New standard terms and conditions and process regs for class and individual licences
A process to amend
- Standard terms and conditions for individual licences
- Standard terms and conditions for class licences
- Process and procedure regulations
was initiated by ICASA in July 2009 and the finalised amendments were published on 14 June 2010 (draft documents).
Standard Terms and Conditions for Individual Licences Regulations 2010
Licensing Process and Procedure Regulations Individual Licences 2010
Standard Terms and Conditions for Class Licences Regulations 2010
Licensing Process and Procedure Regulations Class Licences 2010
There is also a handy Reasons Document which explains why amendments were made (and why certain proposed amendments were not made).
Reasons Document Amendments to Standard Terms and Conditions and Process and Procedure Regulations
The Amendments will come into force on a date to be gazetted.
In general common sense seems to have prevailed:
- The term of an IECS licence has been standardised with that for IECNS licences at 20 years.
- The lead time for the filing of tariffs prior to putting them into service has been kept at 7 working days and not increased to 21 working days as ICASA proposed.
- “The Authority concurs with ISPA that person who intend to provide ancillary services or operate small electronic communications networks need not notify the Authority”. Previously the law had actually required that the thousands of Local Area Networks (LANs) and Wireless Local Area Networks (WLANs) be registered with it as licence exempt!
- They have brought some clarity to the distinction between notifications and amendments. A new Form O has been provided for notifications in respect of individual licences.
- They have cleaned up some of the mess around notifying exempts and temporary authorisations.
- “The Authority has decided to retain the term “end-user” as it is defined in the Act and extends to persons who use the service of a licensee. The Authority is of the view that the word ”public” [which ICASA wanted to use] is inconsistent with the Act and the word “subscriber” is limiting because it does not allow for remedies in relation to transactions between licensees.”
In January 2010 ICASA sent letters to all licensees requesting that they provide information showing that they had commenced providing services under their electronic communications network services and/or electronic communications services licences.
They have now published a Gazette indicating those who
- responded and are regarded as compliant
- responded but did not provide all required information (non-compliant)
- did not respond (non-compliant)
- requested and have been granted an exemption.
The list has its difficulties, i.e. the database certainly does need auditing.
Holders of electronic communications licences should check the Gazette and ascertain their status. (Note that it may be a good idea to read through the entire list of licensees as some names appear twice).
If you are regarded as compliant then just check that the contact details listed are correct (and take this opportunity to check that the details on your licence are also correct). If necessary write to the ICASA contacts set out in the Gazette to correct the error before 2 July 2010.
If you are regarded as non-compliant then you need to take corrective measures and provide the information set out in the Gazette by 2 July 2010.
If you have been granted an exemption then ICASA will no doubt be in touch next January to enquire as to how you are doing. Remember that there is no provision in the Electronic Communications Act for another extension to be granted.
Draft Radio Frequency Spectrum Fee Discussion Document and Regulations – HearingsUpdate 20090727: public hearings into these regulations will be held at ICASA Head Office in Sandton, Johannesburg, from 2-4 September 2009 – Spectrum Licence Fees: Public Hearings Notice & Schedule.
ICASA did not publish any of the submissions made by industry on its website, but we have managed to get hold of them and some are set out below (please mail if you require the entire set including the 7Mb + 23 page Cell C submission):
Altech Netstar
Eskom
Fleetcall (.doc)
Icasa Regional office (.doc)
Infraco
Internet Solutions (.doc)
ISPA
Motorola (.doc)
MTN
MWEB (.doc)
SAPS (.doc)
SARL
Sentech (.doc)
Smile Communications
Telkom
Transnet (.doc)
Vodacom
WAPA
WBS
Update: the date for submissions has been extended to 29 May 2009. See Extension Notice for Spectrum Fee Submissions 20090430
ICASA has published a Discussion Document accompanied by a draft set of regulations relating to radio frequency spectrum fees.
Comments are to be submitted by 30 April 2009.
Draft Radio Frequency Spectrum Fees Regulations 2009
Draft Radio Frequency Spectrum Fee Discussion Document
Proposed amendments to standard terms and conditionsICASA has indicated its intention to amend the standard terms and conditions applicable to individual and class licences as well as the regulations setting out licensing processes and procedures.
Comment is due by 24 August 2009.
WAPA Regulatory Guide to starting a WISPWe have prepared a regulatory guide to becoming a Wireless Internet Service Provider (WISP) on behalf of the Wireless Access Providers Association (WAPA) – this will hopefully answer some of the many questions being asked by those looking to get into the industry (or trying to regularise their existing business).
WAPA Regulatory Guide for WISPs
ISPA’s Guide to starting an ISP or Internet Cafeellipsis has prepared a guide to the regulatory aspects of starting an ISP or Internet Cafe on behalf of the Internet Service Providers’ Association (ISPA) – to which we act as regulatory advisor.
Regulatory guide to starting an ISP or Internet Cafe
Attachment 1: Registration Form for Class Licence 2008
Attachment 2: Class ECS Licence Terms and Conditions
Attachment 3: Registration as an ISP with the FPB 2008
ISPA run regular courses targeting BEE entrepreneurs and others looking to get a start in the electronic communications industry – these also cover financial and other aspects aside from regulatory issues and are well worth attending if you get the chance.
Please note that the Guide is intended as general advice and you should still seek specific advice before you start to spend your money.
ITA for IECNS licences for the provisioning of broadcasting servicesICASA has published a notice inviting “broadcasting services licensees to apply for individual electronic communications network services (IECNS) licences for the provisioning of broadcasting services. The publication of this ITA comes in the wake of a Ministerial Policy Directive published on 9 January 2009.
ITA for IECNS licence for provision of Broadcasting Services 2009
The Policy Directive, according to ICASA, requires it to prioritise, amongst other things, licensees intending to use satellite infrastructure for the provisioning of broadcasting services and applicants whose primary target is the poor “in order to self-provide their own signal distribution”.
“It is upon this policy directive and in view of our commitment to meet universal access goals and the potential of ICTs to be the effective empowerment tools for the poor, that the Authority will, on considering the applications, pay special attention to the needs of the poorest sections of our population.”
The ITA is open only to licensees entitled to participate in licence conversion (i.e. not new licensees) and licensees that “had temporary permit, authority or licence or were granted a private broadcasting licence by the Authority for broadcasting services and wish to self provide their signal distribution services using satellite technology.”
The deadline for responses is 21 May 2009. There is a non-refundable application fee of R50 000.
In completing the application details will have to be provided as to how the applicant intends:
- to ensure that electronic communications network services are provided to persons or groups of persons from poorest communities in South Africa also ensuring within those communities diverse views are accommodated; and
-to promote the empowerment of historically disadvantaged persons including women and the youth and people with disabilities, in accordance with the requirements of the ICT Charter; and
- to meet universal access goals;and
- to serve and empower the poor when the licence is issued; and
- to ensure that the poor are their primary target customers.
ellipsis comment: it is sometimes very hard not to be overwhelmed by cynicism … .
Policy Direction: Licensing of Broadband InfracoAnother missive has arrived from the Ivy Towers of the DoC, this time relating to the finalisation of the licensing of Broadband Infraco (Pty) Ltd, the proposed state vehicle for the lowering of telecommunications costs in South Africa.
The Direction calls on ICASA to accept applications for IECNS and IECS licences from Broadband Infraco. This amounts to a strategic policy intervention “to ensure the licensing of Broadband Infraco (Pty) Ltd to provide the services … in the shortest possible time”.
ICASA is further directed to conduct the necessary processes to accept and consider application for ECNS and ECS licences. After receipt of such applications ICASA is required to publish the terms and conditions for these licences as contemplated in section 9(2)(c) of the ECA, taking into account … “the fact that it is a public entity of a developmental state with additional responsibilities related to the socio-sconomic development of the country and its contribution to [ASGISA]”
ICASA required to commence with the licensing process within 30 days of publication & inform Broadband of the relevant dates for submissions.
While the process is required to be conducted in a “transparent and fair manner” the Minister has “encouraged” ICASA, given the need to “urgently” allow Infraco to play its role in the economy,to consider waiving the requirement for public hearings.
Policy Direction: Licensing of Infraco Broadband
ellipsis comment:
The original decision to proceed with Infraco was taken by Cabinet in August 2007 so the urgency is entirely of their making. There are serious concerns about just how Infraco is going to fit in and, of course, it is yet another government player in the infrastructure industry. Accordingly industry must have sight of whether the representations made as to how Infraco will operate are being properly captured in the licence terms and conditions.
Of even greater concern is the answer to the question: what assets is Infraco sitting with, especially once the purchase of the Transtel and Eskom interests in Neotel is finalised later this year? It seems that Infraco, originally mooted as providing wholesale national ECNS, has eyes only for international submarine cables…
Draft Fees Regulations (updated)Controversy continues to surround ICASA’s Draft Licence Fee Regulations which have been roundly criticised by industry and other commentators. The regulations were panned at public hearings conducted on 13 & 14 January 2009 and information to hand is that they are in or a major overhaul.
ICASA withdrew their original draft and then promptly replaced it with pretty much the same document.
ICASA’s Draft Licence Fees 2008
The public comment process closed on 5 December 2008. (Which means that ICASA’s plan to have these finalised in early December will also need to withdrawn and replaced by a hopeful estimate of March/April 2009.)
Download the on the Draft Licence Fee Regulations.
Industry submissions on the Draft Licence Fee Regulations
Cell C (word doc)
British Telecom
Telkom
Neotel
MTN
ISPA
Why should former VANS licencees get excited about these regs? Easy: currently you pay an annual licence fee equal to 0.1% of your revenue derived from licensed services less VAT and one or two other deductions.
ICASA are proposing annual licence fees of
- 3% of “annual turnover derived from licensed activities” for individual licences &
- 1.5% of “annual turnover derived from licensed activities” for class licences.
With the likelihood being that most VANS will be converted to IECNS and IECS/CECS licences this represents a massive increase on the tax you pay for the efficient regulation of the sector and the protection you receive against the anti-competitive conduct of the incumbent operators. Or not.
ICASA already recovers significantly more in licence fees than its budget, and there is little in the document which gives any proper explanation for the proposed increases.
Policy Direction: ICASA may issue ITA for IECNS licencesThe Minister of Communications has issued a new policy direction authorising ICASA to develop and issue an Invitation to Apply (ITA).
Download Policy Direction on IECNS Licences.
Ellipsis comment: With respect, this document makes no sense to us at all. We would advise ICASA to do their best to ignore it.
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This site and the content on it is intended to facilitate greater understanding of the regulation of electronic communications in South Africa. Content does not, obviously, constitute legal advice. If it did there would probably be an invoice attached. Please use the site to become better informed and save yourself some money if and when you do need to consult a suitably qualified advisor.
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