Presentation to the Portfolio Committee on Communications on the ICASA 2006 Annual Report

1. Presentation to the Portfolio Committee on Communicationson the ICASA 2006 Annual Report Presented by: Stanley Mamaregane Acting General Manager: LCC Date : 03 November 2006

2. Outline of Presentation • Policy Objectives • Achievements of the year 2005/2006 • Monitoring and Enforcement • Consumer Protection • International Participation • Stakeholder Management • Corporate Governance • ICASA & its People • Litigation • Financial Statements

3. POLICY OBJECTIVES

4. Policy Objectives (1) • Promoting affordable delivery of services and universal access • Encouraging investment in the communications sector within a stable and regulatory regime • Encouraging the development of a competitive and effective communications sector • Promoting and facilitating convergence of telecommunications, broadcasting and information technology

5. Policy objectives (2) • Fostering the development of public, commercial and community broadcasting services that are responsive to the needs of the people • Promoting the provision of a diverse range of sound and television broadcasting services on a national, regional and local basis • Bridging the Digital Divide

6. Achievements for the Year 2005/2006

7. Promoting Universal Access • ICASA issued licences & published policy documents in execution of its mandate to promote community access to basic telephony & broadcasting services • Underserviced Area Licences (USALs): • Seven USAL Licences were granted • ITA for phase 2 was issued • 42 applications were lodged • Public hearings and deliberations were conducted in 14 areas • Recommendations were forwarded to the Minister • Minister published ITA for the third phase

8. Promoting Universal Access cont. • Promulgated Numbering Plan Regulations • Installed a Central Number Database (CNDB) • Published Position Paper on the Regulation of Commercial Subscription Broadcasting Services • Published Discussion Paper on the Review of the Regulatory Framework on Community Sound Broadcasting Policy • Published Position Paper setting new policy and licensing framework on the Regulation of Self Help Station

9. Promoting Universal Access cont. • Participated on the DoC initiative to develop Digital Migration/Transition Strategy • Issued final amendment licence conditions, bringing the SABC in line with all other broadcasters • Granted SABC 4 & 5 application for regional television services but not issued, subject to SABC furnishing sufficient proof for funding

10. Promoting Economic Growth & Job Creation • Issued licence to Second National Operator (Neotel) • Embarked on a licence amendment process to create an equitable environment between Telkom & the SNO • Drafted Regulations to create a framework for Value Added Network Services (VANS). To date the Authority has issued 331 VANS licenses

11. Promoting Economic Growth & Job Creation cont. Issued : • 41 Private Telecommunication Network (PTN) Licenses • Frequency Spectrum in the 1800 MHz band to mobile operators who have undertaken to provide SIM Card connection services and terminal equipment to be used for disadvantaged communities • 2 mobile operators with 3G licenses, each subject to providing internet access to 5000 schools, 140 institutions for people with disabilities and 1400 terminals for people with disabilities • Over 5000 new frequency spectrum licenses

12. Promotion Competition, Choice & Diversity • Undertook review of COA/CAM for Mobile Operators and Public Switched Telecommunication Services (PSTS) • Implemented Rate Regime Regulation • Published Mobile Pricing Discussion Document and held hearings • Held Enquiry into Handset Subsidies • Consolidated Interconnection and Facilities Leasing Guidelines

13. Promoting Competition, Choice & Diversity cont. Broadcasting: • Amended 9 Broadcasting licences within the categories of community, commercial and public broadcasting services • Approved the establishment of 37 new Television Self-Help Stations • Terminated M-Net’s “open window” • Published ITA for Commercial Sound Broadcasting Licenses in Secondary Markets

14. Promoting Competition, Choice & Diversity cont. Broadcasting: • In response to the ITA for four years community sound broadcasting licences in the nodal point areas - 4 Applications were received for stations in urban areas and 15 applications for stations in rural areas. Hearings held in March and April 2006 • Granted 40 special events license applications, 9 applications were refused

15. MONITORING AND ENFORCEMENT

16. Monitoring & Enforcement • ICASA monitors compliance with licence conditions by communications service providers and adjudicates complaints: • 163 monitoring reports were produced • Conducted 35 monitoring visits • Received 69 complaints

17. Monitoring & Enforcement cont. • The Broadcasting Monitoring and Complaints Committee adjudicates complaints in the broadcasting sector referred to it by ICASA – 5 licensees appeared before the BMCC • ICASA monitored the broadcaster’s coverage of the 2006 Local Government Elections • ICASA enforces compliance by spectrum users. Inspections, monitoring, interference investigations & maritime audits were conducted

18. Setting Technical Standards • ICASA issues type approval certificates and licenses on communications equipment based on acceptable standards for performance and safety • Amateur Radio Regulations were developed

19. CONSUMER PROTECTION

20. Consumer Protection • Outreach programmes on consumer education are aimed at informing communities about ICASA’s regulatory activities and their rights as consumers • In order to provide access to information for the visually impaired, some of the education material is produced in braille • Road shows were held in all Provinces • Conducted 93 Community Radio Interviews • A number of consumer complaints were received, analysed and resolved

21. Consumer Protection cont. • Research was done on Telkom’s Public Pay Phones • Conducted workshops together with mobile operators, fixed operators and organisations representing people with disabilities, aimed at educating disabled people on available services

22. INTERNATIONAL PARTICIPATION

23. International Participation ICASA participates actively in: • TRASA (Chairs two specialist committees and Executive Committee Member) • ACRAN/RIARC (Served as Chair) • ITU • Broadcasting related meetings and events • Bilateral meetings with other regulators i.e. Federal Communications Commission and Ethiopian Broadcasting Authority

24. International Participation cont. Assistance was provided to: • Lesotho Telecoms Authority on their spectrum project • Square Kilometre Array (SKA) Project by terrestrial interference surveys • Hosting of visiting delegations for information sharing

25. STAKEHOLDER MANAGEMENT

26. Stakeholder Management ICASA held the following stakeholder events: • Commissioning and re-designing of ICASA’s website • Stakeholder meeting on ICASA’s readiness to implement the ECA • Hosting of international visitors • Participating in industry exhibitions • Public participation through hearings for all policy and regulation development processes

27. CORPORATE GOVERNANCE

28. Corporate Governance • Council plays a strategic leadership, regulatory, adjudicatory and oversight role • Councillors sign a Code of Conduct which defines the standards and integrity that they must maintain • Committees of Council are established to assist Council in the exercise of its powers & functions • An in-house Internal Audit function is established • New initiatives to improve corporate governance

29. Corporate Governance cont. • A Risk Management Committee was established to identify and investigate risks • A Bid Committee considers bids for the procurement of goods & services. The functions of the Bid Committee are underpinned by the provisions of the PFMA & PPPF Act • ICASA is in the process of developing a Council Charter and a Performance Management System for Council

30. ICASA AND ITS PEOPLE

31. DEMOGRAPHICS PER POPULATION GROUP MARCH 2004 - MARCH 2006

32. DEMOGRAPHICS PER GENDER GROUP MARCH 2005 VS MARCH 2006 MARCH 2004 MARCH 2005

33. ICASA & its People • Due to an incomplete roll-out of ICASA Performance Management System, ICASA Staff were rewarded with an amount of R8500,00 each for performance in 2006 • ICASA reached with the Communication Workers Union to pay an increase of 8,5% to all staff members below management level and 7% to members at management level within the bargaining unit • ICASA has embarked on a drive to fill in vacant posts

34. LITIGATION

35. Litigation • ICASA operates in a highly litigious environment as its decisions are frequently taken on review by unsuccessful applicants • The litigation annexure of the Annual Report indicates that ICASA was involved in 25 litigation matters • The Registrar of Trade Marks approved ICASA logo as a trade mark

36. ICASA 2005/06 Annual Financial Statement

37. Statement of Financial Performance

38. Statement of Financial Position

39. Statement of Changes in Net Assets

40. Cash flow Statement

41. THANK YOU