1. SACF Comments on the ECA Amendment Bill B31 - 2018
Portfolio Committee on Telecommunications and Postal Services
27 November 2018

2. SACF Comments on the ECA Amendment Bill - 27 November 2018
Introduction
The SACF is an industry association that represents a broad cross section of players in the ICT sector Our comments are intended to provide a balanced view that represents areas of agreement by our members We trust that our comments will contribute to promoting a sustainable ICT environment, that encourages investment, promotes competition, benefits consumers and contributes to economic growth
SACF Comments on the ECA Amendment Bill - 27 November 2018

3. Universality of Networks
DRAFT
Universality of Networks
SIGNIFICANT CAPITAL
INVESTMENT
UNIVERSALITY
AFFORDABLE RATES
NETWORKS @
Regulatory Certainty
Return on Investment
CONTINUOUS Investment
Technology Upgrades
innovation
SACF Comments on the ECA Amendment Bill - 27 November 2018

4. Process and Impetus for the EC Amendment Bill
EC Amendment Bill implementation of the Integrated ICT White Paper The SACF submitted comments in the previous process – some of our comments have been incorporated.
EC Amendment Bill
Pre-consultation
Parliamentary Consultation
SACF Comments on the ECA Amendment Bill - 27 November 2018

5. SACF Comments on the ECA Amendment Bill - 27 November 2018
Key Concerns
Short commentary period Parallel but linked processes Absence of a regulatory impact assessment Increased regulatory obligations juxtaposed against the reduction of regulatory independence Is the Bill necessary or should the ECA be fully implemented?
SACF Comments on the ECA Amendment Bill - 27 November 2018

6. SACF Comments on the ECA Amendment Bill - 27 November 2018
Regulatory Reform
Sector reform – separation of functions
policy maker
regulator
market players
Role of spectrum has effectively been separated through the regulatory reform process
The Bill seeks to fundamentally change the roles and separation of functions
Regulatory reform produced an independent regulator – independence is not absolute
The Regulator is bound by the policy and legislative framework
Independence, instead relates to the ability to execute decisions without fear, favour or interference
The Regulator cannot dismiss policy or policy directions, without a clear rationale
What are we trying to cure?
Example in the Bill, roles related to spectrum
1) Minister represents SA at ITU in – overarching national discussions
2) Minister issues Policy Directions
3) Minister approves frequency Band Plan
4) ICASA licences
5) ICASA develops the frequency Band Plan
SACF Comments on the ECA Amendment Bill - 27 November 2018

7. Introduction of Competition and Service Based Competition
The Bill introduces a framework for the licensing of the WOAN
The WOAN is intended to be a wholesale network only which sells capacity to other licensees
The WOAN in our understanding is an I-ECNS
The ECA requires the Minister to issue a policy direction to ICASA to invite applications
The Minister issued a draft policy direction in September
Once finalized ICASA can begin a licensing process for Individual Electronic Communications Network Service licences
Does the ECA need to be amended to licence the WOAN, we don’t think so
SACF Comments on the ECA Amendment Bill - 27 November 2018

8. SACF Comments on the ECA Amendment Bill - 27 November 2018
Spectrum Licensing
Incumbents and entrants alike have a common view – the overwhelming view is that spectrum should be licensed now
- the divergence lies in how the spectrum must be licensed
Process must be fair and transparent
The ECA adopts a technology neutral approach – accordingly, refarming should not need approvals, as the spectrum has already been assigned
Attaching USOs to licensing – not new
Although it is unclear as to why the obligations must be approved by the Minister, when the obligations would be part of the licensing process.
The ECA does not empower the Minister to be involved in licensing decisions
The rationale for the change is unclear
SACF Comments on the ECA Amendment Bill - 27 November 2018

9. Licensing of High Demand Spectrum
The Bill proposes a change from exclusive assignments to licensing on an open-access basis while simultaneously provides for spectrum sharing and trading
Spectrum still to attract fees
Spectrum sharing or trading presupposes that you have access to the spectrum
Exclusive assignments - add to the valuation of a licence and can attract fees regardless of the licensing method
May also attract USOs
How will this work?
Exclusive assignments were like buying property – its an asset and prices are based on the value of the property
The proposed shift to the open access approach is similar to attaching a price for exclusive use property to accessing a park
We do not understand this
SACF Comments on the ECA Amendment Bill - 27 November 2018

10. SACF Comments on the ECA Amendment Bill - 27 November 2018
Licence Obligations
Licensing is the responsibility of the Regulator, accordingly licence obligations ought to be determined by the Regulator yet the Bill includes obligations
The Bill further imposes obligations on spectrum without recognizing the different properties of spectrum; i.e. all spectrum cannot be rolled out on the same basis
It is preferable to leaving this with the Regulator
Obligations ought to be aligned
SACF Comments on the ECA Amendment Bill - 27 November 2018

11. SACF Comments on the ECA Amendment Bill - 27 November 2018
Transformation
We support the objectives of transformation – however,
ECA uses the terms HDI, but does not define the term
BBBEE Codes references Black People
The consequence – two different measures which increases
the cost of compliance for licensees
complexity for the Regulator
Proposal
Change HDI to Black people
SACF Comments on the ECA Amendment Bill - 27 November 2018

12. SACF Comments on the ECA Amendment Bill - 27 November 2018
Conclusion
The burning issue of spectrum and the WOAN have been addressed through the Policy Direction that is being finalized The Integrate White Paper gives ICASA the framework to issue Rapid Deployment Guidelines In the absence of the Regulatory (Socio-Economic) Impact Assessment and the immediate pressure of spectrum being alleviated and stakeholder concerns, should the Bill not be reconsidered?
SACF Comments on the ECA Amendment Bill - 27 November 2018

13. SACF Comments on the ECA Amendment Bill - 27 November 2018
The End …. Thank you!
SACF Comments on the ECA Amendment Bill - 27 November 2018