PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC ENTERPRISES BROADBAND INFRACO BILL

1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC ENTERPRISESBROADBAND INFRACO BILL 01 August 2007

2. INTRODUCTION • USAASA Mandate • Purpose of the INFRACO Bill • Current Scenario • USAASA Response to the INFRACO Bill • Conclusion

3. USAASA CORE MANDATE CORE MANDATES AREAS FROM THE EC ACT EMBARK ON PUBLIC AWARENESS CAMPAIGNS ON ICTs AND CAPACITY AND TRANINING PROGRANMMES MANAGE THE UNIVERSAL ACCESS AND SERVICE FUND RESEARCH, PROMOTE, PROVIDE GUIDANCE, CONSULT THE PUBLIC AND RECOMMEND ON UNIVERSAL ACCESS AND SERVICE MONITOR AND EVALUATE PROGRESS TOWARDS UNIVERSAL ACCESS AND SERVICE

4. PURPOSE OF THE INFRACO BILL • Expand the availability of broadband access to underdeveloped areas • Owning infrastructure to provide affordable access to broadband services

5. CURRENT SCENARIO • Short-comings of narrowband: • Inhibits E-education programs • Prohibits the delivery of e-government services (general service counters) • Prohibits delivery on e-health • Limits community Access to information • Broadband infrastructure - developed metropolitan areas • The high costs of broadband impedes the effective delivery of Universal Service and Access of all South Africans to ICTs

6. USAASA RESPONSE TO THE INFRACO BILL • Objects of INFRACO • Licensing of INFRACO • INFRACO Obtaining Rights Way – under the INFRACO Bill and the EC Act

7. OBJECTS OF INFRACO • Preamble of the INFRACO Bill • Expand broadband access to underdeveloped areas • Owning communications infrastructure to provide affordable access to broadband services • Objects of the INFRACO Bill (s 2) • Establish INFRACO • Objects of INFRACO (s 4) • Provide affordable broadband access • Proposal – state that object of INFRACO is also to expand broadband access to underserviced areas

8. INFRACO LICENCE • The provision of a network is an ECNS in terms of the EC Act • Only licensed ECNS providers may provide ECNS • INFRACO is not currently an ECNS licensee • Therefore, it needs to: • either obtain an ECNS licence; or • be deemed to be an ECNS Licensee; or • be exempt from the licensing requirements by ICASA

9. ALTERNATIVE TO LICENSING OF INFRACO • As an alternative to licensing, INFRACO may contract with a licensee (such as Neotel) to provide ECNS under its licence • In order to meet the object of the INFRACO Bill, the contract must – • Guarantee open access to the INFRACO infrastructure • Guarantee cost based pricing (from INFRACO to Neotel and from Neotel to customers)

10. DEEMED LICENSING OF INFRACO • Proposal – the INFRACO Bill should deem INFRACO a licensee in terms of the EC Act • Icasa should issue an ECNS licence to INFRACO in terms of the current licence conversion process

11. RIGHTS OF WAY • INFRACO Bill • Section 6 – Servitudes • Section 7 – Expropriation of Land • EC Act • Chapter 4 – rights of way • Ministerial Guidelines – not yet made • Icasa Regulations – not yet made • USAASA supports additional rights of way envisaged • Proposal – the provisions in the INFRACO Bill do not negate any rights granted to INFRACO in terms of the EC Act • Proposal – Subject to Ministerial Guidelines and ICASA Regulations being made, provisions of INFRACO Bill must be revisited, as to align rights of way in both Acts

12. CONCLUSION • USAASA supports the intention in lowering the costs of communications in this country • USAASA welcomes the intention to expand broadband access to under-served and under-developed areas • USAASA offers to assist INFRACO, ICASA and Minister of Communications • USAASA hopes that all parties will make sure that INFRACO contributes to improved Universal Service and Access in South Africa

13. THANK YOU