PROPOSED AMENDMENTS
ACCOMPANYING THE SUPPLEMENTAL SUBMISSION OF THE UNIVERSAL SERVCIE AGENCY TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON COMMUNICATIONS REGARDING THE CONVERGENCE BILL (B9-2005)

12 August 2005

 

[Underline denotes proposed additions and strike-out denotes proposed deletions.]

Section 73 – Continued existence of Universal Service Agency

73. ….

(4) Before making policy, regulations or any other determination that relates to or impacts on universal access or universal service, the Minister and/or the Authority as the case may be, must consult with the Agency.

 

Section 74 – Functions of Agency

74. (1) …

(d) stimulate public awareness of the benefits of the services set out or provided for in this Act.

(2) For purposes of subsection 1(b)(ii), reference to telecommunication services in relation to development projects and programmes contemplated in section 3(a) of the Reconstruction and Development Programme Fund Act, 1994, must be regarded as reference to communications network services under set out or provided for in this Act.

(3) (a) The Agency must from time to time, with due regard to circumstances and attitudes prevailing in the Republic and after obtaining public participation to the greatest degree practicable, make recommendations to enable the Minister to determine what constitutes -

    1. universal access by all areas and communities in the Republic to communications services and communication network services; and

    2. the universal service provision for all persons in the Republic of communications services and access to communications networks,

including any elements or attributes thereof.

….

(4) The Agency-

….

(b) must conduct research into and keep abreast of developments in the Republic and elsewhere on information and communication technologyies and services;

….

(d) may issue information from time to time on the provision of communications services and communications networks in the republic and access thereto and access to the services set out or provided for in this Act;

….

 

Section 75 – Head and staff of Agency

75. (1) The Agency is under the direction and control of the Head of the Agency appointed by the Minister board provided for in section 73.

….

(6) …

(b) The Head and other employees of the Agency hold office on such conditions as to remuneration and otherwise –

    1. in the case of the Head, as the Minister board may determine with the concurrence of the Minister and the Minister of Finance.

    2. …

 

Section 79 – Continued existence and control of Universal Service Fund

79. …

(2) All money received, the amounts of which in terms of subsection (1) must be credited to the Universal Service Fund in the books of the Agency, must be paid into the National Revenue Fund established by section 185 213 of the Constitution.

 

Section 80 – Application of money in Universal Service Fund

80. (1) The money in the Universal Service Fund must be utilised exclusively for the payment of subsidies—

(a) for the assistance of needy persons towards the cost of the provision to, or the use by, them of communications services set out or provided for in this Act;

(b) subject to subsection (2), to any communications network service licensees set out or provided for in this Act, for the purpose of financing the construction or extension of communications networks or the provision of services set out or provided for in this Act, in under-serviced areas as prescribed or in other areas as determined appropriate by the Agency;

(c) to public schools and public further education and training institutions as defined in the South African Schools Acts, 1996 (Act No. 84 of 1996), and the Further Education and Training Act, 1998 (Act No. 98 of 1998), respectively, for the procurement of communications services and access to communications networks services set out or provided for in this Act;

(d) for the establishment, provisioning, maintenance and operation of centres where access can be obtained to communications networks or services set out or provided for in this Act.;

(e) for the activities of the USA set out in sections 74(1) and 74(4) of this Act,

and for the payment of associated project costs.

(2) The Authority must, for purposes of subsection (1)(b), define under-serviced areas by regulation.

(3) The Authority must review and update, at least bi-annually, the definition of under-serviced areas prescribed and the list of designated under-serviced areas eligible for construction payments subsidies from the Universal Service Fund.

 

Section 82 – Competitive tender for universal service projects

82. (1) The Agency must provide incentives to communications network service licensees to construct, operate and maintain communications networks in under-serviced areas through the award of project grants may award subsidies to universal service projects by competitive tender.

(2) The Agency must, in consultation with the Authority –

(a) publish a notice in the Gazette stating its intention to award one more project grants subsidies to universal service projects by competitive tender and invite interested communications network service licensees persons to submit proposals, and such notice must identify the time and place for submitting proposals, the criteria for evaluating proposals and such other matters as may be helpful in securing qualified proposals.

(b) identify the targeted under-serviced area or under-serviced areas where project grants will be awarded;

(c) the time and place for submitting proposals;

(d) the scope of the projects which may vary according to the needs of the targeted under-serviced area or under-serviced areas;

(e) the criteria for evaluating proposals;

(f) the projected cost of the proposed project;

(g) such other matters as may be helpful in securing qualified proposals.

(3) The criteria for evaluating proposals may must take into consideration –

    1. the objects of this Act set out in section 2;.

    2. the scope of the communications network service licensee’s proposal, including the communications network proposed for construction in the under-serviced area and the technologies proposed;

    3. any communications services the communications network service licensee proposes to offer in terms of its communications network service licence and, as applicable, any communications service licence or other licence held by the communications network service licensee;

    4. the terms and conditions relating to any proposed services, including wholesale and retail pricing, taking into account the clack of competitive communications networks and services in the targeted under-serviced area; and

    5. such other matters as the Agency, in consultation with the Authority, finds appropriate for the targeted under-serviced area and consistent with section 74(3).

(4) The subsidy for project grants subsidies to universal service projects by competitive tender must be paid out of the Universal Service Fund.

(5) ...