SACF Perspective on the State of Community Media in South Africa

1. SACF Perspective on the state of Community Media in South Africa SACF Presentation to Parliamentary Portfolio on Communications Tuesday, 22 September 2015

2. Introduction to SACF • SACF is a Section 21 Company formed in April 2001 which aims to broaden the growth and development of the Information and Communication Technology (ICT), Electronic Media and Broadcasting Industries. • SACF is a successor to the African Telecommunications Forum founded in 1993 and has a history in promoting meaningful participation of Historically Disadvantage Individuals (HDI’s) in the ICT Industries. • The Forum represents the leading stakeholders in the Telecommunication, Electronic Media, Postal, Information Technology, Electronics and Broadcasting Industries.

3. Members of SACF also include numerous small and medium enterprises and individual executives in the ICT and broadcasting industries ( this is only a partial list for the sake of brevity) • The SACF is an organisationwhich pools together high level technical skills and business expertise in the ICT sector.

4. SACF Vision Championing the SA ICT Industry to create the most enabling ecosystem for a universally connected and prosperous South Africa.

5. SACF Mission • To be the credible, nationally supported umbrella industry platform that serves and promotes the interest of SACF Members. • To foster collaboration amongst members and with other ICT industry bodies to support government’s national goals for the ICT sector. • To promote innovation and global competitiveness in the South African ICT sector. • To positively influence national development by proactively engaging the government and all other stakeholders.

6. Objectives of SACF • To become the unifying platform of the ICT sector; • To be instrumental in influencing the development of the policy and regulatory ecosystem; • To provide thought leadership through research and development; • To promote the coordination and development of ICT human capital; • To promote ICT as a means for socio-economic development; • To further the transformation of the ICT sector.

7. Some of our Members:

8. Outcomes of a thriving Community Media sector • The DoC has stated the following as outcomes that can be attained through a thriving Community Media sector: • More stronger and secured so as to play its part in helping shape the new South Africa; • Encourage and promote nation-building and social cohesion; • Support democratic participation and responsible freedom of expression; • Deliver accurate and impartial news; • Reflect South Africa’s language and cultural diversity; • Support and nurture local communities programme production and creative talent.

9. State of Community Broadcasting The following statistics denotes the extent of growth of the Community Broadcasting over the past twenty-two (22) years: • There are 5 community television stations reaching an average of 12 million viewers per week; • One of these stations has received support from the DoC • There is in excess of 210 community radio stations with an average of 8.7 million viewers per week; • The majority of these community radio stations (>75%) have received support from the DoC The growth in audience and advertising in this sector which is propelled by an increase in the number of community radio and TV stations is a welcome result of the DoC support for the sector.

10. Department’s Support Initiatives The support by the Department since 1998 which was focussed on community radio was along the following lines: • Infrastructure for newly-licenced and upgrading for existing stations (MDDA), • Content Production (MDDA) • Signal distribution subsidies (Sentech) • content Production and Capacity-building (the IKAMVA National e-Skills Institute) The Department has also managed to bring an amendment to the Electronic Communications Act (ECA) that absolves community broadcasters from contributing to the Universal Service and Access Fund

11. Observations on Community Broadcasting The SACF has noted the following regarding Community Broadcasting in South Africa: • The Department has been working hard to prepare the community media sector for the future and making it fit for the times and the diverse audiences it serve. • The international benchmarking exercises that the Department has engaged in indicates that there are a number of ways countries directly support their community media sector, some support their operations/development, while others fund content and expansion into online platforms • The Department has been leveraging organizations within the ICT sector to assist the growth and sustainability of community broadcasting. • It is important that the Department’s strategies take into account the significant opportunities presented by the convergence of all media towards an integrated broadband ICT ecosystem, and the research required to support the Community Media sector going into the future.

12. THE CO-OPERATION & INVOLVEMENT OF THE VARIOUS GOVT AGENCIES How can the vast technological and financial resources of the private sector ICT industry be leveraged to assist the development of Community Media? ? Private Sector ICT Industry ?

13. Draft Community Broadcasting Support Scheme THE NATURE & SCOPE OF SUPPORT (1) Community Radio: • Broadcasting infrastructure • Signal distribution subsidy and Transmission • Content production • Capacity building Community Television: • Signal distribution subsidy • Content production • Capacity Building and Basic infrastructure “Scheme shall identify nature of the projects to be funded and consider new support areas particularly those that have potential to promote and enhance media access by the communities.”

14. Suggested expansion of the Scope of Support However, the Draft Community Broadcasting Support Scheme states: “Notwithstanding the advances made by new media in the area of broadcasting, there is no evidence to suggests that it is ready to fiercely compete with conventional broadcast methods in the short term in South Africa…In view of limited funding availability, this support is not in a position to provide assistance to stand alone internet broadcasting services or platforms.” SACF recommends: • There is nevertheless a need to conduct research and development on the economic, technological, and operational opportunities that advanced new media presents to the community broadcasting sector, as a complimentary content development and delivery mode as opposed to competition with conventional broadcasting methods • SACF recommends that the DoC examines the establishment and funding of R&D activities focused on new media opportunities for the community broadcasting sector, possibly through partnerships with established ICT research institutions in South Africa, and partnerships with the ICT industry through its representative industry associations. • Examples of such R&D could be the inclusion of the growing municipal Wi-Fi public access networks such as Project ISIZWE, which are already providing avenues for free access to audio/video content

15. From Recommendations Report of the Policy Review Panel Regarding Community Broadcasting • There are three core issues in the emerging policy environment which relate to the community broadcasting sector (TV and radio). This includes • How to ensure the sector is distinct from others and that target audiences are involved in the services; • How to ensure community-based content and programming is available across a wide range of platforms and devices and that communities have the means to distribute their own content across these; and • How to ensure non-profit entities are sustainable and viable • Having examined the issues regarding the above during the policy review process, the Panel has identified the following areas of policy recommendations: • The reach of community broadcasters and the role of open access TV • Strengthening licensing and monitoring • Funding and sustainability

16. The Panel notes that: • Many of the licensed community television channels are in partnership with private players and essentially operate as local commercial services. • ICASA licensed these channels without developing regulations for the sector thus exacerbating the challenges faced. • The private partnerships have possibly been the result of the challenges in funding community television services given the resources involved. • Government does not have the resources to support community television services across the country resulting in inequitable access to such services.

17. The Panel therefore recommends that: The licensing framework for community broadcasting must be amended to ensure ICASA can effectively oversee the licensing and monitoring of such services. Individual community television licenses be phased out and instead a framework for open access television be developed providing the mechanisms and support to allow communities to produce and air programmes. Existing services be migrated to the open access platform. A policy framework must be put in place to allow for non-profit public interest channels to be included on multiplexes (such as educational channels). Commercial local and provincial channels are licensed (after the development of a regulatory framework and assessment of viability) so that interested private players do not end up even inadvertently subverting the objectives of the community/non-profit tier in order to get such a licence

18. Licensing and Monitoring of Community Broadcasters The Panel recommends that the investigation which it has called for in respect of the reach of community broadcasters be extended to include in its purview how licensing and monitoring may be strengthened. This investigation should include an assessment of the following mechanisms: Specific provisions to ensure that community services remain in the hands of the community. Such rules could be included in policy/legislation or ICASA could be charged with promulgating regulations to ensure that any partnerships or agreements entered into do not in any way undermine community control. A specific community broadcasting class license to ensure that the policy objectives of diversity are met, and that the framework does not inadvertently favour more advantaged communities. The regulator could be specifically tasked with ensuring diversity through the licensing process. The policy/law could also bar licensing or authorisation of services that would directly compete with each other.

19. Licensing and Monitoring of Community Broadcasters • The process for renewing community licences could specifically allow the regulator to refuse applications if a licensee has not complied with rules and regulations. • The regulator could be given power to intervene in situations where challenges are experienced. This could include provisions enabling co-regulation – with ICASA being empowered to set criteria to be met by such co-regulatory structures and developing partnerships in this regard. • ICASA could be required to conduct and publish regular reviews of the status of the entire content sector, including assessment of whether or not programming is distinct and diverse and levels of competition. Regulatory strategies and plans should be developed to address any challenges identified.

20. Funding and Sustainability The Panel recognises that there is a need to coordinate different support programmes for the community broadcasting sector across government to ensure there is no duplication and that resources are used effectively. This includes coordination between the MDDA and other community broadcasting support programmes within Government departments, content/programming funds in other content entities (e.g. the NFVF, the National Lottery and Provincial Film Commissions). The Panel recommends the following support mechanisms and approaches: • The DTI must be tasked to develop a specific framework for music royalty payments to SAMRO by community broadcasters. • Investigate the possibility of granting section 18 (a) tax status to community/non-profit media projects which would assist such projects to raise funds from a wider base. • The development of a framework to assist community and non-profit services with transmission costs. • A review of MDDA funding. • An assessment of how news and current affairs programming on both community radio and television could be specifically supported in order to ensure that services are able to fulfil obligations in this regard.

21. SACF Recommendations Amendment of the EC Act should be considered which: • Extend the turnaround times for decisions on registration of class licenses (from the current 60 days to 900 days) to increase the ability of the regulator to scrutinise applications to ensure they meet all the envisaged objectives and requirements for the sector. • ICASA should be specifically empowered to refuse an application if it has, for example, not met requirements relating to community participation set out in Section 50 of the EC Act.

22. SACF Recommendations Amendment of the EC Act should be considered which: • Empower ICASA to suspend, revoke or refuse to renew a class licence – if the licensee has for example repeatedly violated legislative, regulatory or licensing requirements.

23. SACF Recommendations Empower and build the capacity of the community broadcasting sector by tasking the Ikamva National eSkills institute to develop course curriculum for community broadcasters on: • Corporate governance, • Financial literacy and the PFMA • Entrepreneurship and business skills.

24. SACF Recommendations In the Draft Support Scheme the DoC notes: “The existing CTV models present huge risk both for policy and government funding as they are purely commercial enterprises; not socially, institutionally and financially sustainable. The majority are more of content providers to Pay TV than broadcasting operations” Therefore SACF recommends: Consider the development of a framework for Open Access Television

25. SACF Perspective on the state of Community Media in South Africa Loren Braithwaite-Kabosha loren@sacomforum.org.za www.sacomforum.org.za 011 315 0590 Thank you Wednesday 16th September 2015