License Fees

Ellipsis has prepared an advisory on calculation of licence fees which is available on request.

The General Licence Fee Regulations set out various fees payable to ICASA, the most important of which is the annual licence fee payable by holders of ECNS and ECS licences. The Regulations do not cover annual fees payable in respect of other licences or permits, including radio frequency spectrum licences.

The Regulations came into force on 1 April 2009 and set out the method of and basis for calculating annual licence fees.

Calculation of annual licence fees

Holders of ECNS and ECS licences are, subject to the exemption set out below, obliged to pay annual licence fees to ICASA.

The formula to be employed in calculating your annual licence fees is the following:

Licence Fee payable = 1.5% of Gross Profit

where Gross Profit is defined as “revenue generated from Licensed Services less total costs directly incurred in the provision of such services”

There is an exemption from the obligation to pay annual licence fees in respect of licensees which satisfy the “turnover threshold as per the requirements for classification as a small enterprise in the Transport, Storage and Communications Sector as defined in the National Small Enterprise act 102 of 1996, as amended”. This threshold is currently set at R13 million, i.e. if the licensee’s annual turnover is less than R13 million they do not have to pay annual licence fees. It is important to remember that this exemption applies in respect of total turnover and not turnover which is derived from Licensed Services, i.e. it applies to your entire business and not just that part of it which provides licensed services.

General Licence Fee Regulations 2009

Into force: 1 April 2009