1. 11 March 2005 Jackie Boitumelo Manche
Independent Communications Authority of South Africa - Presentation to the Portfolio Committee -
11 March 2005
Jackie Boitumelo Manche

2. Overview Introduction Strategic Objectives Review and Outlook Budget
Law, Communications, Consumer Protection and Council Support
Telecommunications
Broadcasting
Engineering and Technology
Budget
Self Funding
Conclusion

3. Powers and Functions Principal functions include:
Policy development and regulation of broadcasting & telecoms sectors
Establishment and control of tariff structures
Issuance of broadcasting and telecoms licences
Management of the efficient and effective utilisation of radio frequency spectrum
Control and prevention of anti-competitive behaviour by dominant players
Ensure compliance with communications regulatory framework and licence conditions

4. Strategic Objectives
ICASA’s strategic objectives are informed by government’s policy directives as well as legislative imperatives:
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. Strategic Objectives (2)
ICASA’s strategic objectives are informed by
government’s policy directives as well as legislative
imperatives:
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. Key Market Issues – 2005 and beyond
Further liberalisation of the telecommunications market consistent with September 2004 policy announcements include:
Technology driven convergence of the broadcasting & telecommunications sectors
VOIP
VANS & PTN
Self provision of infrastructure
Second Network Operator (SNO)
R60 billion telecommunications sector still growing
Convergence legislation
Growth of the broadcasting sector (R7 billion)
Broadcasting sector consolidation in view of market conditions
2010 World Cup
ICT charter development

7. ICASA Strategy Development “The Journey”
Functional
independence
Clear respect in the industry
“Transform ICASA
into a fully independent,
continually relevant
and credible regulator
of the South African
communications
sector”
Efficient streamlined processes with total management control
A magnet for talent with clear career development path & dynamic work environment

8. The ICASA Value Drivers
In depth understanding of & effective regulation of the communication sector
Functional
independence
World class execution
“To transform
Itself into a fully independent, continually relevant & credible regulator
of the South African communications sector

9. of the South African communications sector
The ICASA Goals
In-depth understanding & effective regulation of the communications sector
Functional
independence
World class execution of its
functions
“To transform
Itself into a fully independent, continually relevant & credible regulator
of the South African communications sector
GOALS
Establish clear roles and responsibilities between DoC, ICASA & Legislature
Establish clear unambiguous internal governance structure
Establish clear delegation of authority
Develop organisational capability
Develop operational excellence
Develop good capital stewardship
Become the undisputed authority on the communications industry structure
Develop & institute world-class Knowledge Management (KM) system
Effectively regulate the communications sector

10. Telecommunication Services

11. Major Deliverables for 2005/06
Finalise revision of the Rate Regime;
Conduct inquiry into Significant Market Power;
Preparation for Convergence;
Revision of Interconnection and Facilities leasing Guidelines;
Preparation for the implementation of mobile COA/CAM;

12. Major Deliverables for 2005/06
Licensing of- Under Service areas;
Telkom licence amendment;
Licensing of the SNO;
Licensing of Value Added Network Services operators;

13. Broadcasting Services

14. Major Deliverables for 2005/06
Review of Advertising and Sponsorship regulation
The re-engineering of existing policies to address requirements set by the Convergence Bill
Inquiry into Children and Woman’s programming
Review of commercial free-to-air television and inquiry into commercial free-to-air satellite broadcasting (tv and sound)
Midi TV licence Renewal

15. Major Deliverables for 2005/06
Licensing of Secondary Markets
Licensing of Nodal Points
Licensing of SABC 4 and SABC 5 (Regional Television)
Licensing of Subscription Broadcasting

16. Engineering and Technology Services

17. Major Deliverables for 2005/2006
Completion of Project Spectra
Spectrum Management and Planning Tool
Review equipment specifications
Introduction of new standards in conjunction StanSA
Annual Publication of Terrestrial BC frequency plan
Spectrum licensing/fees regulation
Satellite licensing framework

18. Major Deliverables for 2005/2006
Radio Frequency Spectrum Audit
Update of licence records in order to license new entrants.
Planning of Digital Broadcasting Bands
Develop and effective Broadcasting plan that gradually introduce digital broadcasting and protect the existing and planned services in the band.
Migration of 3G frequency spectrum band
Clear band to licence SNO and Mobile operators
Completion 800 MHz sharing study
Possible introduction of CDMA technology
Alignment of SATFA with Convergence Act

19. Major Deliverables for 2005/2006
SKA (Square Kilometre Array) Project
ICASA do terrestrial interference surveys for the SKA bid

20. Law, Communications, Consumer Protection And Council Support

21. Major Deliverables for 2005/2006
Support Council to ensure compliant decisions to minimize litigation
Defend decisions from legal challenge.
Support regulation making processes to implement all policies and projects, including liberalization of markets and convergence legislation, to ensure certainty of the regulatory framework.
Intensify marketing and branding of ICASA
Manage information by creating interactive content on the website; increasing stakeholder liaison and attending media and public enquiries

22. Major Deliverables for 2005/2006
Intensify outreach programmes with road shows; community workshops; partnerships with consumer bodies; consumer committees and dedicated ICASA consumer days to increase public awareness on telecommunications services and rights
Ensure compliance with the codes of conduct by operators, including the code on the service needs of people with disabilities
Translate all information material into all official languages

23. Major Deliverables for 2005/2006
Identify major consumer issues to institute public processes and conduct consumer research
Hold public hearings on complaints on ADSL services provided by Telkom
Hold public hearings on installation of services by Telkom
Benchmark ICASA activities with international best practices through international and bilateral participation

28. Convergence Funding for 2005/06 – 2007/08
In terms of the Convergence Bill, ICASA has the responsibility
to:
Develop new policies and regulations in line with the legislation;
Amend and repeal policies and regulations in conflict with the legislation;
Reissue all licences in terms of the new categories specified by the legislation;
Organizational restructuring in line with the legislation; e.g.
- integration of the postal regulator into ICASA;
- integration of the telecoms and broadcasting operations.
These additional responsibilities will require appropriate funding.

29. Major Deliverables for 2005/06
The major HR deliverables are as follows:
Continue with implementation of the Performance Management System;
Elimination salary discrepancies and disparities;
Recruit all remaining vacant positions.

30. Major Deliverables for 2005/06
The other major deliverables are as follows:
Upgrade the remaining office facilities;
Address remaining security concerns;
Improve internal document management;
Replace vehicles in the fleet that are no longer cost effective.

31. Licensing Revenue Trends

32. Self Funding
ICASA has previously made a case for the retention of some of the licence fees collected. Argument for self funding is based on following:
Provide sufficient funding for an effective regulator
Allow ICASA to respond to the dynamic regulatory requirements for managed liberalisation, convergence etc.
Augment internal human resource and technical capacity
Reduce reliance on the industry for critical regulatory data and knowledge that can influence regulatory decision making process
Improve collection of revenue as there will be an incentive to improve efficiencies
Detailed empirical research work is currently being undertaken

33. Conclusion
Received VAT funding to 31 March 2005, awaiting deregistration.
Implementation of new Convergence legislation
Licensing of 4th mobile and 3rd fixed line operators
Licensing Community sound broadcasters in all nodal points
Licensing Under Services Area Licensees
Improving capacity of ICASA to enforce compliance through improved legal resources and knowledge, as well as technical capabilities to perform its compliance and monitoring functions properly