Karabo Motlana, CEO 08 November 2007 Portfolio Committee on Communications ICASA 2006/2007 Annual Report Presentation Karabo Motlana, CEO 08 November 2007

Outline of Presentation Strategic Intent Value Drivers Strategic Objectives Licensing Competition, Choice and Diversity Spectrum Management Legal, Consumer and International Participation International Participation ICASA & its People Financial Statements

ICASA Strategic Intent ICASA’s strategic objectives are underpinned by the following strategic intent: Regulate the communications sector in the public interest Position the communications sector as a sector of choice for local and international investors Promote universal service access to disadvantaged individuals and communities Promote affordability of service for consumers

ICASA Value Drivers ICASA’s strategic objectives are 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

ICASA Strategic Objectives Increase the availability and quality of electronic communications services to domestic and business users Encourage and maintain pro-competitive markets through effective competition and transparent regulation Develop regulatory policies that promote competition, innovation and investment in services and facilities providing widespread access to ICT

ICASA Strategic Objectives Maximize the net economic and social worth of the sector, including its strategic use as a catalyst for economic, social and technological development in the economy Broaden economic participation in the sector by SMMEs Encourage the injection of capital by domestic and foreign investors Encourage and supporting the successful introduction of new technologies and services

Licensing

Licensing Licensed 81 Value Added Network Service operators Issued 3 Under-serviced Area Licences Granted six Under-serviced Area Licences subject to provision of additional information Renewal of the SABC licences for XK FM and the amendment of Umhlobo Wenene FM Renewal of commercial broadcasting 702 Talk Radio and Midi TV

Licensing Licensed 81 VANs Licensed 15 PTNs Issued 3 USALs Granted 6 USALs subject to provision of additional information Renewed XK FM and amended Umhlobo Wenene FM (SABC) Renewed 702 Talk Radio and Midi TV licences

Licensing Amended commercial broadcasting licence for Khaya FM and 702 Talk Radio Licensed 3 new commercial radio stations for Limpopo, Mpumalanga, and North West for the secondary markets Granted 11 new Community Sound Broadcasting licences to nodal areas Issued 28 Special Events Community Broadcasting licences

Licensing Amended Kaya FM and 702 Talk Radio licences Licensed 3 commercial radio stations in Limpopo, Mpumalanga and North West provinces Granted 11 Community Sound Broadcasting licences Issued 28 Special Events Community Broadcasting licences Renewed 9 Community Broadcasting licences Amended 3 Community Sound Broadcasting services

Competition, Choice and Diversity

Markets and Competition Processed numbering applications 266 Published an updated Central Numbering Database Implemented Mobile Number Portability Finalised the Mobile Number Portability Code of Practice Published number portability geographic functional specifications for Public Switched Telecommunication services – GG29028 d/d 12/07/06 Published 10 digit plan records and changing international dialling prefix – GG29049 d/d 20/06/06

Markets and Competition COA/CAM for Mobile and Fixed Telephony operators Authority requested regulatory financial statements from mobile operators in order to analyse the cost of providing mobile telephony Authority received Telkom’s audited financial statements

Markets and Competition Conducted an enquiry into Handset Subsidy Conducted an enquiry into the Interconnection and Facilities Leasing Regulations Completed a Market Intelligence Study Initiated a Market Definition process

Markets and Competition Published the findings document on Mobile Pricing Evaluated SAPO annual tariff increase proposals Published approved fees and charges for the reserved postal area Developed a Code of Practice for postal operators in the un-reserved sector (courier companies)

Markets and Competition Conducted a Ten-year Review of Broadcasting Regulation Published a Code of Good Practice for broadcasting on providing services to people with disabilities Conducted research on the programming for children, the youth, women and people with disabilities. Published a Community Sound Broadcasting Policy Position Paper – GG 28919 d/d 06/06/06 Participated in Digital Migration Strategy

Spectrum Management

Frequency Spectrum Issued over 5000 radio spectrum licences Issued 88 300 radio spectrum licences Issued 169 TLTE licences Issued 52 switching systems licences Type approved over 900 radio frequency equipment Conducted frequency spectrum audit on 2.5 GHz

Spectrum Management 800 MHz broadcasting opened for non-broadcasting services on a secondary basis – GG 29345 Published Personal Locator Beacon (PLB) regulations for use in emergencies – GG 26514 Published discussion document on framework for assigning high demand frequency bands- Hearings conducted – GG 29667 Published draft regulations on the use of RFID systems – GG 30280

Frequency Monitoring Spectrum Compliance 200 High sites inspected Confiscated 76 illegal radio transceivers Closed down 2 illegal broadcasters were Issued warnings to un-licensed operators on the ISM band 67% of interference cases resolved 200 High sites inspected

Legal, Consumer and International Participation

Consumer Protection Conducted public awareness on: Universal Service and Access; Consumer Rights; Competition and Choice; Services available to People with Disabilities; Number Portability; and E-rate

Consumer Complaints 924 Complaints received 697 Complaints resolved 245 Complaints brought forward

Monitoring Broadcasters Conducted 64 compliance assessment visits Received 75 broadcasting complaints BMCC adjudicated over 3 hearings Issued 60 monitoring reports

Monitoring Postal Outlets Monitored reserved postal areas Monitored the retail infrastructure roll-out Verified the location and operations of new postal outlets Enforced compliance with postal legislation Undertook the Independent Monitoring Project to ensure postal service delivery standards Conducted public awareness programmes Resolved customer complaints against SAPO

Legal and Enforcement Received and adjudicated complaints against broadcasters Conducted complaints hearings against three broadcasters Conducted the inauguration of members of the CCC which replaced the Broadcasting Monitoring and Complaints Committee

Legal and Enforcement 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 indicates that ICASA was involved in 15 litigation matters

International Participation ICASA participated in: CRASA (Communications Regulatory Authority of Southern Africa); ACRAN/RIARC (African Communications Regulatory Authority Network); ITU (International Telecommunications Union); IIC (International Institute of Communications);

International Participation ICASA also participated in: SABA (Southern African Broadcasting Association); UPU (Universal Postal Union); SAPRA (Southern African Postal Regulatory Authority); and held Bilateral meetings with other regulators i.e. Mozambique Communications Regulator on tracing illegal operators/interference Hosted Gambia, Sudan, Angola and Chinese delegations

International Participation ICASA hosted/ co-hosted the following: Commonwealth Telecommunications Organisations’ (CTO) Digital Broadcasting Switch-Over Conference 5th World Summit on Media for Children

ICASA and Its People

Stakeholder Management Media and general enquiries Hosted Stakeholders Meeting Branded ICASA’s internal & external activities Placed corporate advertisements/ advertorials in select publications Exhibited in industry expos

ICASA and its People Postal Regulator Staff were integrated into ICASA on 01 January 2007 Implementation of a Performance Review Process Initiated a Job Grading and Salary Benchmarking

DEMOGRAPHICS PER POPULATION GROUP MARCH 2004 TO MARCH 2007

DEMOGRAPHICS PER GENDER GROUP MARCH 2004 VS MARCH 2007 MARCH 2004 MARCH 2007

ICASA 2006/2007 Annual Financial Statements

Statement of Financial Performance

Statement of Financial Position

NATIONAL REVENUE FUND

Statement of Financial Position

NATIONAL REVENUE FUND Licences and application fees increased from R1.8 billion to R2.1 billion which is 16% increase. This 14% is due to increase in telecommunication service’s “net operation income licence fees”. Fees collected: Collection rate at year end - 85% Broadcasting - 84% Spectrum - 76% Telecoms - 98% Postal - 99%

Thank You www.icasa.org.za