Annual Report 1 April 2003 31 March 2004

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Annual Report 1 April 2003 31 March 2004

• 8 November 2004

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Outline of Presentation

• Strategic Objectives
• Telecommunications
• Broadcasting
• Engineering Technology
• Legal, Communications, Consumer Protection and
  Council Support
• Office Finance and Business Support

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Strategic Objectives

• ICASAs strategic objectives are informed by the
  policy directives as
• laid out by government and the different
  statutes. These are
• Promoting affordable delivery of services and
  universal access
• Encouraging investment in the ICT environment
  within a stable and predictable regulatory regime
• 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

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Strategic Objectives (2)

• ICASAs strategic objectives are informed by the
  policy directives as
• laid out by government and the different
  statutes. These are
• Encouraging the development of a competitive and
  effective ICT sector
• Promoting and facilitating convergence of
  telecommunications, broadcasting and information
  technology
• Bridging the Digital Divide

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Organogram
COUNCIL
CEO
Telecommunications
Engineering Technology
CFO Finance and Business Support
Broadcasting
Law, Communications, Consumer Protection
Council Support
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Telecommunications Unit
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Telecommunications
Telecommunications
Policy Analysis
LENA
Policy Research
Competition
Enforcement
Licensing
Numbering Admin
Turnover R60 billion
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Telecommunications (1)

• Some of the key issues that were considered in
  promoting the
• sector were
• Finalisation of regulations i.r.o. COA/CAM for
  mobile operators (this will ensure that ICASA
  receives information on the revenues and costs of
  service provision by operators in a user-friendly
  format)
• Regulations i.r.o. fixed line - to - fixed line
  interconnection.
• (this will facilitate interconnection agreements
  between Telkom and the SNO)
• Reviewed Carrier Pre-selection regulations
• (these regulations will enable consumers to
  choose an operator of choice to carry their
  national long distance and international calls)

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Telecommunications (2)

• Developed the following guidelines and
  regulations
• Trial and Launch of New Services (operators will
  be able to follow the guidelines so that they can
  launch new services in a manner that is
  competitive and acceptable)
• Framework for the operation of wireless local
  area networks (WLANs) in hotspots without
  requiring a licence
• Number Portability
• (these will allow customers to retain their
  telephone numbers when they change operators)
• Contributions to the Universal Service Fund
• (these regulations remove the R20 mil cap to a
  percentage contribution of turnover by operators)

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Telecommunications (3)

• Developed a comprehensive frame-work for the
  licensing and regulation of Value Added Network
  Services (such as Internet service providers) and
  Private Telecommunications Network Services (e.g.
  state owned enterprises, SITA etc.)
• Developed a Numbering Plan that will encourage
  competition within the sector
• Processed applications for Under-Serviced Area
  Licences and submitted a short-list of
  recommended applicants to the Minister

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Telecommunications (4)

• Began development of a Short Code Strategy for SA
• Started work on the amendment of Telkoms licence
  in preparation for competition
• Updating and finalising terms and conditions for
  the SNO licence
• Developing a Central Numbering Database as
  required in terms of the Act

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Telecommunications (5)

• Licence Amendment of the following licences
• Sentech
• WBS (Pty) Ltd (Wireless Business Solution)
• Swiftnet
• Commenced process on the allocation of 1800MHz
  and 3G frequency spectrum bands by the Mobile
  Cellular Telecommunications Service licensees.
• Continuously in process of clamping down on
  illegal providers of telecommunication services.

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Broadcasting Unit
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Broadcasting
R7 billion turnover
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Broadcasting (2)

• The Position Paper and Regulations on Sports
  Broadcasting Rights published - 25 July 2003.
• (Regulating the broadcast of national sporting
  events on a non exclusive basis by subscription
  broadcasters)
• The Position Paper on the Review of Ownership
  and Control of Broadcasting Services and Existing
  Commercial Sound Broadcasting Licences published
  - 13 January 2004.
• (Regulated consolidation of onwership and
  control to encourage foreign direct investment.
  Invitation to apply for commercial sound
  broadcasting licences in the secondary markets in
  Northern Cape, North West, Mpumalanga and Limpopo
  Provinces).

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Broadcasting (3)

• The Position Paper and Regulations on Regional
  Television published on 26 November 2003.
• (Policy guidelines to inform the SABC
  applications for two public regional television
  broadcasting services aimed at meeting the needs
  of marginalised languages in South Africa).
• The Position Paper and Regulations on Low Power
  Sound Broadcasting published on 24 October 2003.
• (Policy and licensing framework for a class
  of licence called low power sound broadcasting,
  such as sports ground, drive-in movie theatres,
  retirement villages, community centres.
• In the period under review the Authority also
  published technical amendments to the South
  African Television Content Regulations of 2002
  and conducted an economic feasibility study for
  subscription broadcasting in South Africa.

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Broadcasting (4)

• 18 public sound broadcasting services licences
  renewed
• 3 Public television broadcasting services
• 6 commercial radio services YFM, Jacaranda FM,
  Kaya FM, P4 Cape Town and Classic FM
• Radio Oranje was granted an amendment to their
  application
• Approval of the Nail Transaction
• Awarding of 4 Year Community Broadcasting
  Licences in the 9 provinces

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Broadcasting (5)

• Priorities for 2004/5
• Amending SABC Licences
• Issuing an invitation to apply for Community
  Sound
• Broadcasting licences in the Nodal Points
• Mnet Licence Amendment on Mnet open window
• Renewal of Orbicom Category two (2) Signal
  Distribution
• Issuing an invitation to apply for commercial
  sound
• broadcasting licences for Secondary Markets

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Broadcasting (6)

• Election 2004 was monitored to ensure that all
  political parties are equitably treated by
  broadcasters, in total 44 502 items were
  monitored and a data capture error ratio of 0,15
  achieved
• Complaints during the period under review 130
  complaints were received, processed and referred
  to the relevant Authorities (Broadcasting
  Complaints Commission of South Africa (BCCSA) and
  the Advertising Standards Authority (ASA)

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Broadcasting (7)

• BMCC - a statutory body that adjudicates
  complaints either in terms of complaints under
  the Code of Conduct for Broadcasters where the
  broadcasters are not members of the National
  Association of Broadcasters and therefore do fall
  within the ambit of the BCSA, or complaints in
  terms of violations of licence conditions
• in the year under review hearings were held
  in respect of the
• following broadcasters
• Lethabile Community Radio
• e-tv
• Radio Graaff-Reinet
• Imonti FM
• Mosupatsela FM

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Outstanding Licence Fees

• M-Net has outstanding amount of R40 mil in
  licence fees this is in dispute
• M-Net outstanding licence fees is as a result of
  the disputed basis used in calculation of the
  licence fees. ICASA has embarked on a process to
  audit the financial records and accounts of M-Net
  
• Midi TV was granted a reduction in its licence
  fee for the period 1999 2002
• Notwithstanding the reduction, Midi TV still owes
  the Authority R7 mil in outstanding licence fees
• Midi TV has made a commitment to settle the
  outstanding licence fees by March 2005

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Engineering and Technology Unit
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Engineering and Technology (1)

• The Engineering and Technology Division is
  divided into 2 units
• The responsibilities include
• Support in the granting of frequency and station
  licences, certificates and authorisations
• The management and planning of access to the
  radio frequency spectrum
• The preparation of frequency band plans
• Investigation of radio communications
  interferences and
• The assessment, adoption and management of
  technical standards relating to customer
  equipment and other devices

Frequency Spectrum
Radio Monitoring and Regions
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Frequency Spectrum (2)

• The Frequency Spectrum unit undertook the
  following projects during the period under
  review
• South African Radio Frequency Band Re-planning
  Exercise
• The new South African Table of Frequency
  Allocations (SATFA)
• (This new plan took into account the ITU, World
  Radio
• Communications (WRC) 2003 resolutions and
  recommendations in
• order to introduce new services and entrants
  in the
• Telecommunications and Broadcasting sector)
• Review of Equipment Type Specifications
• (All relevant standard telecommunications
  technical specifications
• are assessed through the national Standards
  Technical Committee,
• TC 80, which is governed by Standards South
  Africa (STANSA)
• formerly known as the South African Bureau of
  Standards.
• Standard which is outstanding - VoIP

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Frequency Spectrum (3)

• Published Short Range Devices (SRDs)
  regulations
• (This regulation list and govern the frequency
  bands and equipment
• that do not require frequency spectrum
  licences)
• Published annual Terrestrial Broadcast
  Frequency Plan and ongoing
• development of Digital Broadcast Frequency
  Plan and migration
• strategy
• Issued 90 000 Radio communications Frequency
  Licenses
• (the cost of collecting frequency licence
  fees far outweighs the
• revenue yield. Regulatory imperative to
  collect such fees.

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Monitoring And Regions (1)

• Regional Operations
• Enforce compliance with the Telecommunications
  and Broadcasting Acts in terms of spectrum usage
  and clamps down on illegal operations
• The regional offices clamped down on the
  following illegal operations
• GSM signal jammers Illegal cordless telephones
• Illegal Broadcasting transmitters
• Unlicensed provision of IP networks
• Spurious Transmission
• Equipment used in excess of licence (Audits)

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Monitoring and Regions (2)

• Installations of Direction Finding Monitoring
  Units to improve the effectiveness of spectrum
  monitoring and location of unlicensed sources
• Memorandum of understanding between ICASA and
  Lesotho Telecommunications Authority (LTA) to
  manage Radio Frequency Spillover
• Labeling campaign Various retail outlets were
  visited to ensure that equipment had been
  certified by ICASA.
• This campaign also drove public awareness on
  buying certified and approved equipment.

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Monitoring and Regions (3)

• Square Kilometre Array (SKA) project.
• Together with the Dept. of Science and Technology
  ICASA is involved in the planning of terrestrial
  radio frequency site surveys
• This is a project aimed to develop the
  largest-to-date radio-astronomy telescope
  estimated at U 1 Billion
• South Africa is a strong contender with several
  sites identified in the Northern Cape as Southern
  Hemisphere sites are preferred
• South Africa is competing with Australia

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Law, Communications, Consumer Protection and
Council Support
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Law, Communications, Consumer Protection and
Council Support

• Legal Department
• Management of litigation 11 litigation matters
  were before court, of which five were finalized
• Provision of opinions on legislation, regulations
  and processes
• Assistance in adjudicatory matters before Council
• Managed 3 section 100 complaints in terms of the
  Telecommunications Act, conducted adjudicatory
  processes and hearings

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Law, Communications, Consumer Protection and
Council Support (2)

• 197 complaints were received and attended, of
  which 150 were resolved in the year under review
• Several complaints on coverage were received and
  as a result of negotiations with operators, many
  rural areas now enjoy coverage
• Community fora in three Provinces, namely
  Kwazulu- Natal, Eastern Cape, and Western Cape
  have been established to facilitate research that
  will inform policy.
• Active participation in TRASA, ITU, RIARC
  (chaired), ATU, SABA and IIC
• Successfully managed and profiled ICASA as a
  brand

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Office Finance and Business Support
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Office Finance and Business Support (1)

• Improved the management reporting systems to
  allow for accurate, comprehensive and regular
  financial reporting
• Improved the efficiency of payment procedures
• A number of policies and procedures were reviewed
  and updated
• The telecommunications and broadcasting licence
  collection functions were integrated into Finance
  unit to improve efficiency in revenue collection

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Licensing Revenue Trends
Improvement of 197 over 5 years
IBA and SATRA combined
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Office Finance and Business Support (2)

• 70 of staff are from the previously
  disadvantaged groups
• High staff turnover as a result of poaching by
  the industry (remuneration packages)
• The organisation restructuring as a result of the
  merger of IBA and SATRA was concluded, and 80 of
  staff confirmed into various positions
• A performance management system has been
  developed and is being implemented

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COMPARISON OF ICASA RACE STATISTICS TO SA
POPULATION
Percentage
Race Group
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COMPARISON OF STAFF COMPLEMENT MARCH 2004 VS
MARCH 2003
Percentage
Race Group
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STAFF COMPLIMENT AS AT 31 MARCH 2004 BY GENDER
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STAFF COMPLIMENT BY RANK 31 MARCH 2004
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Emphasis of Matter

• Amounts owing to the National Revenue Fund were
  not paid within 30 days of receipt as required by
  Section 15(3) of the ICASA Act, 2000.
• An existing backlog of payments has now been
  eliminated, however operationally the 30 day
  period is a difficult target to meet. A proposal
  will be made to amend the ICASA Act to extend the
  period to 60 days.
• The Authority had granted broadcasting licences
  but not collected licence fees.
• Legal measures have been taken to collect the
  outstanding licence fees and repayment plans have
  been agreed to by the relevant licensees.
• Frequency spectrum fees of R5,9 million was
  written off as bad debt and a further R10 million
  was provided for as doubtful debt.
• This was as part of an intensive clean-up
  exercise, which forms part of an
• overall project to improve debt collection of
  these licence fees.

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Audit Issue

• Staff Debt more than doubled from R201.1 thousand
  at 31 March 2003 to R422.9 thousand at 31 March
  2004.
• Most of this debt relates to travel advances that
  have not yet been reconciled. The processing of
  these reconciliations was streamlined and tough
  measures were put in place to ensure
  reconciliations were submitted by staff on time.
• Total outstanding debt has since decreased by 15
  to R357.8 thousand. A similar further decrease is
  anticipated for the remainder of the financial
  year.

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Q A