Radio Frequency Spectrun; SABC Board: briefing

Documents Handed Out:
Radio Frequency Spectrum (see Appendix 1)
SATRA Chairperson's Remarks (see Appendix 2)
Letter to Chairperson Kekana from Ms K Govender (Objection to Nomination to SABC Board) dated 26/1/2000
Letter from Dr Ruth Teer-Tomaselli to Chairperson Kekana dated 8/2/2000
Government Gazette, August 24, 1998, Vol. 398, No. 19180.
Statement by Communications Minister on the Auditor General's Investigation into SATRA
[Email [email protected] for those documents not appended to the end of these minutes]

SUMMARY
The Committee focused on two items. Firstly, the nomination of Dr Ruth Teer-Tomeselli to the SABC Board, and secondly, presentations by the Department of Communications and the South African Telecommunications Regulatory Authority (SATRA) on the Radio Frequency Spectrum (RFS).

The committee sought legal advice over the objection of Dr Teer-Tomeselli by Ms Govender to the SABC Board. It was advised that the committee take no further action as the nomination was now in front of the President. All members agreed.

A Discussion session followed the presentations to enable the members to get a better understanding of Radio Frequency Spectrum and frequencies in general.

Questions were also raised about the IBA/SATRA merger, and Third Cell Licencing. The Chair dismissed these questions stating they were too contentious to be discussed at the time, and were outside of the purpose of this information session.

MINUTES
The Chair stated that two items were on the agenda: The SABC Board nomination of Dr Ruth Teer-Tomaselli, and the Radio Frequency Spectrum(RSF).

SABC Board Nomination:
Regarding the objection by Ms Kubeshni Govender to nominate Dr Ruth Teer-Tomeselli to the SABC Board, Chairperson Kekana asked for advisement from Mr Anton Meyer, the head parliamentary legal advisor.

Mr Meyer stated that since the matter had been placed before the National Assembly for discussion and had gone onto the President's Office, there was no need for further discussion by the committee. He added that Section 16 of the Broadcast Act stipulates the qualifications that all appointees must meet, and if it is later discovered that Dr Teer-Tomeselli does not meet these qualifications, only then should the committee have reason to readdress this issue. Members from all of the parties agreed.

The Chair resolved that three conclusions were evident. First, that the time period regarding objections of nominees to the SABC Board has concluded, and the objection of Ms Govender arrived too late for this committee or the National Assembly to discuss. Second, that allegations of this nature must be handled through the Courts, not by a portfolio committee, and third, any allegations brought to a committee must be "substantial."

Ms Smuts (DP) wanted discussion on the postponement by the President of the new SABC Board, and the three month extension of the current Board. The Chair said that discussions would be held at a later date.

Radio Frequency Spectrum (RFS)
Presentations were made to the committee by the Director General of the Department of Communications, Andile Ngcaba and by SATRA chairperson, H N L Maepa. (See Annexures)

Discussion:
The Chair asked for clarification on RFS, and on why it is considered a national asset.

Mr Ngcaba replied that the RFS refers to the millions of frequencies that are in the air. These frequencies are used to pick up and transmit information over long distances. He stated that the Spectrum identifies high and low frequencies, and that these frequencies are segmented so that certain frequencies can only be used in certain areas. He referred to frequencies as "a natural resource that cannot be seen or touched." He further stated that laws are in place to govern spectrum use, and that licenses were now needed to use RFS.

Mr Ngcaba argued RFS was a national asset because it was being used by the Departments of Defence, Communications, Health, and Arts Science and Culture, as well as in medicine and satellite technology. He also believed that it will produce future economic benefits for businesses, once methods to aid businesses access the spectrum have been established.

An ANC member asked how different Third Generation be?

Mr Ngcabu said that Third Generation will enhance the current system through new techniques, such as providing a picture of the person that you are talking to, sending e-mails and faxes. He also said that with Third Generation, phones will be able to be used at higher frequencies than the present 800 MHZ.

Mr Gore (DP): What is the extent of international co-operation with Spectrum?
What is the exact breakdown of use of Spectrum services by our Departments in relation to the rest of the world?

Mr Ngcaba stated that there are many international organizations that operate using Spectrum including, INTELSAT, which operates the biggest fleet of satellites, and INMASAT, which concentrates on sea vessels and some areas of aviation. He did state that Communications is the largest user of Spectrum in terms of the number of users, but that Spectrum is also used by Space Research, and Defence for very important matters.

Mr Ramusi, the General Manager for Spectrum at SATRA stated that SATRA works with many international satellite organizations on technical issues. He also added that they were unable to compare use of Spectrum in South Africa to other countries, because of a lack of the necessary resources.

Mr Kekana asked for SATRA to explain their role in RFS. Mr Maepa stated their role dealt with the transmission of information from the television and radio broadcasters to the satellites in space exclusively..

Ms Vos (IFP): How do you develop this industry, and still entice investors?
How do you develop policy in line with technology without holding back industries? Can industries be manipulated by the costs?

Mr Ngcaba stated that a Directorate had been established to deal with policy issues. He said he was hoping that Third Generation technologies would become commercial by 2002, but that the Department has to focus it's attention beyond Third Generation and assume that the Fourth Generation will need more frequencies. He elaborated that their main concern was over the long term usage of RFS, and the effects of the "migration policy". He explained migration policy refers to the possibility that users of Spectrum may have to be moved to different sites, if the site they are occupying could be used to serve bigger interests. Incorporated in this policy is the need to address financial compensation, such as reimbursing the cost of the license. He admitted this area was not clearly defined, but that research is being done on the future use of Spectrum sites weighing the economic potential of a Spectrum now to the economic potential of a site in the Third or Fourth Generation.

Mr Ramusi stated to entice businesses they intend to group their services to be more investment-friendly, and that a joint-licensing committee would be formed to solve any problems that arise from the use of Spectrum. He also stated that they had two projects underway that would be beneficial. Firstly, the Frequency Band Plan, which seeks to attract investors for satellite uses at higher level frequencies, and secondly, SABRE-1, which has two purposes. One, to undertake a re-plan of the RFS between 20 MHz and 3GHz to ensure efficiency, and two, to ensure the orderly migration of major spectrum users to more appropriate bands.

The Chair noted that the committee will receive the Frequency Band Plan from SATRA for discussion in a later meeting.

Mr Maserumule (ANC): What causes congestion on cellular phones?

Mr Maepa said that congestion was caused by a number of factors, including interference from rain, large buildings, or from too many people using a certain frequency in one area at the same time. He also said that the problem that they were facing was a lack of funding to maintain their existing systems. He stated there were two possible solutions. First, to change the frequency level, and second, the Authority must ensure both the reduction of congestion, and that all placed calls go through.

Mr Maepa concluded the discussion stating they must weigh all their actions according to the law, the Constitution, and all regulations prescribed as well as keeping it in line with the public interest.

Appendix 1:
Radio Frequency Spectrum
Radio Frequency Spectrum is a medium through which various services take place such as, Health, Defence, Telecom. Research, Space etc.

Due to the development of many new technologies as well as many existing technologies making use of radio frequency spectrum, the spectrum has become congested.

As it is a scarce resource and in some cases under-priced, it needs to be managed both financially and technically in a very economic and sound way.

This has led to the need to revise the cost of available spectrum capacity. Optimal usage may be attained by means of financial dimension, namely spectrum evaluation and pricing.

Objectives
• Maximise the value of the frequency spectrum;
• Maximise the efficient an economic use of the spectrum;
• Align ourselves with the ITU recommendations and world standards;
• Derive the most benefits for the users thereof;
• Harness the benefits of new technologies;
• Benefit the broad public in telecommunications, broadcasting and transfer of data, which, in turn, will generate off-spins such as economic upliftment, tele-medicine, tele-education, etc;
• Promote under-utilised spectrum;
• Encourage entrepreneurship and innovation in the wireless arena.

The Department of Communications deals with:
• Policy
• Legislation
• Development of telecommunications and broadcasting industries in South Africa

The Department is responsible for:
• Setting broad Government Policy
- Empowerment
- Universal Access/Service
- Competitive Sector Structure

South African Telecommunications Regulatory Authority (SATRA) is responsible for:
• Regulation of telecommunication including presented by Andile Ngcaba (Director General: Communications Department)

Introduction
 

- Licences
- Monitoring operator compliance with licensing conditions
• Promotion of universal & affordable services
• Promotion of fair competition, innovation and investment
• Empowerment
• Protection of users and consumers of telecommunications services

The Policy areas include:
• Analysis of the present systems and pricing methods in use;
• Consider and analyse all the possible spectrum pricing techniques;
• Determine the impacts of the different spectrum pricing techniques on users, large and small;
• Set Policy with detailed pricing levels and relevant structures;
• Draft any legislation required

In Policy Formulation the Department shall focus on:
• Financial and economic implications
• Market structure and involvement
• Foreign and domestic responsibilities
• Legal implications and legislation
• Convergence issues
• Long-term viability and adaptability
• Economic motivation
• International obligations
• Industrial Participation

Third Generation System (3G)
• 3G is defined as equipment complying with ETSI standards
• The frequency bands 1900-190 MHz, 2010-2025 MHz and 2110-2170 MHz are designated for terrestrial 3G applications
• The 3G satellite component applications are accommodated within the bands 1980-2010 MHz and 2170-2200 MHz
• At least 2x30 MHz in the bands 1900-1980 MHz and 2110-2170 MHz will be made available for 3G by 1 January 2002
• Further spectrum could be made available for 3G from the above-mentioned bands subject to market demand

The existing spectrum designated for the second generation mobile services (such as GSM 900 and GSM 1800) may integrated into the allocations for 3G.

Appendix 2:
SATRA Chairman's Introductory Remarks Before the Parliamentary
Portfolio Committee on Communications
Subject: Radio Frequency Spectrum
9 February 2000

The Authority appreciates the opportunity to appear before this Committee and to share with the Committee our views relative to the frequency spectrum. With me today is Councillor Labius Lesibu, who has spearheaded many of our activities in the area of the spectrum. Also with us is Mr Mothibi Ramusi, who is the top person on our staff on spectrum issues, in his position as the Acting General Manager:
Spectrum Management.

In these introductory remarks I will explain the basis for the Authority's work in this important area. Then the Authority will be delighted to answer any questions the Committee may have.
1. Under the Constitution of the Republic, Act 108 of 1996, specifically in Chapter 2: Bill of Rights, thereof is Clause25 dealing with property, Subclause (4) 'For the purposes of this section-

(a) the public interest includes the nation's commitment to land reform, and to reforms to bring about equitable access to all South Africa's natural resources; and

(b) property is not limited to land."

It must be stated categorically here that for ordinary citizens like the Chairman of SATRA the scarcity of the natural resource that is the frequency spectrum is not fully appreciated until one has to deal with demands for it at SATRA on a daily basis. Then one knows just how scarce, and hence very valuable, it really is.

2. Under the Telecommunications Act 103 of 1996, specifically Chapter IV on the Radio Frequency Spectrum, in Section 28, which deals with control of the radio frequency spectrum, the Act reads as follows:

"Section 28(1) The Authority shall be vested with the control, planning, administration, management and licensing of the radio frequency spectrum."

3. Under the same Act, in Section 30, which deals with frequency and station licenses, that is, licenses to operate facilities such as satellite stations, and indeed the cellular base sites that we see in our neighborhoods and along our national highways, the law says:

"Section 30(6) The Authority may amend a frequency spectrum license or station licence….

(c) if requested thereto by the licensee concerned."

In the next subsection the law goes on to require of the Authority as follows:

"Section 30(7) The procedure in relation to the amendment... shall be as prescribed."

4. The Authority has prescribed, just as the law requires. We did so in the Government Gazette, Volume 398 of 24 August 1998, No. 19180. We call this prescribed procedure Regulation G1OA. True to best international practice, G1OA requires transparency and just administrative action. Thus it is that the news media have been sharing with the public one such implementation of the law and its regulations in the case of the request for amendment received from MTN and Vodacom involving the 1800 MHz frequency band.

5. Regulation G1OA procedures are now in progress, and, as required by G1OA, the Authority will be receiving shortly public representations, which will be heard orally also in open public forum at the offices of SATRA. As the law and the regulation require, after hearing representations, the request to amend will be duly considered by the Authority, and a decision will be made whether to amend or not to amend. As required of the Authority, all such decisions will be made with full consideration of the public interest in mind.

6. Finally, it is the hope of the Authority that our discourse today with the Committee will shed more light on the issues of the frequency spectrum. It is also our hope that no questions, leading or otherwise, will be asked of the Authority that would tend to elicit answers that we do not at this time have, and cannot have, since the G1OA process still has a long way to go before a decision is rendered by the Authority.

Thank you and we look forward now to your questions.