THE CONVERGENCE BILL (Combination / Merger of all ICT Acts) Presentation to PC on Communications...

THE CONVERGENCE BILL(Combination / Merger of all ICT Acts)

Presentation to PC on Communications

Parliament in Cape Town

2 June 2005

Nhlanhla Jethro Tshabalala

082 783 2104

Prepared by NJ Tshabalala 2

PURPOSE OF MY PRESENTATION

• INTRODUCE MYSELF AND DEMOSTRATE TO THE PANEL MY ICT UNDERSTANDING AND COMPETENCIES

• DEMOSTRATE MY THINKING AND POSITION ON WAYFORWARD FOR ICT SECTOR.

• CONVINCE THE PANEL TO APPOINT ME TO LEAD ICASA WITH CONFIDENCE.


OVERVIEW

• Process followed

• Objectives of Convergence Bill

• Summary of Chapters

• Convergence Mapping

• Licensing

• Transitional Provisions

• Other provisions

• Observations

• Conclusions


PROCESS FOLLOWED

• Draft 1 for comment on 25 July 2003

• Industry wants a single piece of legislation that would replace existing statutes, it seems the Ministry wants to amend underlying legislation only.

• Bill gazetted on 16 February 2005

• Repeals IBA and Telecom’s Acts

• Bill could be enacted in 2005


OBJECTIVES OF THE BILL

• to promote convergence in the broadcasting, broadcasting signal distribution and telecom’s sectors and to provide the legal framework for convergence of these sectors

• to make new provision for the regulation of communications and network services

• to provide for the granting of new licences and for new social obligations

• to provide for the control of the radio frequency spectrum

• to provide for the continued existence of the USA, and

• to provide for matters incidental thereto


CHAPTERS

1: explains primary objectives of Bill, incl promotion of

convergence, encouragement of innovation in the comm’s

sector and promotion of competition

2: delineation of powers between Minister and ICASA whereby the

Minister formulates policy and ICASA implements policy, issues

licenses and oversees the comm’s sector through regulation

3: creates legal framework for issuing licenses and the attendant

rights and obligations of licensees


CHAPTERS cont…

4: defines rights and obligations of comm’s network services licensees when entering upon public and private property

5: vests Minister with authority to manage the radio frequency spectrum used by security services and ICASA with authority to manage other spectrum

6: governs approval and use of comm’s equipment and facilities and radio apparatus in the Republic

7: requires comm’s network service licensees to ICX their networks and defines guiding principles that will govern licensees’ interconnection agreements


CHAPTERS Cont…

8: requires comm’s network service licensees to lease

network facilities to other licensees and defines

principles that will govern leasing agreements

9: establishes legal framework allowing broadcasting

services to participate in convergence of comm’s and

broadcasting services while retaining critical policies

10: directs ICASA to prescribe regulations to protect

consumers, including consumer code of conduct


CHAPTERS Cont…

11: (a) provides for establishment of an ICT for

government initiatives.

(b) designates ICASA as ‘‘regulatory authority’’ iro

the comm’s sector under the Competition Act

(c) empowers ICASA to take certain actions to

ensure fair competition in the sector

(d) sets maximum penalties and fines and,

(e) carries forward from the Telecom’s Act the

application of NP & CPS, directory services and

112 Emergency Centres to the new converged services


CHAPTERS Cont…

12: provides for the continued existence,

financing, administration and management

of the USA

13: provides for transition and conversion of

existing regulations and licenses to

ensure that they conform to the provisions

of the Bill


CONVERGENCE MAPPING: Pre-Convergence

Broadcasters Signal Distribution

(Sentech, Orbicom, etc.)

End

Users

TV & Radio

Sets

VANS,

ISP, etc.

Telecommunication Networks

(Telkom, SNO, Sentech, USALs)

Computers &

Data Terminals

Voice

Data

Voice/Data

Terminals

Broadcast

Content

Information

Services

End

Users

End Users Fixed Networks (Telkom, SNO, USALs) End

UsersMobile Networks (MCOs, USALs)

BROADCASTING (Broadcasting Act, IBA Act, ICASA Act, Sentech Act)

ENHANCED DATA SERVICES (Telecommunications Act, ECT Act , ICASA Act)

VOICE/DATA CONVEYANCE SERVICES (Telecommunications Act, ICASA Act)


CONVERGENCE: SERVICES

Voice

Broadcasting

Data

Communications Services

Information Services


CONVERGENCE: NETWORKS

Signal Distribution

MobileFixed

Packet Switched

Circuit Switched

Communications Networks


CONVERGENCE: CPE

TV & Radio Sets

Computers

Data TerminalsCommunications

TerminalsFixed Telephones

Mobile Telephones


CONVERGENCE MAPPING: Post Convergence

C0MMUNICATION SERVICES (Convergence Act)

SERVICE PROVIDERS(Broadcasters VANS, ISP,

etc.)

COMM APPLICATION

SERVICESCOMM’S

NETWORK SERVICES

COMM SERVICES

ENDUSERS

VOICE DATA

CUSTOMER PREMISES EQUIPMENT

ENDUSERS

ENDUSERS


LICENSING REGIME

• 3 tier horizontal licensing regime

•Comm’s Network services

•Comm’s services

•Application services

• 3 types of licensing methods

• Individual

•Class

•exemptions


CONVERGENCE MAPPING: Licensing

INDIVIDUAL LICENCES

CLASS LICENCES

COMM SERVICES

APPLICATION SERVICES

COMM NETWORK SERVICES

SPECTRUM


LICENCES CONVERSION

PSTS Licence

VANS Licence

COMM NETWORK SERVICE

COMM SERVICE

APPLICATION SERVICE

COMM NETWORK / COMM?


TRANSITIONAL PROVISIONS

• All existing licences to remain valid for their full duration

• Vertical licences to be converted to horizontal licences with the agreement of each licensee: all existing rights preserved?

• Additional network service licences by invitation

• All existing network operators to be confined to their vertical markets until licences have been re-issued (12 months)


OTHER PROVISIONS

• Roles of Minister & Regulator

• ICASA has full responsibility for regulatory processes

• The Minister has policy-making powers

• Competition issues

• ICASA’s concurrent jurisdiction with the Competition Commission over general competition matters

• ICASA retains exclusive jurisdiction over sector specific competition matters


OBSERVATIONS

• There will be enormous regulatory load stemming from converged legislation.

• Encroachment of rights will increase.

• Uncertain regulatory environment

• Weak statutory protection

• Change will encourage opportunistic market behaviour

• Convergence as a cover for rapid liberalisation


OBSERVATIONS Cont...

• Raised expectations (VANS, Sentech, etc.) may cause further disputes in the market.

• How independent is the Regulatory.

• How effective is the Regulatory in influencing the policy.


CONCLUSIONS

• Ability to compete is the preferred solution

• Convergence is for rapid liberalisation

• ICASA to enable the sector to increase GDP contributions from 4% to 20% in 5 yrs.

• ICASA to prescribe additional terms and conditions where licensee has SMP, control over essential facilities or vertically integrated

• Communications network services licensees must interconnect and lease facilities

• ICX & FL Agreements still to be filed with ICASA


CONCLUSIONS cont...

• Post-convergence presents threats and opportunities

• Manage already raised expectations (VANS, Sentech, etc.) which may cause further disputes in the market

• Non-compliance with Convergence Act should have a fine of up-to 10% of annual turnover


Questions?


Concluding thought for the day

“ If you are not confused by what`s going on around you, you`re obviously not in touch”

- Dr Tom Peters

THANK YOU

THE CONVERGENCE BILL (Combination / Merger of all ICT Acts) Presentation to PC on Communications...

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