1 Portfolio Committee on Communications ICASA 2007/2008 Annual Report Presentation - 18 November 2008 Paris Mashile, Chairperson Karabo Motlana, CEO

2 Outline of Presentation Vision Mission Strategic Intent Value Drivers Strategic Objectives Licensing & Compliance Markets & Competition Engineering & Technology Consumer Affairs Legal & Complaints & Compliance Committee Communication & International Participation ICASA & its People 2007/2008 Financial Statements

3 Vision To be a catalyst in the transformation of South Africa into an information-oriented society with a 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 as would assist in overall economic growth and social development of the country

5 Strategic Intent ICASA’s strategic intent 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

6 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

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

8 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 other areas of the economy –Broaden economic participation in the sector by SMMEs –Encourage and support the successful introduction of new technologies and services

9 Licensing & Compliance

10 Licensing Commenced with the license conversion process as per the Electronic Communication Act (“ECA”) Issued five subscription broadcasting licences Issued 23 community sound broadcasting licences Granted 16 Underserviced Area Licenses Registered 84 courier companies Aligned the South African Post Office (“SAPO”)licence in terms of the Postal Services Act, as amended

11 Licensing Amended SABC’s licence to allow for expansion of SABC 1,2,3 to underserviced areas such as Sekhukhune and Eastern District of the Nodal Point areas that fall under government’s intergrated strategy for rural development (ISRDP) Amended CKI FM name to Tru FM Amended Radio Sonder Grense licence to allow for expansion

12 Licensing Regulations Commenced with the review of the following Regulations: Finalised the subscription broadcasting services regulations (Must Carry Obligations) Finalised the Universal Access Regulations Conducted research on the Sport rights regulations (including Disputes Resolution) Conducted research on the SA Local Content regulations Commenced research on Election broadcasting

13 Compliance Compiled 60 compliance assessment reports Undertook 81 visits to assist licencees in complying with licence terms and conditions Received 106 broadcasting complaints 14 matters were referred to the Complaints and Compliance Committee for consideration

14 Compliance Mobile operators submitted roll-out plans for Community Service Telephones (CSTs) Approved Implementation Plans for internet connectivity to 2201 : –public schools –rural clinics –further education and training –institution of people with disabilities Further approved Implementation Plan for Neotel to roll-out internet connectivity to 2500 public schools and Further Education and Training institutions

15 Compliance Monitored reserved postal areas and the retail infrastructure roll-out Verified the location and operations of new postal outlets Inspected 600 postal outlets 72 contravention notices were issued Conducted monitoring process to SAPO compliance service delivery standards Conducted public awareness programmes Received 35 customer complaints against SAPO resolved 8 complaints and referred the remainder to SAPO for resolution.

16 Markets & Competition

17 Markets and Competition Conducted preliminary market studies and developed draft regulations for markets that the Authority may investigate for purposes of imposing pro-competitive remedies: –List of markets that the Authority may investigate for purposes of imposing ex ante regulation –Discussion document, hearings and findings document on Market definition of wholesale call termination –Discussion document and hearings on wholesale local access and end-to-end leased lines Published draft regulations and held hearings on essential facilities

18 Markets and Competition Published draft regulations and held hearings on Facilities Leasing and Interconnection Processed 46 interconnection agreements Developed draft regulations on Handset Subsidies Analysed and processed 43 ad-hoc tariff applications Analysed and approved Telkom’s 2007/8 annual tariff review

19 Engineering & Technology

20 Frequency Spectrum Prepared and submitted Draft National Radio Frequency Plan to Minister for consideration Published invitation to comment on Spectrum Licensing Framework for high demand bands Analysed 111 technical requests for broadcasting frequency Published Personal Locator Beacon (PLB) and Radio Frequency Identification Device (RFID) radio regulations Issued 3351 frequency spectrum licences Type approved and issued 1613 licences

21 Radio Monitoring & Regions Attended to a number of cross-boarder interference complaints in Mozambique and Lesotho Regional offices confiscated1304 illegal radios and closed 3671 files for non-payment Regional offices issued 358 maritime certificates Conducted 172 high site inspections

22 Consumer Affairs

23 Consumer Affairs Published the following regulations: –Minimum Customer Care Standards and Complaints Handling Procedures –Code of Conduct for Electronic Communications Services (ECS) and Electronic Communications Network Services (ECNS) –Constitution of the Consumer Advisory Panel –Minimum Standards for End-User and Subscriber Service Charter –Code of People with Disabilities

24 Consumer Affairs Appointed the Consumer Advisory Panel Conducted public education and awareness workshops Extensive consumer awareness drive through radio and print media Produced and distributed publicity material on the mandate of ICASA

Consumer Affairs Conducted a publicity drive on Number Portability Conducted youth awareness programmes Conducted extensive consumer awareness campaigns in rural communities to coincide with International Consumer Rights Day 25

26 Consumer Affairs Received 1038 complaints Resolved 637 complaints 401 complaints remain under investigation

27 Legal & CCC

28 Legal and Enforcement ICASA operates in a highly litigious environment as its decisions are frequently taken on review by agrieved applicants The litigation annexure of the Annual Report indicates that ICASA was involved in 13 litigation matters Complaints and Compliance Committee adjudicated over 17 matters

29 Communications & International Participation

30 Stakeholder Management Media and general enquiries Hosted Stakeholders Meeting on 08 November 2007 at the Sandton Sun and Towers Branded ICASA’s internal & external activities Placed corporate advertisements/ advertorials in select publications Exhibited in industry expos such as –Satcom Africa 2007 –Setweek –Futurex –Young Women in ICT exhibition –CRASA Workshops

31 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);

32 International Participation ICASA also participated in: –PAPU (Pan African Postal Union); –Universal Postal Union Council of Administration meetings –Bilateral meetings with other regulators i.e. Hosted Telecoms Regulatory Authority of Central African Republic Hosted National telecommunications Regulatory Authority of Egypt

33 International Participation ICASA was party to the following: –The provision of technical assistance to INCM of the Mozambican Regulator on interference issues –Hosting of the Sudan government on regulation of communications –Visit to Russia and Netherlands to share experience on broadcasting complaints procedures –Visit to Tanzania to share experience –The hosting of SA Korean technical team

34 ICASA and Its People

35 ICASA and its People Out of 72 critical positions 60 were filled Bursary scheme provides training to 56 employees Undertook a Job Grading Review process Conducted a review of a range of existing internal policies Implemented an employee assistance programme to provide a comprehensive professional wellness programme Awarded Long Service awards to long serving employees

36 DEMOGRAPHICS PER POPULATION GROUP MARCH 2004 TO MARCH 2007

37 STAFF COMPLIMENT AT 31 MARCH 2008 by GENDER

38 ICASA 2007/2008 Annual Financial Statements

MAIN STATEMENT: STATEMENT OF FINANCIAL PERFORMANCE 39

MAIN STATEMENT: STAMENT OF FINANCIAL POSITION 40

NATIONAL REVENUE FUND: STATEMENT OF FINANCIAL PERFOMANCE 41

NATIONAL REVENUE FUND: STATEMENT OF FINANCIAL POSITION 42

NATIONAL REVENUE FUND Licences and application fees for 2007/08 is R2 098 million. Fees collected: Collection rate at year end-82% Broadcasting-97% Spectrum-85% Telecoms-98% Postal-99% 43

44 Questions

45 Thank You