may 2019/dr- draft... · web vie

RECOMMENDATIONS 2018

In accordance with Article 21 of the CONSTITUTION

38th Annual Conference

Maun, Botswana25 - 27 April 2018

1 | Draft Recommendations 2018

ÓSATA 2018

All rights reserved. No part of this publication may be reproduced, by any means whatsoever, without the prior written permission of SATA.


PREAMBLE

While the sovereign right of each Member to manage its telecommunications and

Information, Communication and Technology (ICT) business is fully recognized, the provisions

of the Southern Africa Telecommunications Association Recommendations, (hereafter

referred to as “RECOMMENDATIONS ”) compliment the Constitution of the Southern Africa

Telecommunications Association, with a view to attaining the purpose of the Southern Africa

Telecommunications Association in promoting the development of telecommunications and

ICT services and their most efficient operation.

Members affirm their commitment to implement these RECOMMENDATIONS in a manner

that respects and upholds the Constitution.


Implementation of the RECOMMENDATIONS

The Maun RECOMMENDATIONS reaffirm the industry commitment to the delivery of broadband for all and affordable access to telecommunications and information and communication technologies (ICT) in-line with the adopted theme "ICT Connectivity and Service Delivery for the Benefit of All: Transforming our Society through Broadband and ICT Developments" The theme compliments the important role being played by all countries on the road to providing services within reach of all through broadband.

In adopting this blueprint for telecommunications/ICT development over the year, the industry commits to working together and not in pockets of excellence.

The RECOMMENDATIONS are the culmination of the preparatory meetings of the policy & strategy and infrastructure and technology committees. These comprise a comprehensive package of activities in the area of telecommunications and information and communication technologies, including infrastructure and networks, applications and services. In line with the new strategy, they are built around five core objectives that aim to:

1. foster regional and international cooperation on telecommunications and ICT issues

2. foster an enabling operator driven digital policy and regulatory environment conducive to ICT development and the development of ICT networks as well as relevant applications and services

3. enhance confidence and security in the use of ICTs and the roll out of relevant applications and services;

4. build human and institutional capacity5. strengthen regional procurement capacity to benefit on economies of scale6. contribute to telecommunications and ICT industrialization and standardization

The association calls for the industry commitment to support the implementation of the RECOMMENDATIONS by providing all the necessary human and financial resources.


1. Governance

NOTED 1:

i. According to the provisions of the Constitution, the authorised and accepted signatory for membership is the Chief Executive Officer/Managing Director/Director or a nominated representative

ii. Only full members doing business in Southern Africa Development Community Member States namely:

Angola, Botswana, Union of Comoros, Democratic Republic of Congo, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe.

are eligible to be elected into the Executive Board according to the following provisions of the CONSTITUTION

1 Chairman Host of the Conference2 Board Member Host of the Previous Conference3 Board Member Host of the Next Conference4 Permanent Board Member Host of the Secretariat5 Board member Elected for three (3) years6 Board Member Executive Secretary

For the financial year 2017/2018, the following were the Board Members according to the provisions of the CONSTITUTION

2 5 3 4 1 6

The proposed host of the Annual Conference in 2019 is Mauritius Telecom and will replace Botswana Telecommunications Corporation Limited (BTCL) while Malawi Telecommunications Limited (MTL) will be replaced by the new Board Member to be elected as they have saved their three (3) years. Any full member is eligible for election into the Board. If more than one member is proposed, then the Annual Conference will go through a vote to elect the Board Member.


NOTED 2:

In support of the new strategy, the new members of the Executive Board being heads of the member organisations or representatives in the Board are called upon to sign their commitment to be a member of the board during the annual conference

The new strategy calls upon commitment by the members in supporting the work of the association to deliver the desired results. All old and new members being heads of the member organisations or nominated representatives are called upon to sign their commitment affirming to support the work by the association and the RECOMMENDATIONS.

RECOMMENDATION 1

The Annual Conference adopts the new strategy

1. Members commit and fully support the new strategy and focus2. The new Board Members are requested to sign the affirmation and commitments statements

for being a member of the Executive Board 3. All Members are requested to sign the affirmation and membership commitments4. For participation during the association programmes, as approved, non-members pay a

registration fee of USD $1500.00 per person or take up sponsorship

NOTED 3:

The new strategy calls for a rethink on the governance and activities of the Executive Board. The current committees namely:

1. Policy and Strategy Committee2. Technology and Infrastructure

are technical and experts committees whose main objectives are:

a. To implement the decisions of the Executive Board and the Annual Conferenceb. To advise the Executive Board and the Chief Executive Officers' Meeting on strategically

important technical and commercial trends in the ICT sectorc. To recommend changes in the general operations and strategic positioning of SATA to

the Executive Board and the Annual Conference


According to international best practices the following new committees at the board level are recommended to be established to work on specific issues and in support of the new strategy. The existing technical committees and working groups will still remain doing their work.

Governance and Stakeholder Engagement Committee

The terms of reference of the governance and stakeholder engagement committee is:

1. To review and recommend, on a regular basis, the composition of the full board, and where it appears that the board is lacking in skills or experience in a certain area

2. Review the CONSTITUTION and recommend to the annual conference3. Deepen stakeholder relationships by meeting all the stakeholders annually

King III and King IV suggests that the committee should only comprise members of the board. The ideal situation is for the chairperson of the board to also chair the nomination and governance committee. The committee is empowered to consider the size and balance of the full board, and to make recommendations where, in the opinion of its members, improvements could be made. It remains the responsibility of the full board of directors to consider the recommendations made and to vote on any nominated appointments or, as the case may be, suggested removals.

The committee to monitor the association’s activities with regard to matters relating to:

a) Social and economic development, including the association’s standing in terms of the goals and purposes of: - the 10 principles set out in the United Nations Global Company Principles;

b) Good corporate citizenship, including the company’s: - promotion of equality, prevention of unfair discrimination, and measures to address corruption; - contribution to development of the communities in which its activities are predominantly conducted or within which its products or services are predominantly marketed; and - record of sponsorship, donations and charitable giving;

c) The environment, health and public safety, including the impact of the association’s activities and of its products or services;

The additional functions may include:

1. Reviewing the adequacy and effectiveness of the association’s engagement and interaction with its stakeholders,

2. Considering substantive national and international regulatory developments, overseeing their operationalization as well as practice in the fields of social and ethics management,


3. Reviewing and recommend policies and strategies pertaining to the association’s programme of corporate social investment for approval by the Board

4. Considering the SADC protocol on inequality to enhance this committee’s work5. Determining clearly articulated ethical standards (code of ethics), and ensuring that the

association takes measures to achieve adherence to these in all aspects of the business, thus facilitating a sustainable ethical corporate culture within the association,

6. Monitoring that management develop and implement programmes, guidelines and practices congruent with the association’s social and ethics policies,

7. Reviewing the material risks and liabilities relating to the provisions of the code of ethics, and ensuring that such risks are managed as part of the association’s risk management programme,

8. Reviewing the company’s performance in implementing the provisions of the code of ethics and the assertions made in this regard,

9. Ensuring that management has allocated adequate resources to comply with social and ethics policies, codes of best practice and regulatory requirements.

Audit and Finance Committee

i. King III and King IV emphasizes the vital role of an audit committee in ensuring the integrity of financial controls and integrated reporting (both financial and sustainability reporting), and identifying and managing financial risk and the proposal is for the Board Member from the host country of the Secretariat to chair the committee.

ii. The terms of reference will include:

1. Making submissions to the board regarding the company’s accounting policies, 2. Financial controls, records and reporting 3. Nominating an auditor that the audit committee regards as independent 4. Determining the audit fee 5. Ensuring that the appointment of the auditor complies with the international best

practices including the review of rotation of auditors6. Determining the nature and extent of non-audit services 7. Pre-approving any proposed agreement with the auditor for the provision of non-

audit services 8. Preparing a report to be included in the annual financial statements describing

how the committee carried out its functions, stating whether the auditor was independent, and commenting on the financial statements, accounting practices and internal financial control measures of the company

9. Reviewing the cost structure of the association and making a recommendation to the next annual conference for consideration

10. Any other function designated by the board.

Strategy and Industry Programmes Committee


The terms of reference for the committee of the strategy and Industry Programmes Committee are:

1. Recommending to the Board, for approval, major strategic and policy initiatives that will impact the direction and the activities of the association. once an initiative is approved in principle by the board, the committee has overall responsibility for implementation of the initiative.

2. Recommending industry programmes for approval by the board and implementation

The strategy and industry programmes committee is composed of members selected from within the Board or outside the Board, as appropriate, to enable the Committee to best accomplish its remit. The committee will be chaired by a Board Member because board members are already strategy oriented.

Technology Committee

The purpose of the Technology Committee is to assist the Board in fulfilling its oversight responsibilities with respect to the overall technology roadmaps advising members, but not limited to, major technology investments, technology strategies, operational performance and technology trends that may affect members.

The terms of reference for the committee shall include:

Reviewing and recommending technology planning and strategies.

Reviewing significant technology investments and expenditures.

Monitoring and evaluating existing and future trends in technology that may affect the

members’ strategic plans, including monitoring of overall industry trends.

Receiving reports from members concerning the technology operations including,

among other things, software performance like billing, technical operations

performance, technology architecture and significant technology investments and

recommending related policies or recommend such policies to the Board for

approval, as appropriate.

Performing any other activities consistent with this committee, as the Board shall

specifically delegate to the Committee.


Notwithstanding anything in this committee, responsibility for the oversight of risks associated

with technology, including risk assessment and risk management, shall remain with the Risk

Portfolios each member organization.

RECOMMENDATION 2

a) The annual conference is requested to approve the establishment of the following Board Committees

1. Technology Committee2. Strategy and Industry Programmes Committee3. Audit and Finance Committee4. Governance and Stakeholder Engagement Committee

b) The new Board immediately, during the conference to nominate the chairpersons of the committees who should sign their affirmation and commitments.

2. Strategies on reducing the costs of broadband deployments by MembersNOTED 4

1. Fiber and wireless (4G/5G and satellite) technologies with higher bandwidth speeds can potentially offer broadband services with far greater economic, consumer, and social benefits. Governments want fiber and wireless networks with national coverage so that all their citizens can enjoy high-speed broadband services.

2. Globally, the race for fiber infrastructure has been accelerating in the recent past. The number of countries that achieved 95 percent fiber-to-the-home (FTTH) coverage increased from 1 in 2012 to 6 in 2016. Similarly, the number of countries that achieved higher than 50 percent coverage has increased from 10 in 2012 to 14 in 2016.

3. Operators are building fiber and 4G networks, because revenues and profits from their existing networks are declining and fiber and 4G/5G networks could potentially be a source of new income streams and lower costs. Yet fiber and wireless networks are hugely expensive to build and will be difficult to afford on a nationwide scale without some kind of new investment models, regulatory concessions or subsidies. In order to maximize consumer and social benefits from high speed broadband services, telecommunications policymakers may need, temporarily, to shift their focus from stimulating competition to facilitating the massive investment required to roll out fiber and wireless networks with national coverage.


4. The roll-out of high-speed broadband networks requires substantial investments. Civil engineering works, such as the digging-up of roads to lay down high-speed broadband, account for up to 80% of the cost of deploying high-speed networks. Limiting costs on these works would make broadband roll-out more cost-effective.

5. The broad strategy on broadband deployment aims to facilitate and incentivise the deployment of high-speed electronic communications networks by reducing its cost. It includes measures, such as:

a) Sharing infrastructure (active and passive)b) Re-use of existing physical infrastructurec) Co-investments and ownershipd) Alternative deployment technologies e.g. direct buried fiber versus ducted fibere) Industry collaboration on fiber deployment

These opportunities are expected to create conditions for a more cost-efficient network deployment. It will help create a digital economy that delivers sustainable economic and social benefits based on modern online services and fast internet connections.

The measures of the broad strategy are based on four main areas:

Access to existing physical infrastructure (e.g. ducts, poles, masts or towers) including those belonging to energy and other utilities, for operators willing to deploy high speed broadband networks.

Efficient coordination of civil works. Faster, simpler and more transparent permit-granting procedures. Equipment of new buildings and major renovations with high-speed physical

infrastructures (e.g. mini-ducts, access point) and access to in-building infrastructure.

The broad strategy supports SADC's broadband targets set out in the Digital SADC 2027 adopted from the ITU Connect 2020.

(i) 1 Mbps minimum entry level broadband access for all citizens.(ii) 80% of the population to be covered by broadband services by 2020(iii) Broadband access and usage to all primary and tertiary schools to allow e-learning by

2020(iv) Broadband access and usage to 70% of the health facilities to allow e-health by 2020;(v) Broadband access and usage to all public sector agencies to allow for e-governance by

2020


(vi) Broadband access to 50% of Households by 2020(vii) Broadband services should not cost more than 5% of National average disposable

monthly income by 2020.

RECOMMENDATION 3

a) Operators are encouraged to consider and implement this broad strategy on reducing the costs of broadband deployment and enjoy costs savings ranging from 12% to 40% as reported in the industry studies.

b) The association is directed to carry out an impact assessment study by the fourth quarter of the financial year to identify the implemented best practices and measure the cost savings in the deployment of broadband networks

3. Audited Financial Report 2017/2018

NOTED 5

The internal financial statements and the audited financial report for the year ended 31st March 2018 are separate documents. The audit report has a qualification because the following Members have not yet written to the auditors confirming their membership dues. Once they confirm, the qualification will be removed and the report signed by the auditors.

(Amount in USD)Malawi Telecommunications Limited 140 000.00Tanzânia Telecommunications Company Limited 105 000.00Société Congolaise des Postes et des Télécommunications 390 000.00Zâmbia Telecommunications Company Limited 35 000.00Telecom Itália Sparkle 17 500.00Angola Cables 70 000.00Angola Telecom 35 000.00

Total 792 500.00

The association collected 40.6% of the revenue as shown below.


In the financial statements, the net income is $-871 914.19 due to bad debt $1 120 000.00 write off as approved during the 37th Annual Conference RESOLUTION 36

RESOLUTION 36:The annual conference approved the termination of the membership of the following organizations and write off their debt amounting to $1 120 000.00 as follows:

Amounts (USD)Econet Telecom Lesotho 70 000.00 No longer a memberMovicel 280 000.00 Not active for 8 yearsTelecom Malagasy 280 000.00 Not active for 8 yearsAfricom 280 000.00 Not active for 8 yearsNeotel 210 000.00 Was sold to Liquid TelecomTotal 1 120 000.00

Re-joining the association, by these Members, will require approval by the annual conference.

The financial statements were adopted by the Board Meeting on 11 April 2018.


RECOMMENDATION 4

a) The six (6) Members are urgently requested to write to the auditors confirming their membership dues so that the qualification on the audit report is removed and the auditors will sign their report and submit to the association.

b) The annual conference is requested to ratify the financial statements which were adopted by the Board.

4. Financial budget for the year 2018/2019

NOTED 6

The proposed budget for the financial year 2018/2019 is a separate document and was considered by the Board and adopted according to the Constitution, Rules and Procedures.

The provisions for the financial budget for the year 2018/2019 as compared to 2017/2018 are as follows:

Budget Element 2017/2018(Audited Actual)

2018/2019(Proposed)

% Variance

Revenue 560 000.00 560 000.00 0.00%Operating Costs 312 955.84 453 649.68 +44.96 due to filling of the two (2)

vacant posts (RESOLUTION 40)Capital Expenditure 5 904.12 500.00 Limited purchase of IT equipment

and softwareBad Debt (Write off) 1 120 000.00 0.00 Do not expect any bad debt write

offForeign Exchange Gains/Losses

1 041.45 - Depends on the economic factors

Net Income -871 914.39 106 350.32 Expectation is a positive net income

The Strategic programmes budget provision included in the administration costs is as follow:

Budget Element 2017/2018 2018/2019 Notes

Strategic Programmes 31 777.00 30 830.00 -2.98 due to costs transformations and optimisation


The funding for strategic programmes is for delivering approved programmes for deepening member relationships and includes travelling and subsistence. For other costs under this new strategy, the association will solicit for sponsorships and donations by members and the industry at large to implement and execute programmes derived from the specific member needs.

RECOMMENDATION 5

a) The annual conference is requested to ratify the adopted budget for the year 2018/2019b) The contributions from Members should be received by 30th of June 2018 as approved.

5. Filling of vacant posts and contract renewals

NOTED 7

1. With reference to MATSAPHA RESOLUTION 40, the filling of the vacant posts was implemented as directed by the Board.

2. The Finance and Administration Officer, Custodio Cossa from Mozambique started work in January 2018 and is managing the finance and admin portfolio very well.

3. The first candidate on the ranked list for the Programmes Manager Technology and Policy post, from Malawi, Stella Senti had signed the contract to start work on 1 March 2018 but just a week before coming to Mozambique, she send an email cancelling her acceptance. We requested for the Chairman’s approval to approach the second candidate from Swaziland, Nhlanhla Dlamini which was approved. The association emailed him the offer and he signed the job contract and he is starting work on 1 May 2018.

4. All employees in the Secretariat are employed on a renewable contract basis. For Regional Posts the contracts are renewable after every four years while for Local Posts only for Mozambican Citizens, the contracts are renewable after every three years. The Chairman in consultation with the Board is responsible for considering and recommending to the Annual Conference the contract renewal for the Executive Secretary while for the rest of the posts, it is the responsibility of the Executive Secretary.


5. The contract for Executive Secretary, Jacob Munodawafa is expiring in June 2018 and applied to the Chairman for contract renewal in accordance with the SATA Constitution, Rules and Procedures. The Chairman requested for a copy of the current contract and it was submitted by email including the highlights of the association work achievements and proposed future work and for the survival of the association.

6. The board meeting held on 11 April 2018 deliberated on the contract renewal for the Executive Secretary and decided that the Chairman will make the recommendation during the annual conference and the CEOs will make a decision.

RECOMMENDATION 6

a) The annual conference is requested to consider the Executive Secretary’s contract renewal for another term of office following his commitment and excellent job he has been doing for the association.

b) Now he has a team of experts (finance and technology) supporting him and he is expected to focus more on strategic issues and programmes.

6. Strategic regional programmes

NOTED 8

The programmes have been segmented into regional and local (specific to countries at operator level). Operators have different needs and the focus is to address them as per request.

The proposed regional programmes with the respective hosts as approved in Angola are as follows:


Host/Service Provider Annual Conference(AN)

Broadband Southern

Africa (BSA)

Capacity and Traffic Southern

Africa (CTSA)

Service and Network

Operations Southern Africa

(SNOSA)

Telecoms Community Forum (TCF)

Southern African Development Community (SADC) 2018 -2022 2018-2022

Angola Telecom

Botswana Telecommunications Corporation Limited 2019

Malawi Telecommunications Limited 2020

Mauritius Telecom 2019

Telecomunicacoes de Mozambique 2021

Telecom Namibia 2021 2019

Telkom South Africa

Swaziland Posts and Telecommunications Corporation 2017 2022

Tanzania Telecommunications Company Limited 2020 2022

Zambia Telecommunications Limited 2021

TelOne 2022 2018

Societe Congolaise des Postes et des Telecommunications 2020

Telecom Italia Sparkle

Broadband Infraco 2018

Botswana Fibre Networks 2018 2017

Angola Cables


The following is a brief of each programme:

Annual Conference(AN) It is the annual general meeting of the association. It is hosted by members on a rotational basis

Broadband Southern Africa (BSA) The forum and gatherings will drive the implementation of broadband SADC under the Digital SADC 2027 and held on the sidelines of the SADC ICT Meetings

Capacity and Traffic Southern Africa (CTSA) It is the gathering of the wholesale community similar to international traffic and capacity series and focusing on the local regional market. It is hosted by members on a rotational basis

Service and Network Operations Southern Africa (SNOSA)Telecoms Community Forum (TCF) The forum and gatherings will drive and shape the

future of SADC Telecoms and ICT and held on the sidelines of the SADC ICT Meetings

The durations of each programme usually three to five days will be decided by the organizers in consultation with the host.

RECOMMENDATION 7

According to the hosting roster and schedule of SADC Meetings:

a) Broadband Southern Africa (BSA) and Telecoms Community Forum (TCF) are slotted to be held on the sidelines of the SADC ICT Meetings

b) Botswana Telecommunications Company Limited is requested to host the Capacity and Traffic Southern Africa (CTSA) from 20 to 22 February 2019

c) Mauritius Telecom is requested to host the Annual Conference from 24 to 26 April 2019

d) Broadband Infraco is requested to host the Service and Network Operations Southern Africa (SNOSA) in October 2018

2018 2019Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr


7. Strategic local programmes

NOTED 9

The broad strategy for this initiative is aimed at delivering effective programmes at member levels

a) Capacityb) Technologyc) Infrastructured) Services

The request for needs from members is structured as follows:

CountryOrganisationChief Executive Officer’s Name

For each of the programmes, members complete the details for each programme. Under this new initiative the “Needs” from Members refer to the gap or discrepancy between a present state (what is) and a desired state (what should be). The programmes will bridge the gap.

Programmes (Maximum three (3) in order of priority) Delivery Month(expected)

123

As a Member of SATA, I confirm that this submission truly represents the needs from organisation.

Contact Person______________________ Email:_________________Tel:__________________

Signature:_____________________


Programme 1

Current Results(What is)

Desired Results(What should be)

Need

Estimated budget to support the execution and implementation of the programme (in your currency)

Programme 2



Need

Estimated budget to support the execution and implementation of the programme ( in your currency)

Programme 3



Need

Estimated budget to support the execution and implementation of the programme (in your currency)


RECOMMENDATION 8

a) Members are requested to submit their needs to the association during the financial year for consideration and approval by the Board

b) Once needs are approved by the Board, the association will proceed to implement programmes to fill the member needs during the financial year.

2018 2019Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

8. Purchase of a vehicle

NOTED 10

1. The Executive Secretary is entitled to an association vehicle as part of package. He has been without a vehicle since 2015 when the old vehicle was disposed off.

2. During the financial year 2017/2018, the budget for two vehicles, for the Executive Secretary and Pool, amounting to $80 000.00 was approved. The purchase was not implemented because the Secretariat prioritised core operations of the association due to cash flows.

3. As a cost cutting measure, the Secretariat decided to reduce the cars to one with a maximum purchase value of $50 000.00 and the accumulated sponsorship revenue will be used to buy the vehicle.

4. During working hours, the same car allocated to the Executive Secretary will be used for office duties.

5. As advised by the auditors, there was no need to accrue the funding for purchase of the vehicle and repatriation provision in the financial statements. The association will use the cash reserves as approved.

RECOMMENDATION 9

The Secretariat is directed to purchase the vehicle following the association rules and procedures


9. Launch of a regional corporate responsibility charter

NOTED 11

Child Protection - Minor protection online

1. Network and service providers are strongly committed to protecting the younger generations. The child protection task team of the association corporate responsibility working group to be established will steer members' activities in this field. The aim is to create a knowledge base and to raise awareness so that members may identify and understand existing and potential risks, adopt new measures and improve existing ones and thus continue to proactively tackle the threats.

2. The overall aim is to make cyberspace and ICT services safer for the younger generations and create trust in the new technologies. As part of this commitment, the association will launch a website, work with all stakeholders on the protection of younger generations and publish campaign material giving an overview of in-built security features in broadband, mobile and IP-TV services, examples of services conceived especially for children and awareness and education campaigns.

3. For this initiative, the members are the providers of the ICT Services and have a key role to play in policy implementation in our networks e.g our internet routers and contributing to shaping the future for safer internet not for the younger generation but for everyone.

4. At the national level, all Members will work with their Governments, NGOs and industry partners in implementing the activities. The association will need to accept an active self-nominated and interested Chair for this task team to work with the Association. The budget for this activity will be catered for under the current programmes, activities and projects.

RECOMMENDATION 10

a) The annual conference is being requested to adopt this initiative b) Telecom Namibia volunteered to chair this task group with SPTC – eSwatini and

BoFiNet - Botswana as members of the group.


10. Launch of a digital benchmarking engine

NOTED 12

1. Technology is changing every day and thus business and, benchmarking is a well suited tool in order to:

a) Identify members performance gaps (answering to questions “where” and “how much”)b) Analyze the root causes, andc) Exchange on operational performance’s main pillars, e.g. organisations, processes, tools,

knowledge (answers to question “how to”).

2. As enshrined in the membership benefits, members have being doing benchmarking and doing working visits e.g. on wholesale business, technology and business processes on a bilateral basis and also the association facilitating.

3. Currently there is no formal structured benchmarking where the results of the benchmarking should be an independent report, white paper or study to assist members.

4. For more value to members, there is a need to establish a working group to champion benchmarking, develop a benchmarking engine and identify a third party for blindfolded studies considering that members’ data and information is sensitive.

5. The ultimate goal is the adoption and adaptation of best practices coming from other members. The methods and tools developed will provide a potentially substantial impact on the economic performance, competitive position of the members and offering positive opportunities for our countries.

6. The working group to be established will be promoting and facilitating benchmarking activities between members by:

a) Providing a mechanism to help recruit participants for specific studies introduced by individual members

b) Actively encouraging both quantitative and qualitative benchmarking studies ;c) Providing rules and methods in order to manage the benchmarking studies in an

efficient way while protecting confidential informationd) Exploiting the use of benchmarking expertise within the constituent member operators.


e) Providing a centre-of-excellence forum for staying abreast of best practices in respect to benchmarking skills and techniques.

7. This initiative is aimed at contributing to the improvement of the regional telecommunications operations in general and operators making informed decisions and benefiting in particular. Operators will save millions of dollars on current consultancy work and outsourcing.

8. The working group will establish links with other operators in other regions of the world, industries and administrative bodies to widen data capture and also enable members to pursue their own benchmarking studies more effectively.

9. Our committees, working groups and task forces are the engine of the Association. The bottom-up approach when formulating recommendations, resolutions, and position papers ensures that all member interests are captured. A motivated and interested Chair for this working group needs to be nominated and the Chair will sign up the group members and start the work. There is no direct funding required to kick start this work.

RECOMMENDATION 11

a) The annual conference is being requested to adopt the initiativeb) Telkom accepted to chair this task group.

11. Digital training, up-skilling, studies and consultancy services

NOTED 13

1. This initiative is anchored on the use of regional experts and partners to provide training, up-skilling and consultancy services.

2. The experts and partners from the region will be hired when opportunities arise. The partners can be individuals or companies.


3. The association will solicits, identifies and bids for consultancy projects jointly with the partners and the actual delivery of the work will be done by the partners and experts.

RECOMMENDATION 12

a) Members are requested to consider the association before going out to tender for studies, digital training and up-skilling.

b) As a community members will benefit more as a region and not as pockets of excellence whilst reducing costs.

c) Members are requested to participate in the establishment of a common centre of excellence and skills expertise database through SATA.

12. Active designated member focal points

NOTED 14:

Pursuant to ARTICLE 18 of the Constitution, under 'OBLIGATIONS OF ALL SATA MEMBERS',

Members are required to appoint a Designated Focal Point /Permanent Contact Point within

the Member's organization, who, shall mediate on all SATA matters and shall inform the

Secretariat promptly about any changes interim, or permanent. Members are required to send

the official communication to the Secretariat by fax to +258 21 431 288 or e-mail (sata@sata-

sec.net). It is important to note that self-nominations will not be considered.

To coordinate and support Member participation in the activities and projects by the association

Coordinate the processing of Membership contributions Coordinate the hosting of meetings Update information concerning Member company and persons Participate in meetings of designated focal points

Members are investing in the association and expect benefits from these membership

investments. An internal function which is the Designated Focal Point plays a key role in

monitoring the benefits and report to Management.

In the past, the association faced communication challenges with Members as most of the

designated focal points where not active or had left the organisations. The Secretariat ended

up broadcasting communication to whoever was on the mailing lists.


RECOMMENDATION 13

a) All Members should update the association with their designated focal points (DFPs) b) All designated focal points must sign an affirmation to commitment form and deposit

it with the association

13. Traffic and Signalling Hub

NOTED 15:

1. The Capacity and Traffic Southern Africa forum formerly SADC

Telecommunications Operators Bilateral Meeting (STOBM) held in 2015 from 24 to

27 February 2015 at Le Meridien Ile Maurice, Port Louis, Mauritius hosted by

Mauritius Telecom identified the challenges of traffic routing within SADC

transiting through other parts of the world yet SADC is fully surrounded by

submarine optic fibre cables and fully interconnected with terrestrial optic fibre

cables implemented through the SADC Region Information Infrastructure (SRII) and

Back Haul Links initiatives.

2. The forum recommended the establishment of the SADC Traffic Hub for

Interconnection and Traffic Exchange especially voice. A few operators were

selected to work on the proposal. The Terms of Reference for the task team were to

consider:

a) The technology and solutions for establishing the traffic hub and consider similar

initiatives being done in the region under the regional internet exchange points

programme funded by the African Union Commission.

b) Possible location of the SADC Traffic Hub considering existing Data Centers


c) The equipment and connectivity required for e.g IPX and funding for the

procurement of the equipment

d) Management Team of the SADC Traffic Hub including its funding

e) Procurement and Installation of the traffic hub

f) Maintenance of the Traffic Hub

Following the study on signalling which was done by the association for SADC, it was

decided that the voice and signalling hub be implemented as part of the regional exchange

points project which is being funded by the African Union. The project is now being

handled at SADC level.

Recommendation 14

The association is requested to carry out an assessment study to ascertain how the IXPs and RXPs are operating.

14. Partnerships and Collaboration

NOTED 16

1. The regional and international cooperation includes Lobbying Governments, Regulatory Authorities and stakeholders of interest in the promotion of ICTs for development supporting the ICT industry

2. While technology continues to evolve over time – from the telegraph to telephone, radio, television, satellites, the internet, internet of things (IoT) and beyond – one thing has remained constant: operators, regulators, governments and industry collaborate together to nurture new technologies and spread them around the world

3. By collaborating: Industry members have an opportunity to influence the decisions that impact the

sector and their business Members can enjoy of some of the following benefits:

a. the opportunity to network with other operators, ICT regulators, policy-makers and experts from industry and academia

b. contribute to global standards and best practicesc. advise governments on ICT strategies and technologies


d. participate in and lead studies and research on emerging issues in the ICT field

e. gain visibility on the international stagef. share expertise and access training and specialized seminarsg. participate in global and regional conferences and debatesh. launch innovative public-private partnershipsi. get free access to world-leading ICT statistics, studies and information

4. The markets are undergoing a rapid phase of transformation, with market players facing new challenges and new business opportunities

5. The sustainability of the internet development model is, in particular, a key issue that research and academic work should look at and how policies should evolve is crucial.

RECOMMENDATION 15

Partnerships and collaboration provide an opportunity for the growth of the industry and members should embrace partnership and collaboration with competitors and the industry in general for survival.

15. Key regional and international programmes and events

NOTED 17

1. The key regional and international programmes and events are those not listed in this document. These include:

a) SADC ICT Meetings b) International Telecommunication Union (ITU)c) Telecom and ICT industry series like Africa Comd) Regional and international programmes and events by development partners

2. These are important events for participation by members in their capacity and by the association as an industry body representing the interests of members.

3. The most important asset in any organisation is human capital comprising of the skills, experience and knowledge of the employees and exposing the employees will result in huge savings because the human capital will have grown.


RECOMMENDATION 16

a) Human Capital is the key asset in any organisation and Members are encouraged to invest in its growth

b) Although the industry standards recommend an investment into Human Capital of 10% of the total budget, it is recommended that the starting point in our region be at least 3% considering the scarce resources available to Members.

16. Implementing latest and recommended industry broad strategies

NOTED 18

The industry is transforming at a very fast rate. A lot of industry predictions about the future are being made available and published. Below are some selected broad recommendations picked up from the industry which Members are encouraged to consider and incorporate into organisational menu of options.

As a Business:

a) Breaking out of the deflationary price spiral and move to pricing models that better reflect the value of the customer. The markets are different where some are more regulated than others and bridging the operator – policy/regulatory gap by engaging the policy and regulatory authorities makers will yield better results

b) Raising the effectiveness of innovation and launching new services that can compete with global champions. There is no magic which these champions do. They simply innovate, automate and be the best. Operators can do much better if they take the bold decision to change.

c) Moving beyond the pursuit of incremental efficiency gains and pursue the path of consolidation and transformation

The following are some opportunities for growth:

1. Developing innovating pricing models to accompany the new services2. Building business around infrastructure (Infrastructure and Wholesale business

models) and differentiating it from launching a service over that infrastructure3. Internet of Things (IoT) and Machine two Machine (M2M) offers operators the

opportunity to price for the value of information and not the volume of bytes. At the moment internet pricing is volume based with limited value of information pricing


4. Pricing and promoting more advanced services as a bundle, as online competitors do.

5. Implementing 100% business online and automation

On policy and regulatory frameworks, the following are some freedoms which the association and the members have to lobby for so that the regulations and policies evolve with the industry.

a) The freedom to develop retail pricing propositions that are customer –centric and unconstrained by regulations on bundling or restrictions on rebalancing

b) The freedom to innovate on the same terms as a non-telecoms operatorc) The freedom to pursue scale in operations, whether in country or cross-border

RECOMMENDATION 17

1. The association is requested to identify industry partners to carry out an informed research on “ICT Growth Opportunities for Business Transformation” and the report to be ready by the third quarter of the financial year for distribution to members.

The approach and methodology will involve

a) Interviews with members of the association structured around Trends in services provided by members Opportunities for growth Regulatory and policy interventions

b) Quantitative analysis of the trends and opportunities for members of the association

Revenues and cost trends Potential growth opportunities for the members of the association Business operational structures and transformation savings

2. The association to submit to the Board for approval, the funding options to carry out this research


17. Supporting the building of “Future Regulatory and Policy Framework”

NOTED 19

1. The industry is evolving at rapid pace and policy and regulatory frameworks have to evolve with industry. Regulatory authorities play a key role in the development and growth of the industry and must play the game and support the players and not only focusing on interventions. The latest view is that the regulatory authorities represent the interest of both the players and customers.

2. At the Parliament Level, there must be a body like a commission (example of Europe) which monitors the successes and failures of the industry where the actors are:

a) Operators (players)b) Regulatorsc) Policy Makers (Ministries)d) Customers (Consumer Associations)

3. Historically the focus was only on customer side and that is why pricing regulation was adopted in many markets. Markets which had adopted International Termination Rates (ITR), Inter-Operator Termination Rates (IOTs) and wholesale regulation have learnt from their experience and have now taken a different approach for the market to regulate itself and compete.

4. Regulation imposes costs on operators and gives them little flexibility to optimize and transform their businesses. Policy makers and regulatory authorities should concentrate on encouraging competition and striking the balance between competition and regulation. Competition helps cultivate discovery and innovation.

5. Competition is superior to regulation in dealing with the unexpected for example research and development. A good example is the internet. The internet started in the US and is all over the world. If it was regulated, we would not be talking of this great invention.

6. For the growth of the industry as we navigate towards 2020 with 5G and latest NGN expectations, operators should be granted:

The freedom to develop retail pricing propositions that are customer –centric and unconstrained by regulations on bundling or restrictions on rebalancing

The freedom to innovate on the same terms as a non-telecoms operator


The freedom to pursue scale in operations, whether in country or cross-border

RECOMMENDATION 18

a) The association is requested to engage Communications Regulators Association of Southern Africa (CRASA) to establish a “SATA - CRASA Co-operative Initiative on Regulatory Reform” and hold a half day workshop on the side-lines of the next SADC ICT Meetings hosted by the Member States whose theme will be “STRIKING THE RIGHT BALANCE BETWEEN COMPETITION AND REGULATION: THE KEY IS LEARNING FROM THE PREVIOUS MISTAKES”

b) CRASA and SATA will identify a facilitator willing to donate their services where the cost of the facilitator will be an economy class air ticket and United Nation (UN) country subsistence rates.

c) All operators including non-members will be invited to attend.

18. Balanced Scorecard

NOTED 20

1. Performance Management (PM) is more than the end of the year appraisal. It’s about translating goals into results. Performance Management focuses not only on individual employees, but also on teams, programs, processes and the organization as a whole.

2. A well-developed PM program addresses individual and organizational performance matters necessary to properly create and sustain a healthy and effective results-oriented culture with the requisite strategy being critical in the management of the organization

3. The association has a clearly defined Performance Management system aimed at achieving greater organizational success where the processes designed are placed to measure and reward the abilities of the workforce to meet and exceed goals/targets.

4. The performance management approach is organized around:

a) Individual goals and corporate strategy defined and communicated association-wide.b) Progress on goals is monitored bi-annually, and management provides coaching on

performance.c) Individual performance is appraised with feedback and formal documentation.


d) Compensation is given based upon performance. If performance meets or exceeds the desired standard, a reward is given. If performance does not meet the desired standards, a performance development plan is created to address the gap, and a new performance date is scheduled.

5. The revised strategy and Balanced Scorecard went through the Board and through the committees.

RECOMMENDATION 19

a) The annual conference adopt the Balanced Scorecard for implementation by the association

b) All members are directed to cooperate and support the association in its work in order to meet the targets of the Balanced Scorecard

19. Short to medium term collaborative initiatives to support better and secure service delivery and great customer experience

NOTED 21

These are initiatives targeted ata) Improving service deliveryb) Creating great customer experiencec) Strengthening partnership and collaboration

It is has been realised that pockets of excellence cannot survive into the future whilst collaborative approaches will yields positive results and a sustainable future.

Content Delivery Networks (CDNs) are a layer in the internet ecosystem. Content owners such as media companies and e-commerce vendors pay CDN operators to deliver their content to their end users. In turn, a CDN pays ISPs, carriers, and network operators for hosting its servers in their data centers.

The following areas were identified as short initiatives which can help grow the sector:

1. Aggregation of connectivity and capacity to content delivery networks (CDN) and Content Owners

2. Enhanced collaboration on addressing Cyber Security3. Creation of business environments to attract investments in digital services


4. Cooperation and Collaboration

RECOMMENDATION 20

a) The association is directed to carry out a regional study to determine traffic volumes between the region and

Content Owners Over the ToP Services (OTTs) Content Delivery Networks CDN’s Social media networks

b) The traffic will include and not limited to Youtube, Facebook, Akamai, Netflix, Google, whatsapp and the results of this study will enable the region to decide on collectively interconnecting directly with the CDNs at the regional level with reciprocity regarding local / regional content

c) SATA and CRASA to work with policy makers: 1) To establish the minimum capabilities at national level to strengthen

cooperation between member states and oblige service providers and critical digital services to report serious cyber incidences.

2) Develop appropriate policies to support the privacy and protection of user data and information and attract investment in digital services

d. Members are requested to review their business models for regional and national data centres as enablers of cloud services and third party applications to make sure that they are carrier neutral and support open access principles.

e. Members and high level Policy Makers including Regulators are requested to support and cooperate during the following strategic industry events and summit going to take place in South Africa

ITU Telecom World


BRICS Summit SADC ICT Ministers Meeting

i. By attending and participating during the special sessions ii. The Chairperson of SATA and the Telkom Group CEO in his capacity as the

Chairperson of the CEOs Broadband Initiative for Southern Africa (CBISA) will co-sign a letter to the host country (South Africa) for a regional cooperation and participation during these events.

iii. The issues to be covered in the specials sessions will include the following:

o Intra-regional broadband investments among the telecommunications operators

o It is recommended that the next meeting of CBISA combined with SADC Ministers will be hosted by Telkom Group CEO alongside the ITU Telecom World 2018 or BRICS Summit

o As a legacy project beyond ITU Telecom World 2018, create a regional center for think tank on the 4th Industrial Revolution (ICT Sector)

o Creating an opportunity to expose the youth and students to cutting edge technologies and services by attending these events particularly the ITU Telecom World


may 2019/dr- draft... · web vie

Documents