1. Rubben Mohlaloga September 2016
Annual Report 2015/16
Rubben Mohlaloga
September 2016

2. ICASA TEAM Rubben Mohlaloga: Acting Chairperson Pakamile Pongwana: CEO
Tebogo Matabane: CFO
Willington Ngwepe: COO
Portia Mngomezulu: CSE

3. PRESENTATION OUTLINE PART 1: A Brief Overview of the
PRESENTATION OUTLINE PART 1: A Brief Overview of the Strategic Plan 2015/16 PART 2: Annual Report on 2015/16FY PART 3: Future Outlook /17FY

4. PART 1 A Brief Overview of the Strategic Plan 2015/16

5. ICASA is guided by:
The Constitutional & Legislative Mandates (Sustained Agenda)
Government Policy Mandates (Change Agenda)
Vision - An Inclusive Digital Society
Mission -To ensure that all South Africans have access to a wide range of high-quality communication services at affordable prices
Organizational Values - Innovation, collaboration, accountability, results-driven, stakeholder-centric
Leadership Brand

6. The following issues were topical in the performance
The following issues were topical in the performance environment during the financial year:
To regulate or not to regulate. That is the question!
Over-The-Top Services
A number of countries have migrated to DTT
For some SADC Countries including SA the migration process is ongoing
Movement of DTT to satellite – point of discussion at ITU ICASA will partake in the debate
Cost of migration and use of audiences minimisation
Digital Terrestrial Television
Cost of data
Layers of data including cost
Device issues
Net neutrality
Software
How do we make sure society uses INTERNET appropriately
INTERNET
Challenges to SAPO
Courier environment
Postal Services
Affordable broadband facilitation
Look at data pricing, peering facilities
Spectrum availability
Broadband

7. We started the year with the following performance environment situation:

8. Other issues in the performance environment
Market Consolidation issues
Need to accelerate digital migration (ITU switching off of analogue broadcasting signal)
Review of ICT sector policy
Net neutrality
Technological evolution
International Agenda (WRC-15 on matters relating to spectrum allocation)

9. Governance structure was as follows:
Complaints and Compliance Committee
Audit & Risk Committee
ICASA Council
3 Councilors
Remuneration Committee
Fully functional governance structure
Full Independence
Each Committee has a full complement of members

10. Areas of Focus (Pre-Determined Objectives) were as follows:
5-Year
3-Year
SOOG 1: Promote Effective Competition
Strategic Objective 1.1: Facilitate an effectively competitive ICT sector
SOOG 2: Promote Digital Agenda
Strategic Objective 2.1: Create an environment conducive to universal broadband provision and digital broadcasting services
Strategic Objective 2.2: Support innovation for the future use of digital technologies
SOOG 3: Improve Stakeholder and Consumer Experience
Strategic Objective 3.1: Facilitate an efficient operational environment to reduce regulatory burden
Strategic Objective 3.2: Facilitate social cohesion and nation building
Strategic Objectives 3.3: Protect consumers from harmful practices

11. There were 103 annual output targets for the 2015/16FY
Programme
Planned Output Targets
Policy Research & Analysis 13
Regions 9
Licensing 14
Compliance and Consumer Affairs 15
Engineering & Technology 12
Finance 6
Corporate Affairs 8
Internal Audit
Legal, Risk & CCC
Human Resources
TOTAL
103

12. Budget for the year was as follows:
PROGRAMME
R thousand '000
BUDGET
2015/2016
1. Administration
2. Licensing
28 452
3. Policy Research and Analysis
23 405
4. Engineering & Technology
36 185
5. Regions
63 183
6. Compliance Consumer Affairs
14 724
Total

13. PART 2 Annual Report on 2015/16FY Highlights

14. Draft amended ICT Codes
Key Policy Developments and Changes in the 2015/16FY Performance Environment
POPI Act No.4 of 2013
Draft amended ICT Codes
FPB Online Regulation Policy
SABC Bill

15. Governance performance by meeting attendance
Complaints & Compliance Committee
(39 hearings and deliberations)
Audit & Risk Committee
(5 meetings)
ICASA Council
38 Meetings
Information and Technology Review Committee
(2 meetings)
Remuneration Committee
(2 meetings)
Executive Committee
(34 meetings)

16. Performance on Output Targets

17. Key Regulatory Highlights
Published ITA for spectrum capacity in multiplex 3 for subscription TV
Completed licensing process for Free to Air TV
Published ITA for commercial sound broadcasting service for Northern Cape
Approved Licensing Framework for IMT Spectrum licensing
LICENSING HIGHLIGHTS
Published report on the State of the ICT Sector (market assessment report)
Recommendations to Minister of Telecommunications and Postal Services on review of SAPO exclusivity period
Published revised Regulations on equitable treatment of political parties by broadcasters during municipal elections
Published revised Local Content Regulations for television sound broadcast services
RESEARCH HIGHLIGHTS
Published draft Regulations on usage of E-band & V-band spectrum bands
Published draft Discussion Document on Dynamic and Opportunistic Spectrum Management (incl. TV whitespaces spectrum)
Report on contributions to and outcome of WRC-15 agenda items adopted by Council
SPECTRUM MANAGEMENT HIGHLIGHTS

18. Key Regulatory Highlights
Resolved 91% of consumer complaints (target was 75% resolution)
Published draft amended Regulations for Consumer Advisory Panel
A fully functional ICASA Office for Mpumalanga Province
Compliance inspection conducted for over 240 licensee retail outlets to assess compliance with consumer protection regulations
Executed 100% of NATJoints assignments
Resolved 100% of reported cases of harmful interference (including cross border interference cases)
Gazetted tariffs for reserved postal services
Report on quality of experience by end-users/ consumers (relating to broadcasting and postal services) approved by Council
Annual compliance reports approved by Council in respect of 60 ECS /ECNS licensees; postal service licensee (i.e. SAPO) and 64 broadcasting service licensees
CONSUMER PROTECTION HIGHLIGHTS

19. Regulatory Services to Industry

20. Regulatory Approvals and Authorisations
Type of service
Annual target
Performance achieved
Type approval
100% of Type Approval Applications processed within 15 working days
A total of Type Approval applications were processed in the 2015/16 financial year % (376 applications) were processed within 15 working days.
Numbering applications
100% of Numbering Applications processed within 20 working days
A total of 340 Numbering applications were processed in the 2015/16 financial year % (334 applications) were processed within 20 working days.
Radiocommunications Spectrum applications
80% of
radiocommunication new, transfer and renewal applications processed within 60 working days
A total of 6680 radiocommunications spectrum applications were processed in the 2015/16 financial year. 99,45% (6643 applications) were processed within 60 working days. All amendments were completed within 60 working days.

21. Regulatory Approvals and Authorisations
Type of service
Annual target
Performance achieved
Transfer and Amendment of Individual Broadcasting, ECS and ECNS Licences
100% of service licensing amendment and transfer applications processed within 180 working days
A total of 33 applications were processed in the 2015/16 financial year all of which were processed within 180 working days.
Class Service licence registration, postal services certificates and authorisations
100% of service licensing applications processed within 30 working days
A total of 281 applications were processed in the 2015/16 financial year. 81% (228 applications) were processed within 30 working days.
Broadcasting spectrum applications
80% of broadcasting new, renewal and transfer spectrum applications processed within 60 working days.
A total of 56 applications were processed in the 2015/16 financial year. 69,6% (39 applications) were processed within 60 working days.

22. Regulatory notifications
Electronic communications retail tariffs
Reviewed and analysed retail tariff notifications to assess the impact of wholesale voice CTRs and published 3 quarterly reports.
- negligible decreases in published tariffs
- promotions provide lower retail tariffs
a lower effective retail rate noticed for consumers who use promotions

23. Complaints & Compliance Committee Performance by sector

24. Human resource priorities for the year are set as follows:
Filling of critical and prioritized positions;
Leadership Development Programme;
Training, development and empowerment of employees;
Performance Management; and
Development of succession and retention strategies.

25. Human Resources Performance
Employment Equity
Human Resources Development Expenditure
Staff Complement

26. % of total no. of staff leaving
Human Resources Performance
Employment Changes
Reasons for Attrition
Reason
Number
% of total no. of staff leaving
Dismissal 1
0.28%
Resignation 33 9%
Retirement
Total 35
10%

27. Linking Organisational Performance with Budget

28. Statement of Financial Position
Rands
2015/2016
2014/2015
Assets
Current Assets
Non Current Assets
Total Assets
Liabilities
Current Liabilities
Non Current Liabilities -
Total Liabilities
Accumulated surplus
The Authority’s assets exceeded it liabilities by R , the request to retain the surplus was approved by National Treasury.

29. Statement of Financial Performance
Rands
2015/2016
2014/2015
Revenue
Revenue from non exchange transactions
Revenue from exchange transactions
Total revenue
Expenditure
Employee-related costs
General expenses
Total expenditure
Surplus for the year

30. Irregular Expenditure
Rands
2015/2016
2014/2015
Irregular expenditure
Irregular expenditure decrease by 91% in the current year. A total amount of R was condoned by Council during the current financial year.
Fruitless and Wasteful Expenditure
Rands
2015/2016
2014/2015
Fruitless and Wasteful expenditure
Fruitless and Wasteful expenditure increase by 13% in the current year.

31. IMPROVED ORGANISATIONAL PERFORMANCE
Audit Report and Overall Performance
ICASA achieved an unqualified audit for the 4th consecutive Financial Year
UNQUALIFIED AUDIT
Performance information was found to be reliable and useful
Overall organisational performance improved from 29% in 2014/2015 to 76,7% in 2015/2016
IMPROVED ORGANISATIONAL PERFORMANCE

32. PART 3 Future Outlook 2016/17FY

33. The Year to be – 2016/17 Strategic Issues to tackle
Real and perceived market concentration in the ICT sector (transparent affordable pricing)
Release of more spectrum for telecom operators, radio and TV broadcasters
5G Forum
INTERNET usage (4G & LTE)
Broadband Delivery (Transparent affordable pricing)
Postal sector adaptation to technological changes
ICT Sector for promotion of economic growth and employment creation

34. THANK YOU