Briefing to the Joint Sitting of the Parliamentary Portfolio Committees on

Communications and Telecommunications & Postal Services

“Regulatory Impact on ICT Sector Entities”

Rubben Mohlaloga– Acting Chairperson 18 AUGUST 2015

Organisational Mandate

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ICASA is established pursuant to section 192 of the Constitution and in terms of the ICASA Act of 2000

Regulate electronic communications, broadcasting and postal sectors in the public interest

Ensure affordable services of high quality for all South Africans

ICASA is mandated to -

ICASA’s mandate is derived from:

ICASA Act, 2000

EC Act, 2005

Broadcasting Act, 1998

Postal Services Act, 1998

ECT Act, 2002

Government’s Priority Outcomes

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Government Priority OutcomesPromote competition and network deployment for universal broadband provision

Ensure that the regulatory framework facilitates the use of ICTs as a platform to provide increased access to government services

Facilitate the 3-tiers of broadcasting and specifically focus on a regulatory agenda that:

• Promotes local content• Dissemination of information

in the public interest • Public broadcasting content

across all broadcasting platforms

Strategic Goals: 2016-2020

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Overview of ICASA Services to the Sector

ICASA

Services to licensees

Universal service obligations

Diversity of local Content

Delivery of Quality of Service

Speedy resolutions of

Complaints

Competitive pricing

Services to end-users & audiences

Services to Licensees (1)BROADCASTING LICENCES

Individual Class Licence Exempt

ECNS 502 491 210

ECS 502 436 23

ELECTRONIC COMMUNICATIONS & NETWORK LICENCES

Applications Processed

Numbering 203, 511, 574

Type Approval

22, 256

NUMBERING AND TYPE APPROVAL

Applications Processed

Unreserved Postal Services 74

POSTAL REGISTRATION CERTIFICATES

Services to Licensees (2)

SPECTRUM ASSIGNMENTS

Authorised

Channel Top TV – 129 ChannelsDeukom – 1 ChannelWoW TV – 2 Channelse.TV (e.mobile) – 29 ChannelsMultichoice – 450 ChannelsDSTV(Mobile) – 10 ChannelsTotal Number – 621 Channels

Band (MHz) 800 900 1800 2100 2300 2600 3500

374.92 4.92 33 82 90 80 15 70

BROADCAST CHANNELS

Services to Licensees (3)

WC: 39

FS: 19

GP: 53MP: 27

NC: 9

NW: 38

LP: 38

KZN: 37

EC: 36

ICASA, MDDA and Sentech work together to support growth in this sector

Distribution of community radio stationsAll communities have their own voiceScope for growthSource of local content

Contribution to the National Fiscus

Services to end users & audiences (2)

Broadband Connectivity for Schools Targeted licensees to connect 5250 schools:

• 24 Tablets for students• 3 Laptops for Educators• 2 Printers• 1 Projector• 1 Server (content storage)

Achievement: • 334 schools connected• 860 to be connected by 31 March

2016

WC: 1052

FS: 500

GP: 552MP: 340

NC: 860

NW: 280

LP: 232

KZN: 768

EC: 500

Services to end users (3)

Fixed-telephone subscriptions

Fixed-broadband subscriptions

% ADSL to Voice

Mobile voice subscriptions

Mobile data subscriptions

% Data to Voice

Total 4 302 606 1 706 313 40% 79 540 205 24 815 991 31%

1994o 2 mobile operatorso 1 fixed line providero Limited access to serviceso R3.20 per minute (prepaid)

2015o 4 mobile operatorso Over 50 fixed line service providerso Over 90% population coverageo 90% reduction in termination rates

o R 1.25 in 2009 to R 0.13 in 2017o Cost of a call is approximately R0.65 per minute

Services to end-users (4)

Quality of Service Monitoring - the Authority conducts QoS monitoring to protect consumers from poor services. QoS monitoring was conducted in the following provinces during 2014-2015 as per the below:

The monitoring measured the accessibility and availability of network signals and the quality of services offered by mobile operators. The Authority also assisted other state organs such SARS in monitoring the availability of network signals in the border posts as well as USAASA to assess quality of subsidized networks in under-serviced rural areas An international company called Omnitele was also hired to conduct comprehensive network benchmark monitoring in all 9 provinces.

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Limpopo Northwest Northern Cape Free State

Impact on SoCs: SAPO

SAPOoExclusive

provision of basic mail services

o25 year licence

SAPO - Universal Service Obligations

Target Achieved Target Achieved Target Achieved Target Achieved

2010/11 2012/13 2013/14 2014/15

Points of presence

85 Not achieved

50 Not achieved

50 Not achieved

50 Verification was not concluded

Street Address roll-out

4,937, 035

Not measured

1,195,690 Achieved 700, 000 Not measured

92% Not verified

Service delivery standards

95% Not verified

95% Not verified

95% Not verified

95% Not verified

SAPO: Possible Support Measures

Impact on SoCs: SENTECH

Designated Signal DistributeroTerrestrial broadcaster for television and radiooSupports local broadcasters

ICASA impact:oMore licensees equals more revenue for Sentech

ICASA has licensed over 256 community radio stations to date ITA for commercial radio station in Northern Cape issued ITA for Multiplex 3 to be issued before end of Q2

ChallengeoHigh prices for Digital Signal Transmission

Focus Areas / PrioritiesoDTT migration

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Impact on SoCs: InfraCo

Collaboration with other regulatory authorities

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Chief Operations Officer (Regulatory Projects Office)

o Measures to ensure sustainability of the community broadcasting sector

o MoU currently under negotiation o ICASA and FPB have agreed on an MoU (to be signed before

end of Sept 2015) on a collaborative framework for regulation of content and related services.

oICASA and NCC signed MoU during June 2015 to establish a collaborative framework for dealing with consumer complaints.

o Promote universal service and access especially for broadband services

o MoU in place - cooperative framework over competition matters in the sector

o Concurrent jurisdiction over consolidation transactions in the sector

MDDA

FPB

NCC

Competition Commission

USAASA

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Conclusion

An Efficient and Independent

Regulator

ICASA organisational realignment completed Position the organisation to be efficient and effective to serve consumers and industryEnsure fulfilment of the constitutional mandate

Collaboration with all key

stakeholders

In order for the sector to move forward it is critical that the regulator, policy makers, legislature and industry work together for a the common vision as outlined in the NDP

Clear and targeted priorities for the

sector

The country can only realise the NDP Vision if the sector priorities are relevant, targeted and realistic – DIGITAL MIGRATION, SPECTRUM ASSIGNMENT, INFRASTRUCTURE DEPLOYMENT and TRANSFORMATION

Thank You!!

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