Independent Communications Authority of South Africa (ICASA) Budget & Strategic Plan 2009/09

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Communications and Digital Technologies

11 March 2008
Chairperson: Mr I Vadi (ANC)
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Meeting Summary

The Committee was briefed by Independent Communications Authority of South Africa (ICASA) on its strategic plan and budget. ICASA aimed overall to bring down the cost of communication, to promote and facilitate convergence of telecommunications, broadcasting, postal and information technology sector, to encourage the development of a competitive and effective communications sector, and ensure efficient and effective use of radio frequency spectrum. It also aimed to promote investment, economic growth and innovation in the communications sector within a stable and predictable regulatory regime, to research and development and empowerment. The highlights of the past year were explained. Challenges in licensing lay in the interpretation of the transitional period, the merger of Under Serviced Area licences and the scarcity of frequency. There was a need to implement the Competition Framework. The project highlights for the forthcoming year, in the areas of licensing, markets and competition, engineering and technology and consumer education were described in depth. ICASA would be writing policy and enforcing legislation, re-aligning business, undertaking performance management and international and regional participation.

Members raised questions around when the
license conversion project would be completed, what plans were in place, the challenges, and the need for ICASA to meet the deadline. The Department of Communications said that the issue was complex and that it was more important to do the right thing rather than rush to meet a deadline. A business plan would be produced. Questions were also raised on what ICASA was doing to encourage smaller and individual service providers, to ensure that all communities had access to communication, and the relationship amongst the Councillors.

Meeting report

The Chairperson opened the meeting by welcoming Committee members and presenters to the second session of the day. The Chairperson then requested the presenters from the Department of Communications to respond to the questions left unanswered in the morning session.

Independent Communications Authority of South Africa (ICASA) Budget & Strategic Plan 2009/09
Mr Paris Mashile, Chairperson, ICASA, placed emphasis on the strategic objective of ICASA to encourage the development of a competitive and effective communications sector in order to bring down the cost of communication in the country. It aimed to promote and facilitate convergence of telecommunications, broadcasting, postal and information technology sector, to encourage the development of a competitive and effective communications sector, and ensure efficient and effective use of radio frequency spectrum. Further objectives were to promote
investment, economic growth and innovation in the communications sector within a stable and predictable regulatory regime, to reduce the cost of doing business, to promote affordable delivery of services and universal access, encourage research and development in the ICT sector, promote empowerment for historically disadvantaged persons, youth and the disabled, and promote the interests of consumers around price, quality and variety of communications services.

The organogram was tabled and explained. Mr Mashile then set out and explained the highlights for licensing, markets and competition, and consumer affairs (see attached presentation for full details). The challenges in
licensing lay in the interpretation of the transitional period, the merger of Under Serviced Area licences in phases 2 and 3, and the scarcity of frequency. In markets and competition, there was a need to implement the Competition Framework in line with section 67(4).

Mr Mashile then went on to describe the project highlights for 2008/09. In the licensing area it was intended to
develop a regulatory framework for Digital Broadcasting Services, develop regulations on the Integrity of the mail system, and regulations on Universal Service and Access for Postal Services. There would also be registration of Class Broadcasting, Electronic Communication Service and Electronic Communication Network licenses, migration of broadcasting to digital, and licensing of mobile broadcasting services and networks. It would also be concerned with the merger of USALs into Provincial Under-Serviced Area Network Operator (PUSANO) licenses. Other issues involved licensing of commercial sound broadcasting services, registration of new courier companies and the SA Post Office (SAPO) license alignment. It would in addition monitor compliance issues, develop manuals, review the Universal Service Obligations, monitor the elections and reconsider Cell C CST Compliance.

In the area of
Markets and Competition, there would be consideration of interconnection and facilities leasing guidelines, a review of the retail rate regime regulations in line with the Electronic Communications Act (ECA), the unbundling of the local loop, a postal market study, a market definition project, the short code strategy and a number audit.

Engineering and Technology projects included a r
eview of the South African Table of Frequency Allocations (SATFA), review of radio and Type Approval regulations, as well as review of the spectrum fee regulations and licensing and allocation of high demand frequency spectrum bands.

There would be consumer
education and awareness undertaken around the e-rate, number portability, a code for people with disability, digital migration, an impact assessment on consumer initiatives, monitoring of compliance with consumer regulations and a consumer advisory panel.

Other issues in the various divisions of ICASA included policy and legislative enforcement, support to the Complaints and Compliance Committee, a feasibility study on the location of ICASA offices, business re-engineering and re-alignment, performance management and international and regional participation.


Mr Karabo Motlana, Chief Executive Officer, ICASA, then explained the slide dealing with the budget, noting that ICASA had received an allocation of R257 million. The projected expenses were detailed.

Discussion

Mr R Pieterse (ANC) asked ICASA when it thought the license conversion project would be completed.

Mr Mashile responded that it was not easy to come up with a definite date because many dynamics came into play in executing the project. Mr Mashile explained that ICASA was experiencing a lot of challenges in their discussions with their operators, and that it was doing its best to ensure the best quality output.

The Chairperson asked the delegation from ICASA if it had a plan in place for the license conversion project.

Mr Mashile responded that there was a plan, but that ICASA had had to change the plan from time to time due to dynamics. He stated that the main challenges were around the issues raised by operators and in their workshops, and that ICASA could not act in a hurry since the project was worth billions. Mr Mashile added that it was for this reason that it had to work around dynamics of time, quality and cost.

The Chairperson, on the same issue, insisted that dynamics or not, ICASA should try to meet the deadline it was given by law.

The Chairperson asked the Director General (DG) of the Department of Communication, Ms Lyndall Shope-Mafole for her response to the issue.

Ms Shope-Mafole said that the issue was a complex one and that she had had meetings with ICASA members. While she believed that meeting the deadline as important, doing the right thing was probably more important, and that the project should not take too long.

Mr Mashile promised to assuage the fears of members of the Committee by bringing them a pragmatic business plan.

Ms D Smuts (DA) asked ICASA what it was doing to encourage smaller and individual service providers.

Mr Mashile responded that ICASA was working on a general criterion that everyone needing a license to operate must fulfill. This would avoid a situation where one person claimed that he or she had been unfairly prejudiced by not being licensed, while others had been.

Mr N Nxumalo (ANC) asked ICASA what it was doing to ensure that all communities had access to communication.

Mr Mashile responded that ICASA would ensure that all places in South Africa had access to communication through continuous implementation of their policies.

The Chairperson asked the delegation from ICASA about the relationship between councillors.

Mr Mashile responded that the relationship between Councillors was fine. He said although they argued on philosophical issues, at the end of the day the correct decisions were made. Mr Mashile said there was proper governance amongst them and that most of the misunderstandings they had were exaggerated.

The meeting was adjourned.

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