1. Parliamentary Portfolio Committee on Communications
ICASA Q3 Presentation
Dr Stephen Mncube - Chairperson
Mr Pakamile Pongwana – Chief Executive Officer

2. Presentation outline
Q3 Performance Information
Quarter expenditure

3. SO 1.1 Facilitate effective competition
1.1.1 Performance indicator: Additional free-to-air television broadcasting service licences to successful applicants
Status of overall performance against Q3 target and reasons for variance:
The ITA for free-to-air television broadcasting service licence was published in the Government Gazette No on 29 August The closing date for submission of applications was extended from 1 December 2014 to 31 March Prospective applicants requested an extension, which was granted. Five applications were received by 31 March 2015
Q3 Deliverable:-
Analysis report on confidentiality and free-to-air television broadcasting service licence applications received gazetted

4. SO 1.1 Facilitate effective competition
1.1.2 Performance Indicator: Final report to ICASA Council on the necessity for pro-competitive regulation in the provision of subscription broadcasting television services
Status of overall performance against Q3 target and reasons for variance:
Concept document on viability of licensing further terrestrial broadcasting licences developed. Draft questionnaire compiled. Questionnaire to be released in January 2015
Research report on the market structure for subscription broadcasting services

5. SO 1.1 Facilitate effective competition
1.1.3 Performance Indicator: Position Paper on factors that determine the cost of digital terrestrial signal transmission in South Africa
Status of overall performance against Q3 target and reasons for variance:
Draft research report compiled covering factors that affect the cost of DTT in South Africa
Draft internal Position Paper on factors that determine the cost of digital terrestrial signal transmission in South Africa

6. SO 1.1 Facilitate effective competition
1.1.4 Performance Indicator: Gazetted final Wholesale Voice Call Termination Regulations
Status of overall performance against Q3 target and reasons for variance:
The Regulations were published in Government Gazette on 30 September 2014
Publication of Final Wholesale Voice Call Termination Regulations in the Government Gazette

7. SO 1.2 Ensure SA retail prices of ICT fairly reflect costs
1.2.1 Performance Indicator: Position Paper on retail tariff transparency approved by ICASA Council
Status of overall performance against Q3 target and reasons for variance:
The Authority in collaboration with the NCC embarked on a process of requesting information from the operators in relation to complaints and sector developments that impact on the consumers. This information will inform the position paper on retail tariff transparency
Internal report published on analysis of questionnaire submissions. Engagement with licensees on outcome of RFI analysis. Publication of draft Standard Terms and Conditions for licensing Regulations

8. SO 1.3 Ensure effective Broad-Based HDI/BEE participation in the sector
1.3.1 Performance Indicator: HDI/BBBEE regulations published in the government gazette
Status of overall performance against Q3 target and reasons for variance:
Draft document done internally. The project was deferred to 2015/16 due to lack of requisite capacity. A resource is being trained on the process of conducting regulatory impact assessment
Public hearings conducted on the draft HDI/BBBEE Regulations for broadcasting services, ECS licenses and ECNS licenses

9. SO 2.1 Measurements of achievement of Broadband Policy Inputs/Outputs
2.1.1 Performance Indicator: Available spectrum for Invitations to Apply (ITAs), published in Government Gazette in line with the Roadmap for IMT spectrum
Status of overall performance against Q3 target and reasons for variance:
The International Mobile Telecommunications (IMT) Roadmap 2014 published, Government Gazette No and the IMT Radio Frequency Spectrum Assignment Plans (RFSAP) published, Government Gazette 38640, containing the rules for IMT 450, 700, 750, 800, 900, 2300, 2600 and 3500 bands. The IMT Roadmap and RFSAPs are part of the final process in the development of the Invitation to Apply (ITA) for assignment of broadband spectrum
ITAs for frequency licences developed in line with IMT
Roadmap

10. SO 2.1 Measurements of achievement of Broadband Policy Inputs/Outputs
2.1.2 Performance Indicator: Radio Frequency Migration Plan for bands identified in terms of the Radio Frequency Migration Regulations 2013
Status of overall performance against Q3 target and reasons for variance:
The International Mobile Telecommunications (IMT) Roadmap 2014 published, Government Gazette No and the IMT Radio Frequency Spectrum Assignment Plans (RFSAP) published, Government Gazette 38640, containing the rules for IMT 450, 700, 750, 800, 900, 2300, 2600 and 3500 bands. The IMT Roadmap and RFSAPs are part of the final process in the development of the Invitation to Apply (ITA) for assignment of broadband spectrum
Approved spectrum migration plans for bands identified for feasibility studies in terms of the 2013 Radio Frequency Migration Regulations

11. SO 2.1 Measurements of achievement of Broadband Policy Inputs/Outputs
2.1.3 Performance Indicator: One or more national spectrum licences making use of International Mobile Telephony (IMT) spectrum
Status of overall performance against Q3 target and reasons for variance:
The was ITA was drafted but not published, pending the Ministerial policy directive
Approved spectrum migration plans for bands identified for feasibility studies in terms of the 2013 Radio Frequency Migration Regulations

12. SO 2.1 Measurements of achievement of Broadband Policy Inputs/Outputs
2.1.4 Performance Indicator: Draft infrastructure sharing Regulations published in Government Gazette for public consultation
Status of overall performance against Q3 target and reasons for variance:
Delays experienced in finalising the draft document
Draft infrastructure sharing Regulations for internal
consultations

13. SO 2.1 Measurements of achievement of Broadband Policy Inputs/Outputs
2.1.5 Performance Indicator: Draft internal report on the costs and benefits of open access regulation
Status of overall performance against Q3 target and reasons for variance:
No strategic activity
No strategic activity

14. SO 2.2 Promote the development of public, community and commercial broadcasting services in the context of digital migration
2.2.1 Performance Indicator: Gazetted Findings document on the broadcasting of local content
Status of overall performance against Q3 target and reasons for variance:
No strategic activity
No strategic activity

15. SO 4.1 Establish innovative approaches to technology usage; dynamic spectrum usage
3.1.1 Performance Indicator: Position paper on opportunistic spectrum management approved and results published in Government Gazette
Status of overall performance against Q3 target and reasons for variance:
External research took longer than expected
Position paper on opportunistic spectrum management approved by ICASA Council

16. SO 4.1 Promote consumer rights
4.1.1 Performance Indicator: Gazetted toll-free framework
Status of overall performance against Q3 target and reasons for variance:
No strategic activity
No strategic activity

17. SO 4.2 Ensure universal service and access
4.2.1 Performance Indicator: Draft recommendations report on universal service to postal services
Status of overall performance against Q3 target and reasons for variance:
The Authority and the DoC were performing the research independently. Both parties were unaware of each others efforts. Subsequently, when the Authority became aware of the DoC initiative, it withheld the publication of the discussion document and used it as an input to the National Integrated ICT Policy Paper
Publication of Discussion Document on universal service to postal services in Government Gazette

18. SO 4.2 Ensure universal service and access
4.2.2 Performance Indicator: Gazetted Universal Service and Access Regulations
Status of overall performance against Q3 target and reasons for variance:
Project reprioritized, no longer under Consumer Affairs, incorporated under Licensing USA obligations regulations
Project reported under USO licensing

19. SO 5.1 Improved operational processes and performance measurement processes
5.1.1 Performance Indicator: Speed and accuracy of spectrum management, licensing and certification on new system, measure efficiency and effectiveness against old system and whether licensing and if certification turn-around times have been significantly reduced. Measure of ICASA's reputation has improved through the use of more modern methods of spectrum management
Status of overall performance against Q3 target and reasons for variance:
Tender for procurement of spectrum management tool put on hold pending the outcome of the legal challenge by one of the bidders
Verification and signoff of data take-on

20. SO 5.1 Improved operational processes and performance measurement processes
5.1.2 Performance Indicator: Change management plan. Migration of employees from the old structure into the new, approved structure. Providing training to all managers on job description writing skills. Review all current job descriptions and develop new job descriptions
Status of overall performance against Q3 target and reasons for variance:
Interviews for the three GM positions has been conducted. 7% of employees has been migrated to the newly approved structure, and 84% of the employees were assessed by the end of December
No strategic activity

21. SO 5.1 Improved operational processes and performance measurement processes
5.1.3 Performance Indicator: Develop and implement effective Media Plans for all corporate and regulatory activities and projects
Status of overall performance against Q3 target and reasons for variance:
Developed Media and Communication Plans
Implement Communication & Stakeholder Strategy ICASA

22. SO 5.1 Improved operational processes and performance measurement processes
5.1.4 Performance Indicator: Ensure ICASA representation and submission to all relevant international forums
Status of overall performance against Q3 target and reasons for variance:
Calendar of international meetings implemented and hosted all study visit requests for Q3
Implement International Stakeholders Engagement Framework for ICASA

23. SO 5.1 Improved operational processes and performance measurement processes
5.1.5   Performance Indicator: 95% collection of revenue on regulatory due dates from all licensees
Status of overall performance against Q3 target and reasons for variance:
 95% collection of revenue on regulatory due dates from all licensees
Complete and accurate collection of revenue

24. Q3 Prelim results

25. SO 5.1 Improved operational processes and performance measurement processes
Summary : 2014/15 Q3 Results
Ytd Budget
Ytd Actual
Ytd Variance %
Full Year Budget
Spent %
Total Revenue
(278,877,549)
(292,874,356)
(5.0)
(386,322,000)
75.8
Total Expenditure
290,193,984
268,689,585
7.4
416,144,469
64.6
Opex
259,316,118
225,540,765
13.0
361,250,861
62.4
Normal Projects
25,877,866
30,101,995
(16.3)
39,893,608
75.5
Ring-fenced
5,000,000
6,295,557
(25.9)
15,000,000
42.0
Normal Capex (Excluding ring-fenced) -
6,751,268 1
#DIV/0!
(Surplus) Deficit
11,316,435
(24,184,771)
314
29,822,468
(81.1)
Depreciation (included above)
11,368,080
12,155,982
(6.9)
15,157,440
80.2
Complete and accurate collection of revenue

26. QUESTIONS AND ANSWERS

27. THANK YOU