Rubben Mohlaloga Chairperson Briefing on Broadcasting Sector Compliance with Regulations 23 January 2018 Rubben Mohlaloga Chairperson

Contents Compliance Mandate & Objectives Relevant Regulations Broadcasting Landscape Compliance operational activities Annual Compliance Reporting Individual Broadcasting Licensees Compliance Class Broadcasting Licensees Compliance (Community broadcasting services) Interventions to Assist Community BS Licensees Moratorium Distribution of Community Radio Stations

Compliance Mandate & Objectives The Broadcasting Compliance Unit is responsible for monitoring of compliance for all Class and Individual Broadcasting Services (community, commercial & public broadcasting services) Licensees must comply with: Electronic Communications Act (ECA) and Broadcasting Act Relevant regulations Licence terms and conditions Local content obligations for Broadcasting Services Licensees: Section 61(2) (a) local television content and section 61(2)(c) South African music of the ECA

Relevant Regulations Standard Terms and Conditions for Individual and Class Licensees Regulations Process and Procedure for Individual and Class Licensees Regulations Compliance Procedure Manual Regulations Universal Service and Access Fund Regulations General Licence Fee Regulations End-User and Subscriber Service Charter Regulations Code of Conduct Regulations South African Music Content Regulations South African Television Content Regulations Sports Broadcasting Service Regulations National and Municipal Party Election Broadcast Regulations (during election periods)

Broadcasting Landscape 330 licensed Class and Individual Broadcasting Service (BS) Licensees, namely: 271 Community Sound Licensees (Class) 5 Community TV Licensees (Class) 9 Subscription TV Licensees (Individual) 4 Free to Air TV Licensees (e.tv, SABC1, SABC2 and SABC3) (Individual) 27 Commercial Sound Licensees (Individual) 15 Public Sound Licensees (Individual) 247 of these BS Licensees are currently operational

Compliance operational activities Ongoing compliance monitoring of Broadcasting Licensees Inspection visits at community broadcasting Licensees Processing of notifications for change of Licensee information Preparation of Annual Compliance reports for selected Licensees Collection of annual licence fee and (Universal Service and Access Fund) USAF contributions Referral of non-compliant Licensees to the Compliance and Complaints Committee (CCC) for adjudication (CCC findings are considered and decided on by Council)

Annual Compliance Reporting The Broadcasting Compliance Unit endeavours to assist all Licensees to be compliant However, due to the large numbers, it is impossible to annually report on the compliance of all Licensees Compliance reporting is done retrospectively (i.e. 2016/2017 compliance is reported on in the 2017/2018 Financial Year (FY)) All Individual BS Licensees are reported on an annual basis A number of Class BS Licensees are selected per FY to be reported Individual Annual Compliance Reports are compiled for Broadcasting Services Licensees reported on per FY

Individual Licensees Compliance Individual BS (Public and Commercial) Licensees largely comply with all legislative, regulatory and licence requirements However, there has been isolated instances of non-compliance with South African Music Content and licensees promises of performance e-TV not fully compliant with the Digital Terrestrial Television Regulations (submission of the Agreement with the signal distributor and the tariff structure)

Class Broadcasting Licensees Compliance Class BS (Community) Licensees generally non-compliant as regards the following Governance requirements: Separation of Board and Management Political interference (political office bearers) Financial mismanagement Commercial vs community interest Holding of AGM’s and election of Board members Community participation requirements News and language quotas Format (talk vs music)

Interventions to Assist Community Broadcasting Service Licensees ICASA endeavours to support Community Broadcasting Licensees to comply through: Conducting induction and compliance workshops for members of the Board and Management at the Licensees’ premises Assigning a Compliance Officer to every Licensee (direct access to assistance) Undertaking monitoring / regional inspection visits to Licensees Attending AGM’s as observers Mediating disputes between conflicting parties / stakeholders of licensees Informing licensees of identified areas of non-compliance issues and proposing remedies Revised Standard Terms and Conditions for Class Licensees Regulations published in March 2016 to include and clarify the Governance requirements for Community Licensees

Moratorium ICASA imposed a moratorium on the issuing of new Class Sound broadcasting service licences in September 2015 due to: Scarcity of analogue radio frequency spectrum Licensing difficulties experienced (excess of licensees in the same district) Insufficient clarity with regards to the licensing framework Community Broadcasting Review commenced in 2016 to: Assess the viability of community broadcasters (scarcity of financial resources) Strengthen the licensing framework Improve efficiency with respect to licensing Improve compliance monitoring Address loopholes with regards to Board and Management roles The review will be followed by the publication of Community Broadcasting Regulations in the 2018/2019 FY

Distribution of Operational Community Radio Stations All communities have a voice Scope for growth of the sector Source of local content ICASA, MDDA and Sentech work together to support growth in the sector WC: 38 FS: 18 GP: 51 MP: 26 NC: 9 NW: 23 LP: 38 KZN: 34 EC: 34

Thank you