• Over-riding need to develop a communications environment that is universal and meets the needs of all South Africans

• Digital gap created by technology

• Even developed countries also contending with a new digital divide Market substitution

• Need to leapfrog in order to position South Africa amongst community of nations.

Frame of mind

• Facilitating the introduction of new cutting edge technologies and services

• Facilitating new investments

• New regulatory structure that is non technology based

• Converting to digital technologies to provide a platform of integrated networks to offer applications and services through multiple service providers

• Reduction in tariffs and prices

• Effective implementation of Managed Liberalisation Policies

• Effective coordination by all the stakeholders including consumers, industry, societal interests and government

• Effective balance of competing interests of the stakeholders

Context

• Convergence Bill

Broadband Policy Universal Service and Access Policy

• Lowering of Tariffs

• Digitisation

• Local loop unbundling

• Economies of scale

• Empowerment

• Convergence Bill provides legal framework to enable realisation of other policy objectives Detailed introspection of the Convergence Bill will give direction for the development of a new legal framework.

Convergence Bill

• Further liberalisation of the market

• Leveling the playing field for market participants

• Lowering barriers to entry to allow new investment in the sector

• Harmonisation of regulation

• Introduction of new technologies and services

Convergence Issues

• Policy Vacuum

• Separation of Powers

• Definitions

• Licensing

• Interconnections / Facilities leasing

• Spectrum Management

• Competition issues

• Universal Services Fund Transitional Mechanisms

Policy Issue

• Harmonisation & Implementation of existing National Policy

• Three years of public discussion

• National Colloquium

• Industry Working Groups

• Industry participation in drafting the Convergence Bill

• Intergovernmental coordination

• Two public processes for input

Separation of Powers

• Bill provides for clarity and points of interaction between the Minister and ICASA

• Policy Development

• Minister must consult when issuing policy directives

• ICASA must consult when making regulations

Definitions

• Consequential clarity Agreement that they should be refined

Licensing

• Needs further clarity

• Broad acceptance of the principles outlined by ICASA

• Networks

• Services

• Broadcasting

• Spectrum

• Categories

• Individual

• Class

• Exemptions

No License Required

• Right to lease and interconnect for networks, broadcasting and communications services

• Communications services to interconnect with networks and other communications services

• Broadcasters to interconnect with networks and other communications services

· Interconnection and leasing on a non-discriminatory, non-preferential and transparent basis

• Bill recognises that some operators may be found to have Significant Market Power

• Whole Sales Rates may be imposed where an operator is found to have Significant Market Power

Spectrum management

• Agreement on 3 levels of spectrum management

• 1^st level - ITU Coordination

• 2nd level - Implementation of national spectrum Plan incorporating ITU Allocation as adopted

• 3rd level - ICASA Assignment of Frequencies

Competition Issues

• Need to balance the need for ex-ante regulation and ex-poste remedies

• Need to balance development of a competitive market place and management of competition once established

• Need to align competition terminology

• Outstanding Report from discussions between ICASA and the Competition Commission

Universal Service Fund

• Licensees to contribute in relation to their licensed activities

• Broadcasters to contribute equitably in relation to their turnover

• MDDA contributions to be taken into account

Transitional Measures

• Transitional period to allow for an extension if required or needed

• Mapping to be clarified

• Terms and conditions to take into consideration establishment of a convergent regulatory environment but no less favourable

THANK YOU