1. Briefing to the Joint Sitting of the Parliamentary Portfolio Committees on Communications and Telecommunications & Postal Services “Regulatory Impact on ICT Sector Entities” Rubben Mohlaloga– Acting Chairperson 18 AUGUST 2015

2. Organisational Mandate 2 ICASA is established pursuant to section 192 of the Constitution and in terms of the ICASA Act of 2000  Regulate electronic communications, broadcasting and postal sectors in the public interest  Ensure affordable services of high quality for all South Africans ICASA is mandated to - ICASA’s mandate is derived from:  ICASA Act, 2000  EC Act, 2005  Broadcasting Act, 1998  Postal Services Act, 1998  ECT Act, 2002

3. Government’s Priority Outcomes 3 Outcome 6: An efficient, competitive and responsive economic infrastructure network Outcome 12: An efficient, effective and development– oriented public service Outcome 14: A diverse, socially cohesive society with a common national identity Government Priority Outcomes Promote competition and network deployment for universal broadband provision Ensure that the regulatory framework facilitates the use of ICTs as a platform to provide increased access to government services Facilitate the 3-tiers of broadcasting and specifically focus on a regulatory agenda that: Promotes local content Dissemination of information in the public interest Public broadcasting content across all broadcasting platforms

4. Strategic Goals: 2016-2020 4 Promote effective competition 1. Facilitate an effectively competitive ICT sector Promote the digital agenda 1. Create an environment conducive to universal broadband provision and digital broadcasting services 2. Support innovation for the future use of digital technologies Improve Stakeholder and Consumer experience 1. Facilitate an efficient operational environment to reduce regulatory burden 2. Facilitate social cohesion and nation building 3. Protect audiences and consumers from harmful practices

5. Overview of ICASA Services to the Sector ICASA Services to licensees Spectrum Assignment Interconnection / Facilities Leasing Type Approval & Allocation of numbers Issue registration certificates Channel Authorisation Universal service obligations Diversity of local Content Delivery of Quality of Service Speedy resolutions of Complaints Competitive pricing Services to end-users & audiences

6. Services to Licensees (1) BROADCASTING LICENCES IndividualClassLicence Exempt ECNS502491210 ECS50243623 ELECTRONIC COMMUNICATIONS & NETWORK LICENCES ApplicationsProcessed Numbering203, 511, 574 Type Approval22, 256 NUMBERING AND TYPE APPROVAL ApplicationsProcessed Unreserved Postal Services74 POSTAL REGISTRATION CERTIFICATES

7. Services to Licensees (2) SPECTRUM ASSIGNMENTS Authorised Channel Top TV – 129 Channels Deukom – 1 Channel WoW TV – 2 Channels e.TV (e.mobile) – 29 Channels Multichoice – 450 Channels DSTV(Mobile) – 10 Channels Total Number – 621 Channels Band (MHz)80090018002100230026003500 374.924.92338290801570 BROADCAST CHANNELS

8. Services to Licensees (3) WC: 39 FS: 19 GP: 53 MP: 27 NC: 9 NW: 38 LP: 38 KZN: 37 EC: 36 ICASA, MDDA and Sentech work together to support growth in this sector Distribution of community radio stations  All communities have their own voice  Scope for growth  Source of local content

9. Contribution to the National Fiscus

11. Services to end users & audiences (2) Broadband Connectivity for Schools  Targeted licensees to connect 5250 schools: 24 Tablets for students 3 Laptops for Educators 2 Printers 1 Projector 1 Server (content storage)  Achievement: 334 schools connected 860 to be connected by 31 March 2016 WC: 1052 FS: 500 GP: 552 MP: 340 NC: 860 NW: 280 LP: 232 KZN: 768 EC: 500

12. Services to end users (3) Fixed- telephone subscriptions Fixed- broadband subscriptions % ADSL to Voice Mobile voice subscriptions Mobile data subscriptions % Data to Voice Total 4 302 606 1 706 31340% 79 540 205 24 815 99131% 1994 o 2 mobile operators o 1 fixed line provider o Limited access to services o R3.20 per minute (prepaid) 2015 o 4 mobile operators o Over 50 fixed line service providers o Over 90% population coverage o 90% reduction in termination rates o R 1.25 in 2009 to R 0.13 in 2017 o Cost of a call is approximately R0.65 per minute

13. Services to end-users (4) Quality of Service Monitoring - the Authority conducts QoS monitoring to protect consumers from poor services. QoS monitoring was conducted in the following provinces during 2014-2015 as per the below:  The monitoring measured the accessibility and availability of network signals and the quality of services offered by mobile operators. Th e Authority also assisted other state organs such SARS in monitoring the availability of network signals in the border posts as well as USAASA to assess quality of subsidized networks in under-serviced rural areas  An international company called Omnitele was also hired to conduct comprehensive network benchmark monitoring in all 9 provinces. Quarter 1Quarter 2Quarter 3Quarter 4 LimpopoNorthwestNorthern CapeFree State

14. Impact on SoCs: SAPO  SAPO o Exclusive provision of basic mail services o 25 year licence Provision of basic mail services Price Control to protect consumers Compliance with reserved area USO + QoS obligations

17. SAPO - Universal Service Obligations TargetAchievedTargetAchievedTargetAchievedTargetAchieved 2010/112012/132013/142014/15 Points of presence 85Not achieved 50Not achieved 50Not achieved 50Verification was not concluded Street Address roll-out 4,937, 035 Not measured 1,195,690Achieved700, 000Not measured 92%Not verified Service delivery standards 95%Not verified 95%Not verified 95%Not verified 95%Not verified

18. SAPO: Possible Support Measures SAPO Sustainability Price Control Consider Revising SAPO Price Cap Formula Enforcement/ Compliance Enforce SAPO exclusivity USO/QoS Substitute physical infrastructure for mobile units Implement differential geographic delivery standards

19. Impact on SoCs: SENTECH  Designated Signal Distributer o Terrestrial broadcaster for television and radio o Supports local broadcasters  ICASA impact: o More licensees equals more revenue for Sentech  ICASA has licensed over 256 community radio stations to date  ITA for commercial radio station in Northern Cape issued  ITA for Multiplex 3 to be issued before end of Q2  Challenge o High prices for Digital Signal Transmission  Focus Areas / Priorities o DTT migration

20. 20 Impact on SoCs: InfraCo Individual Network Service Licensee No retail licence – wholesale network services provider Over 10,000 km of fibre roll-out InfraCo mandate outlined in terms of: - Section 3(1A) of the ECA - Broadband InfraCo Act, 2007 Outcome of SoE rationalization review is expected to clarify role of InfraCo going forward!!

21. Collaboration with other regulatory authorities 21 Chief Operations Officer (Regulatory Projects Office) o Measures to ensure sustainability of the community broadcasting sector o MoU currently under negotiation o ICASA and FPB have agreed on an MoU (to be signed before end of Sept 2015) on a collaborative framework for regulation of content and related services. o ICASA and NCC signed MoU during June 2015 to establish a collaborative framework for dealing with consumer complaints. o Promote universal service and access especially for broadband services o MoU in place - cooperative framework over competition matters in the sector o Concurrent jurisdiction over consolidation transactions in the sector MDDA FPB NCC Competition Commission USAASA

22. 22 Conclusion An Efficient and Independent Regulator ICASA organisational realignment completed Position the organisation to be efficient and effective to serve consumers and industry Ensure fulfilment of the constitutional mandate Collaboration with all key stakeholders In order for the sector to move forward it is critical that the regulator, policy makers, legislature and industry work together for a the common vision as outlined in the NDP Clear and targeted priorities for the sector The country can only realise the NDP Vision if the sector priorities are relevant, targeted and realistic – DIGITAL MIGRATION, SPECTRUM ASSIGNMENT, INFRASTRUCTURE DEPLOYMENT and TRANSFORMATION

23. Thank You!! 23