Summary Slide TELKOM SA LTD ORAL SUBMISSION Expression of Appreciation for the Opportunity to Make Representations Appreciation of Legislative Certainty Telkom Supports Set Objectives Title of the Bill Definition of Cryptography Definition of “Data”

Summary Slide (cont.) Definition of “Electronic” Telkom proposes that Electronic Commerce be defined Consumer Protection: The Cooling-off Period Critical Data and Critical Databases –Competitive Information END

TELKOM SA LTD ORAL SUBMISSION COMMENT ON THE ELECTRONIC COMMUNICATIONS AND TRANSACTIONS BILL, 2001 PUBLISHED IN NOTICE 302 OF 2002 (GOVERNMENT GAZETTE NO. 23195 DATED 1 MARCH 2002) Thabo Makhakhe Executive: Regulatory & Govt Relations

Expression of Appreciation for the Opportunity to Make Representations Telkom appreciates the opportunity to make representations on the Electronic Communications and Transactions Bill, 2002.

Appreciation of Legislative Certainty We commend the drafters of the Electronic Communications And Transactions Bill, 2002 on providing direction in an area that requires legislative certainty.

Telkom Supports Set Objectives The primary objective of the Bill is the facilitation and regulation of electronic transactions. It endeavors to entrench the legitimacy, trust, security and integrity of electronic transactions whilst at the same time safeguarding the interests of consumers against commercial malpractice and exploitation. Telkom supports these objectives.

Title of the Bill Telkom proposes that the legislation be called the “Electronic Transaction Act” without any reference to “communications”. The Bill relates in essence to commercial electronic interaction and transactions, and not to electronic communications as provided for in the Telecommunications Act as amended. The term “electronic communications” is synonymous with “telecommunications” and should therefore be excluded from the scope of the Bill.

Definition of Cryptography “cryptography” Telkom suggests that the following definition of cryptography be inserted in the Bill: “cryptography” refers to the process of ensuring that the meaning of the electronic content is incapable of being revealed to parties to who it is not intended to be revealed and that such content is revealed only to parties for whom it is intended.

Definition of “Data” “data” The Bill defines ‘data’ as electronic representations of information in any form. This definition is too wide and could lead to conflict in its interpretation. Telkom submits that data should be defined as: the subject matter or content of an electronic transaction.

Definition of “Electronic”  “electronic”. The Bill defines the term ‘electronic’ as “digital or any other intangible form”. This definition is flawed and misleading. Telkom submits that it is more desirable to include a definition for the term “electronic commerce” as opposed to the term ‘electronic’.

Telkom proposes that Electronic Commerce be defined Telkom proposes the following definition for the term "electronic commerce": “electronic commerce" means transactions that take place predominantly by means of electronic systems, computers and/or telecommunications systems, usually in digital form.

Consumer Protection: The Cooling-off Period Section 45 provides for a cooling-off period of seven days after the conclusion of the transaction. This provision defeats the purpose of, and discourages the use of the Internet as a quick and efficient way of doing business. In order to avoid risk, the supplier of goods and services will have to wait for seven days before delivering the goods or providing the services. This hampers the business efficiency and convenience of using electronic data messages to conclude transactions. As the existing consumer protection laws already protect the consumer, it is suggested that section 45 must be deleted in its entirety.

Critical Data and Critical Databases –Competitive Information       Section 54 provides that the Minister may by notice in the Gazette declare certain classes of information which is of importance to the protection of the national security of the Republic or the economic and social well-being of its citizens to be critical data for the purposes of this Chapter; and establish procedures to be followed in the identification of critical databases for the purposes of this Chapter.

Critical Data and Critical Databases Continued Telkom suggests that the following provision is added to section 54 and 57 on critical data, to safe guard competitive information: Where information is commercial in nature and divulgence of this information could be commercially detrimental to the entity providing the information, the Minister must not declare public or make this information which has been placed under the category of “critical data” available to any other party.