1. Presented by : Jackie B. Manche Date : 09 November 2005
Presentation to the Portfolio Committee on Communications on the ICASA Annual Report
Presented by : Jackie B. Manche
Date : 09 November 2005

2. Outline of Presentation
Strategic Objectives
Highlights of 2004 Achievements
International Participation
Stakeholder Management
Corporate Governance
ICASA & its People
Litigation
Summary of Licences issued
Financial Statements

3. Strategic Objectives
Promote Competition, affordable delivery of services & universal access
Promote South Africa as an affordable & attractive investment destination
Enhance economic productivity & efficiency through telecommunications access
Create a knowledge-based society through the broadcasting industry

4. Strategic Objectives cont.
Our Strategy is underpinned by three drivers of value:
In-depth understanding and effective regulation of the communications sector
Functional effectiveness
World class execution of all its functions

5. Promoting Universal Access
ICASA issued licences & published policy documents in its pursuit of promoting community access to basic telephony & broadcasting services
Underserviced Area Licences (USALs):
Seven USAL Licences were granted
An ITA for the second phase was issued

6. Promoting Universal Access cont.
SABC’s licence amendment application for its re-organisation was put through a public process
SABC 4 & 5 – application for regional television services was granted
ICASA approved the amendment of SABC 1 & 2 licences to allow for expansion
ICASA approved SABC 1 & 2 power upgrade
Position Paper on Low Power Sound Broadcasting was published

7. Promoting Universal Access cont.
Decision was taken to licence 2 categories of Low Power Sound Broadcasting services, namely commercial & community
ITA was published for community sound broadcasting services in 13 nodal areas
Published discussion document on Local Television
Position Paper and regulations on Community Television Broadcasting Service were published
Discussion Paper and Position Paper on Self Help Stations was published

8. Promoting Economic Growth & Job Creation
The Minister granted a licence for the Second National Operator (SNO)
ICASA embarked on a licence amendment process for Telkom’s licence to create an equitable environment for Telkom & the SNO
Regulations were drafted to create a framework for Value Added Network Services (VANS) to work within

9. Promoting Economic Growth & Job Creation cont.
Frequency spectrum in the 1800 MHz band was issued to mobile operators who have undertaken to provide SIM Card connection services and terminal equipment to be used for disadvantaged communities
3G licences issued
Over 5000 new frequency spectrum licences were issued

10. Promoting Economic Growth & Job Creation cont.
Broadcasting spectrum assignments and plans were undertaken
ICASA published a discussion paper on Subscription Broadcasting & held public hearings

11. Promoting Competition, Choice & Diversity
Chart of Allocations/Cost Allocation Manual (COA/CAM) enables ICASA to monitor charges
ICASA undertook a review of COA/CAM for mobile operators
Telkom Tariffs were reviewed and rates regime regulations were published
Numbering Plan has been finalised
Regulations on Number Portability have been finalised

12. Promoting Competition, Choice & Diversity cont.
Broadcasting:
8 Broadcasting licences were amended
MNet licence amendment process was conducted

13. Monitoring & Enforcement
ICASA adjudicates complaints amongst telecomms operators by investigating complaints & resolving them in the public interest - 6 complaints were before ICASA
ICASA monitors performance and investigates complaints against broadcasters – 94 complaints were received

14. Monitoring & Enforcement cont.
The BMCC adjudicates complaints in the broadcasting sector referred to it by ICASA – 5 licensees appeared before the BMCC
ICASA enforces compliance by spectrum users. Inspections, monitoring, interference investigations & maritime audits were conducted

15. Setting Technical Standards
ICASA type approves and licenses equipment against acceptable standards for performance and safety
Amateur Radio Regulations were developed
Telecommunications Line Terminal Equipment are governed by licensing provisions
Switching systems were type approved
Radio Frequency Equipment are type approved

16. Consumer Protection
Outreach programmes on consumer education is aimed to inform communities on ICASA’s regulatory activities and on their rights as consumers
Road shows were held in five Provinces
Community workshops were held in 6 communities
Consumer complaints were received, analysed and resolved

17. Consumer Protection cont.
The ADSL services were identified as a major consumer issue and a public process was instituted
ICASA focused on cost, capping, port prioritisation and speed
The Advisory Committee on People with Disabilities has drafted a Code of Conduct for operators

18. International Participation
ICASA participates actively in:
TRASA (Chairs two specialist committees and Executive Committee Member)
ACRAN/RIARC (Served as Chair)
ITU (WSIS)
IIC
SABA

19. International Participation cont.
Assistance was provided to:
Lesotho Telecoms Authority on their spectrum project
Square Kilometre Array (SKA) Project by terrestrial interference surveys
National ICT Standards Committee (TC 71)
Hosting of visiting delegations for information sharing

20. Stakeholder Management
ICASA held the following stakeholder events:
Stakeholder meeting on its programme for the year
Colloquium on the Ministerial Policy Determinations
Hosting of international visitors
Participation in industry exhibitions
Public participation through hearings for all policy and regulation development processes

21. 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

22. Corporate Governance cont.
A Risk Management Committee was established to identify and investigate risks
A Tender Committee considers bids for the procurement of goods & services. The functions of the Tender Committee are underpinned by the provisions of the PFMA & PPPF Act

23. DEMOGRAPHICS PER POPULATION GROUP
MARCH 2004 VS MARCH 2005

24. DEMOGRAPHICS PER GENDER GROUP
MARCH 2004 VS MARCH 2005
MARCH 2004
MARCH 2005

25. ICASA & its People
A total of 4,47% of payroll costs was spent on training and development with a focus on Engineering & Technology to be able to recruit previously disadvantaged individuals to this technically orientated division
Due to the merger of SATRA and IBA, salary discrepancies existed which were remedied by the implementation of a new salary structure

26. ICASA & its People cont.
ICASA introduced a Performance Management System. Staff were rewarded for outstanding performance
ICASA launched an Employee Wellness Programme and a HIV/AIDS programme which culminated in the HIV/AIDS Day. ICASA staff adopted two families affected by HIV/AIDS and staff pledged monthly financial support to them

27. 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 details 29 ongoing litigation matters

28. NUMBER OF LICENSES ISSUED

29. Independent Communications Authority of South Africa ICASA 2005/06 Annual Financial Statement

30. Agenda Income Statement Balance Sheet Statement of Changes in Equity
Cash flow Statement

31. Income Statement

32. Balance Sheet

33. Statement of Changes in Equity

34. Cash flow Statement

35. Implications of E-Comm Bill
The Bill foresees a substantial shift of the South African communications sector to a new level of more competition, improved access and a much broader range of services.
The Bill’s increased scope of responsibilities for the Authority will require additional funding to meet the following tasks:
Redesign of current regulations to address convergence
Conversion of existing licences
Redesign of licence pricing schemes
Reorganisation of ICASA , including additional staff requirements, skills assessment and training of staff to meet convergence challenges
External communication of new regulations to provide regulatory certainty for industry players

36. ICASA Act Amendment Establish an Complaints and Compliance Committee
Licence conditions enforcement and compliance
Postal Regulator
Organisational redesign and business process changes to integrate the Postal Regulator into ICASA
Management of the change process
Regional offices and administration

37. Organisational Structure
The establishment of an internal research department to provide the authority with a comprehensive and independent view on market developments, technological changes and international benchmarks as a basis for regulation design
The establishment of an efficient knowledge management system to facilitate collection, retention and sharing of institutional knowledge across units.

38. Organisational Structure
Training and development of staff is a key intervention necessary for the implementation of the E-C legislation.
Establishment of a competition unit within ICASA to ensure effective and balanced regulation

39. Organisational Structure
Alignment of staff salaries due to the absorption of the Postal Regulator, as well as market related salaries to attract and retain skilled staff.
Organisational and structural re-design to deliver on ICASA’s mandate and ensure that ICASA is aligned in the most efficient manner to address the convergence challenge.
Implementation of a performance management system to improve accountability whilst offering employees incentives for performance.

40. THANK YOU