CELL C PRESENTATION DRAFT ELCTRONIC COMMUNICATIONS BILL, 2007 31 October 2007

Marketing Confidential Introduction Cell C would like to thank the Parliamentary Portfolio Committee on Communications for this opportunity to present its views on the Draft Electronic Communications Bill, 2007. This presentation will address the following issues: The Current Licensing Framework The Sufficiency of the EC Act The Correct Procedure Conclusion 2019/05/06 Marketing Confidential

CURRENT LICENSING FRAMEWORK Section 5(1) of the EC Act provides that: “the Authority may, in accordance with this Chapter and the regulations prescribed hereunder, grant individual and class licences.” Section 9(1) and (2)(a) of the EC Act, on the other hand provides that: “(1) Any person may, upon invitation by the Authority, subject to the provisions of this Act, apply for an individual licence in the prescribed manner. (2) The Authority must give notice of the application in the gazette and – (a) invite interested persons to apply and submit written representations in relation to the application within the period mentioned in the notice;…” 2019/05/06 Marketing Confidential

ANY PERSON INCLUDES PUBLIC ENTITY Sections 9(1) and 2(a) of the EC Act, read with section 5 of the EC Act, reveals that only ICASA can grant individual licences and class licences. Furthermore, these licences can be granted to ‘any person’ upon a successful application for a licence pursuant to an Invitation to Apply (“the ITA”) and compliance with the requirements stated in the ITA. Cell C submits that ‘any person’, referred to in section 9(1) includes a “public entity” as envisaged in the Proposed Bill and also as defined in section 1 of the Public Finance Management Act No. 1 of 1999 (“the PFMA”). 2019/05/06 Marketing Confidential

THE EC Act IS SUFFICIENT Cell C submits that the EC Act, in its current form, provides for the licensing framework that includes the licensing of public entities as defined in the PFMA. This framework falls under the auspices of ICASA, which is also the only body that can legitimately grant individual and class licences in terms of the EC Act. While section 3(1) of the EC Act grants the Minister the Authority to make policies on matters of national policy applicable to the ICT sector, section 3(3) makes it clear that these powers do not include the granting, amendment, transfer, renewal, suspension or revocation of a licence. 2019/05/06 Marketing Confidential

Marketing Confidential THE CORRECT PROCEDURE Cell C believes that the granting, amendment, transfer, renewal, suspension or revocation of licences is the forte of the Authority in terms of the EC Act Cell C respectfully submits that the EC Act very clearly sets out the process to be followed in order to obtain an individual electronic network service licence (“ECNS”) or an individual electronic communications service licence (“ECS”). 2019/05/06 Marketing Confidential

THE CORRECT PROCEDURE (2) As stated above, it is Cell C’s submission that public entities as envisaged in the Bill fall within the definition of a person (s1 of the EC Act) and therefore they should apply for individual licences only after an invitation to apply has been issued by the Authority. Cell notes that the Minister would still retain the right to issue a policy direction in terms of section 5(6) of the EC Act with regard to applications for individual ECNS licences. 2019/05/06 Marketing Confidential

THE CORRECT PROCEDURE (3) It is Cell C’s considered opinion, accordingly, that there exist no legitimate grounds for the proposed amendment of the EC Act, as it currently caters for the purpose for which it is sought to be amended. However, should our proposals not be favourably considered, Cell C submits further that the Minister’s strategic interventions [as envisaged in the Bill] should be made through the amendment of section 3 of the EC Act and not section 5. 2019/05/06 Marketing Confidential

Marketing Confidential CONCLUSION Cell C supports the national drive to reduce the costs of communications Cell C respectfully submit that the prescribed procedures in the EC Act be followed in the licensing of any individual licensee Cell C would like to thank the Portfolio Committee for the opportunity to make oral representations We hope that our submissions will be given due consideration by the Portfolio Committee 2019/05/06 Marketing Confidential

Marketing Confidential CONCLUSION Q & A 2019/05/06 Marketing Confidential