Regulatory Compliance Service

Service overview

All those who have electronic communications service (ECS) or electronic communications network service (ECNS) licences issued to them by ICASA are required to comply with the terms and conditions of their licences as well as number of other regulations. ICASA has recently indicated that it will start enforcing all compliance obligations during 2011 and that licensees that are not compliant may be referred to the Complaints and Compliance Commission and subject to a fine or other sanction.

Less than 10% of licensees are currently actively attempting to comply with the obligations flowing from their licences.

Ellipsis is the recognised leader in the provision of advice regarding electronic communications regulation and compliance and we have developed simple, practical solutions to assist licensees in meeting the compliance challenge. We work directly with ICASA at Compliance Division and Council level to obtain up-to-date information and guidance as to their requirements.

Overview of Compliance Obligations for ECS & ECNS licensees

• Payment obligations: licensees are required to submit documentation and make payment of an annual licence fee and a contribution to the Universal Service and Access Fund (USAF). Late payments attract penalty interest and a possible further penalty of 25% of the capital amount due.
• Ad-hoc filing obligations: licensees are required to
  • file tariffs for services prior to commencing provision of these services to consumers
  • notify the Authority within seven working days of any change in the licensee’s name, contact details, shareholders and/or addresses
  • notify ICASA in writing if they cannot provide licensed services for a continuous period of 12 hours or longer (within 24 hours of the 12 hours of service interruption being reached)
  • Reporting obligations:  These obligations rest on  licensees for the submission of several annual and bi-annual reports.

What the service covers

Provision of assistance with submissions and required payments to ICASA including submissions relating to:

• Annual Licence Fees
• Universal Service and Access Fund (USAF) Contributions
• Compliance with Standard Terms and Conditions Regulations, including submission of sectoral planning information on a quarterly basis
• Compliance with E-Rate Regulations
• Compliance with Disability Regulations
• Compliance with the Code of Conduct Regulations
• Compliance with the quality of service provisions of the End-User and Subscriber Service Charter Regulations
• Register of Complaints
• Tariff Reporting
• Provision of assistance with ad hoc compliance requests from ICASA
• Provision of information relating to regulatory processes in progress
• Email and telephonic support regarding compliance issues
• Updates and notifications relating to compliance issues

What the service does not cover

The Ellipsis Compliance Service is not intended to cover:

Legal opinions, applications, registrations and other services where these result from a specified instruction given by the client.

Provision of  general compliance advice on obligations not flowing directly from the holding of service licences issued under Chapter 3 of the ECA, including:

• Competition laws;
• Consumer protection law such as the National Credit Act and the Consumer Protection Act;
• The Film and Publications Act and obligations placed on ISPs in terms of that Act;
• Related legislation such as the Regulation of Interception of Communications and Provision of Communication-related Information Act (RICA) and the Electronic Communications and Transactions Act (ECT Act); and
• Non-statutory compliance with codes of conduct such as the ISPA, WAPA or DMASA Codes of Conduct

Initial documentation to be provided

• Compliance calendar
• Overview document including
  • procedures
  • checklist of information required to complete submissions
  • checklist of ad-hoc submissions required
  • Code of Conduct
  • Service Charter
  • General Complaints Handling Procedure
  • Billing Dispute Resolution Procedure

Where applicable a client may elect to have existing documentation reviewed and amended to ensure compliance with applicable regulation.

Pricing

Packages are structured as monthly retainers. An initial term of 12 months applies in order to ensure recovery of fees in respect of upfront documentation provided.

Note that members in good standing of the Internet Service Providers’ Association (ISPA) and the Wireless Access Providers’ Association (WAPA) qualify for a R500 discount on the above fees (applies only once even if you are a member of both associations).

Note that costs incurred in ensuring compliance are regarded as costs directly incurred in the provision of licensed services and can therefore be deducted from revenue prior to calculating your annual licence fee.