Chairperson, Paris Mashile (1 July June 2010)

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1 C h a i r p e r s o n s R e v i e w a n d H i g h l i g h t s o f t h e Ye a r I hereby present to Parliament the Annual Report of the Independent Communications Authority of South Africa (ICASA) for the financial year 1 April 2005 to 31 March Suffice to say that the period under review has been eventful, with gigantic challenges and daunting tasks. This not-withstanding, we at ICASA believe that we rose to the occasion as perusal of the detailed annual report will testify. Despite the setback of losing senior managers in the past year, the Authority has not just managed to keep afloat, but went on to deliver convincingly on its mandate to licence and regulate the communications sector. Chairperson, Paris Mashile (1 July June 2010) Top of the list of achievements, was the eventual licensing of the Second Network Operator (SNO). The introduction of competition and choice in the public switched telecommunications market should augur well for both consumers and the country s economy. On the broadcasting front, ICASA amended SABC licences to reflect the re-organisation of the corporation into public and commercial entities, and licensed 12 Community Radio Stations in the Nodal Points of the government s Integrated Sustainable Rural Development and Urban Renewal Programme. ICASA also invited interested parties to apply for broadcasting licences to provide commercial radio services in Limpopo, North West and Mpumalanga. More choice in content is expected from the licensing of Satellite Broadcasting Services as well. Milestones in the policy development arena include the Community Radio Policy Review, the Numbering Policy Framework, Number Portability and the regulation of Standards. Public comment and input is being received and analysed in areas of Handset Subsidy, Fixed Wireless Access and Mobile Pricing, to mention but a few. At the time of the compilation of this report, a new regulatory framework for the communications sector was being outlined in the form of the Electronic Communications Act and the ICASA Amendment Act. The former provides the basis for a licensing and regulatory environment for converging services and technologies, and the latter for the incorporation of the Postal Regulator from the Department of Communications (DoC) into ICASA and an increase in the number of Councillors from seven to nine. In the new financial year, ICASA will be pre-occupied with implementing the two Acts of parliament, and the creation of a new regulatory environment for the converging communications sector over and above on-going Medium-Term Expenditure Framework (MTEF) regulatory projects initiated in the previous financial years. 2 ICASA Annual Report 2006

2 The two Acts of Parliament bring in their trail cost implications, as well as organisational re-alignment in terms of their implementation. ICASA welcomes this new mandate with open arms, and looks forward to implementing it with renewed vigour and determination. Despite the challenges of implementing the new regulatory environment, ICASA s key focus areas are to: Regulate the communications sector in the public interest; Regulate the communications sector in support of national economic and social goals; Position communications as a sector of choice for both local and international investors; Promote innovation, competition and choice within the communications sector; and Promote universal service and access, as well as affordability of services. I would like to express my greatest appreciation and thanks to: His Excellency the President for taking me into his confidence and trust in appointing me as the skipper of the organisation; The Minister, Deputy Minister and the Director-General of the DoC for their sustained support; and The Portfolio Committee on Communications for its continued oversight role, advice and support. I would also like to pay my gratitude to the broader public and consumers of communication services, as well as industry players and all other stakeholders for their forbearance and understanding. From ICASA s side, I would like to thank my predecessor, Mandla Langa, for anchoring and laying the foundation for this organisation as well as the outgoing Councillors for the legacy they have bequeathed. I am indebted to fellow Councillors, management and staff at ICASA for their sacrifice, endurance and support without them, delivery on the Authority s mandate would not be possible. Finally, I would like to point out that the terms of office of Councillors Bulbulia and Mohlala were extended by 45 days to 14 August 2006, pending the appointment of new Councillors. Paris Mashile Chairperson ICASA Annual Report

3 Chairperson s Review and Highlights of the Year (continued) Highlights of the Year In summary, the Authority has delivered on its mandate with regard to the following licensing and regulatory projects: Community Radio Policy Review; Licensing 12 Community Radio Stations in the Nodal Points of the Integrated Sustainable Rural Development and Urban Renewal Programme; Granting Radio 702 an FM licence; Amendment to the KAYA FM licence; Amendment of the P4 licences, in Cape Town and Durban; Amendment of the Orbicom licence; Publication of Regulation and Invitation to Apply for Subscription Broadcasting Services; Analysis of Commercial Radio Secondary Market Applications; Self Help Regulations; Granting of Special Events Licences; Code of Practice for Telecommunications and Broadcasting sectors; Licensing the Second Network Operator; Amendment to the WBS licence; Approval of several telecommunication operators tariff lodgements; Licensing of Value Added Network Services (VANS); Processing Cell C s Third Generation (3G) application; Licensing Frequency Spectrum Operators; Facilitating the Square Kilometer Array (SKA) bid; Numbering Plan Framework; Mobile Number Portability; Mobile Chart of Accounts and Cost Allocation Manual (COA/CAM); Type Approval; and Regulation on Standards. Mobile Pricing; Telkom Licence amendment process; Swiftnet Licence amendment process; Proposal before the Minister to amend Broadcasting Ownership and Control regulations; Invitation to Apply on Community Television; and Broadcasting licence renewals. Meanwhile, the Authority has invited public comments on: GHz for Broadband Fixed Wireless Access; Broadcasting and non-broadcasting operators; Asymmetric Digital Subscriber Line (ADSL) Satellite Licensing Framework; Possible Sharing of the 800 MHz Frequency Spectrum between broadcasting and non-broadcasting operators; ADSL Draft Regulations; Draft Regulations and Guidelines on Interconnection and Facilities Leasing; Handset Subsidy Enquiry; and Mobile Pricing Enquiry. The Authority is currently processing the following regulatory projects: Under-Serviced Area Licences (USALs) for Phase 3; Secondary Markets Broadcasting Applications; Invitation to Apply on Community Sound Broadcasting; Invitation to Apply on Subscription Broadcasting; Interconnection and Facilities Leasing Guidelines; Handset Subsidy Regulations; 4 ICASA Annual Report 2006

4 A c t i n g C h i e f E x e c u t i v e O ff i c e r s O v e r v i e w I hereby present the Independent Communications Authority of South Africa s 2006 Annual Report. The past financial year has indeed been challenging to the Authority with numerous staff resignations and resultant vacancies, cautionary suspensions of some staff members, as well as our internal processes being scrutinised in the public domain. Financial Performance Acting Chief Executive Officer, Bruce Jooste 1 July 2006 present The Auditor-General s audit qualification highlights the shortcomings which occurred in the management of the Authority s finances during the period under review. Whilst Council took corrective action during the latter part of 2005, the knock-on effect on financial commitments manifested itself towards the end of the financial year. The Authority has, however, instituted legal action in certain matters relating to contracts that have been entered into irregularly. These matters have already been identified and provided for in the annual financial statements. The delay in redrafting and implementation of policies and procedures, especially in the procurement process, also contributed to the poor control environment. Human Capital Acting Chief Executive Officer, Eric Nhlapo November 2005 June 2006 (Resigned) The Authority implemented a new salary structure in the past financial year for employees up to management level, with the intention that a similar exercise would be undertaken for senior management as part of the organisational transformation process. However, this exercise has not been completed due to problems identified in the initial process. A new job evaluation exercise is therefore currently under way, covering all levels of employees in the organisation, including the Postal Regulator staff members joining the Authority as a result of the promulgation of the Independent Communications Authority of South Africa Amendment Act 3 of 2006 and the Electronic Communications Act 36 of 2005 on 19 July The implementation of a performance management system was also delayed. Strategic Overview Chief Executive Officer, Jackie Manche The current changes to the legislative environment, accompanied by new roles and responsibilities, resulted in ICASA changing its ICASA Annual Report

5 Acting Chief Executive Officer s Overview (continued) strategic formulation during the year 2004/2005 to being a functionally effective, continually relevant and credible regulator of the South African Communications sector as well as developing the following three drivers of value, viz: In-depth understanding and effective regulation of the communications sector; Functional effectiveness; and World-class execution of all its functions. To this end, the Executive Management and the staff of ICASA will ensure that the above value drivers are the cornerstones of the Authority s interaction with all stakeholders. Corporate Governance Council is acutely aware and sensitised to ensuring that corporate governance values are being upheld at the Authority. Regular meetings are therefore held at Executive Management, Committee and Council level. Meeting decisions are recorded and effected by way of resolutions. An internal audit function has also been fully operational and effective as highlighted by the numerous internal audit reports and ad hoc investigations that were undertaken during the year under review. An external fraud-hotline has been operational since June 2006 and is being managed by an external service provider, Whistle Blowers (Pty) Ltd. Current Objectives In addition to ensuring compliance with the new legislative imperatives, the following operational initiatives are currently under way: Concluding the successful incorporation of Postal Regulator staff into ICASA; Improved systems to ensure the efficient management of ICASA s finances; Finalising and implementing the revised job grading evaluation exercise; Recruitment of staff to fill all the vacancies and new positions identified; Review of existing policies; Implementation of both existing and new policies and procedures; Implementing a performance management system; and Improved roll-out of the Fraud Prevention Plan. Appreciation I would like to express my sincere appreciation to the staff of ICASA who, despite all the challenges surrounding the Authority during the past year, have shown their mettle in performing and still achieving delivery on the Authority s mandate. Their commitment and participation in tackling the challenges facing the Authority bode well for the future. I also wish to thank the ICASA Chairperson and Council for their continued support to the Executive Management in addressing the immediate challenges facing the Authority. In addition, my gratitude goes to the Minister, Deputy Minister, Director-General as well as staff in the DoC and the National Treasury. Bruce Jooste Acting Chief Executive Officer 6 ICASA Annual Report 2006

6 C o u n c i l M e m b e r s Chairperson, Paris Mashile (1 July June 2010) Nadia Bulbulia (1 July June 2006) Tracy Cohen (1 July June 2008) Mamodupi Mohlala (1 July June 2006) Zolisa Masiza (1 July June 2008) Lumko Mtimde (1 June June 2006) Mthobeli Zokwe (1 July June 2009) ICASA Annual Report

7 Te l e c o m m u n i c a t i o n s The Telecommunications Division consists of two departments, namely: Policy Analysis and Development, as well as Licensing, Enforcement and Numbering Administration. The responsibility of this division, inter alia, is to: review the inter-corporate activities of the telecommunications service licensees and their regulatory accounting practices; assess the rates, terms and conditions of licensed telecommunications services; oversee the evolution of competition within the regulated telecommunication services; issue licences to telecommunication service providers and monitor and ensure compliance with the Telecommunications Act, Regulations and licence conditions by telecommunications service providers. Rule Making Policy Analysis and Development The Policy Analysis and Development Department is responsible for all regulatory policy initiatives undertaken by the Telecommunications Division of ICASA. During the year under review this department was primarily responsible for reviewing and updating the following: Chart of Accounts and Cost Allocation Manual (COA/CAM) for Mobile Communications Services licensees; Interconnection Guidelines; Facilities Leasing Guidelines; Review of Fees and Charges for Public Switched Telecommunication Services (PSTSs) (Rate Regime); Number Portability Regulations; Telecommunications Tariffs; Universal Service Fund and Licence fees; and Interconnection Agreements. COA/CAM for Mobile Operators Volume 2 Chairperson Mashile addresses the Closing of the Numbering Plan press conference The Authority undertook a review of COA/CAM for mobile operators, as promulgated by the Minister in July COA/CAM is a reporting framework by telecommunications operators that provides the underlying costs of providing a particular service, such as a local or national long-distance call. Such costs can then be compared to the charges for the service levied by the operator and a determination made as to the reasonableness of the charges, taking into account the relevant costs. In this way, the Authority ensures that customers are not overcharged for services. In March 2005, the Authority started the process of engaging the mobile operators to comply with COA/CAM Volume 2 regulations. The reporting requirements on COA/CAM Volume 2 are currently only applicable to MTN and Vodacom. Cell C, as a late entrant, has been granted an extension of two years for submitting its COA/CAM. Consultation with Cell C will resume in September 2006 as the two year waiver comes to an end at that time. Mobile operators (MTN and Vodacom) have submitted draft versions of their procedures manual which the Authority has approved. MTN and Vodacom are expected to file with the Authority Current Cost Accounting (CCA) Audited Regulatory Financial Statements in September (COA/CAM) for Public Switched Telecommunication Service (PSTS) Operators Volume 3 COA/CAM for PSTS operators was finalised in July 2002, and Telkom submitted its first set of audited Regulatory financial statements in September The said financial statements were prepared on the historic cost basis. In terms of the existing regulations, Telkom is expected to submit to the Authority, six months after its financial year end, the audited Regulatory financial statements which are prepared on the Current Cost Accounting (CCA) and the Long Run Incremental Cost (LRIC) methodologies. Telkom is therefore expected to submit LRIC regulatory financial statements by 30 September With the application of COA/CAM regulations, ICASA will be equipped to determine the following: Ensure that operators do not exploit market power to earn excess monopoly profits; Ensure that operators do not engage in predatory pricing; Ensure that operators do not engage in anti-competitive crosssubsidisation; Ensure that operators do not price on an unduly discriminatory basis; Ensure that prices are cost orientated and sufficiently unbundled; Protect consumers by monitoring and approving tariffs and pricing regimes; and Monitor the financial status of operators. 8 ICASA Annual Report 2006

8 Fees and Charges for PSTS Services ( Rate Regime ) The Fees and Charges Regulations 1 provide the basis for the level of charges and fees; including monthly rental; local, national, long-distance and international call charges for services offered by Telkom. The Rate Regime Regulations allow for restrictions on price adjustment proposals by Telkom 2 and are necessary to ensure that consumers are not unduly burdened in markets where there is minimal or no competition. Rate Regime utilises a price cap methodology, were the overall increase in a basket of services is restricted to inflation minus a productivity factor set at 3.5% for the period The maximum single price movement allowed for any item in the basket is CPI + 5%. The Rate Regime Regulation is effective for a period of three years. The first review commenced in September 2005 and the next review will commence in September The current regulations have set the level of tariffs in respect of services offered by Telkom at an efficiency factor of 3.5% over a period of three years. Telkom will file its annual tariffs 30 business days before 1 August each year. The Number Portability Regulations require the introduction of mobile number portability by July At the request of mobile network operators, the implementation date for mobile number portability has been extended to 18 September The licensing of the SNO to provide PSTS services has necessitated the commencement of the Fixed Line Block-Number Portability regulation-making process. The Authority published the draft functional specifications for PSTS in March 2006 to ensure implementation of fixed line number portability. Mobile Pricing Number Portability Mobile Pricing hearings chaired by Councillor Cohen Vodacom making a presentation during the Number Portability hearings Number Portability affords telecommunications users the right to choose operators and to change location without losing their number. Ultimately this leads to the operator satisfying the telecommunications user s needs and an improved provision of cost effective services to the public by providers of telecommunications services. The Number Portability Regulation and Mobile Functional Specification Regulation have been finalised through the regulationmaking process and were promulgated by the Minister in September The Authority is currently finalising the Mobile Order System Specification and Consumer Code of Practice in consultation with the Mobile Cellular Telecommunications Services (MCTS) licensees. 1. Government Gazette 22870, Notice 1248, of 26 November 2001 (Rate Regime Regulations) 2. The methodology used to restrict the increases is the price cap mechanism where the overall increase in a basket of services is restricted to inflation minus a productivity factor set at 3.5 % for the period The maximum single price movement allowed for any item in the basket is CPI + 5%. In July 2005, the Authority published a Discussion Document in respect of the appropriateness of prices generally levied by Mobile Cellular Telecommunications Service Providers on consumers. The objective of the Discussion Document was amongst others to assess whether Mobile Cellular Telecommunications Services prices are excessive and whether there is a need for ICASA to intervene. A Findings and Conclusions Document will be published by the end of September Enquiry into Handset Subsidies In May 2005, the Authority published a Discussion Document on handset subsidies and the effect they have in the growth of the mobile market. The basis of the Discussion Document was to establish if handset subsidies were a potential barrier to consumers changing mobile operators. The Authority published the Findings and Conclusions Document in March 2006, the outcome of which was to develop draft regulations. Interconnection and Facilities Leasing Guidelines The Authority undertook a process of consolidating the Interconnection and Facilities Leasing Guidelines. Consolidated guidelines were published for comment and hearings were held in March Due to the awaited proclamation of the Electronic Communications Act, these projects need to have a market study ICASA Annual Report

9 Telecommunications (continued) completed before regulations may be formulated. During the year under review, the following interconnection agreements were filed and approved: MTN and Vodacom Interconnection Amendment Agreement No. 4 On 6 March 2006, MTN lodged Amendment No. 4 with the Authority in terms of section 43(2) of the Telecommunications Act (Act 103 of 1996) as amended. Amendment No. 4 deals with two issues, namely an insertion of Video Telephony Call in the definition section of the agreement and an interconnection rate for Video Telephony Calls. Video Telephony Calls constitute a new service. Interconnection rates will be applicable as of 1 May 2006 or any date that the parties to the agreement may agree to. Broad Based Black Economic Empowerment (BBBEE) Analysis of Telkom, Vodacom and MTN ICASA is analysing the contribution of Telkom, Vodacom and MTN to black economic empowerment. The aim is to assess their compliance with the applicable BBBEE legislation. Market Intelligence and Market Study ICASA intends to conduct market intelligence and market studies by gathering information on the telecommunications industry. The study will inform regulatory intervention in order to determine the Significant Market Power (SMP) status and subsequently impose applicable conditions. Tariff Evaluations Tariff Filing for Fixed and Mobile Operators Nature of Filing Operator Filing and Approval *Annual Tariff Filing Telkom Cell C MTN Vodacom Filing Date Approval Date Vol. 1: No Jul Aug 2005 Vol. 2: No Jul Aug 2005 Vol. 1: No Sep Oct 2005 Vol. 1: No Dec Jan 2006 Vol. 2: No Mar Apr 2005 GPRS Data & SMS Services Tariff Plan Version Jul Jul 2005 Data Messenger 17 Jul Jul 2005 Data Messenger and Yebo 5 Tariff Plan Amendment 03 Aug Aug 2005 Corporate Direct 04 Aug Aug 2005 Vodacom Annual Tariff Plan 01 Sep Sep 2005 New Tariff Plans: 3G Two, 3G Three, 3G Five and 3G Ten 13 Sep Sep G One and GPRS Bolt-on Tariff Plan Amendment 13 Sep Sep 2005 Top-up Bundle 05 Oct Oct 2005 Amendment to SMS out of Bundle Rates 05 Oct Oct 2005 Corporate Oct Oct 2005 Amendment of GPRS Bolt-on 04 Oct Oct 2005 International Call Zoning Schedule for Prepaid and Top-up Packages 17 Oct Oct 2005 Introduction of International Terminating MMS Tariff 17 Oct Oct 2005 On-net Video Call Tariffs 17 Oct Oct 2005 Introduction of Happy-Hours to 3G 300 MB 17 Oct Oct 2005 Data-Roaming-Vodafone Live: Mobile TV Tariff Plan 24 Nov Dec 2005 Off-Net Video Calls Tariff 17 Mar Mar ICASA Annual Report 2006

10 Tariff Filing for Fixed and Mobile Operators Nature of Filing Operator Filing and Approval *Annual Tariff Filing Telkom Cell C MTN Vodacom Filing Date Approval Date 3G HSDPA Bolt-on and Combi 28 Mar Apr 2006 Youth Pack Wow Wow Prepaid Tariff Plan 04-Aug Aug 2005 MTN Annual Tariff Plans 13 Sep Sep 2005 MTN Tariff Video Calling between MTN and Vodacom 27 Sep Oct 2005 New Plans: My Choice 150 Top-up, My Choice 300 Top-up and ProData Tariff Plan 19 Dec Jan 2006 Cell C Amendment to Post-paid and Prepaid Plans 28 Feb Mar 2006 Tariff Filing for Under-Serviced Area Licences (USALs) and Data Telecommunications Licensees Nature of Filing Filing Date Approval Date Karabotel Prepaid Tariff Plan 02 May May 2005 Ilizwi Prepaid and Post Paid Tariff Plan 01 Jun Jun 2005 Kingdom Communications Prepaid Tariff Plan 22 Jun Jun 2005 Thinta Thinta Telecoms Prepaid Tariff Plan 04 Jul Jul 2005 Swiftnet Tariff Plan 31 Aug Sep 2005 Btel Walk the Talk Per Second Billing Prepaid Tariff Plans 27 Sep Oct 2005 Amatole New National Roaming Rate 21 Oct Oct 2005 WBS Igo and O-Go Exec 27 Oct Nov 2005 Kingdom Communications Prepaid Tariff Plans 20 Feb Feb 2006 Licensing, Enforcement and Numbering Administration The primary function of the Licensing, Enforcement and Numbering Administration (LENA) Department is to analyse and process applications for telecommunications service licences; monitor compliance of licensees and non-licensees against applicable regulations, legislation and their respective telecommunications service licence conditions, namely payment of licence fees and delivery on universal service obligations and administer the numbering plan to ensure fair and efficient use of telecommunications numbers for present and future generations. During the period under review, ICASA managed a number of licensing, enforcement and numbering administration activities. (See Appendix A) Highlights included the following: Second National Operator (SNO) The Telecommunications Act makes provision for the granting and issuing of a licence to the SNO to provide PSTS. The Minister of Communications granted the SNO a PSTS licence in September The integration of the SNO entity was, however completed in August 2005, comprising of Communitel, Two Consortiums, Eskom Enterprises, Transtel, Nexus Connection and TATA Communications. It was only in August 2005 that ICASA was required to proceed with the issuing of the PSTS licence to the SNO. The terms and conditions of the SNO licence were negotiated between ICASA and the SNO. On 9 December 2005, the SNO was issued with a PSTS licence. The SNO continues to interact with the Authority on, amongst others, issues relating to the Frequency Spectrum Bands and application for numbering. The SNO has also been in consultation with ICASA with regard to the commencement date of its operations. ICASA Annual Report

11 Telecommunications (continued) It is the aim of the government of South Africa to improve the lives of people living in under-serviced areas by enhancing their access to telecommunications services and creating job opportunities in these areas. This objective was enacted in section 40A of the Telecommunications Amendment Act of This section provided for a new category of telecommunications licence called Under- Serviced Area Licences (USALs). Second National Operator Licence hand over Telkom Licence Amendments The Authority embarked on a licence amendment process in terms of the Telecommunications Act, in relation to the PSTS licence held by Telkom. Telkom also applied for access to the 1800 MHz Frequency Spectrum Bands. It is envisaged that these amendment processes will be undertaken simultaneously. Value Added Network Services (VANS) In September 2004, the Minister of Communications promulgated Ministerial Determinations that changed the regulatory framework for VANS licensees. In line therewith, ICASA proposed a new regulatory framework for VANS and conducted public hearings in this regard. As a result of the Ministerial Determination, VANS are able to provide voice services, interconnect with other telecommunications services licensees, assign or sub-let telecommunications facilities and they also have a choice regarding whom they may obtain such facilities from. The Authority has, to date, issued 331 VANS licences. Private Telecommunications Network (PTN) The authority has, to date, issued 41 PTN licences. Under-Serviced Area Licences (USALs) The Minister of Communications declared 27 areas as underserviced in a government gazette published on 18 December These are areas defined in the legislation as having teledensities of less than 5%. The licences are aimed at providing services in accordance with the provisions of the Telecommunications Act which requires that the USAL shall provide telecommunications services, including Voice over Internet Protocol (VoIP), fixed mobile services, public pay telephones and long distance calls to be transported through the trunk networks of any operators licensed to carry international traffic. Councillors Mohlala and Zokwe during a USAL hearing In the first phase of licensing, the following seven entities were awarded licences to service these under-serviced areas: 1. Bokone Telecomms (Pty) Ltd Capricorn District Limpopo Province; 2. Kingdom Communications (Pty) Ltd Zululand District KwaZulu-Natal Province; 3. Thinta Thinta Telecommunications (Pty) Ltd Ugu District KwaZulu-Natal Province; 4. Ilizwi Telecommunications (Pty) Ltd- OR Tambo District Eastern Cape Province; 5. Karabotel (Pty) Ltd Central District Northwest Province; 6. Bokamoso Consortium (Pty) Ltd Lejweleputswa District Free State Province; and 7. Amatole Telecommunications (Pty) Ltd Amatole District Eastern Cape. In the second phase, the Minister of Communications published an Invitation to Apply (ITA), in January The ITA listed 14 districts where applications were invited. In April 2005 the Authority USALs Applications Submissions 12 ICASA Annual Report 2006

12 received a total of 42 applications, and public hearings were conducted in the 14 areas. These hearings were conducted until the end of March In February 2006, the Minister published another ITA for the third phase of the USAL licensing process as per the determinations made in The closing date for submissions of applications was 28 April New Numbering Plan In terms of section 89 of the Telecommunications Act, the Authority developed a Numbering Plan Regulation which was promulgated by the Minister on 15 May The draft Numbering Plan was revised in order to reflect both the existing and future South African Numbering Framework. A further consideration was the licensing of the SNO, USALs, and VANS for providing VoIP. The Authority also noted the need for number relief mechanisms, and therefore the Numbering Plan will be geared to meet these numbering requirements. Chairperson Mashile during the Numbering Plan press conference The key benefits of the Numbering Plan are that it is neutral, non discriminatory and clearly structured. It assists in identifying various number ranges for specific telecommunication services. The benefit of the implementation of this Numbering Plan is that the Authority will be able to reserve the number ranges not in use for future growth and thereby accommodate new service demands. A proper allocation and numbering procedure, commonly referred to as the Numbering Convention is included to allow for the efficient use of numbers and the effective management of numbering capacity for the South African telecommunications industry. Allow and enable the telecommunications industry to interact with ICASA on number related matters more effectively; Create a transparent numbering environment by publishing it on the ICASA website; and Produce Number Allocation certificates and Number Withdrawal certificates. Access to the 1800 MHz/3G Frequency Spectrum Bands by the Mobile Cellular Telecommunication Service (MCTS) Licensees In terms of sections 30A and 30B of the Telecommunications Act, the Authority is authorised to issue radio Frequency Spectrum licences to MCTS licensees in the 1800 MHz and 3G Frequency Spectrum bands, subject to the fulfilment of certain procedures, fees and conditions in terms thereof. The Authority issued radio Frequency Spectrum licences in the 1800 MHz Frequency Spectrum band to Vodacom and MTN subject to them providing Subscriber Identity Module (SIM) Card Connection Packages and sets of Terminal Equipment. Both licence conditions are to be satisfied according to an implementation time-table approved by the Authority. Vodacom and MTN also made applications for access to the 3G Frequency Spectrum bands. ICASA issued the two operators with 3G licences, subject to the condition that they each provide: Internet access to public schools; Internet access to 140 institutions for people with disabilities; and Terminal equipment to institutions for people with disabilities. The Authority is currently considering an application by Cell C for access to the 3G Frequency Spectrum band. Collection of the Universal Service Fund (USF) Central Number Database (CNDB) The Authority has installed a CNDB. This database houses all the numbering data applicable to the South African telecommunications industry. The objectives of the database are to: Manage and administer the numbering spectrum; MTN making a Presentation to ICASA ICASA Annual Report

13 Telecommunications (continued) The Telecommunications Act requires all licensees to pay an annual contribution of 0.2% of their annual turnover to the USF. Enforcement The Enforcement Department is responsible for enforcing telecommunications licence conditions. S v CAPETEL This matter emanated from Cape Town as a result of the alleged provision of illegal telecommunication services by Capetel. A case had been opened with the South African Police Services (SAPS) and the matter was subsequently set down for trial wherein the defence requested to make representations to the Director of Public Prosecutions (DPP), outlining reasons why charges should be withdrawn against Capetel. A decision on whether or not to prosecute is being awaited from the DPP. S v Avion This matter was lodged with the Bloemfontein SAPS after allegations of illegal provision of telecommunication services by Avion. Avion has since closed its operations after becoming aware of the investigations. S v T-SOL This matter was lodged with the Durban Central Police Station pursuant to information of alleged illegal provision of telecommunication services by T-SOL. After the investigations had ensued, the equipment used for providing illegal telecommunication services was seized in terms of the Telecommunications Act. The police have referred the docket to the Public Prosecutor for a decision as to whether or not to prosecute. Internet Solutions v Telkom Internet Solutions lodged a complaint against Telkom about a refusal to enter into interconnection negotiations. Prior to the adjudication of the complaint, the parties reached an agreement on the matter without the Authority having to intercede. 14 ICASA Annual Report 2006

14 B r o a d c a s t i n g The Broadcasting Division is responsible for developing policy and regulations, issuing licences, and monitoring the activities of all Broadcasters. The role of the Broadcasting Division is to provide advice and support to ICASA in its legislative function and role as the Regulator of the communications sector. The Broadcasting Division licenses broadcasting services and broadcasting signal distributors; monitors compliance with licence conditions; develops standards for the content of programmes; determines limitations on advertisments; and encourages programming diversity by Public, Commercial and Community Broadcasters. The daily activities of the Division are also influenced by the desire to promote language diversity at national and regional level in broadcasting, to set appropriate local content quotas, keep broadcasting rules up to date in the face of technological change and to promote BBBEE - in terms of ownership and control in the Broadcasting Industry. The Broadcasting Division ensures levelling the playing fields where rules are applied equally to all industry players. This is done against the background of the framework set by international and regional bodies to which the Authority is affiliated. There is also awareness that in order to ensure sustainable development and empowerment there is a need to harmonise regulations with other broader national government initiatives. Policy Development and Research Department The Policy Development and Research Department (PDRD) consists of two Units, namely, Policy Development and Projects. The responsibility of the Policy Development Unit is to conceptualise and research policies for the regulation of the Broadcasting Industry. As the process of developing policies includes public participation and consultation as one of its key features and elements, the Policy Development Unit is responsible for compiling discussion papers based upon the research conducted, which through the Projects Unit, are put into the public domain for comment and discussion. Once consultations have closed and comments are collated, the Projects Unit consolidates all information received and makes policy recommendations to Council. Once approved by Council, these policy recommendations are compiled, by the Projects Unit, into a Position Paper. The Projects Unit is also responsible for drafting broadcasting regulations. In the year under review PDRD was engaged in the following policy development and regulatory projects: Enquiry into Commercial Subscription Broadcasting Services The Position Paper on the regulation of Commercial Subscription Broadcasting Services was published in June The Authority Councillors Masiza and Cohen during the launch of the Subscription Position Paper believes that the regulation of Commercial Subscription Broadcasting Services and the introduction of more Commercial Subscription Broadcasting Services will result in a marked increase in investment opportunities in the broadcasting industry. The ITA for Commercial Subscription Broadcasting licences, and the Commercial Subscription Broadcasting Services Regulations were published in January The deadline for the submission of applications was July The Authority hopes to finalise the licensing process by the end of March Review of Community Sound Broadcasting Policy The Discussion Paper on the Review of Community Sound Broadcasting Policy was published in September The primary objective of the enquiry was to solicit public participation and input in reviewing the regulatory framework for Community Sound Broadcasting in South Africa, and to generate discussion on the appropriate policy and licensing framework for existing and new Community Sound Broadcasting services. The review was also aimed at growing and sustaining the Community Sound Broadcasting sector. The Authority invited interested parties, stakeholders, and the public to respond to the issues and questions raised in the Discussion Paper. The Authority received eleven submissions. Oral hearings were held in February Review of Self-Help Stations Policy The Position Paper on the Review of Self-Help Stations Policy was published in February The Position Paper sets a new policy and licensing framework on the regulation of Self-Help Stations in South Africa. Digital Migration/ Transition Strategy PDRD participated in initiatives to draft and support the DoC strategy for the transition process from analogue broadcasting to digital broadcasting in South Africa. In addition, the Authority has participated in the International Telecommunication Union (ITU) ICASA Annual Report

15 Broadcasting (continued) processes to develop a digital plan for Europe and Africa. Trips were undertaken to the UK, Senegal, Switzerland, and Belgium. The aim is to ensure access to both analogue and digital broadcasting services during the period of transition. of representatives from the music and recording industries, ICASA, the Department of Arts and Culture (DAC), the South African Music Rights Organisation (SAMRO), the South African Recording Rights Association Limited (SARRAL), the Musicians Union of South Africa (MUSA), the Recording Industry of South Africa (RISA) and other organisations. SAMICI is responsible for organising the annual Moshito Music Conference and Exhibition. Licensing, Monitoring and Complaints Department Public audience at the SABC hearings World Cup 2010 South Africa won the right to host the FIFA 2010 TM Soccer World Cup. The government of the Republic of South Africa has signed guarantees to FIFA to ensure the success of the tournament. The DoC pledged and signed Government Guarantees in terms of Telecommunications, Information Technology, the International Broadcast Centre (the IBC), and Media. Coverage for the World Cup is said to comprise 70% telecommunications and 30% broadcasting. This means that a substantial amount of energy and resources will have to be put in place to successfully deliver on this guarantee. PDRD represents the Authority in the DoC-led committee that is tasked with preparing for South Africa The Authority has to look at, amongst others, the guarantee issued, satellite news gathering services (SNGs), restrictions on the import and use of transportable earth stations, the impact of the Authority s Sports Broadcasting Rights Regulations, usage of high definition television (HDTV), and all issues pertaining to the IBC and the Media Centre. The Licensing, Monitoring and Complaints Department (LMCD) consists of two Units, namely, the Licensing Unit and the Monitoring and Complaints Unit. The Licensing Unit is responsible for processing applications for Signal Distribution and Broadcasting licences for Sound and Television Broadcasting Services. This also includes applications for amendments and renewal of licence conditions. The Monitoring and Complaints Unit is essentially responsible for protecting the public interest by ensuring that licensed broadcasters and signal distributors comply with their licence conditions. This includes control, ownership, programme content and funding. The unit, together with the Authority s Engineering Division, also ensures that broadcasters use the assigned frequencies and comply with the technical standards stipulated in their licence conditions. The Monitoring and Complaints Unit is also responsible for receiving complaints from the public and may initiate complaints for adjudication by the Broadcasting Monitoring and Complaints Committee (BMCC). The BMCC is a standing committee, established under sections 21 and 22 of the Independent Broadcasting Authority (IBA) Act. In preperation for coverage of the 2010 World Cup ICASA s team has so far taken tours to Germany and the Netherlands. The team also attended the South African Business and Investors Congress in the run-up to the 2006 World Cup in Moggengladbach, Düsseldorf, Germany in September Development of South African Music PDRD continues to play a role in the development and promotion of South African music. The Authority is a member of the South African Music Industry Cooperative Initiative (SAMICI). SAMICI is made up ICASA Panel during the SABC hearings 16 ICASA Annual Report 2006

16 Licensing Unit In the year to date the licensing unit completed the following projects. (See Appendix B for a list of licences granted): Public Broadcasting Services SABC amendment process In March 2004 the SABC applied to the Authority for an amendment to its licence conditions. The purpose of the application was to enable the SABC to reflect the reorganisation as required in terms of the Broadcasting Act. The Broadcasting Act, as amended, requires the SABC to reorganise itself into a Public Service Division and a Commercial Service Division. The Authority published the applications and invited the public to submit representations in respect of the amendment. The Authority received 11 representations. The representations were received from, among others, e.tv, Primedia Broadcasting Limited, the Media Monitoring Project, the Media Institute of Southern Africa, Academy Movies, Y-FM, Kagiso Media, the Mafikeng Community Radio Initiative, Ingram Radio Sport Network and the Freedom of Expression Institute. The Authority also received the SABC s response to the representations in July The public hearings in respect of the application and representations were held in September and October The draft licence conditions were published for comment in February The final amended licence conditions were issued in June With these new licence conditions, the Authority brought the SABC in line with all other broadcasters by providing them with detailed conditions, that address the mandate of all the SABC stations, be it public or commercial. The SABC s amended licence conditions came into effect on 23 March The Monitoring and Complaints Unit is tasked with monitoring of the SABC s compliance with the new licence conditions. This Unit will publish an annual report on the SABC s compliance with the new licence conditions. SABC Regional Television Application The Broadcasting Act provides that the SABC must, in compliance with its mandate, apply to the Authority within nine months of the commencement of the Broadcasting Amendment Act, to licence it to provide additional television services which are broadcast regionally. In November 2003 the Authority released the Position Paper on Regional Television. The policy framework outlined in the Position Paper paved the way for the licensing of Public Regional Television services. The Position Paper further stated that the regional television services would promote the use of marginalised languages. Programming in English would be prohibited in these services. SABC Board member Christine Qunta accepts SABC Licences from ex-icasa Chairperson Mandla Langa Pursuant to the Broadcasting Act and the Position Paper on Regional Television, the SABC submitted its application for two regional television channels namely SABC 4 and SABC 5 in December The Authority published the applications for comments in January The Authority received representations from e.tv and Sentech. The SABC was given an opportunity to respond to the representations. The Authority conducted hearings in the Limpopo Province and the Western Cape during October Regional Television Licences for SABC 4 and 5 were granted but not issued to the SABC in June 2005 on condition that the SABC furnishes the Authority with sufficient proof of funding. SABC Amendments The Authority received four amendment applications for Lotus FM, Lesedi FM, SABC 3 and SABC Self-help stations. Lotus FM The Authority granted SABC an amendment application to increase the Lotus FM coverage area to include the greater Port Elizabeth area, Eastern Cape Province. In this respect the Authority approved the proposal by the SABC that a spare PBS frequency 98.3 MHz be drawn from Suurberg and be allocated to Port Elizabeth. SABC further proposed that should 98.3 MHz spare PBS frequency be granted, it could in turn be replaced with MHz as a spare frequency in Suurberg. The ultimate objective of the amendment was to enable Lotus FM to broadcast to the largest part of the Indian community in Port Elizabeth. Lesedi FM The Authority granted SABC an amendment application to increase the Lesedi FM coverage area in the greater Durban area, KwaZulu- Natal Province. In this respect, the Authority approved the proposal by SABC to use a spare PBS frequency MHz as listed in the 2004 draft ICASA Terrestrial Broadcasting Frequency Plan. The ICASA Annual Report

17 Broadcasting (continued) SABC submitted that a large Sesotho speaking community resides within the greater Durban community and that the use of frequency MHz would increase listenership of the station by Sesotho speaking people. SABC 3 The Authority approved an amendment application from the SABC to expand SABC 3 s coverage in the area of Bethlehem and Ulundi and to upgrade the power of its Nelspruit transmitter. With respect to Bethlehem and Ulundi, the Authority approved the following additional frequencies for SABC 3: MHz with an Effective Radiated Power (ERP) of 100 kw at Bethlehem and MHz with an ERP of 50 kw at Ulundi. The Authority further approved the increase of ERP for SABC 3 in Nelspruit on the existing frequency, MHz from 15 kw to kw. The SABC submitted that the proposed amendment was primarily aimed at the expansion of SABC 3 s coverage in order to make its service available to emerging audiences in Bethlehem, Ulundi and Nelspruit areas, which according to the SABC did not have access to SABC 3. SABC Self-help Stations The Authority approved the establishment of 37 new television Self-help Stations in order to achieve its mandate for universal service with respect to SABC 1, SABC 2 and SABC 3 in Herschel, Mount Fletcher, Maclear, Niekerkshoop, Leliefontein, Cookhouse, De Rust, Graafwater, Kuruman, Paulshoek, Petrusville, Slang Rivier, Steinkopf, Victoria West and Wemmershoek. Broadcasting stakeholders at a public hearing Commercial Broadcasting Services M-Net amendment process The Authority indicated, when renewing M-Net s licence in June 2002, that it had identified certain aspects of M-Net s licence conditions that might warrant amendment in terms of the IBA Act. Accordingly, the Authority stated, in its reasons to renew M-Net s licence, that it proposed to initiate the necessary proceedings for that purpose. The proposed amendments included, among others, deleting all reference to the open window therefore requiring M-Net to provide a purely encoded service available to its subscribers only. The purpose of the amendment was to ensure fair competition between licensees and compliance with such terms, conditions and obligations, as the Authority may generally impose on all licences issued in this category. In June 2004 ICASA gave notice of its intention to effect various amendments to M-Net s licence in terms of the IBA Act, and called on interested parties to make written submissions on the proposed amendments. The Authority received representations from a number of interested parties. Hearings were held in January 2005 and again in April Taking into account the written and oral representations made in June 2004 and March 2005, ICASA decided that M-Net s open window would be terminated with effect from 1 April Commercial Sound Broadcasting licences in Secondary Markets The Authority is required, in terms of the IBA Act, to promote investment in the South African broadcasting industry. In 1996/7, the first phase of privatisation and issuing of new commercial licences saw licences being issued in the Gauteng, Free State, KwaZulu-Natal, Western Cape and Eastern Cape Provinces. The Authority decided, after a review of commercial broadcasting in 2003/4, that through regulated consolidation and the granting of additional Commercial Sound Broadcasting Licences, there would be a marked increase in investment opportunities in the broadcasting industry. In line with its commitment to boost investment opportunities within the broadcasting industry, the Authority published the ITA for commercial sound broadcasting services in the secondary market in April 2005 for the Northern Cape, Mpumalanga, North West and Limpopo Provinces. The deadline for submission was set at 30 September The Authority received 11 applications for the licence in respect of the ITA. It is anticipated that hearings and decisions will be finalised by November Amendments Subject to approval by the Authority, licence conditions may be amended at the request of broadcasters in terms of the IBA Act. The following amendment applications were granted during the year under review: 18 ICASA Annual Report 2006

18 Midi TV (Pty) Ltd In July 2005 the Authority granted the application by Midi TV to establish 40 Self-help Stations in order to increase access to the signal of e.tv. Radio Oranje (Pty) Ltd In October 2005 the Authority received an amendment application for the name change of Radio Oranje (Pty) Ltd to Seyalemoya Communications (Pty) Ltd and the shareholding amendment of Radio Oranje. Both applications were approved by the Authority in January had to apply for prior written approval in terms of clause 4 of its Signal Distribution Licence Conditions. The Authority granted the prior written approval. Community Broadcasting Services Community Sound Broadcasting licences in Nodal Point areas In November 2004, the Authority issued an ITA for four-year community sound broadcasting licences in the Nodal Point Areas in terms of the IBA Act. The ITA set out the material aspects of the application process, including the closing dates for the submission of applications, the provincial frequency plans and the application form. The ITA was published in November The invitation for applications in the Nodal points was in line with the urban renewal strategy and integrated sustainable rural development strategy of the South African government. The deadline for submission was set at 1 June 2005 for urban applications and 30 October 2005 for rural applications. Four applications were received for stations in urban areas and 15 applications for stations in rural areas. The hearings were held in March and April Channel 65 panel chaired by Chairperson Mashile Prior Approvals Applications for prior approval to licence conditions are normally granted where the section 52 amendment application is not necessary. During the year under review the following prior approval applications were granted: P4 Radio Cape Town (Pty) Ltd and P4 Radio Durban (Pty) Ltd Makana Investment Corporation (Pty) Ltd owns both P4 Radio Cape Town (Pty) Ltd and P4 Radio Durban (Pty) Ltd through Makana Radio Communication (Pty) Ltd, its wholly own subsidiary. In 2005 the Authority approved an application by Makana Investment Corporation (Pty) Ltd for prior written approval for the acquisition by Tiso Group (Pty) Ltd and Kagiso Media Limited of 41.77% and 24.9%, respectively, of shares in Makana Radio Communication. Orbicom (Pty) Ltd Orbicom is the holder of a broadcasting signal distribution licence issued in The Authority renewed the signal distribution licence in June In 1999 MultiChoice, through MIH Holdings Limited, a 100% subsidiary of Naspers Limited sold its 100% shareholding in Orbicom to MTN. In 2005 MTN, Orbicom and MultiChoice entered into an agreement in terms of which MultiChoice was to purchase 100% shares of MTN in Orbicom. As a result Orbicom Nodal Points Community Radio hearings in Limpopo Special Event Applications Special Event Licences are granted to non-profit entities for purposes of broadcasting community events or festivals over a short period of time not exceeding 30 days. Special Event Licences are not renewable. During this period the Licensing Unit received 49 applications for special event licences. Of these 40 were granted and nine applications were refused. (See Appendix B) Four Year Licences Review Application Process The Authority granted one Four-year Community Sound Broadcasting Licence to Link FM. Link FM applied in 1997 for a Four-year Community Broadcasting Licence in respect of ICASA Annual Report

19 Broadcasting (continued) frequency 97.1 MHz in licence area 170 and the application was refused by the Authority. Link FM subsequently instituted review proceedings in the High Court of South Africa, the Eastern Cape Division. The High Court found in favour of the applicant and directed the Authority to hear the matter afresh. After considering the application the Authority decided to grant Link FM a Fouryear Community Sound Broadcasting Licence, as it then met the necessary requirements. Renewal The Authority received and granted renewal applications for Fouryear Community Sound Broadcasting to Radio Alpha, Radio KC, Graaff-Reinet, UCT Radio and New Pan-Hellenic. In terms of the IBA Act, the term of validity of a Community Sound Broadcasting Licence is four years. The broadcaster must apply for the renewal of its licence not earlier than six months and not later than three months before the expiry of such a licence. The IBA Act provides that the Authority shall refuse an application for the renewal of a broadcasting licence only if the licensee has failed to materially comply with the licence conditions, and the Authority is satisfied that the applicant would not so comply if its licence were renewed. Radio Shimla Radio Shimla applied for an amendment to use Sentech as its signal distributor as opposed to providing its own Category 3 Signal Distribution licence and to change its transmission site from the Sasol Library Building at the University of the Free State s main campus to a Sentech transmitter site at Naval Hill, Bloemfontein. The licensee further applied for an increase of its ERP from 20 Watts to 100 Watts and to change the station s name from Radio Shimla (RSFM) to Kovsie FM. Radio Hindvani Radio Hindvani applied for an amendment to relocate its transmitter from the Durban site to the Durban North site as well as an increase of its ERP from 0.25 kw to 3kW. Radio Hindvani further applied for an additional frequency (97.0 MHz) at the Pietermaritzburg site, which was refused. The licensee submitted that the amendment would assist Radio Hindvani in carrying out its mandate to provide a service to the Hindu community and to ensure that there is access to its services by their target community within the Durban Metropole and surrounding areas. Low Power Licences The Authority invited applications for Low Power Sound Broadcasting Licences in February Subject to the approval of the Authority, Low Power Sound Broadcasting Licences are issued to cover small areas. The IBA Act defines a low power sound broadcasting service as a community, private or public sound broadcasting service which radiates power not exceeding 1 watt. During the year under consideration the Authority granted Low Power Sound Broadcasting Licences to Kriel Info Radio, Voice of Wits and Radio Puk. Stakeholders during the launch of the Community Radio Invitation to Apply Amendments The Authority received and granted amendment applications from the following community sound broadcasting licensees: Greater Middelberg Community Radio and Radio Shimla. Radio Hindvani s application was refused. Greater Middelburg Community Radio Greater Middelberg Community Radio applied for an amendment to use Sentech Ltd as its signal distributor as opposed to providing its own Category 3 Signal Distribution Licence. The licensee submitted that its signal was poor or could not be received in the South Eastern parts of its licence area in areas such as Witbank/ Emalahleni, Clevers, Lemmerkop, Hendrina, Loskop Mosesdal and some newly built up areas. Test Licences The Authority receives and considers applications for Test Licences from any person, natural or juristic, for the purposes of testing new technologies or technology innovation within the broadcasting sector. This is in line with the provisions of the IBA Act which, amongst others, encourages the promotion of research into broadcasting policy and technology. The duration of the test licence is limited to twelve months and the licensees are obliged to furnish the Authority with a report that captures the test results. Applications for Test Licences were granted to M-Net/MultiChioice for a DVB-H Test Licence and Q Digital Cable Vision for a Cable Television Test Licence. M-Net The Authority granted M-Net the Test Licence to conduct Experimental Mobile Television Transmissions (DVB-H) in August 2005 for a period of twelve months. 20 ICASA Annual Report 2006

20 Q-Digital Cable Vision In 2005 the Authority granted Q-Digital Cable Vision a licence to test a combination of Hybrid Fibre Coaxial Television technology system solutions to deliver video and data services. The network would also allow the system to have high spectral efficiency, a robust resistance to noise, and exceptional flexibility to deliver a multitude of premium digital services such as video on demand, voice and commercial data transport. Monitoring and Complaints Unit ICASA s Monitoring and Complaints Unit (MCU) is divided into two sections. The Monitoring Section is responsible for monitoring compliance by licensed broadcasters with the IBA Act; the Broadcasting Act, as amended, relevant regulations and licence conditions. The Complaints Section is responsible for the receipt, processing and prosecution of complaints. This section further plays the role of Registrar of Complaints for the BMCC. Monitoring visits Province Commercial Community Gauteng 2 6 Mpumalanga 1 KZN 2 5 Eastern Cape 1 6 North West 2 Free State 3 Western Cape 7 TOTAL 5 30 Complaints The Complaints Section manages about complaints a month. On receipt of any complaint, the unit either investigates the complaint or refers it to another relevant authority such as the Broadcasting Complaints Commission of South Africa (BCCSA) or the Advertising Standards Authority (ASA). The average time for assessing a complaint from receipt to finalisation is between three to four weeks. During the period under review, the Complaints Section received 69 complaints. Election Monitors during the 2006 Local Government Elections Monitoring A major component of the Monitoring Unit s work is the monitoring of licensed broadcasters and compilation and publication of monitoring reports. The monitoring process involves the comparing of the actual performance of a broadcaster with the criteria set out in the licensing conditions, regulations and the applicable legislation. Reports on the performance of licensees are sent to Council and the Licensing Unit on a regular basis. They are also used when considering renewal or amendment of applications. Monitoring visits are undertaken when a broadcaster is experiencing difficulties with compliance or has just commenced its broadcasting services. During the period under review, monitoring officers produced and published 163 reports. In addition to publishing monitoring reports the monitoring section conducted 35 monitoring visits during this period. Total Complaints per Category Complaints Quantity Advertising 03 Blasphemy 00 Defamation 07 Hate Speech 01 Mismanagement 19 Other 21 Pornography 01 Programming 13 Technical 04 TOTAL 69 Geographic breakdown of complaints Province Quantity Eastern Cape 11 Free State 06 Gauteng 24 KwaZulu-Natal 09 Limpopo 03 Northern Cape 04 Mpumalanga 01 North West 03 Western Cape 08 TOTAL 69 ICASA Annual Report

21 Broadcasting (continued) Broadcasting Monitoring and Complaints Committee (BMCC) The BMCC is a standing committee of Council established in terms of the IBA Act, 153 of The BMCC adjudicates complaints that have been referred to it by the MCU and considers matters of policy relating to compliance of broadcasters. The membership of the BMCC now comprises of Advocate Jules Browde, SC (Chairperson); Ms Irene Baloyi; Mr Yaswant Gordhan; Advocate Fayeeza Kathree; Ms Irene Menell; Ms Keneiloe Mohafa; Dr Sophia Mosime; Prof Nomvula Mtetwa; Advocate Mhlaliseni Mthembu; Prof Nomvula Mosime; Ms Renee Smith and Prof Tina Uys. The Councillor representing ICASA is Councillor Nadia Bulbulia. Radio Pretoria s programmes and refusal by the Board to hold meetings with the Voluntary Association. The BMCC found that Radio Lichtenburg had contravened its licence conditions and recommended to the Authority that a fine of R be imposed, payment thereof would be suspended until September 2006 on condition that no further contraventions of the allegations take place during that period. Ms Keneiloe Mohafa resigned in November Radio Lichtenburg BMCC hearings A BMCC hearing in session On receipt of a complaint the broadcaster involved is requested to respond to the complaint within three working days. In the event that the complainant is not satisfied with the response given by the broadcaster, the matter is referred to the Chairperson of the BMCC to decide whether it warrants a BMCC hearing or not. Should the Chairperson decide that the matter warrants a formal hearing, the BMCC, represented by no less than three members, convenes to adjudicate the complaint. The BMCC normally meets on a quarterly basis or at such intervals as it may deem necessary. During the year under review, the BMCC held meetings in April, August, September, November 2005 as well as in February Hearings were held in respect of the following broadcasters: Radio Lichtenburg On 21 September 2005 the BMCC heard a submission made by the Association of Voluntary Workers of Radio Lichtenburg which lodged a complaint against the station. The complaint included allegations relating to failure by Radio Lichtenburg to convene an AGM, lack of community participation, failure to keep programme recordings, lack of gender equity on the Board, broadcasting of Radio Grahamstown On 22 September 2005 the BMCC held a formal hearing against Radio Grahamstown for alleged failure to furnish its audited Financial Statements in terms of its licence conditions and furnish log sheets of all programmes broadcast in a form acceptable to the Authority. The BMCC recommended that the station be called upon to furnish the required log-sheets and the audited Financial Statements for the last financial year by the last day of September Since the contraventions were seen in a serious light and prevented the MCU from properly monitoring the station, a fine of R was imposed. However, the fine was suspended pending the submission of financial statements and log sheets to the Authority by the station. South African Jewish Board of Deputies vs. Voice of the Cape On 22 September 2005 the BMCC held a formal hearing on a complaint lodged against Voice of the Cape by the South African Jewish Board of Deputies. The South African Jewish Board of Deputies complained that on 10 September 2004 a programme entitled Religion on Friday contained a number of deeply offensive and hurtful attacks on Jews and Jewish religion. The BMCC ruled that the station apologise unreservedly and unequivocally on air for any offence caused to the Jewish community as a result of the broadcast. 22 ICASA Annual Report 2006

22 Radio Graaff- Reinet On 22 December 2005 a BMCC hearing was held in respect of a complaint relating to non-compliance by Radio Graaff-Reinet with its licence conditions. The MCU alleged that the station failed to furnish the Authority with an agreement from Sentech to provide the station with its signal distribution. The station failed to submit audited Financial Statements in accordance with Generally Accepted Accounting Practice (GAAP) and failed to hold an AGM to ensure community participation. monitoring officers for the purposes of this project. The monitoring of elections commenced on 23 January 2006 and was completed on 10 March The BMCC recommended the immediate suspension of the licence issued to Radio Graaff-Reinet. The suspension was effective until the end of January Radio Graaff-Reinet was ordered to conclude a signal distribution contract with Sentech and to convene a Special General Meeting. It further ordered that the community be properly informed of the meeting, its date, time and venue, and that the community must elect a competent Board to replace that which had demonstrated incompetence. These conditions were to be met before the end of January In the event that the station fail to comply with these conditions within the stipulated period, the BMCC recommended that the licence be revoked. Drawing of lots for Political Parties Maritzburg Radio On 12 December 2005 a hearing took place into the broadcaster s admitted breach of its licence conditions which state that, the licensee must broadcast for 24 hours per day or such lesser period as may be approved by the Authority and that the licensee must broadcast continuously during the licensed programming hours and may not stop broadcasting unless due to factors beyond its control or with the written consent of the Authority. The station was given a final opportunity to solve its problems by the end of January The condition imposed was that the Golden Horse Casino, potential funder of the station, must provide a satisfactory written undertaking that would convince Sentech to resume its signal distribution services to the station, to assist the station to restore the working conditions of the broadcast equipment and also to provide the station with its necessary running expenses until the end of June Should the station fail to achieve this agreement by the end of January 2006 its licence would be revoked Local Government Elections The 2006 Municipal Elections were held on 1 March ICASA is empowered in terms of the IBA Act to monitor Party Election Broadcasts (PEBs), Political Advertisements (PAs), and the equitable treatment of political parties by broadcasting licensees during the election period. The MCU was tasked with the monitoring of the broadcasters coverage of the elections. The MCU employed 23 temporary ICASA Annual Report

23 Law, Communications, Consumer Protection and Council Support This division comprises Law, Communications, Consumer Protection and Council Support (LCCC). Law With the core function of the Authority being licensing and rulemaking, the Legal Department plays a key support role. This role is mainly in the form of provision of legal advice on various issues ranging from broadcasting law, telecommunications law, constitutional and administrative law, drafting and/or vetting of regulations and contracts and management of litigation. The Legal unit also provides legal support to Council, BMCC, management and committees of Council. Islamic Unity Convention v ICASA and the South African Jewish Board of Deputies (Constutionality) In June 1998, the Jewish Board of Deputies lodged a complaint against the Islamic Unity Convention, broadcasting as Radio 786, in which it was alleged that a certain broadcast contravened the Code of Conduct for broadcasters in that amongst others, it denied the occurrence of the holocaust of Jewish people by the German Third Reich. Radio 786 then instituted various proceedings which ultimately led to the Constitutional Court ruling that the provision of the Code of Conduct for broadcasters under which the complaint was lodged was unconstitutional in that it offended the provisions of section 16 of the Constitution which deals with the right to freedom of expression. The Constitutional Court held that in adjudicating the complaint, the BMCC must use the test contained in section 16(2) of the Constitution, which deals with unprotected speech. The BMCC subsequently made the necessary arrangements for the adjudication of the complaint, which was scheduled to be heard from 13 to 17 March Radio 786, however, subsequently instituted a constitutional attack against various provisions of the IBA Act. A hearing date has not yet been allocated by the Registrar of the Witwatersrand Local Division. Islamic Unity Convention v ICASA and the South African Jewish Board of Deputies (Urgent Application) Subsequent to the BMCC setting the hearing for the complaint lodged by the Jewish Board of Deputies in June 1998, which was scheduled to be heard from 14 to 17 March 2006, the Islamic Unity Convention launched an urgent application at the Witwatersrand Local Division to have the hearing postponed primarily for the reason that there was a pending constitutional attack on the provisions of the IBA Act under which the complaint was to be adjudicated and that it was not in a position to defend itself against the complaint as it did not have the charge sheet or allegation of contravention. On 9 March 2006 the court dismissed the application with costs and directed that the BMCC hearing should proceed as previously scheduled. The Islamic Unity Convention has applied for leave to appeal against the decision. The BMCC proceeded with the hearing as scheduled but the Convention walked out of the proceedings and the complaint was adjudicated in their absence. The BMCC has reserved its judgment. Otherchoice v ICASA and MultiChoice The declaratory application in which Otherchoice t/a Don t Panic TV sought an order from the High Court, Transvaal Provincial Division inter alia; that it is not required to hold either a broadcasting licence or broadcasting signal distribution licence, in terms of the broadcasting legislations, was dismissed with costs. Otherchoice then launched an application for leave to appeal against the decision, which was later abandoned. Goodnews Community Radio v ICASA and Izwi Lomzantsi Goodnews Community Radio (GNCR) review application against ICASA s decision not to grant it a Four-year Community Sound Broadcasting Licence at the Durban Local and Coastal Division of the High Court was dismissed with costs. Goodnews Radio then applied for and was granted leave to appeal to the full bench of the Natal Provincial Division held at Pietermaritzburg. The appeal was dismissed with costs. GNCR has since filed a notice for condonation for appealing after being out of time and a special leave to appeal to the Supreme Court of appeal. Muslim Community Broadcast Trust v ICASA and RAU Radio The Trust instituted review proceedings against ICASA s decision not to grant it a Four-year Community Sound Broadcasting Licence at the Witwatersrand Local Division. The court dismissed the Trust s review application with costs and upheld the Authority s decision to grant the licence to RAU radio. 28 ICASA Annual Report 2006

24 Impact Radio v ICASA Impact Radio instituted review proceedings against ICASA s decision to refuse the granting of a Four-year Community Sound Broadcasting Licence, which was granted to Mams Community Radio. The parties have reached an out of court settlement. Bay FM v ICASA Bay FM instituted review proceedings at the Witwatersrand Local Division against ICASA s decision not to grant it a Four-year Community Sound Broadcasting Licence and also applied for interim relief allowing it to continue with its broadcasting activities pending the hearing of the review application. The parties are awaiting the allocation of a hearing date by the registrar of the court. IFM v ICASA v Kathorus IFM instituted review proceedings against ICASA s decision to refuse the granting of a Four-year Community Sound Broadcasting Licence at the Witwatersrand Local Division. The court set aside the decision of ICASA to grant the licence to Kathorus Community Radio and directed that ICASA must reconsider both IFM and Kathorus s applications afresh. Radio Rippel v ICASA Radio Rippel instituted review proceedings against ICASA s decision to refuse the granting of a Four-year Community Sound Broadcasting Licence, at the Transvaal Provincial Division. A hearing date has not yet been allocated on the matter. Vaal Community Radio (VCR) v ICASA VCR instituted review proceedings against ICASA s decision to refuse the granting of a Four-year Community Sound Broadcasting Licence at the Transvaal Provincial Division. The parties reached an out of court settlement, which was subsequently made an order of court. Radio Pretoria v ICASA Radio Pretoria instituted review proceedings against ICASA s decision to refuse the granting of a Four-year Community Sound Broadcasting Licence at the Transvaal Provincial Division. Subsequent to the hearing date, the court re-opened written arguments on the matter. The court dismissed Radio Pretoria s review application with costs and upheld the Authority s decision. Radio Pretoria applied for leave to appeal against the court s decision. The Authority decided not to oppose the appeal by Radio Pretoria so as to expedite the hearing of the matter at the Supreme Court of Appeal. The parties are in the process of filing the relevant court papers. Telkom Limited v AT&T, ICASA and IBM The matter was set down for 13 September 2004 and by agreement between the parties, was postponed sine die. Telkom also withdrew its application and the relief it sought against IBM. Telkom has, hitherto, not set the matter down for hearing of the review application. Aerosat cc v ICASA and Two Others Subsequent to the Port Elizabeth High Court dismissing with costs the application launched by Aerosat, Aerosat applied for leave to appeal against the decision in June A hearing date into the application for leave to appeal has not yet been allocated by the Registrar. In an attempt to exert pressure on Aerosat, an application to uplift the stay of the operation of execution of the order, and granting ICASA an order to destroy the impounded equipment, was served to the attorneys of Aerosat. The application prompted an immediate response from Aerosat and a proposition was made to the effect that Aerosat is prepared to withdraw its application for leave to appeal. The Port Elizabeth High Court judgement stands, that the equipment seized, be disposed of and that the proceeds of the disposal be kept in an attorneys trust account pending taxation of the bill of costs. The parties are still negotiating the terms. AMT Trading 109 BK v ICASA The applicant launched an application to compel the Authority to issue labels to affix to Samsung Model E700 cellphones. The cell phone handset in question had already been type-approved by the Authority in favour of Samsung South Africa. The parties agreed to hold the matter in abeyance pending the applicant furnishing the Authority with an Electro-Magnetic report, safety report and Radio Frequency report. The applicant has not provided this information and has been issued with an ultimatum to comply or withdraw its application. ICASA Annual Report

25 Law, Communications, Consumer Protection and Council Support (continued) has by agreement withdrawn its opposition of the matter and has filed the record of the proceedings sought to be reviewed. Cell C v MTN Cell C has instituted proceedings against MTN in the Johannesburg High Court for an order declaring inter alia; that a call which originates from a Community Service Telephone installed by Cell C in an under-service area in accordance with a roll out plan approved by ICASA constitutes a Community Service Call for the purposes of the interconnection agreement concluded between Cell C and MTN. ICASA has been cited as an interested party. Startrack Communications Africa (Pty) Ltd v ICASA In 2001 the Authority received an application for a licence from Startrack which was subsequently refused. Startrack then launched an urgent application for interim relief permitting Startrack to use the radio frequencies 1525 to 1559 MHz and to MHz pending the final determination. The application for interim relief was not opposed by the Authority, however the main application was and is still opposed by it. Negotiations between the parties were initiated and it was agreed that the Applicant should apply for a VANS Licence, type-approval of its MT 2000 mobile satellite data gathering system terminal, and a Spectrum Licence and make use of a satellite space segment. Startrack has applied for the necessary licences. The type-approval in respect of its MT 2000 mobile satellite data gathering system terminal as well as the application for a VANS licence have been granted. Tetramobile Radio v ICASA Tetramobile brought an urgent application at the Pietermaritzburg High Court for an order interdicting and restraining the Authority from seizing the Applicant s equipment due to its alleged failure to pay outstanding licence fees amounting to R1, 3 million. The matter was due to be heard on 19 August and 21 September 2005 and was postponed at the instance and request of Tetramobile and tendered the costs occasioned by such postponements. The matter was again set down for hearing on 9 December 2005 and the parties reached an out of court settlement which included Tetramobile paying an amount of R1,3 million in outstanding licence fees. MTN v ICASA and Cell C MTN launched review proceedings against ICASA s decisions at the Witwatersrand Local Division in respect of Cell C s roll-out plans on its community service telephones in areas it deemed not to be under-serviced as they were mainly situated in urban areas. ICASA Vodacom (Pty) Limited v ICASA and Another Vodacom instituted proceedings to have the regulations, which amongst others, declared it a major operator, set aside as being invalid. The Authority took a decision to oppose the application on the basis that the application has been brought prematurely as the Authority has not as yet taken any decision on declaring the applicant a major operator. Vodacom has proposed a settlement which the Authority is considering. Newsforce (Globecast) v ICASA and Telkom Newsforce instituted review proceedings at the Witwatersrand Local Division against ICASA s decision to dismiss its points in limine raised against Telkom s complaint that it provided an International Telecommunication Service, without the necessary licence in terms of the Telecommunications Act. Newsforce has filed a further set of affidavits to which the Authority has to respond. COPASA v ICASA and Cell C COPASA instituted review proceedings against ICASA s decision to stay the hearing of a complaint pending the outcome of a review application launched by MTN against Cell C in respect of the latter s under-serviced area roll out of community service telephones. COPASA subsequently withdrew all the relief it sought against ICASA but did so without tendering the costs. The matter was heard from 8 to 11 February 2006, including the question of costs. Judgment has been reserved. Nothnagel v Raod Accident Fund (RAF) and ICASA ICASA was served with a third party notice by the RAF, in accordance with the Uniform Rules of the Free State High Court, wherein a spouse of a late ICASA employee sought to join the RAF and ICASA in an action, where she is seeking compensation for loss of support as a result of a motor vehicle accident in which her husband died. The matter was deferred to ICASA s insurers at the time of the accident, who are opposing the matter. A trial date has not yet been allocated. Len Marshall v ICASA Mr Marshall instituted action for the purpoted recovery of an 30 ICASA Annual Report 2006

26 amount fo R in respect of an alleged over-payment to ICASA for licence fees. ICASA is defending the matter. The matter was set down for trial on 5 December 2005, but was postponed at the request of Mr Marshall and a new date is yet to be allocated by the Clerk of the Court. ICASA v IMVO Technologies ICASA has instituted review proceedings to have a tender issued to IMVO Technologies set aside due to several procedural irregularities. IMVO Technologies is opposing the matter. ICASA v Roswika Digital Solutions (Arbitration) ICASA terminated a contract it has with Roswika Digital Solutions resulting in the cancellation being referred for arbitration by the parties to the Arbitration Foundation of South Africa. The parties have agreed to suspend the arbitration pending an application by ICASA to have the contract set aside by the court. Type-approved Phones The department has developed material informing the public about the importance of ensuring that any telecommunications equipment that they purchase has been type-approved by ICASA. Type-approval ensures that the equipment meets the required safety standards and that there is a guarantee of after sales service. The exercise has resulted in many businesses reporting non-compliance. Radio Interviews Interviews were conducted on Community Radio throughout the country on 93 occasions during the financial year. This means of communicating has now become well established and is set to continue. ICASA Logo The Registrar of Trademarks has finally approved the ICASA logo as a trademark. It was published in the journal of trademarks for three months for public comment. No objections were received from members of the public and the registration process is now completed. Consumer Protection The 2005/6 financial year was focused at ensuring increased interaction with consumers. The department reached out to the poorest of poor communities. Public Awareness and Education The department continues to conduct outreach programmes in connection with the developments that are taking place in the Communications Sector. Partnerships have been built with ICT stakeholders and government departments; youth associations; organisations for people with disabilities and local municipalities in all provinces. Material has been developed and printed in all official languages. Pamphlets have been distributed among communities and ICASA has now seen a reduction in the numbers of complaints pertaining to commercial mobile payphones. Braille Material In order to provide access to information for the blind, some of the education material has been converted to Braille. The pamphlet educates the blind about their rights with regards to the provision of telecommunication services. Signing of Code of Conduct for Disabilities by operators People with Disabilities The Department, together with mobile operators and the fixed operator, conducted workshops with organisations representing people with disabilities aimed at educating them about services that are available. The problems that were highlighted were associated with access to assistive devices. This problem has been brought to the attention of the Universal Service Agency, which is charged with the administration of the Universal Service Fund. The Authority and all operators, both broadcasting and telecommunications, signed a Code of Conduct aimed at improving access to services and information to people with disabilities. The signing of the code has been seen as a milestone by the Authority and all other stakeholders. Road Shows Road Shows were held in all provinces. The highlight for the past year was a road show in Mount Fletcher in the Eastern Cape. The Department and operators, both telecommunications and broadcasting, were exposed to communities who had still not seen a TV and had never made a telephone call. We hope this area will benefit from the accelerated growth and development initiative. Access to telecommunications services continues to be a problem for communities in rural areas. ICASA Annual Report

27 Law, Communications, Consumer Protection and Council Support (continued) Research and Complaints Handling Research Call Barring Facility Research was conducted on the call barring facility service provided by the mobile phone operators. Meetings were held with representatives from mobile phone operators. This was in an effort to get a thorough understanding of how call barring is implemented by the operators after complaints received from the public. A comprehensive report has been prepared in this regard. Distribution of complaints across different operators: Telkom Vodacom MTN Cell C All Operators Others % 11% 7% 10% 4% 9% Telkom s Public Payphones Members of the public complained that Telkom telephones did not give change. The problem was first tested randomly and confirmed. The research officer then undertook in-depth research on the matter in all provinces. The outcome of the research were that Telkom public payphones were found to be problematic in all but two provinces. A meeting was then scheduled with Telkom where the problem was discussed. Telkom alluded to there being problems with regard to their public payphones. A proposal on how the problems can be resolved by Telkom is awaited. 60% 50% 40% 30% 20% 10% 59% 11% 7% 10% 4% 9% Complaints Handling Analysis of Complaints Brief Synopsis Number of complaints received during this financial year: 708 Number of complaints/files closed: 295 (42%) Number of complaints/files pending: 413 (58%) Number of complaints/files brought forward from the previous financial year: 79 Total Number of complaints handled during this financial year: 787 0% Telkom Voda MTN Cell C All Operators Distribution of complaints across provinces: Others GP KZN WC EC NW MP Limp FS % 6% 5% 4% 2% 2% 5% 2% During this financial year the Authority experienced an increase in complaints relating to the following: Telkom s Fault Reports which were, according to Telkom s explanation to the department, caused by heavy rains, the latter which also caused delay in fault clearance response time; Telkom s inability to meet customer needs for service installation and/or lines transfer within a specific time; and Telkom s new pricing methods on ADSL. The Authority also experienced complaints against Mobile Operators regarding their terms of contracts. 80% 70% 60% 50% 40% 30% 20% 10% 0% 74% 6% 5% 4% 5% 2% 2% 2% GP KZN WC EC NW MP Limp FS 32 ICASA Annual Report 2006

28 Distribution of complaints across the MAIN complaints categories: Complaint Category No. of Complaints 1. Telkom s Fault Reports Telkom s Service Installation & Line Transfer complaints 3. ADSL Pricing Misleading Marketing/Advertising Practices (Telkom s Home DSL) 5. Contractual Terms (Mobiles) 48 Communications The Communications Department provides marketing and branding support functions to ICASA, both internally and externally. The department is responsible for stakeholder relations and management Placement of advertorials in industry publications; and Placement of advertisements about public hearings, the 2004 General Elections and the 2006 Local Government Elections. Industry Exhibitions and Events The Communications Department represented ICASA in industry exhibitions and events and distributed promotional material at the following events: Minister s Budget Speech; Science, Engineering and Technology Week; FUTUREX; World Telecoms Day; Media Tech; SatCom Africa; World Summit on the Information Society; Sangonet; and The DoC Colloquium. Stakeholder Relations Stakeholder s meeting Councillors bidding farewell to ex-chairperson Langa During the year under review, the department was involved in the following activities: Media Liaison Media Liaison entailed providing the mainstream and regional media houses with information regarding ICASA s regulatory activities. Key activities included: Arranging media interviews for Councillors, Committee Chairpersons and Project Managers; Media briefings on contentious regulatory activities such as the Rate Regime determinations for Telkom and the issuing of the SNO licence; Media breakfasts such as on the issuing of the SABC s new broadcasting licences for public and commercial services; Press releases and responses to media coverage and enquiries; The department hosts stakeholder meetings and functions and maintains a database of telecommunications and broadcasting industry players. Stakeholders are regularly kept abreast of ICASA s activities through invitations to public hearings, press conferences and other events. Highlights of the year include the following: The Farewell Function for outgoing Chairperson, Mandla Langa, which also served as a stakeholder meeting for 2005 in which the industry was briefed about the ICASA s projects for the year; Presentations about ICASA s activities to international delegations visiting South Africa on fact-finding missions regarding the regulation of telecommunications and broadcasting; Receipt of and re-routing of enquiries from licensees and the public regarding ICASA s activities via the telephone or the ICASA website; Commissioning the re-design of the ICASA website, and updating content regularly in line with the ICASA s regulatory activities; ICASA Annual Report

29 Law, Communications, Consumer Protection and Council Support (continued) Branding ICASA s public hearings and distributing promotional material at all outside venues across the country; and Co-ordinating the photographing and filming of ICASA s regulatory activities for the purposes of developing a gallery, organisational publications and for archives. International Relations Internal Communications and Events Zambian Delegation Visit Take a Girl Child to Work Day The Communications department is responsible for all internal communications and events that contribute to employee wellness and morale through the distribution of corporate gifts, the hosting of functions and events as well as the publication of an internal newsletter. The following events were hosted for the year under review: Family Day to facilitate interaction between staff and their colleagues families, for both the head and regional offices; Take a Girl Child to Work programme; Outgoing Chairperson, Mandla Langa s farewell function for staff members; Women s Day celebrations; 16 Days of Activism Against Women and Child Abuse; World AIDS Day; and Year-end function for staff. Apart from hosting internal events, internal communication activities also included: Publishing and distributing an internal Newsletter, Izindaba@ICASA to staff on a quarterly basis; Managing subscriptions to newspapers and industry publications for ICASA s Council and management to keep abreast of industry developments both locally and internationally; Branding ICASA reception areas and boardrooms, both at head and regional offices; and Facilitating interaction between staff and Council and management through the use of suggestion boxes and staff meetings. The core activity of the International Relations department is coordination of participation and representation of ICASA at industry related regional and international events, hosting study visits from other regulators and the arrangement of all logistical support. ICASA plays a key role in African and Southern African regulatory activities. It holds strategic positions in both African Communications Regulatory Authorities Network (ACRAN/RIARC) and Telecommunications Regulatory Association of Southern Africa (TRASA) as Board Members as well as holding positions in Working Committees. During the year under review, Committees worked on changing the constitution of TRASA to align it with the converged environment of the communications industry. As TRASA recognises the importance of acknowledging that dealing with telecommunications issues solely will put it in a precarious position as most of the regulators in the region regulate both broadcasting and telecommunications, it was necessary also to redraft its strategies to accommodate these changes. ICASA is tasked, with four other regulators, to redraft the strategic plan and work on a new vision and mission of the new organisation. ICASA as a regulator of both Broadcasting and Telecommunications, is also a member of other international organisations such as RIARC, which is a continental organisation, IIC, SABA, CTO and others. Under the leadership of the DoC, this unit also participates at the ITU meetings. ICASA participated in all the preparatory meetings that preceded the Second Phase of the World Summit on Information Society (WSIS), and the summit itself, which produced the following documents adopted by Heads of State in Tunis: Geneva Declaration of Principles; Geneva Plan of Action; Tunis Agenda for the Information Society; and Tunis Commitment. 34 ICASA Annual Report 2006

30 Under its bilateral relations programme, ICASA hosts study tours from its sister organisations offering technical support to countries which are beginning to form regulators or with technical support in subjects like monitoring and other spectrum related issues. During the year under review, ICASA participated in the following international/regional activities: TRASA - TRASA/Catia Training Workshop; - TRASA Executive Committee and Nettel@africa Governance Body; - TRASA and Nettel@Africa; - Spectrum Management Workshop; - Policymakers workshop: co-hosted by the DoC and ICASA; - TRASA Executive meeting; and - 9th TRASA AGM. Chairperson Mashile as a panelist at SatCom Africa 2006 World Summit on Information Society (WSIS) - Second phase of WSIS - 3rd Prepcom - WSIS Broadcasting related meetings and events - 3rd AMARC Africa Pan African Conference; - IIC 36th AGM.and regulators forum; - SABA, Arusha ; and - SABA/MISA meeting: Broadcasting and ICT Regulation. RIARC - RIARC/ACRAN Conference. Other Meetings - Utility regulation and strategic training Programme; - Wireless Local Area Network (Wlan) Technology Workshop; - East and Southern Africa Regional Branch of International Council on Archives (ESARBICA) General Conference; - Equality and Empowerment of Disadvantaged People; - Third Annual Conference and General Assembly of the African Forum for Utility Regulators (AFUR); - German Regulatory Authority (RegTP) Conference on flexibility in spectrum management; - Research trip to Hong Kong; - German research trip; - Workshop on Developing and opening up of ICT infrastructure in West and Central Africa; and - DRC: Covering elections through Community Radio. Bilateral Meetings - Ethiopian Broadcasting Authority; and - Federal Communications Commission. International Telecommunications Union (ITU) - 6th Forum on Telecommunication Regulation in Africa; - Regional information meeting in 2006 (RRC-06); - Regional Preparatory Meeting for the World Telecommunications Development Conference Regional (WTDC); - Training course for Regulators prepared by the ITU for the Executive level on Effective Regulation in a Broadband world ; - 6th annual Global Symposium for Regulators (GSR); - Planning working Group for RRC-06; - Internet Governance Forum; - Working Party of Intersessional Planning Group; - Workshop on interconnection access and price regulation; and - World Telecommunication Development Conference 2006 (WTDC-06). ICASA Annual Report