1. I C A S A 2012-2013 Annual Report Parliamentary Portfolio Committee on Communications Presented by Dr. Stephen Mncube Chairperson, Councillors, CEO and CFO Date:Tuesday, 15 October 2013 Time:09:30 – 18:00 Venue: Committee Room E249, New Wing, National Assembly Building

2. Presentation Outline Part 1Chairperson’s overview Part 2Chief Financial Officer’s report Part 3Chief Executive Officer’s report 2

3. PART 1 Dr. Stephen Mncube Chairperson 3

4. Part 1 - Content Part 1 - Content ICASA Vision, Mission and Values ICASA Organogram Strategic Output Oriented Goals (SOOGs) ICASA Programmes Audit findings in AG report 4

5. Vision and Mission VISION To advance the building of a digital society MISSION To ensure that all South Africans have access to a wide range of high quality communication services at affordable prices 5

6. Organisational structure

7. Proposed interim structure

8. Eight Strategic Goals (1) SOOG1Transformation of the ICT Sector SOOG2Ensure the provision of broadband services SOOG3Optimise the use of the radio frequency and numbering resource to support the widest variety of services SOOG4Promote the protection of consumers and accessibility for persons with disabilities 8

9. Eight Strategic Goals (2) SOOG5Promote the development of public, community and commercial broadcasting services in the context of digital migration SOOG6Ensure compliance with legislation and regulation SOOG7Strengthen and modernise ICASA SOOG8Promote competition 9

10. ICASA Programmes 10 Programme 2 Licensing & Compliance Programme 3 Engineering & Technology Programme 4 Markets & Competition Programme 5 Consumer Affairs Programme 1 Governance & Administration

11. Council Response to Audit Findings A two-dimensional approach was adopted: 1.Instituted a “dash-board” that enlisted all audit matters for resolution. The General Licence Fee Regulations were revised to resolve the accuracy of licence fees calculated. 2.Introduced an Interim Organisational Structure in which the regulatory programmes report directly to Council as opposed to the Chief Executive Officer. 11

12. Other Council interventions The 8 Strategic Goals of 2012/13 have been re- clustered into 5 Goals for 2013/14 reducing the number of Strategic Targets from 43 to 26; and A Consultant to facilitate the organisational realignment process has commenced in the new financial year. 12

13. PART 2 Clarinda Simpson Chief Financial Officer 13

14. Report of the Auditor-General Statement of Financial Performance Statement of Financial Position Compliance with Laws & Regulations Part 3 - Content 14

15. Report of the Auditor-General: Opinion(1) 15 The annual financial statements present fairly, in all material respects, the financial position of ICASA at 31 March 2013 and its financial performance.

16. Report of the Auditor-General: Opinion (2) 16 EMPHASIS OF MATTERS (1) Attention is drawn to certain notes in the annual financial statements which were deemed material by the Auditor General. Restatement of corresponding figures (refer note 30.1 to the annual financial statements) The restatement of corresponding figures for NRF Receivables and Payables in order to reflect supported balances for prior years

17. Report of the Auditor-General: Opinion (3) 17 EMPHASIS OF MATTERS (2) Significant Uncertainties (refer note 27 to the annual financial statements) Significant number of lawsuits in progress against the Authority, of which the outcome at this stage is unknown and as a result no provision was raised in the annual financial statements Impairment of NRF Receivables (refer note 9 to the annual financial statements) The Authority was unable to recover long outstanding debt from certain licensees, which was ultimately approved for write off

18. Statement of Financial Performance Main Account 18

19. Statement of Financial Position Consolidated (1) 19

20. Statement of Financial Position Consolidated (1)

21. Consolidated Statement of Cash Flows 21

22. Statement of Comparison of Budget and Actual Amounts 22

23. Compliance with Laws & Regulations Finding Corrective Action Material misstatements were identified in the financial statements submitted on 31 May 2013, which were subsequently corrected The accounting officer did not take effective steps to prevent irregular; fruitless and wasteful expenditure The Internal Audit Function did not evaluate and develop recommendations on the effectiveness and efficiency of controls Timeous decision making on matters affecting the annual financial statements, which will result in more effective reviews Employees found guilty of transgressing the supply chain management procedures resulting in irregular or fruitless and wasteful expenditure are being dealt with in terms of the HR policies The Internal Audit Function of the Authority is currently under review 23

24. PART 3 Themba Dlamini Chief Executive Officer 24

25. Part 3 - Content Part 3 - Content 1.Linking Performance with Budget 2.Report of the Auditor-General 3.Predetermined Objectives 4.Legal Matters 5.Programmes Performance Licensing and Compliance Engineering and Technology Markets and Competition Consumer Affairs 25

26. Linking Performance with Budget (1) Of the R411 million budget allocation, the Authority managed to spend 85% of the allocation A total of R63,4 million was not spent relating to ring- fenced projects Actual OPEX of R317 million against a budget of R319 million – A saving of R2million (0.7%) was realised due cutting expenditure on consumables such as printing; stationery; publications and advertising etc. 26

27. Linking Performance with Budget (2) On Projects and CAPEX actual expenditure was 71% less than budget – this under expenditure is attributed to unspent funds earmarked for the relocation of the Head Office and procurement challenges relating to the broadcasting and postal services equipment Other contributing factors for the slow spending relates to the procurement of the spectrum management software 27

28. Report of the Auditor-General (1) Expenditure management the identification of fruitless and wasteful expenditure R3 671 279 has increased compared to the previous year’s restated amount of R189 292 This can be attributed to fruitless and wasteful expenditure of R2 789 906 relating to prior years which was only identified in the current year. The process of taking corrective measures for these amounts has been embarked upon. Similarly, irregular expenditure of R4 153 874 has increased compared to the previous year’s amount of R538 433. Of this irregular expenditure of R1 304 108 relates to prior periods identified in the current year. The details of fruitless, wasteful and irregular expenditure are contained in the notes to the annual financial statements. 28

29. Report of the Auditor-General (2) Internal audit The internal audit did not evaluate and develop recommendations on the effectiveness and efficiency of controls throughout the year. The institution did not ensure that there was an adequately functioning internal audit unit that identified internal control deficiencies and recommended corrective action effectively throughout the year 29

30. Report of the Auditor-General (3) Investigations The investigation was initiated based on allegations of possible fraudulent activities by the supply chain manager. The supply chain manager was suspended and subsequently charged with alleged misconduct and disciplinary proceedings were instituted. The employee tendered his resignation with immediate effect during the disciplinary hearing and the disciplinary process was therefore terminated. ICASA had an obligation, due to the seriousness of the charges and in terms of ICASA’s Fraud and Prevention Policy, to formally report the internal investigation to the Hawks in terms of section 34(3)(a) of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No 12 of 2004). The Hawks are currently investigating a number of cases within the Supply Chain Management Unit. 30

31. Legal Matters 31 Litigations 1 settlement agreement was reached on Capital Debt; ICASA has not concluded on the interest due on the debt; 4 allocations for a trial date is still to be issued; 1 awaiting withdrawal; and 1 matter for re-instatement for hearing. CCC Matters 11 cases; 1 pending, 2 postponed, 3 settled, 3 warnings issued and 2 for ICASA to review its process.

32. Predetermined objectives (1) AG’s report: There were no material findings on the annual performance report concerning the usefulness and reliability of the information. Of the total number of 42 targets planned for the year, 28 of the targets were not achieved during the year under review. This represents 67% of total planned targets that were not achieved during the year under review. 32

33. Predetermined Objectives(2) 33

34. Performance – Achievement (1) 34 Output No.Key OutcomeKey Output Performance Measure/Indicator Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG3 STRATEGIC OUTCOME ORIENTATED GOAL Optimise the use of the radio frequency (RF) and numbering resource to support the widest variety of services 3.1. STRATEGIC OBJECTIVE Introduce market-based, opportunistic and other innovative approaches in access to spectrum 3.2. STRATEGIC OBJECTIVE Introduce regulatory reforms in the numbering frameworks SO 3.2.1Regulatory reforms to the Numbering Plan framework Revised Numbering Plan to promote effective and efficient use of the numbering resource Revised Numbering Plan regulations Publication of revised Numbering Plan regulations Revised numbering plan regulations were published on 02 October 2012 (GG 35 737)

35. Performance – Achievement (2) 35 Output No.Key OutcomeKey Output Performance Measure/Indicator Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG4 STRATEGIC OUTCOME ORIENTATED GOAL Promote the protection of consumers and accessibility for persons with disabilities 4.1. STRATEGIC OBJECTIVE Promote consumer rights SO 4.1.1Consumer Protection Framework Revised End-User Subscriber Service Charter (QoS) by 31 March 2014 End-User Subscriber Service Charter (QoS) by 31 March 2014 Discussion document on revised End-User and Subscriber Service Charter (QoS) Revision of the End-User and Subscriber Service Charter was done and the regulations were also vetted. SO 4.1.2Revised Code of Conduct on Persons with Disabilities by 31 March 2014 Code of Conduct on Persons with Disabilities by 31 March 2014 Discussion document on revised Code of Conduct on People with Disabilities The target was Achieved as the revision of the regulations were completed as planned 4.2. STRATEGIC OBJECTIVE Ensure universal service and access SO 4.2.4Bridging the Digital Divide by promoting an efficient and effective Postal sector Memorandum of Understanding (MoU) with USAASA on promotion of Universal Service and Access MoU with USAASA on programmes related to Universal Service and Access MoU between USAASA and 3 x Reports on engagement and collaboration with USAASA The target was Achieved as the MoU was drafted collectively by ICASA and USAASA to enable the two entities to collaborate on the promotion of universal service and access.

36. Performance – Achievement (3) 36 Output No.Key OutcomeKey Output Performance Measure/Indicator Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG5 STRATEGIC OUTCOME ORIENTATED GOAL Promote the development of public, community and commercial broadcasting services in the context of digital migration 5.1. STRATEGIC OBJECTIVE Migration to and availability of choice & diversity of broadcasting services in the digital environment SO 5.1.3Availability of choice and diversity in broadcasting services New regulations governing Local Television Content, Independent Television Production and South African Music by 31 March 2015 Draft Discussion document on review of Local Content Regulations by 31 March 2013 The revised target of an inception report on the impact of local content obligations was achieved, with the final recommendations and regulations for local content in the digital era to be developed in the 2013/14 financial year

37. Performance – Achievement (4) 37 Output No.Key OutcomeKey Output Performance Measure/Indicator Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG6STRATEGIC OUTCOME ORIENTATED GOALEnsure compliance with legislation and regulation 6.1.STRATEGIC OBJECTIVE Introduce a comprehensive Compliance and Enforcement framework SO 6.1.1Compliance with legislation and regulations Effective management of the numbering resource Publication of Annual Number Audit findings Findings document on Annual Audit of numbering resource utilisation Target Achieved SO 6.1.2 Compliance with legislation and regulations Management of the Interconnection (I/C) and Facilities Leasing (F/L) Regime Guidelines on Disputes regarding I/C and F/L and Infrastructure Sharing Report on compliance with I/C and F/L regulations Annual report on compliance with I/C and F/L regulations compiled on a quarterly basis. Online database for lodging of I/C and F/L agreements is operational. SO 6.1.3Compliance with legislation and regulations Compliance with licence terms and conditions and regulations Published Annual Reports on compliance with legislation and regulations Compile and approve Reports on; Postal: 2 ECN/S: 30 Broadcasting compliance: 45 The information received from monitoring visits undertaken collated and analysed in progress report SO 6.1.4 Universal Service Access Obligations (USAO) framework document USAO frameworkPublished Implementation Plan developed dependent on the outcome of the Findings document The project was completed in Q2 by the publication of USAO Findings Document. SO 6.1.5 New Universal Service Access (USA) Regulations Published Regulations with gazetted definition and list of under serviced areas Published Implementation Plan developed dependent on the outcome of the Findings document The project was completed in Q2 by publishing the final regulations on Under- Serviced Areas Definition.

38. Output No.Key OutcomeKey Output Performance Measure/Indicator Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG6STRATEGIC OUTCOME ORIENTATED GOALEnsure compliance with legislation and regulation 6.1. STRATEGIC OBJECTIVE Introduce a comprehensive Compliance and Enforcement framework SO 6.1.7Compliance with legislation and regulations Effective and efficient resolution of disputes/complaints Quarterly statistics of complaints redressed Successful management and redress of consumer complaints received The total number of 4317 were received and redressed. The total number of 2270 were resolved, which gives a success rate of 64% and 1547 complaints are pending, which is 36% of complaints outstanding. SOOG7STRATEGIC OUTCOME ORIENTATED GOALStrengthen and modernise ICASA 7.1. STRATEGIC OBJECTIVE Improved operational processes and performance SO 7.1.6To have strategically positioned ICASA offices at cost effective rates Economic rental locations for ICASA offices identified and occupied Relocation of Office Space and staff by specified date, and completion of project plan on time Extension of current Head Office lease until 31 October 2013 The target has been met by reducing rental rates and renewed by five (5) years. The division did not proceed with the deliverable. Subsequent to the five year renewal of Head Office lease the landlord has submitted the new addendum that is currently being vetted by Legal. Though the Authority has not relocated (key output), the new rental rates are in line with the standards approved by RODE Report, a standard recognised by DPW. Therefore, we have Achieved in terms of reducing the rental rates. Performance – Achievement (5) 38

39. Output No.Key OutcomeKey Output Performance Measure/Indicator Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL Promote competition 8.1. STRATEGIC OBJECTIVE Remove barriers to competition SO 8.1.3Development of pro-competitive remedies and implementation thereof Carrier Preselect (CPS) regulations to increase consumer choice Gazetted Code of Practice Publication of Code of Practice by 30 June Target Achieved Performance – Achievement (6) 39

40. Performance – Not Achieved (1) 40 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG1 STRATEGIC OUTCOME ORIENTATED GOAL Transformation of the ICT sector 1.1. STRATEGIC OBJECTIVE Ensure effective HDI/BEE participation in the sector SO 1.1.1Develop Regulations on ownership and control Recommendations on ownership trends and structures for licensees who have been allocated numbers and/or radio frequency spectrum Report on individual licensees’ equity ownership for licensees who have been allocated numbers and/or radio frequency by 31 March 2013 Collation of HDI Equity data through Compliance Manual will commence in 2013/14 financial year.

41. Performance – Not Achieved 41 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG2STRATEGIC OUTCOME ORIENTATED GOALEnsure the provision of broadband services 2.1. STRATEGIC OBJECTIVE Allocation of accumulated 1000MHz for mobile communications SO 2.1.1Greater access to mobile telecommunicatio n spectrum Strategy (blueprint) for Radio Frequency migration plan Radio Frequency migration plan published by 31 March 2013 The National Radio Frequency Plan 2013 is to be published as soon approval in terms of section 34(2) of the ECA is complied with. SO 2.1.2Licensing of available International Mobile Telephony (IMT) spectrum Seven radio frequency spectrum licenses issued in the 2.6GHz and 800MHz bands Deliverable deferred to 2013/14 during Mid-Term budget review to allow finalisation of the Ministerial Policy Directive. Budget reprioritised.

42. Performance – Not Achieved 42 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG2STRATEGIC OUTCOME ORIENTATED GOALEnsure the provision of broadband services 2.2.STRATEGIC OBJECTIVEIncrease connectivity of South Africans on broadband SO 2.2.1 Regulatory response to Broadband Plan to support the national broadband policy Online map to indicate where broadband services are available Broadband map to be online by 30 September 2012 ICASA now has a GIS map of broadband coverage maps for publication online. Final approval and launch deferred to April 2013. SO 2.2.2 Rapid Deployment Guidelines (RDGs) recommendations to the Minister Submission of RDG Recommendation Report to the DoC by 31 June 2012 RDGs document completed. Council approval deferred to April 2013. SO 2.2.3 Open-access model of wholesale network infrastructure = Local Loop Unbundling (LLU) Implementation of LLU through: Reduction in IPC prices by 1 April 2012; Introduction of bitstream wholesale access product by 1 November 2012; Introduction of ALD recovery scheme by March 2013 Draft regulations to implement local loop unbundling, which were submitted to Council for consideration on the 26th of March 2013. This was deferred to April 2013.

43. Performance – Not Achieved 43 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG3STRATEGIC OUTCOME ORIENTATED GOAL Optimise the use of the radio frequency (RF) and numbering resource to support the widest variety of services 3.1.STRATEGIC OBJECTIVE Introduce market-based, opportunistic and other innovative approaches in access to spectrum SO 3.1.1Greater access to Radio Frequency (RF) spectrum Wholesale Open Access model in licensing of some of mobile broadband spectrum Two spectrum licences issued in 2.6GHz and 800MHz bands using the Wholesale Open Access model Deliverables deferred to 2013/14 during Mid- Term budget review to allow finalization of the Ministerial Policy Directive. Budget reprioritised. SO 3.1.3 Optimise spectrum usage Develop framework for market-based licensing of some of the mobile spectrum Draft framework completed but not tabled at Council. During Business Plan review the deliverable is incorporated in SOOG2 of the revised ICASA 5 year strategy. 3.3.STRATEGIC OBJECTIVESupport the rapid uptake of new ICT technologies SO 3.3.1Type Approval framework to support innovation Revision of Type Approval framework Final Framework to be tabled at Council during first week of April 2013 for publication approval. Implementation upon publication.

44. Performance – Not Achieved 44 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG4STRATEGIC OUTCOME ORIENTATED GOAL Promote the protection of consumers and accessibility for persons with disabilities 4.2.STRATEGIC OBJECTIVEEnsure universal service and access SO 4.2.1Bridging the Digital Divide by promoting an efficient and effective Postal sector Regulations on Electronic Postal Services Final Report to the DoC on recommendations to support the introduction of Electronic Postal Services Final report complete. Council approval deferred to April 2013 SO 4.2.2 New licensing framework for postal services Report on SAPO achievements re USO obligations Final report complete. Council approval deferred to April 2013

45. Performance – Not Achieved 45 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG5STRATEGIC OUTCOME ORIENTATED GOAL Promote the development of public, community and commercial broadcasting services in the context of digital migration 5.1.STRATEGIC OBJECTIVE Migration to and availability of choice & diversity of broadcasting services in the digital environment SO 5.1.3Availability of choice and diversity in broadcasting services Broadcasting regulatory framework to support the digital environment Findings document outlining framework for the introduction of a new regulatory framework for broadcasting services by 30 June 2012 The Findings document was concluded, with Council deferring publication to the 2013/14 financial year.

46. Performance – Not Achieved 46 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG6STRATEGIC OUTCOME ORIENTATED GOALEnsure compliance with legislation and regulation 6.1.STRATEGIC OBJECTIVEIntroduce a comprehensive Compliance and Enforcement framework SO 6.1.6Compliance with legislation and regulations Compliance with legal prescripts: 1. Procurement of Postal Monitoring Equipment 2. Procurement of BSMonitoring Equipment Procurement of Broadcasting and Postal Monitoring Equipment Initially bidders were unable to meet the specifications. The process was revisited in 2013/14 and the contract for the Broadcasting Monitoring Equipment has been finalised and the equipment has been delivered. Ministerial authorisation has been sought to procure the postal monitoring equipment abroad.

47. Performance – Not Achieved 47 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG7STRATEGIC OUTCOME ORIENTATED GOALStrengthen and modernise ICASA 7.1. STRATEGIC OBJECTIVE Improved operational processes and performance SO 7.1.1To Automate systems and processes Automated Spectrum Management by 31 March 2015 Migration of existing systems to new Spectrum Management system The procurement of the software was not finalised in the financial year but is being attended to in 2013/14. SO 7.1.2Integrated Customer Relation Management System - (CRM) New CRM system fully implemented for Consumer Affairs and Regional Offices The terms of reference for the CRM system took longer than anticipated. This delayed the appointment of an implementation partner. The software licenses have been procured and the specifications for the Consumer Affairs Division have been completed. SO 7.1.3Integrated Human Resources Management System - (HRM) New HRM system implementedThe RFQ to select a service provider to compile the terms of reference was advertised three times. Only one company provided a response each time. SCM to re-issue the bid in the new year SO 7.1.4Improved Governance systems Complete review and implementation of new organisational structure Developed and Approved organisational re-alignment road map Service provider not yet appointed and the analysis and recommendations are yet to be started. The process of preparing the terms of reference and the appointment of the service provider took longer than planned. Developed and Approved Change Management Framework Developed and Approved Change Management Framework available when service provider appointed. The process the appointment of a service provider took longer than it was planned for.

48. Performance – Not Achieved 48 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG7 STRATEGIC OUTCOME ORIENTATED GOAL Strengthen and modernise ICASA 7.1. STRATEGIC OBJECTIVE Improved operational processes and performance SO 7.1.5Improved skills and leadership within the organisation Organisational Core and Leadership Competencies Developed and Approved plan on Organisational Core and Leadership Competencies Approved plan on Organisational Core and Leadership Competencies are yet to be developed as no service provider appointed yet. The process of drawing the terms of reference and the appointment of the service provider has taken longer than planned. Developed and Approved organisational Dual Career Path model Dual Career Path model not yet developed and approved as the process requires employees and management participation, also responses from divisions has been poor. Approved and Implemented Talent Management strategy Talent Management Strategy not developed, approved or implemented due to no appointment of an Organisational Re-alignment Consultant. SO 7.1.7Improved financial governance systems Strengthened financial & other internal controls Implementation of the Flowcentric and the Clickview Systems Implementation of the Flowcentric and the Clickview Systems have not been Achieved due to legal challenges with the service provider SO 7.1.8Self-funding model for ICASA New funding model for ICASA and engage stakeholders (National Treasury and DoC) Proposed Self-funding model alternatives for ICASA ICASA is awaiting feedback on proposed self-funding model alternatives, following submission of all documentation requested by DoC and Pygma consultants

49. Performance – Not Achieved 49 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL Promote competition 8.1. STRATEGIC OBJECTIVE Remove barriers to competition SO 8.1.1 A Promote diversity and choice of broadcasting services Licences for commercial broadcasting services Analysis report on applications for subscription broadcasting service and I-ECNS licences Council has resolved to extend the timelines for this project by a period of three months, due to the unforeseen delays in correcting applications and consideration of confidentiality requests. The Authority has dealt with the request for confidentiality. On 07 December 2012, the applications were published for public comments and responses for a period of 51 working days. The service provider to assist in the analysis of the business plan, financials and market research for the applications has been appointed. The analysis report for subscription broadcasting services licence applications has been prepared excluding the work that need the services of the expert service provider and public hearing report.

50. Performance – Not Achieved 50 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL Promote competition 8.1. STRATEGIC OBJECTIVE Remove barriers to competition SO 8.1.1 B Promote diversity and choice of broadcasting services Licences for commercial broadcasting services Analysis report on applications for subscription broadcasting service and I-ECNS licences Council has resolved to extend the timelines for this project by a period of three months, due to the unforeseen delays in correcting applications and consideration of confidentiality requests. The Authority has dealt with the request for confidentiality. On 07 December 2012, the applications were published for public comments and responses for a period of 51 working days. The service provider to assist in the analysis of the business plan, financials and market research for the applications has been appointed. The analysis report for subscription broadcasting services licence applications has been prepared excluding the work that need the services of the expert service provider and public hearing report.

51. Performance – Not Achieved 51 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL Promote competition 8.1. STRATEGIC OBJECTIVE Remove barriers to competition SO 8.1.1 C Promote diversity and choice of broadcasting services Licences for commercial broadcasting services Analysis report on applications for commercial sound broadcasting services Council has resolved to extend the timelines for this project by a period of six months, due to the unforeseen delays in correcting applications, consideration of confidentiality requests and extension of the closing date of the Invitation To Apply. The Authority has dealt with the request for confidentiality. On 07 December 2012, the applications were published for public comments and responses for a period of 51 working days. An analysis report for the Secondary Markets licence applications excluding the work that need the services of the expert service provider has been prepared.

52. Performance – Not Achieved 52 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL Promote competition 8.1. STRATEGIC OBJECTIVE Remove barriers to competition SO 8.1.1Promote diversity and choice of broadcasting services Licences for commercial broadcasting services Analysis report on applications for commercial sound broadcasting services Council has resolved to extend the timelines for this project by a period of six months, due to the unforeseen delays in correcting applications, consideration of confidentiality requests and extension of the closing date of the Invitation To Apply. The Authority has dealt with the request for confidentiality. On 07 December 2012, the applications were published for public comments and responses for a period of 51 working days. An analysis report for the Primary Markets licence applications excluding the work that need the services of the expert service provider has been prepared.

53. Performance – Not Achieved 53 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL Promote competition 8.1. STRATEGIC OBJECTIVE Remove barriers to competition SO 8.1.2 Improved levels of competition in the ICT sector Regulations governing pro- competitive interventions into the broadcasting signal distribution market Draft Regulations for Signal Distribution market including price control framework Approval of findings document deferred to April 2013. Draft regulations to be published in September 2013. SO 8.1.4Development of pro-competitive remedies and implementation thereof Revised Number Portability regulations to promote consumer choice Research report on review of the existing Number Portability regulations Project postponed to 2014/2015 due to….. SO 8.1.5Accounting Separation Regulations for wholesale call termination Accounting Separation Regulations Draft regulations were developed. Project to be completed in the next financial year.

54. Performance – Not Achieved 54 Output No.Key OutcomeKey Output Target 2012/2013 Performance against Targets 2012/13 and Reasons for Variance SOOG8 STRATEGIC OUTCOME ORIENTATED GOAL Promote competition 8.2. STRATEGIC OBJECTIVE Ensure South African retail prices of ICT services fairly reflect costs SO 8.2.1 Fair prices for Electronic Communication Services (ECS) accessible by all South Africans by 2020 (voice and data services including broadband) Regulatory Strategy for ECS that promotes effective competition and greater network coverage Gazetted price benchmark report on prices across the ECS value chain Price benchmarking report is due for delivery in June 2013. The project is due for completion in 3rd Quarter 2015.

55. QUESTIONS ? 55

56. Thank you Dankie Re a leboha Re a leboga Siyabonga Inkomu Ro livhuwa Enkosi 56