1 Independent Communications Authority of South Africa Presentation to the Portfolio Committee of Communication on ICASA Strategic Plan and Budget 13 March 2007 Mr Paris Mashile

2 Agenda Vision Value System Councillors’ Tasks and Responsibilities Funding Model Mission Strategic Objectives Top Level Organisational Structure Plan of Action

3 Vision To be a catalyst in the transformation of the country into an information oriented society and knowledge based economy

4 Mission To create a competitive environment for delivering a wide range of high quality Communication and Postal services at affordable prices in order to assist in the overall economic growth and social development of the country

5 Value System SHARING A COMMON VISION Listening to others commitment and inspiration ENCOURAGING SYSTEMS THINKING Interconnectedness and alignment DEMYSTIFYING MYTHS –Decisions based on reasoned and relevant facts; –Speak without fear, favour or prejudice; –Preach what you practice or walking the talk.

6 Strategic Objectives Increasing the availability and quality of electronics communication services to domestic and business users; Encouraging and maintaining a pro- competitive market through effective competition and transparent regulation;

7 Strategic Objectives Establish regulatory policies that promote competition, innovation and investment in services and facilities providing widespread access to ICT. Maximizing the net economic and social worth of the sector, including its strategic use as a catalyst for economic, social and technological development in other areas of the economy;

8 Strategic Objectives Provision to broaden economic participation in the sector by SMMEs; Encouraging the injection of capital by domestic and foreign investors; Encouraging and supporting the successful introduction of new technologies and services.

9 Plan of Action Create a Competitive Environment Facilitate Interconnection Ensure Universal Service Provision Formulate Licensing Criteria Safe-guard the Independence of the Regulator Allocate the use of Scarce Resources Investigation Monitoring and Enforcement

10 Create a Competitive Environment Complete policies and regulations covering market analysis and competition, interconnection, local loop unbundling and facilities sharing; –Facilitate the market entry of new licensed operators providing competitive voice and data services on a national and international basis;

11 Create a Competitive Environment SMP Place obligations upon designated SMPs; –Resale of their services; –Access to network elements e.g. LLU; –Provision of interconnection on cost oriented and non-discriminatory terms; –Compulsory cost oriented rates and fees

12 Create a Competitive Environment Tariffs and Costing –Develop an appropriate tariff regulation regime to assure competition and the widest availability of service consistent with a reasonable return on operators investments

13 Create a Competitive Environment Broadband Competition –Increase broadband competition from multiple technology platforms e.g. terrestrial; co-axial cable; two wire-line; optical fiber; satellite; –Encourage the provision of multimedia services through converged networks. –Facilitate the roll-out of NGNs, IP services and Local Loop Unbundling.

14 Facilitate Interconnection To be provided under non-discriminatory terms and conditions and in a timely and transparent fashion; Regarding SMP or dominant players, the terms and conditions should be made publicly available in the form of an RIO; In the case of a dispute the operators should have recourse to the Authority of arbitration.

15 Ensure Universal Service Provision Provide for universal service obligation in a transparent, non-discriminatory manner; Place on at least the major operators licence conditions specifically obliging service providers to comprehensive geographical coverage, voice, directory, emergency call services and reasonable tariff costs.

16 Formulate Licensing Criteria Relevant provisions should include: –the criteria and period of time normally required to reach a decision concerning an application for a licence; – the terms and conditions of all types of licensing including the fee structure ; –The reason for any denial of a licence application should be made known to the applicant.

17 Safe-guard the Independence of the Regulator The Authority must function without any commercial and political interference The Authority is independent and must perform its functions without fear, favour or prejudice.

18 Allocate the use of Scare Resources The allocation of scarce resources such as radio frequencies and numbers must be earned in an objective, timely, transparent and non-discriminatory manner; Encourage the usage of digital technologies and new modulation schemes.

19 Investigating Monitoring and Enforcement Monitor and investigate the activities of suppliers and enforce sanctions against transgressors in terms of the law or terms of the applicable licence; Be unhesitating in challenging any unacceptable conduct on the part of market participants.

20 Funding Model Effective regulation cannot be accomplished without adequate funding The attainment of regulatory objectives is contingent upon ICASA being able to procure skilled professional staff and consulting services Funding can be accomplished by allowing a defined proportion of revenues from license fees to be retained.

21 Top Level Organisational Structure

22 ICASA Councillors’ Tasks and Responsibilities

23 Licensing Review existing licence conditions and convert to new Broadcasting & Electronics Communications licences Issue new licences; Network Licences –Individual & Class Service Licences –Individual & Class and registration of courier companies –Exempt

24 Policy Research Markets & Competition (Cont) Political, economic, social & technological forecasting; Research and policy formulation on: –Broadcasting, Postal & Communications Services and Networks –New technologies –New services and markets –Analysis/intelligence

25 Policy Research Markets & Competition Complete policies and guidelines covering market analysis and competition, interconnection, local loop unbundling and facilities sharing;

26 Policy Research Markets & Competition (Cont) Economic Regulations Competition Regulations Interconnection Regulations Facilities Leasing Tariff Regulations Co-operations with other regulators i.e. Competition Commission

27 Legal Services Advisory services Litigation Contract Drafting and Vetting

28 Consumer Affairs Monitor compliance with USOs by Broadcasting, Postal & Communications Services and Networks Licensees Develop Consumer Codes of Conduct, Quality of Service and Service Charters

29 Consumer Affairs (cont) Establishment of Consumer Advisory Panel Establishing Consumer Code of Conduct End-user and subscriber Service Charter E-rate Emergency services Regulations on people with disabilities (s70)

30 Consumer Affairs (cont) Public education and awareness Broadcasting monitoring and enforcement i.e. PEB Political Election Broadcasting MoU with other institutions –Advertising Standards Authority –Films and Publications Board –Enforcing code of conduct (s55)

31 Complaints & Compliance Committee Adjudication on Complaints Recommendations on Impositions of sanctions Complaints handling from consumers & service providers Interconnection and facilities leasing dispute resolution

32 Engineering & Technology Review terms and conditions of current spectrum licences; Development of standards and Type approval; Scarce Resource Regulations; Spectrum Management ; Local Loop Unbundling Relations with International Organizations e.g. ITU