Parliamentary Portfolio Committee on Communications ICASA Q3 Presentation 2014-2015 Dr Stephen Mncube - Chairperson Mr Pakamile Pongwana – Chief Executive Officer

Presentation outline Q3 Performance Information Quarter expenditure

SO 1.1 Facilitate effective competition 1.1.1 Performance indicator: Additional free-to-air television broadcasting service licences to successful applicants Status of overall performance against Q3 target and reasons for variance: The ITA for free-to-air television broadcasting service licence was published in the Government Gazette No 37953 on 29 August 2014. The closing date for submission of applications was extended from 1 December 2014 to 31 March 2015. Prospective applicants requested an extension, which was granted. Five applications were received by 31 March 2015 Q3 Deliverable:- Analysis report on confidentiality and free-to-air television broadcasting service licence applications received gazetted

SO 1.1 Facilitate effective competition 1.1.2 Performance Indicator: Final report to ICASA Council on the necessity for pro-competitive regulation in the provision of subscription broadcasting television services Status of overall performance against Q3 target and reasons for variance: Concept document on viability of licensing further terrestrial broadcasting licences developed. Draft questionnaire compiled. Questionnaire to be released in January 2015 Research report on the market structure for subscription broadcasting services

SO 1.1 Facilitate effective competition 1.1.3 Performance Indicator: Position Paper on factors that determine the cost of digital terrestrial signal transmission in South Africa Status of overall performance against Q3 target and reasons for variance: Draft research report compiled covering factors that affect the cost of DTT in South Africa Draft internal Position Paper on factors that determine the cost of digital terrestrial signal transmission in South Africa

SO 1.1 Facilitate effective competition 1.1.4 Performance Indicator: Gazetted final Wholesale Voice Call Termination Regulations Status of overall performance against Q3 target and reasons for variance: The Regulations were published in Government Gazette 38042 on 30 September 2014 Publication of Final Wholesale Voice Call Termination Regulations in the Government Gazette

SO 1.2 Ensure SA retail prices of ICT fairly reflect costs 1.2.1 Performance Indicator: Position Paper on retail tariff transparency approved by ICASA Council Status of overall performance against Q3 target and reasons for variance: The Authority in collaboration with the NCC embarked on a process of requesting information from the operators in relation to complaints and sector developments that impact on the consumers. This information will inform the position paper on retail tariff transparency Internal report published on analysis of questionnaire submissions. Engagement with licensees on outcome of RFI analysis. Publication of draft Standard Terms and Conditions for licensing Regulations

SO 1.3 Ensure effective Broad-Based HDI/BEE participation in the sector 1.3.1 Performance Indicator: HDI/BBBEE regulations published in the government gazette Status of overall performance against Q3 target and reasons for variance: Draft document done internally. The project was deferred to 2015/16 due to lack of requisite capacity. A resource is being trained on the process of conducting regulatory impact assessment Public hearings conducted on the draft HDI/BBBEE Regulations for broadcasting services, ECS licenses and ECNS licenses

SO 2.1 Measurements of achievement of Broadband Policy Inputs/Outputs 2.1.1 Performance Indicator: Available spectrum for Invitations to Apply (ITAs), published in Government Gazette in line with the Roadmap for IMT spectrum Status of overall performance against Q3 target and reasons for variance: The International Mobile Telecommunications (IMT) Roadmap 2014 published, Government Gazette No. 38213 and the IMT Radio Frequency Spectrum Assignment Plans (RFSAP) published, Government Gazette 38640, containing the rules for IMT 450, 700, 750, 800, 900, 2300, 2600 and 3500 bands. The IMT Roadmap and RFSAPs are part of the final process in the development of the Invitation to Apply (ITA) for assignment of broadband spectrum ITAs for frequency licences developed in line with IMT Roadmap

SO 2.1 Measurements of achievement of Broadband Policy Inputs/Outputs 2.1.2 Performance Indicator: Radio Frequency Migration Plan for bands identified in terms of the Radio Frequency Migration Regulations 2013 Status of overall performance against Q3 target and reasons for variance: The International Mobile Telecommunications (IMT) Roadmap 2014 published, Government Gazette No. 38213 and the IMT Radio Frequency Spectrum Assignment Plans (RFSAP) published, Government Gazette 38640, containing the rules for IMT 450, 700, 750, 800, 900, 2300, 2600 and 3500 bands. The IMT Roadmap and RFSAPs are part of the final process in the development of the Invitation to Apply (ITA) for assignment of broadband spectrum Approved spectrum migration plans for bands identified for feasibility studies in terms of the 2013 Radio Frequency Migration Regulations

SO 2.1 Measurements of achievement of Broadband Policy Inputs/Outputs 2.1.3 Performance Indicator: One or more national spectrum licences making use of International Mobile Telephony (IMT) spectrum Status of overall performance against Q3 target and reasons for variance: The was ITA was drafted but not published, pending the Ministerial policy directive Approved spectrum migration plans for bands identified for feasibility studies in terms of the 2013 Radio Frequency Migration Regulations

SO 2.1 Measurements of achievement of Broadband Policy Inputs/Outputs 2.1.4 Performance Indicator: Draft infrastructure sharing Regulations published in Government Gazette for public consultation Status of overall performance against Q3 target and reasons for variance: Delays experienced in finalising the draft document Draft infrastructure sharing Regulations for internal consultations

SO 2.1 Measurements of achievement of Broadband Policy Inputs/Outputs 2.1.5 Performance Indicator: Draft internal report on the costs and benefits of open access regulation Status of overall performance against Q3 target and reasons for variance: No strategic activity No strategic activity

SO 2.2 Promote the development of public, community and commercial broadcasting services in the context of digital migration 2.2.1 Performance Indicator: Gazetted Findings document on the broadcasting of local content Status of overall performance against Q3 target and reasons for variance: No strategic activity No strategic activity

SO 4.1 Establish innovative approaches to technology usage; dynamic spectrum usage 3.1.1 Performance Indicator: Position paper on opportunistic spectrum management approved and results published in Government Gazette Status of overall performance against Q3 target and reasons for variance: External research took longer than expected Position paper on opportunistic spectrum management approved by ICASA Council

SO 4.1 Promote consumer rights 4.1.1 Performance Indicator: Gazetted toll-free framework Status of overall performance against Q3 target and reasons for variance: No strategic activity No strategic activity

SO 4.2 Ensure universal service and access 4.2.1 Performance Indicator: Draft recommendations report on universal service to postal services Status of overall performance against Q3 target and reasons for variance: The Authority and the DoC were performing the research independently. Both parties were unaware of each others efforts. Subsequently, when the Authority became aware of the DoC initiative, it withheld the publication of the discussion document and used it as an input to the National Integrated ICT Policy Paper Publication of Discussion Document on universal service to postal services in Government Gazette

SO 4.2 Ensure universal service and access 4.2.2 Performance Indicator: Gazetted Universal Service and Access Regulations Status of overall performance against Q3 target and reasons for variance: Project reprioritized, no longer under Consumer Affairs, incorporated under Licensing USA obligations regulations Project reported under USO licensing

SO 5.1 Improved operational processes and performance measurement processes 5.1.1 Performance Indicator: Speed and accuracy of spectrum management, licensing and certification on new system, measure efficiency and effectiveness against old system and whether licensing and if certification turn-around times have been significantly reduced. Measure of ICASA's reputation has improved through the use of more modern methods of spectrum management Status of overall performance against Q3 target and reasons for variance: Tender for procurement of spectrum management tool put on hold pending the outcome of the legal challenge by one of the bidders Verification and signoff of data take-on

SO 5.1 Improved operational processes and performance measurement processes 5.1.2 Performance Indicator: Change management plan. Migration of employees from the old structure into the new, approved structure. Providing training to all managers on job description writing skills. Review all current job descriptions and develop new job descriptions Status of overall performance against Q3 target and reasons for variance: Interviews for the three GM positions has been conducted. 7% of employees has been migrated to the newly approved structure, and 84% of the employees were assessed by the end of December No strategic activity

SO 5.1 Improved operational processes and performance measurement processes 5.1.3 Performance Indicator: Develop and implement effective Media Plans for all corporate and regulatory activities and projects Status of overall performance against Q3 target and reasons for variance: Developed Media and Communication Plans Implement Communication & Stakeholder Strategy ICASA

SO 5.1 Improved operational processes and performance measurement processes 5.1.4 Performance Indicator: Ensure ICASA representation and submission to all relevant international forums Status of overall performance against Q3 target and reasons for variance: Calendar of international meetings implemented and hosted all study visit requests for Q3 Implement International Stakeholders Engagement Framework for ICASA

SO 5.1 Improved operational processes and performance measurement processes 5.1.5   Performance Indicator: 95% collection of revenue on regulatory due dates from all licensees Status of overall performance against Q3 target and reasons for variance:  95% collection of revenue on regulatory due dates from all licensees Complete and accurate collection of revenue

Q3 Prelim results

SO 5.1 Improved operational processes and performance measurement processes Summary : 2014/15 Q3 Results   Ytd Budget Ytd Actual Ytd Variance % Full Year Budget Spent % Total Revenue (278,877,549) (292,874,356) (5.0) (386,322,000) 75.8 Total Expenditure 290,193,984 268,689,585 7.4 416,144,469 64.6 Opex 259,316,118 225,540,765 13.0 361,250,861 62.4 Normal Projects 25,877,866 30,101,995 (16.3) 39,893,608 75.5 Ring-fenced 5,000,000 6,295,557 (25.9) 15,000,000 42.0 Normal Capex (Excluding ring-fenced) - 6,751,268 1 #DIV/0! (Surplus) Deficit 11,316,435 (24,184,771) 314 29,822,468 (81.1) Depreciation (included above) 11,368,080 12,155,982 (6.9) 15,157,440 80.2 Complete and accurate collection of revenue

QUESTIONS AND ANSWERS

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