2008/9 ICASA 2008/9 ICASA Annual Report PresentationAnnual Report Presentation

totoPortfolio Committee on Portfolio Committee on

CommunicationsCommunications03 November 2009

Paris Mashile - ChairpersonKarabo Motlana - CEO

Outline of PresentationOutline of PresentationVisionMissionStrategic objectivesRegulatory Divisions Licensing & Compliance Markets & Competition Engineering & Technology Consumer Affairs Legal & CCC

Stakeholder Management

International Participation

ICASA & Its People

Financial Reports Annual Financial Statements Administered Revenue Fund

VISIONVISION

To be a credible regulator in the transformation of South Africa into an information and

knowledge-based society.

MISSIONMISSION

To create a competitive environment for delivering a wide range of high quality

communication services at affordable prices to contribute to the overall economic growth

and social development of the country

5

Strategic ObjectivesStrategic Objectives

Increase the availability and quality of electronic communication services to domestic and business users

Encourage and maintain pro-competitive market through effective competition and transparent regulation

Develop regulatory policies that promote competition, innovation and investment in services and facilities providing widespread access to ICTs

Strategic Objectives (cont.)Strategic Objectives (cont.)

Maximize the net economic and social worth of the sector, including its strategic use as a catalyst for economic, social and technological development in other areas of the economy

Broaden economic participation in the sector by SMMEs Encourage and support the successful introduction of new

technologies and services

LicensingLicensing

Completed license conversion process as required by EC Act and issued over 600 class and individual licences.

Issued two trial licences for Digital Migration.

Registered 46 courier companies.

Aligned SAPO licence with Postal Services Act (as amended), the ECA and the ICASA Act (as amended).

Licensing RegulationsLicensing Regulations

Published draft Licence Fees regulations & conducted public hearings.

Published Licensing Process and Procedures regulations.

Published Licence Exempt regulations.

ComplianceCompliance

Compiled 55 reports on broadcasting licencee’s compliance with the ECA and licence terms and conditions.

Conducted 45 monitoring visits to assist licencees in complying with licence terms and conditions.

Received 76 broadcasting complaints: 44 resolved by the department; 5 referred Complaints & Compliance Committee (CCC); 36 referred to industry led bodies i.e. Advertising Standards Authority of South Africa

(ASA) and Broadcasting Complaints Commission of South Africa (BCCSA).

Compliance (cont.)Compliance (cont.)

Conducted 46 monitoring visits to reserved postal outlets.

Verified reports submitted by SAPO on delivery points & infrastructure roll-out targets.

Received 60 complaints: 34 referred to SAPO for resolution; 22 resolved by the department; 2 referred to CCC; 2 were still under investigation.

Markets & CompetitionMarkets & Competition

Published Carrier pre-Select draft regulations.

Published Must Carry regulations.

Published Universal Access regulations.

Published Party Election Broadcasts & Political Advertisements regulations.

Published Advertising, Infomercials & Sponsorship draft regulations.

Published Code of Conduct for Broadcasters draft regulations.

Published the Digital Terrestrial Television draft regulations.

Published Commissioning of Independently Produced South African Programming discussion document.

Published Sports Broadcasting Rights discussion document.

Markets & Competition (cont.)Markets & Competition (cont.)

Processed 36 interconnection agreements.

Analysed and approved Telkom’s 2008/9 tariff review.

Analysed and approved SAPO’s 2008/9 tariff review.

Analysed and processed 57 ad-hoc tariff applications.

Processed 315 numbering applications.

Engineering & TechnologyEngineering & Technology

Commissioned a study to develop new Radio Spectrum Licence fees framework.

Published draft Radio Frequency Plan regulations.

Published Radio Frequency Identification systems regulations.

Published conditions of exemption of certain radio frequencies from licensing.

Published draft Terrestrial Broadcasting Frequency Plan.

Published Findings Documents for High Demand Frequency Bands.

Engineering & Technology (cont.) Engineering & Technology (cont.)

Confiscated 471 units of equipment due to non-compliance.Closed down illegal broadcasters & confiscated their equipment.Issued warning and closed down unlicensed operators.Returned 223 units of confiscated equipments to owners who complied.Sealed 1 234 radios due to non-payment.Actioned 2 015 licensee files received from Finance Department.Issued 6089 frequency spectrum licences.Issued 1826 type approval licences.Conducted 649 maritime restricted radio telephone examinations.Conducted 77 high site inspections.Identified 275 interference cases and cleared 267.

Consumer AffairsConsumer Affairs

CRFs established in KwaZulu-Natal, Limpopo and Mpumalanga.

Monitored compliance with consumer protection regulations in Gauteng and North West.

Printed publications on : Complaints handling processes Type approval pamphlets 112 Emergency Services Consumer Rights Day

Conducted research on the impact of the Authority’s Public Education and Awareness programmes.

Conducted research on consumer experiences on Mobile Number Portability.

Consumer Affairs (cont.)Consumer Affairs (cont.)

Conducted feasibility study on the establishment of the call centre.

Co-ordinated four mandatory Consumer Advisory Panel meetings.

Conducted 433 public education and awareness outreach programmes in all provinces.

Reached out to consumers through 124 radio interviews.

Conducted Consumer Rights road shows in all provinces.

Resolved 64% of 2 155 consumer complaints received.

Consumer Affairs (cont.)Consumer Affairs (cont.)

Partnered with other stakeholders and provided information at the following campaigns: World Telecommunications Day; Youth Day; World Post Day; International Day of People with Disabilities.

Legal & CCCLegal & CCC

ICASA operates in a highly litigious environment as its decisions are frequently taken on review by aggrieved applicants.

Complaints & Compliance Committee adjudicated 9 licensees charged with non-compliance of their licence conditions.

Litigation cases: Regulatory – 15 Non-regulatory – 1 Labour matters - 2

Stakeholder RelationsStakeholder Relations

Internal stakeholders

Launched and published a daily electronic newsflash – iNews. Published quarterly edition of internal newsletter. Arranged staff meeting at Head and Regional Offices. Hosted internal functions & events e.g. Wellness Day, Family Day. Sports

Day and Staff end of the year function.

Stakeholder Relations (cont.)Stakeholder Relations (cont.)

External stakeholders Issued Media Releases and arranged interviews about regulatory activities. Placed Media Notices in leading national daily newspapers. Published media Releases, government gazettes and other regulatory

information on the website. Coordinated production and tabling of Annual Report. Participated in exhibitions and road-shows to raise awareness about

Authority’s mandate. Facilitated responses to enquiries. Arranged Stakeholder Meeting to brief licensees and operators about

regulatory activities. Commissioned production of corporate video outlining Authority’s mandate

and deliverables.

Stakeholder Relations (cont.)Stakeholder Relations (cont.)

International Participation - Coordinated the Authority’s international participation in relation to:

Attendance of and submissions made to Universal Postal Union, International Telecommunications Union, CRASA, SAPRA, SADC Ministers Roundtable on ICTs.

Developed calendar of meeting and events. Arranged bilateral interaction with regulators from Brazil, Tanzania and

Malawi. Subscribed to international regulatory organisations/associations.

ICASA & Its PeopleICASA & Its People

Out of 59 vacancies, 58 vacancies were filled.

536 participants attended a range of training courses.

R2,7m spent on training which represents 3% of the total salary budget.

Conducted a job competence profiling and skills audit.

Introduced integrated performance management.

DemographicsDemographics

Year to date permanent employee demographic profile as at 31 March 2009:

Mar-08 Mar-09 % Variance

Population Group Total % in each group Total % in each

group

African 238 70% 241 72% 2%

Asian 17 5% 17 5% 0%

Coloured 23 7% 23 7% 0%

White 61 18% 54 16% -2%

Demographics (cont.)Demographics (cont.)

Race, Gender & Rank Comparative Analysis:

Headcount Stats

Population GroupTotal

FemaleTotal Male

Grand Total

African Asian Coloured White

F M F M F M F M

Council 2 6 2 2 8 10

Executive Management 2 6 1 1 2 8 10

Senior Management 4 7 2 1 1 5 10 15

Managers 11 21 1 2 4 11 28 39

Total Management 19 40 0 3 1 3 0 8 20 54 74

General Staff 99 83 4 10 7 12 15 31 125 136 261

Total Staff 118 123 4 13 8 15 15 39 145 190 335

Percentages 35% 37% 1% 4% 2% 4% 4% 12% 43% 57% 100%

Finance & Risk Finance & Risk

Auditor General attention drawn to the following:1. Fruitless and wasteful expenditure = R39 570 due to penalties

incurred.2. Irregular expenditure = R387 081 due to non compliance with supply

chain management processes.3. ICASA did not submit monthly management accounts to DOC.4. ICASA did not prepare and sign performance contract with CEO.5. ICASA did not pay suppliers within 30 days.6. Qualified opinion : Accounts receivable relating spectrum debtors of

R41 797 045.7. Council PMS outstanding

Finance & Risk (cont.)Finance & Risk (cont.)

• Corrective Action: internal controls• An internal audit function has been set-up to co-ordinate operational and financial

units• Corrective Action: CEO Contract

A performance contract has been signed by the CEO outlining quarterly appraisal• Corrective Action: Risk Management• A risk strategy has been developed• Corrective Action: reports to Doc• ICASA has been submitting monthly performance reports to DOC• Corrective Action: Council PMS• Commenced discussions 2007 and Draft PMS submitted to DOC in October 2009.• Corrective Action: Debtors Spectrum• Implement the billing system for spectrum

Statement of Financial Performance: Statement of Financial Performance: MAIN ACCOUNTMAIN ACCOUNT

Statement of Financial Position: Statement of Financial Position: MAIN ACCOUNTMAIN ACCOUNT

Statement of Financial Performance: Statement of Financial Performance: NATIONAL REVENUE FUNDNATIONAL REVENUE FUND

Note 31 March 2009 31 March 2008

R R

REVENUE 3 2 267 355 373 2 092 784 211

OTHER INCOME 3 12 586 364 20 472 803

2 279 941 737 2 113 257 014

EXPENDITURE (2 298 517 064) (2 133 717 677)

Impairment of accounts receivable 2 (11 006 201) (21 917 715)

Commission (193 647) (193 172)

Bank charges (23 456) (13 360)

Transfers to DoC (2 287 293 760) (2 111 593 430)

(DEFICIT)/SURPLUS FROM OPERATIONS (18 575 327)

(20 460 663)

NET FINANCE INCOME 18 575 327 20 460 663

Unearned income 16 833 849 10 468 041

Finance income 11 13 599 278 19 036 413

Finance costs 10 (11 857 800) (9 043 791)

NET (DEFICIT)/SURPLUS FOR THE YEAR - -

Statement of Financial Position: Statement of Financial Position: NATIONAL REVENUE FUNDNATIONAL REVENUE FUND

Note 31 March 2009 31 March 2008

R R

ASSETS

Current Assets 682 314 400 690 648 714

Trade and other receivables 5665 495 892

629 367 337

Cash and cash equivalents 6 16 818 508 61 281 377

Total Assets 682 314 400 690 648 714

LIABILITIES

Current liabilities 682 314 400 690 648 714

NRF Payables 7 110 056 457 121 749 475

NRF Provision 8572 257 943

568 899 239

TOTAL FUNDS AND LIABILITIES 682 314 400 690 648 714

Thank you

Dankie

Re a leboha

Re a leboga

Siyabonga

Inkomu

Ro livhuwa

Enkosi