1. Karabo Motlana, CEO 08 November 2007
Portfolio Committee on Communications ICASA 2006/2007 Annual Report Presentation
Karabo Motlana, CEO
08 November 2007

2. Outline of Presentation
Strategic Intent
Value Drivers
Strategic Objectives
Licensing
Competition, Choice and Diversity
Spectrum Management
Legal, Consumer and International Participation
International Participation
ICASA & its People
Financial Statements

3. ICASA Strategic Intent
ICASA’s strategic objectives 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

4. ICASA 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

5. ICASA Strategic Objectives
Increase the availability and quality of electronic communications services to domestic and business users
Encourage and maintain pro-competitive markets through effective competition and transparent regulation
Develop regulatory policies that promote competition, innovation and investment in services and facilities providing widespread access to ICT

6. ICASA 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 the economy
Broaden economic participation in the sector by SMMEs
Encourage the injection of capital by domestic and foreign investors
Encourage and supporting the successful introduction of new technologies and services

7. Licensing

8. Licensing Licensed 81 Value Added Network Service operators
Issued 3 Under-serviced Area Licences
Granted six Under-serviced Area Licences subject to provision of additional information
Renewal of the SABC licences for XK FM and the amendment of Umhlobo Wenene FM
Renewal of commercial broadcasting 702 Talk Radio and Midi TV

9. Licensing Licensed 81 VANs Licensed 15 PTNs Issued 3 USALs
Granted 6 USALs subject to provision of additional information
Renewed XK FM and amended Umhlobo Wenene FM (SABC)
Renewed 702 Talk Radio and Midi TV licences

10. Licensing
Amended commercial broadcasting licence for Khaya FM and 702 Talk Radio
Licensed 3 new commercial radio stations for Limpopo, Mpumalanga, and North West for the secondary markets
Granted 11 new Community Sound Broadcasting licences to nodal areas
Issued 28 Special Events Community Broadcasting licences

11. Licensing Amended Kaya FM and 702 Talk Radio licences
Licensed 3 commercial radio stations in Limpopo, Mpumalanga and North West provinces
Granted 11 Community Sound Broadcasting licences
Issued 28 Special Events Community Broadcasting licences
Renewed 9 Community Broadcasting licences
Amended 3 Community Sound Broadcasting services

12. Competition, Choice and Diversity

13. Markets and Competition
Processed numbering applications 266
Published an updated Central Numbering Database
Implemented Mobile Number Portability
Finalised the Mobile Number Portability Code of Practice
Published number portability geographic functional specifications for Public Switched Telecommunication services – GG29028 d/d 12/07/06
Published 10 digit plan records and changing international dialling prefix – GG29049 d/d 20/06/06

14. Markets and Competition
COA/CAM for Mobile and Fixed Telephony operators
Authority requested regulatory financial statements from mobile operators in order to analyse the cost of providing mobile telephony
Authority received Telkom’s audited financial statements

15. Markets and Competition
Conducted an enquiry into Handset Subsidy
Conducted an enquiry into the Interconnection and Facilities Leasing Regulations
Completed a Market Intelligence Study
Initiated a Market Definition process

16. Markets and Competition
Published the findings document on Mobile Pricing
Evaluated SAPO annual tariff increase proposals
Published approved fees and charges for the reserved postal area
Developed a Code of Practice for postal operators in the un-reserved sector (courier companies)

17. Markets and Competition
Conducted a Ten-year Review of Broadcasting Regulation
Published a Code of Good Practice for broadcasting on providing services to people with disabilities
Conducted research on the programming for children, the youth, women and people with disabilities.
Published a Community Sound Broadcasting Policy Position Paper – GG d/d 06/06/06
Participated in Digital Migration Strategy

18. Spectrum Management

19. Frequency Spectrum Issued over 5000 radio spectrum licences
Issued radio spectrum licences
Issued 169 TLTE licences
Issued 52 switching systems licences
Type approved over 900 radio frequency equipment
Conducted frequency spectrum audit on 2.5 GHz

20. Spectrum Management
800 MHz broadcasting opened for non-broadcasting services on a secondary basis – GG 29345
Published Personal Locator Beacon (PLB) regulations for use in emergencies – GG 26514
Published discussion document on framework for assigning high demand frequency bands- Hearings conducted – GG 29667
Published draft regulations on the use of RFID systems – GG 30280

21. Frequency Monitoring Spectrum Compliance 200 High sites inspected
Confiscated 76 illegal radio transceivers
Closed down 2 illegal broadcasters were
Issued warnings to un-licensed operators on the ISM band
67% of interference cases resolved
200 High sites inspected

22. Legal, Consumer and International Participation

23. Consumer Protection Conducted public awareness on:
Universal Service and Access;
Consumer Rights;
Competition and Choice;
Services available to People with Disabilities;
Number Portability; and
E-rate

24. Consumer Complaints 924 Complaints received 697 Complaints resolved
245 Complaints brought forward

25. Monitoring Broadcasters
Conducted 64 compliance assessment visits
Received 75 broadcasting complaints
BMCC adjudicated over 3 hearings
Issued 60 monitoring reports

26. Monitoring Postal Outlets
Monitored reserved postal areas
Monitored the retail infrastructure roll-out
Verified the location and operations of new postal outlets
Enforced compliance with postal legislation
Undertook the Independent Monitoring Project to ensure postal service delivery standards
Conducted public awareness programmes
Resolved customer complaints against SAPO

27. Legal and Enforcement
Received and adjudicated complaints against broadcasters
Conducted complaints hearings against three broadcasters
Conducted the inauguration of members of the CCC which replaced the Broadcasting Monitoring and Complaints Committee

28. Legal and Enforcement
ICASA operates in a highly litigious environment as its decisions are frequently taken on review by unsuccessful applicants
The litigation annexure of the Annual Report indicates that ICASA was involved in 15 litigation matters

29. 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);

30. International Participation
ICASA also participated in:
SABA (Southern African Broadcasting Association);
UPU (Universal Postal Union);
SAPRA (Southern African Postal Regulatory Authority); and held
Bilateral meetings with other regulators i.e.
Mozambique Communications Regulator on tracing illegal operators/interference
Hosted Gambia, Sudan, Angola and Chinese delegations

31. International Participation
ICASA hosted/ co-hosted the following:
Commonwealth Telecommunications Organisations’ (CTO) Digital Broadcasting Switch-Over Conference
5th World Summit on Media for Children

32. ICASA and Its People

33. Stakeholder Management
Media and general enquiries
Hosted Stakeholders Meeting
Branded ICASA’s internal & external activities
Placed corporate advertisements/ advertorials in select publications
Exhibited in industry expos

34. ICASA and its People
Postal Regulator Staff were integrated into ICASA on 01 January 2007
Implementation of a Performance Review Process
Initiated a Job Grading and Salary Benchmarking

35. DEMOGRAPHICS PER POPULATION GROUP
MARCH 2004 TO MARCH 2007

36. DEMOGRAPHICS PER GENDER GROUP
MARCH 2004 VS MARCH 2007
MARCH 2004
MARCH 2007

37. ICASA 2006/2007 Annual Financial Statements

38. Statement of Financial Performance

39. Statement of Financial Position

40. NATIONAL REVENUE FUND

41. Statement of Financial Position

42. NATIONAL REVENUE FUND
Licences and application fees increased from R1.8 billion to R2.1 billion which is 16% increase. This 14% is due to increase in telecommunication service’s “net operation income licence fees”.
Fees collected:
Collection rate at year end %
Broadcasting %
Spectrum %
Telecoms %
Postal %

43. Thank You www.icasa.org.za