get rural people involved in the RICA process. The reference to 40% meant 40% of the unregistered subscribers.

The Chairperson discussed this issue with Members. It was possible to request all guests to leave while this information was provided. Members wanted to hear what the actual numbers were. Some suspected that Cell C was trying to hide something. The cellphone industry still had a monopolistic tendency.

Mr A Watson (DA, Mpumalanga) disagreed. He felt that the information should be public.

Mr D Bloem (COPE, Free State) agreed with Mr Watson.

The Chairperson, after hearing further comment from Members, felt that it was not necessary to close the meeting. However, it would be acceptable if Cell C were to provide the information directly to the Chairperson.

Ms Mtya undertook to provide the required numbers to the Chairperson. She explained that the sharing devices were electronic data capturing machines. These devices were not necessarily tied to a particular network. Particular concerns in the rural areas were a high level of illiteracy and the lack of addresses. If there was no information, then the networks would not know how to proceed. The postal services were required to fast track the provision of addresses. It would help if the processes could be combined.

Mr Mothibi Ramusi, Executive Head: Regulatory Matters, Cell C, said that the law was designed to aid with the implementation of the interception of communication. The Act was meant to curb possible terrorist and criminal activities. Verification was a very important process and had been identified as such when the Act had been implemented.

Ms Mtya said that foreigners, even if legally in South Africa, faced the same problems of a lack of acceptable identification and proof of residence. Those who were undocumented would lose their service after the deadline.

Mr Watson sketched the case of a person who might be a subscriber to one network but subsequently became a customer of another network. He asked whether a person who had been registered by his original network would have to register again with the new network.

Ms Mtya replied that every time a person used a new network, or even acquired a new SIM card from his or her existing network, a new registration was needed.

Mr A Matila (ANC, Gauteng) agreed that people in the rural areas did not have addresses. He pointed out that 65% of the South African population lived in rural areas.

Mr T Chaane (ANC, North West) said that a person who possessed a valid identification document could register as a voter. He asked if this was not sufficient to register in terms of RICA. Such a person must have some form of address when registering to vote.

Mr Bloem asked if this was an information session. He thought that DHA was central in the question of issuing identification documents. Clarity was needed.

The Chairperson said that the criteria for RICA registration had already been decided.

Mr Watson asked why the Committee had not been involved previously.

Mr Jaco Myburgh, Supply Chain Executive, Cell C, said that the original deadline had been 31 December 2010. It became clear that the networks could not comply by this date. Towards the end of 2010 they had submitted a request to have the deadline extended. Cabinet had approved this submission and the deadline was duly extended to 30 June 2011. There had been a meeting in the Free State where the DoC had met with the Portfolio Committee on Communications at length. The Committee was concerned that the deadline would not be met. All service providers had problems in reaching customers in the rural areas. The Committee was concerned that people would lose their means of communication if they were not registered. It was emphasised that the June date was the final extension. The networks were asked what they were doing to achieve the deadline.

The Chairperson asked for assurance on what was being done for people in the rural areas.

Ms Mtya said that there were not that many unregistered subscribers. The initiatives were still running. Cell C was pretty sure that it could register all its customers. New subscribers were automatically registered in terms of RICA. She stressed again that the networks could not, however, register customers for RICA if they did not have an identity document or an address. The networks were accepting letters of confirmation of address issued by schools, churches and indunas. However, the legitimacy of these could be questioned.

Mr M Mokgobi (ANC, Limpopo) was concerned about these suggestions, saying that chiefs and indunas were government representatives and were thus Commissioners of Oaths. He thought it would be problematic if letters signed by such officials were to be questioned.

Mr Ramusi said that the Task Team had made recommendations to the Committee. The departments with a huge role to play had been identified. The processes dealing with the 2010 World Cup had shown how important it was to understand the impact of RICA. It was a matter of emphasis. A collective effort was needed to tackle the problem.

Presentation by MTN
The Chairperson told Members that MTN had written to the Committee, and had accepted the invitation to attend the meeting, but had asked that the meeting should be held in camera. MTN was due to release its annual results in March 2011. As a trading entity on the Johannesburg Stock Exchange (JSE), it was not allowed to make its results public in the three month period before the official release.

Mr Bloem asked the delegation if this was still the case.

Mr Robert Madzonga, Chief Corporate Services Officer, MTN, said that it was.

Mr Bloem said that Parliament was an open forum. In terms of the Constitution, information must be made available. The Committee needed information on the company's progress regarding RICA and not any news on the shareholding. He realised that this was a sensitive issue.

Mr Matila said that there was a problem in the way the information was to be presented. Members of the media were present at the meeting. He would agree to the meeting being held in camera if this was a problem.

Mr L Nzimande (ANC, KwaZulu-Natal) thought that the confidential information surely related to pricing, not the RICA statistics. The rules of Parliament did make provision for closed meetings. The Committee had not sent the networks a template as to what information would be needed, although it was clear that certain information would be sensitive. Members had reached consensus earlier that the focus should be on the number of unregistered subscribers. He could not find persuasive grounds for a closed meeting unless pricing was an issue.

Mr Watson said that the Committee should also hear what the legal opinion was.

The Chairperson said that he had submitted MTN’s letter to the Parliamentary Legal Advisors, who felt that there was no legal basis for calling a closed meeting.

Mr Madzonga said that he would agree to proceed with the presentation without disclosing the numbers of subscribers. MTN was in a closed period from 9 January to 3 March 2011, in terms of the rules of the JSE. He would, however, share the information required confidentially with the Committee.

Mr Madzonga said that MTN was busy with an increasing number of activities surrounding RICA registration. It was spending more than R150 million a month on the campaign. It was continuing to invest in efforts to reach all subscribers. MTN had taken its campaign to stadiums and shopping malls. MTN had equipped approximately thirty RICA buses. These vehicles travelled the country with the particular goal of getting young people to register. Prizes were on offer as incentives. MTN had established 6 500 points of presence around the country. Its initiatives included visiting hostels, bars and gymnasiums, door-to-door campaigns and being present at DHA offices. It had advertised on radio and television.

Mr Madzonga said that MTN had also established an online system to assist customers. It had invested a lot in the system. It provided information on where the concentrations of unregistered subscribers were. A concerted effort could then be made to target these groups. There was a challenge in the rural areas. One thing that might help would be the design of a simpler affidavit to declare the subscriber's residence. MTN Zoners had been despatch to various areas to register people.

Discussion
Mr M Makhubela (COPE, Limpopo) asked what the situation was in Limpopo.

Mr Madzonga replied that the MTN buses had toured the province. Advertisements had been placed on community radio stations.

Mr Matila reminded the MTN delegation that it would have to supply the required information.

Mr Bloem commented that in his view, MTN had provided an empty presentation. Cell C had given some information on statistics and progress.

Mr Madzonga said that it would also have been restricted to percentages. More detail on the total subscriber base could only be made public knowledge on 9 March 2011.

Mr Matila said that both presentations had provided insufficient information.

Mr Madzonga replied that he would forward the information to the Committee the following day.

Mr Bloem was still unhappy. At least Cell C had tried to inform the Members, and had been dealt with harshly for their troubles.

Presentation by Vodacom
Mr Nkateko Nyoka, Director, Vodacom, said that approximately 80% of the Vodacom subscriber base was registered. 18% of prepaid and 13% of contract subscribers were already registered. There was a challenge, in that it had taken longer for customers to appreciate the importance of being registered. It was also a challenge to reach the rural areas. Customers, especially those on contracts, were under the impression that all their relevant details had already been captured. Most prepaid subscribers could not furnish proof of residence. Stores or schools were given as addresses. A creative solution was still needed.

Mr Nyoka said that Vodacom would not be asking for a further extension of the deadline for RICA. The operator respected the law and would disconnect those subscribers who were not registered. Many packages were sold by informal traders. There was general apathy. South Africans were known to react at the last minute, as evidenced by the eleventh hour rush to obtain the new style driver's licences.

Mr Nyoka described some of the initiatives undertaken by Vodacom in December and January. Permanent RICA sites had been established in the rural areas. There were many walk-in centres at shopping malls and all Vodacom outlets and agencies. An advertising campaign was planned. There would be competitions and prizes to foster awareness of RICA. The efforts to date had been reasonably successful. The information gathered was helping Vodacom to know its customers better. Daily registrations had increased from 8 877 in November 2010 to 9 826 in December.

Mr Nyoka said that there were still just over three million prepaid and 650 000 contract customers that had to be registered. Vodacom needed to increase its efforts. RICA registration was done as a matter of course when contracts were renewed. Letters and SMS messages would be sent to customers. Groups of one thousand unregistered subscribers would be identified and centres would be set up in those areas. The operator would use all methods at its disposal. The law enforcement agencies had initiated RICA, and Vodacom would have no choice but to disconnect those subscribers who had not registered before the deadline.

Discussion
The Chairperson asked if Vodacom anticipated any legal challengers from foreigners or residents in the rural areas who might be disconnected.

Mr Nyoka replied that it was possible. All means were being explored. Where the lack of an identity document was the problem, foreigners legitimately residing in South Africa should be able to use their passports as identification. A structure had been set up in the rural areas. For example, a tribal chief could fill in an affidavit. There were still some 500 000 identity documents lying unclaimed at DHA offices. Standard forms would help to compensate for low literacy levels. Vodacom also traded in other African countries. What happened in South Africa had a knock-on effect on the region. The company would face much more onerous challenges in other countries.

Mr Makhubela queried the numbers.

Mr Nyoka replied that Vodacom did communicate with the 3.1 million unregistered subscribers. Certain RICA requirements still had to be captured. It could now see how many people lacked an identity document and physical address. The company would lose some revenue should these people be disconnected, but such a move would be in the public interest. Vodacom was committed to reaching as many people as possible. He had noticed that some people were making a business out of supplying affidavits.

Prince M Zulu (IFP, KwaZulu-Natal) was concerned about the fate of those people who would be cut off. Some of these might even be important government officials in the rural areas.

Mr Deon Rudman, Deputy Director General (DDG): Legislation Development, DoJCD, admitted that the service providers had their concerns. Parliament had decided what the requirements were. An Amendment Bill had been passed in 2010 that took some of the suggestions made by the service providers into account. Law enforcement agencies were not in favour of any relaxation of the current legislation. Communications were important in all areas. However, the RICA Act was in place to deal with crime. The main legislation had been in place since 2006. The amendments had been debated for a year. There had been ample opportunity to register. He anticipated that 99% of subscribers would be registered by the June deadline, especially in the rural areas.

Mr Rudman said that a disconnected subscriber could still register the very next day. Imposition of this deadline was necessary. The Department might revert to Parliament on another amendment before the end of June. The aim was to combat serious crime. The South African Police Services (SAPS) felt strongly that it needed this information. The DoJCD would advise Cabinet. It was difficult to say what would happen if disgruntled subscribers did resort to legal action.

Prince Zulu suggested a joint sitting of the three concerned Committees.

Mr Matila was not sure if Vodacom had broken the law by revealing their subscriber numbers. He was happy with the presentation and hoped that they would reach their target.

Mr Nyoka confirmed that it was illegal to disclose trading information in the three months prior to the official release of results. This applied equally to Vodacom as to MTN, but he pointed out that since his company would only be releasing its results in June, it was not currently in the closed period where price-sensitive information had to be withheld.

Mr Bloem said that there was a concentration on the rural areas. There were many criminal syndicates that operated in those areas. Some criminals were surely part of the 3.1 million figure mentioned. These were the targets, as the legislation targeted criminal syndicates.

Mr Pakamile Pongwana, Managing Executive, Vodacom, said that this was possible. He pointed out that the statistics actually reflected the number of unregistered SIM-cards and not the number of subscribers. In many cases these SIM-cards might be in the hands of criminals who would rather discard the cards than reveal their identities. Some might also be SIM-cards that had not been used for three months, and had been automatically disconnected. There were no historical records.

Mr Mokgobi congratulated Vodacom on a comprehensive presentation. He asked how the outreach could be achieved. He recommended that Vodacom intensified its programmes. This Committee had passed the law and would take recommendations to Cabinet. He asked what price government could afford to pay to achieve its objectives. He asked what the position was with Telkom, which had recently launched its Heita package.

Mr Sarel Robbertse, State Law Adviser, DoJCD, said that the legislation had already been in place when service providers such as Telkom and Virgin Mobile had entered the market. All of their customers had therefore been fully registered.

Mr Nzimande wanted to see movement. While there was no need to panic yet, some pressure had to be maintained on the service providers. The deadline was 30 June.

The Chairperson said that another meeting would be called in May.

Protection of Constitutional Democracy against Terrorism and Related Activity Act: Proclamations: South African Police Service Briefing
Brigadier Kobie Strydom, Legal Services, South African Police Service, said that the Protection of Constitutional Democracy against Terrorism and Related Activity Act had been introduced in response to United Nations Resolution 1267 of 1999. This had come into effect in 2005. Information would be kept on the whereabouts of designated people. Fifteen changes had been made to this list in the last year, in terms of Section 26 of the Act. Members had been given a detailed presentation and she would not go through it.

Mr Gurshwin Dixon, Committee Secretary, said that an extra document had been distributed. This contained copies of correspondence and the proclamations.

The meeting was adjourned.