Committee Programme and Envisaged Legislation for 2000: briefing

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Communications and Digital Technologies

08 February 2000
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Meeting report

COMMUNICATIONS PORTFOLIO COMMITTEE
8 February 2000
PROGRAMME AND ENVISAGED LEGISLATION FOR 2000: BRIEFING

 

Documents handed out:
Draft Programme
Envisaged Legislation for 2000
(these documents are attached to end of minutes)

SUMMARY
The draft committee programme for this year has been adopted with no objections. The Department of Communication presented a briefing on envisaged legislation for the year 2000.

MINUTES
Draft Programme
A draft programme was adopted with no objections. [See Annexure A] The Chairperson, Mr N Kekana (ANC), said they are still awaiting written confirmation with regard to some of the briefings. He urged members to be active, and emphasised that it was a working programme.

Appointment of SABC Board
Ms D Smuts (DP) enquired why all the SABC board members had not yet been appointed by the President. She criticised this as being "intolerable" and not in accordance with law. The Chairperson reported that the lifespan of the present SABC Board had been extended for another three months. He added that he had received a letter from a member of the public objecting to the appointment of Dr R Teer-Tomaselli to the Board. The Chair is currently consulting with Parliament's legal team, as to the procedure and possible avenues of recourse that should be followed. He urged all members to read the letter before tomorrow's meeting.

Envisaged legislation for 2000
The legislation includes:
- Telecom Amendment Bill
- Postbank Bill: aims at providing a greater autonomy within the existing divisional structure.
- Post Office Act of 1958: certain sections of this Act awaits amendments or repeal.
- Postal Amendment Bill: seeks to amend Section 10A of the Post Office Act of 1958 which deals with the Pension and Medical Aid benefits of the Post Office employees.
- IBA/ SATRA Merger Bill: currently with Cabinet
- Broadcasting Amendment Bill
- Convergence/ Multimedia Bill.
- e-Commerce policy: highlights of discussion document can be obtained at

http://www.ecomm-debate.co.za
- National Emergency Telephone Services Act of 1993: seeks at establishing a central call taking centre for public emergency services.

Questions and answers
Mr Green (ACDP): Why are there no regulations controlling universities and other educational institutions on the Internet?
When you refer to "promoting universal services", does this include e-mail services? Will the public have access to this by going to the Post Office.
Mr Ngcaba, Director-General for the Department of Communication: We favour minimum regulations, especially in this regard as it makes education more accessible.
The Department has patented an e-mail machine which operates on the same basis as an automatic teller machine, whereby one can access their personal e-mail by purchasing an e-mail card.

Ms Smuts (DP): Who drafted the IBA/SATRA Merger Bill?
Mr Ngcaba: The Bill was drafted by the Department of Communications.

Mr C Morkel (NNP): During the recent court proceedings on the Pagad case, the accused had claimed that they obtained information on making a pipe bomb from the Internet. Has the idea of Internet censorship been investigated, and have you explored the Australian model of this?
Mr Ngcaba: "The cyberspace in our country belongs to the government, and we are therefore seeking to address criminal issues on the Internet. Lots of research needs to be undertaken."

Mr V Gore (DP): Will the e-commerce policy be one piece of legislation, or will it consist of amendments to existing legislation?
Mr Ngcaba: We first need to scan all existing legislation which could inhibit e-commerce, then amend the relevant legislation. Presently, we have found more than ten pieces of legislation which need to be amended.
Mr Kekana added that they should look into forming an ad hoc committee to deal with this.

The meeting adjourned.
· Rationalisation of the Postal Services Act
· Telecommunications Act · Convergence
· Internet
· Economic models
2. SABC Restructuring - SABC & DoC (To be confirmed)
JUNE - Date to be confirmed
· Telkom IPO
· · · Emergency Communications· IBA/SATRA
· Telkom
· Vodacom

·

-banks have low outreach

-cost implications, e.g. transaction costs

Strauss Commission into rural financing, 1997

·

- Post Office savings accounts to provide emergency credit

Recommendation

·

1997 Future Post Study

·

1998 Cabinet approves of Postbank restructuring

·

-3 phases for restructuring

Current process in line with Government's approval in terms of 3 phases

·

Green Paper

·

White Paper

·

Government Vision

- Financial institution for mass mobilization of savings & investment funds

- Bank of first choice for lower income groups

- Utilization of SAPO network to contribute to household savings

- Support public investment capital for national policies

- Enlarge base for national savings

Restructuring of Postbank

Cabinet approved the following restructuring objectives:

Phase I

- provide greater autonomy within the existing divisional structure.

- the Postbank will have separate financial statements and balance sheet.

Phase II

- provide a complete range of payment and funds transfer services and expand the deposit service range.

Phase III

- an independent Board of Directors will be established and be held accountable to the Shareholders.

- Postbank to expand its services services to include credit product and services

Structures to the Restructuring of Postbank

-The White Paper proposes the establishment Postbank Committee reporting directly Post Office Board.

-Composition of the Committee and qualifications of its members should adhere to the requirements of the Banks Act for Directors of a registered Bank.

Postbank Bill

    - Drafting of Postbank Bill being mid March

    - Appoint project team incl. Advisors and stakeholders

    - Discussion document :May/June

    Time frame

      Post Office Act of 1958

      Reconciliation of the Act

        Postal Amendment Bill

          - Appointment of a project team

          - Preparation of Amendment Bill

          - Submit to Cabinet

          - Submit to State Law Advisors

          - Submit to Parliament

          BROADCASTING BUSINESS UNIT : BILL 2000

            Broadcasting Amendment Bill

              Convergence/Multimedia Bill

                ELECTRONIC COMMERCE POLICY PROCESS

                Why E-commerce Policy?

                -Security and privacy concerns

                -Legal barriers

                -Lack of understanding and preparedness by government, consumers, companies

                -Access and affordability issues

                -Socio-economic implications

                -Other concerns and challenges need to be dealt with

                Process and Timeframes

                  - Collaborative effort by various government departments

                  - Launched July 1999 to open public debate and discussions

                  • Phase 2
                  • - Green Paper Consultative Process - 1st Quarter 2000

                  - Includes all interested stakeholders

                  - Objective is to elicit debate and responses from the citizens

                  • Phase 3
                  • - White Paper - 3rd Quarter 2000

                  - Based on all input and insights received from Green Paper

                  - Formulate South Africa's position around e-commerce issues

                  Legislation - 1st Quarter 2001

                  Highlights of Discussion Document
                  http://www.ecomm-debate.co.za

                    Where are we in the process?

                    • Nine working groups established

                    - Security and Privacy

                    - Taxation & Customs

                    - Intellectual Property

                    - Infrastructure, Access and Convergence

                    - Electronic Payment System

                    - Internet Governance & Domain naming

                    - Maximising Benefits: Education, Awareness & Enablement

                    - Technical Standards

                    - Contracting & Trade Laws

                    • Stakeholders workshop convened to report back on findings and collate inputs
                    • Effective development of e-commerce policy depends on coordinated and participatory process
                    • Pertinent policy issues relevant to departments:

                    Need for Department to Participate

                      - Taxation and customs (challenge to SA tax regime)

                      - Labour market issues

                      - Local industrial strategies, trade policy, tariffs, consumer protection, competition policy

                      - Government IT policy and information management policies

                      - Education policies - distance learning programmes

                      - Legal issues e.g contracting, jurisdiction, evidence

                      - Multi-application identification smart card

                      - Paradigm shift in health - telemedicine

                      - Paradigm shift in culture and knowledge - electronic archiving

                      - State procurement and tendering

                      - Agriculture (Internet farms) and tourism promotion

                      Awareness Campaign

                        - Pilot initiatives to promote use of e-commerce, specific applications - specifically targeted to SMMEs and communities

                        - Popularisation of e-commerce - National campaign "e-2000"

                        - Both government and private sector to work on strategies for e-commerce promotion and use.

                        Public Emergency Communication

                        National Emergency Telephone Services Act, 1993

                        -Objective

                        -Establish central call taking centres for public emergency services (SAPS, ambulance, traffic, fire.)

                        -The primary emergency number be 107.

                        Key Legislative Issues

                          - Human Resources

                          - Standard operating procedures

                          - Languages

                          • Technology and Infrastructure
                          • Funding

                          Recommendations

                          • -Review legislation
                          • -Establish national institution for public emergency communication
                          • -Central funding mechanism
                          • Multiplicity of emergency numbers
                          • Governance
                          • Government to lead in creating awareness:
                          • DoC & GCIS developing communications strategy aimed at building awareness
                          • Programmes to be developed to provide education about e-commerce,
                          • Building Trust: discusses policies that would address security and privacy in order to create trust and confidence for users
                          • Establishing ground rules: discusses policies that define the common rules and practices to apply to electronic transactions globally
                          • Enhancing Information Infrastructure: discusses policies that would provide broad and affordable access to information and communications infrastructure including banking infrastructure
                          • Maximising Benefits: policies that focus on promoting new business opportunities and on facilitating the transition of economy
                          • Legal Report - audit of SA law with a view of identifying areas that could constitute barriers to the development of e-commerce and suggest options to eliminate such barriers
                          • Phase 1
                          • - Discussion paper - July 1999

                             

                          • Progress: Research is currently in progress into the technical and economic implications of these developments and wide public consultation will have to be undertaken before drafting of the legislation can commence.

                             

                             

                          • Expected date of submission to Cabinet: 22 November 2000.

                             

                             

                          • Priority : High. The rapid convergence in telecommunications, broadcasting and information technologies is blurring the boundaries of current legislation and regulations. It is therefore important for the orderly development of these sectors and in order to encourage greater investment, that new legislation and regulatory guidelines be put in place at the earliest opportunity.

                             

                          •  

                          • Progress : The content of this Bill is currently being refined and final drafting will commence shortly.

                             

                             

                          • Expected date of submission to Cabinet : 14 June 2000

                             

                             

                          • Priority : High. There are a number of aspects in the various pieces of current legislation that need to harmonised with one another in order to ensure a more rapid pace of development and to encourage greater investment in this important sector of the economy.

                             

                          • IBA/SATRA Merger Bill
                          • Progress: This Bill is currently with Cabinet and will be introduced into Parliament during February 2000.
                          • Expected date of submission to Cabinet : Already with Cabinet

                             

                          • Priority : High. This merger between the IBA is long overdue. It is important, because of the convergence in telecommunications and broadcasting technology and in order to ensure the orderly development of this important sector of the economy, that a merged regulatory body be put in place as soon as possible.

                             

                          • This Amendment Bill seeks to amend Section 10A of the Post Office Act 1958 which deals with the Pension and Medical Aid benefits of the Post Office employees
                          • Timeframe:
                          • The Act is a joint project with the Telecommunications Bussiness Unit and awaits the amendment or repeal of certain sections in the 1958 Act through Gazetting of those repeals.
                          • Project team to be established on 20 February 2000
                          • Issue 26 October 1999
                          • Briefing session 2 November 1999
                          • Deadline for submission 26 November 1999
                          • Clarification & evaluation 27 November 1999
                          • Seek IMCC approval As soon as possible
                          • Approval by SAPO Board after IMCC approval
                          • Appointment of Consultant mid March
                          • Corporatisation & Business Strategy August/September
                          • This will be a parallel process along with the corporatisation:
                          •  

                            - stated government's vision

                            - noted institutional constraints of Postbank

                            e-Commerce
                            Telecommunications Competition
                             

                            Annexure A

                            DRAFT PROGRAMME AS AT 2 FEBRUARY 2000

                            TUESDAY, 8 FEBRUARY
                            Agenda: Programme for 2000
                            Briefing by Department of Communications on envisaged Legislation

                            WEDNESDAY, 09 FEBRUARY
                            Agenda: Briefing by DoC and Satra: Radio Frequency Spectrum
                            (To be confirmed)

                            WEDNESDAY, 16 FEBRUARY
                            Agenda: 1 Briefing by Postal Business Unit, DoC
                             

                            2 Briefing by SAPO on the Post Office Restructuring

                            (To be confirmed)

                            THURSDAY, 17 FEBRUARY
                            Agenda: SAPO local visit
                            (To be confirmed)

                            MONDAY, 21 FEBRUARY
                            Agenda: Visit and briefing - Vodacom's Technology Centre, BelIville Dinner

                            TUESDAY, 22 FEBRUARY
                            Agenda: Briefing by DoC on Merger Bill
                            (To be confirmed)

                            TUESDAY, 29 FEBRUARY
                            Agenda: Briefings by GCIS
                            (To be confirmed)

                            WEDNESDAY,01 MARCH
                            Agenda: Briefing by DoC on Budget
                            (Provisional)

                            MONDAY, 6 MARCH
                            Agenda: Public Hearings - Merger Bill

                            TUESDAY, 7 MARCH
                            Agenda: Public Hearings - Merger Bill

                            WEDNESDAY, 8 MARCH
                            Agenda: Public Hearings - Merger Bill

                            MONDAY, 13 MARCH
                            Agenda: Public Hearings - Merger Bill

                            TUESDAY, 14 MARCH
                            Agenda: Public Hearings - Merger Bill

                            WEDNESDAY, 15 MARCH
                            Agenda: Public Hearings - Merger Bill

                            WEDNESDAY, 22 MARCH
                            Agenda: Final Stages - Merger Bill

                            THURSDAY, 23 MARCH
                            Agenda: Final Stages - Merger Bill

                            MONDAY, 3 APRIL
                            Agenda: Merger Bill
                            (Final Stages)

                            TUESDAY, 4 APRIL
                            Debate in National Assembly on Merger Bill

                            WEDNESDAY, 5 APRIL
                            (To be confirmed)
                            Agenda: e-TV and Transtel

                            FRIDAY, 7 APRIL
                            (To be confirmed)
                            Agenda: GCIS Budget Briefing

                            TUESDAY, 2 MAY
                            Agenda: Visit - SABC
                            (To be confirmed)

                            WEDNESDAY, 3 MAY
                            Agenda: Visit - Sentech
                            (To be confirmed)

                            THURSDAY, 4, MAY
                            Agenda: Visit - Community Radios
                            (To be confirmed)

                            TUESDAY, 9 MAY

                            Agenda: 1. Broadcasting Business Unit. DoC
                             

                            Agenda: Telecommunications Business Unit, DoC & Telkom
                             

                            Agenda: Public Hearing on Vans (1 day)
                            JULY - Date to be confirmed

                            Agenda: European Union Study Tour
                            AUGUST - Date to be confirmed

                            Agenda: 1. Workshop on e-Commerce
                            2. e-Commerce Bill (if available)
                            3. Public Hearings - e-Commerce Bill
                            4. Public Hearings on Internet & Culture

                            SEPTEMBER - Date to be confirmed
                            Agenda: Provincial Study Tours

                            OCTOBER - Date to be confirmed
                            Agenda: Visit
                             

                            • MTN

                            These items has yet to be accommodated on this programme:

                            • Auditor-General's Reports
                            • Annual Reports
                            • Budget 2001/2002

                            Annexure B

                            Envisaged Legislation for 2000

                            2000 TELECOM AMENDMENT BILL

                              • Additional National Operator
                              • Create effective decision environment
                              • Convergence of technologies, Broadcasting
                              • Universal Services Obligations

                              -Telkom : 2.81 m (1.68 in rural areas)

                              -Vodacom : 22 000

                              -MTN : 7 000

                              • Define competitive Announcement for the telecoms post exclusivity period
                              • Unprecedated mergers & acquisitions globally
                              • Legislation e.g. Vodafone Airtouch/maresmannin the public interest

                              Bill defining Telecoms Post Exclusivity Period

                                • Based on strategy to promote universal service
                                • Competition
                                • Protect consumers
                                • Prevent anti-competitive practices
                                • To achieve the best for SA telecoms customers in terms of , choice and value for money

                                Goal of the Bill

                                     

                                  • Promoting effective infrastructure competition

                                     

                                     

                                  • Promoting effective services competition

                                     

                                     

                                  • Preventing anti-competitive practices

                                     

                                     

                                  • Fair distribution of the benefits of competition

                                     

                                     

                                  • Consumer protection especially in non-competitive markets

                                     

                                  Objectives

                                  Promoting consumer interests

                                    • Promotion of effective competition
                                    • Ensuring that social obligations to certain groups of disadvantaged consumers are met
                                    • Telecoms service is matched with commitments to;

                                    -service

                                    -continuity

                                    -network resilience &

                                    -protection of customer information.

                                    • Bill shall promote competitive markets for telecoms services

                                    Establish Legal Climate

                                         

                                      • Encourage investment by new entrants and existing players

                                         

                                         

                                      • Provide telecommunications services which are internationally competitive to customers

                                         

                                         

                                      • Encourage the provision of customer focused information by suppliers

                                         

                                         

                                      • Overcome barriers outside the control of individual suppliers and customers, such as the need for networks to interoperate with each other

                                         

                                         

                                      • Ensure effective policies for scarce resources such as numbering and access to the radio frequency spectrum

                                         

                                         

                                      • Prevent suppliers with strong market positions from acting anti-competitively

                                         

                                      Promote long-term strategy

                                           

                                        • Rapidly developing technologies including the spread of networks built to Internet Protocol (IP) standards rather than primarily for carrying voice calls

                                           

                                           

                                        • International liberalisation of telecommunications with impact both on SA customers making international calls and on the SA telecommunications market itself

                                           

                                           

                                        • Globalisation of reach of telecommunications suppliers serving multinational companies

                                           

                                           

                                        • Integration between fixed and mobile markets

                                           

                                           

                                        • Convergence of IT, telecommunications and broadcasting

                                           

                                        Postal Legislation for the 2000 Parliamentary Session

                                        Postbank Bill - Background

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