2. Object of Act


The primary object of this Act is to provide for the regulation of communications

in the Republic in the public interest and for that purpose to—


(a)
promote and facilitate the convergence of telecommunications andbroadcasting, broadcasting

signal distribution and other services contemplated in this Act;;

(b) promote the universal provision of communications networks and communication services and connectivity for all;

(c) encourage investment and innovation in the communications sector;

(d) ensure efficient use of the radio frequency spectrum;

(e) promote competition within the communications sector;

(f) promote an environment of open, fair and non-discriminatory access to broadcasting services,

communications networks;

(g) promote the empowerment of historically disadvantaged persons, including women, youth and people with disabilities;

(h) encourage research and development within the communications sector;

(i) encourage the inter-working and interoperability of communications networks and communications network services and any other services contemplated in terms of this Act

(j) provide a clear allocation of roles and assignment of tasks between policy formulation and regulation within the communications sector;

(k) ensure that communications services, viewed collectively, are provided by persons or groups of persons from a diverse range of communities in the Republic;

(l) provide assistance and support towards human resource development within the communications sector;

(m) ensure the provision of a variety of quality communications services at reasonable prices;

(n) promote the interests of consumers with regard to the price, quality and variety of communications services;

(o) subject to the provisions of this Act, promote and facilitate the achievement of the objects of the related legislation;

(p) develop and promote SMMEs and cooperatives;

(q) ensure information security and network reliability;

(r) promote the development of public, commercial and community broadcasting services which are responsive to the needs of the public;

(s) ensure that broadcasting services, viewed collectively—

(i) promote the provision and development of a diverse range of sound and television broadcasting services on a national, regional and local level, that cater for all language and cultural groups and provide entertainment, education and information;

(ii) provide for regular—

(aa) news services;

(bb) actuality programmes on matters of public interest;

(cc) programmes on political issues of public interest; and

(dd) programmes on matters of international, national, regional and local

significance;

(t) protect the integrity and viability of public broadcasting services;

(u) ensure that, in the provision of public broadcasting services—

(i) the needs of language, cultural and religious groups;

(ii) the needs of the constituent regions of the Republic and local communities; and

(iii) the need for educational programmes,
are duly taken into account;

(v) ensure that commercial and community broadcasting licences, viewed collectively, are controlled by persons or groups of persons from a diverse range of communities in the Republic;

(w) ensure that broadcasting services are effectively controlled by South Africans;

(x) provide access to broadcasting signal distribution for content providers; broadcasting and ncourage the development of multi-channel distribution systems into the broadcasting framework.

(y) provide access to signal distribution services for broadcast content receivers;

and

(z) encourage the development of multi-channel distribution systems into the

broadcasting framework.


CHAPTER 2

POLICY AND REGULATIONS


3. Ministerial policies and policy directions

(1) The Minister may make policies on matters of national policy applicable to the communicationsICT sector, consistent with the objects of this Act and of the related legislation in relation to—

(a) the radio frequency spectrum, for the purposes of planning communications services;

(b) universal service policy and access;

(c) the Republic’s obligations and undertakings under bilateral, multilateral or international treaties and conventions, including technical standards and frequency matters;

(d) the application of new technologies pertaining to communications services, broadcasting services and communications network services;

(e) guidelines for the determination by the Authority of licence fees associated with the award of the licences contemplated in Chapter 3, including incentives that may apply to individual licences where the applicant makes binding commitments to construct communications networks and provide communications services in rural and under-serviced areas of the Republic;

(f) the promotion of universal service and communication services in under-serviced areas;

(g) mechanisms to promote the participation of SMMEs in the communications sector; and

(h) the control, direction and role of state-owned enterprises
(i)
(h) any other policy which may be necessary for the application of this Act or the related legislation.


(2) The Minister mustmay, subject to subsections (4) and (5) issue to the Authority policy

directions consistent with the objects of this Act and of the related legislation in relation

to—

(a) the undertaking of an inquiry in terms of section 17F of the ICASAAct on any matter within the jurisdiction of the Authority and the submission of reports to the Minister in respect of such matter;

(b) the determination of priorities for the development of communications networks and communications services or any other service contemplated in Chapter 3;

(c) the consideration of any matter within the jurisdiction of the Authority reasonably placed before it by the Minister for urgent consideration; and

(d) the implementation of any policy made by the Minister in terms of subsection


(3) No policy made by the Minister in terms of subsection (1), or policy direction issued by the Minister in terms of subsection (2) may be made or issued regarding the granting, amendment, transfer, renewal, suspension or revocation of a licence, except as permitted in terms of this Act.

(4) The Authority, in exercising its powers and performing its duties in terms of this Act and the related legislation, must consider policies made by the Minister in terms of subsection (1) and policy directions issued by the Minister in terms of subsection (2).

(5) When issuing a policy direction under subsection (2) the Minister—

(a) maymust consult the Authority; and

(b) must, in order to obtain the views of interested persons, publish the text of such policy direction by notice in the Gazette

(i) declaring his or her intention to issue the policy direction; and

(ii) inviting interested persons to submit written submissions in relation to the policy direction in the manner specified in such notice.in not less than 30 days from the date of the notice;

(c) must publish a final version of the policy direction in the Gazette.

(6) The provisions of subsection (4) do not apply in respect of any amendment by the

Minister of a policy direction contemplated in subsection (2) as a result of

representations received and reviewed by him or her after consultation or publication in

terms of subsection (4).


(7) Subject to subsection (7), a policy direction issued under subsection (2) may be

amended, withdrawn or substituted by the Minister.


(8) Except in the case of amendments contemplated in subsection (5), the provisions

of subsections (3) and (4) apply, with the necessary changes, in relation to any such

amendment or substitution of a policy direction under subsection (6).


(9) The Authority may make recommendations to the Minister on the policy matters in line with the objects of this Act.

4. Regulations by Authority

(1) The Authority may make regulations with regard to any matter which in terms

of this Act or the related legislation must or may be prescribed, governed or determined

by regulation. Without derogating from the generality of this subsection, the Authority

may make regulations with regard, including but not limited to—

(a) any technical matter necessary or expedient for the regulation of the licensed services identified in Chapter 3;

(b) any matter of procedure or form which may be necessary or expedient to prescribe for the purposes of this Act or the related legislation;

(c) the payment to the Authority of charges and fees in respect of—

(i) the supply by the Authority of facilities for the inspection, examination or copying of material under the control of the Authority;

(ii) the transcription of material from one medium to another;

(iii) the supply of copies, transcripts and reproductions in whatsoever form and the certification of copies;

(iv) the granting of licences in terms of this Act or the related legislation;

(v) applications for and the grant, amendment, renewal, transfer or disposal of licences or any interest in a licence in terms of this Act or the related legislation; and

(d) generally, the control of the radio frequency spectrum, radio activities and the use of radio apparatus.


(2) Different regulations may be made in respect of different—

(a) classes or categories of licences granted in terms of this Act or the related legislation, and

(b) categoriesuses of radio users, radio frequencies, radio frequency bands and licencesspectrum. .


(3) Any regulation made by the Authority in terms of subsection (1) may declare any contravention of that regulation to be an offence, provided that any such regulation must specify the penalty that may be imposed in respect of such contravention consistent with section [64] of this Act.
.

(4) The Authority must, not less than 30 days before any regulation is made, publish such regulation in the Gazette, together with a notice—

(a) declaring the Authority’s intention to make that regulation; and

(b) inviting interested parties to make written representations on the regulation.


(5) Not less than 30 days prior to making regulations, the Authority must consult with the Minister on the subject matter thereof.

(6) (5) The Authority may conduct public hearings in respect of a draft regulation.


(7) (6) The provisions of subsection (4) do not apply with regard to—

(a) any regulation made by the Authority which, after the provisions of that subsection have been complied with, has been amended after receipt of comments or representations received in terms of a notice issued under that subsection; or

(b) any regulation which the public interest requires should be made without delay.


CHAPTER 3

LICENSING FRAMEWORK


5. Licensing

(1) The Authority may, in accordance with this Chapter and the regulations prescribed hereunder, grant individual and class licences.


(2) The Authority may, upon application and due consideration in the prescribed manner, the Authority may grant individual licences for the following:

(a) Subject to subsections (46) and (57), communications network services;

(b) broadcasting services; and
(c) communications services


(3) Communications network services, broadcasting services and communications services that require an individual licence, include, but are not limited to -

(a)
communications networks of provincial and national scope operated for commercial purposes;
(b) radio frequency spectrum licences;commercial broadcasting and public broadcasting of national and regional scope whether provided free-to-air or by subscription
(c) subject to subsection (6), broadcasting services licences; andcommunications services consisting of voice telephony utilising numbers from the national numbering plan;
(d) any communications network service, broadcasting service or communications service where a state entity (directly or indirectly) holds an ownership interest of greater than twenty-five (25%) percent of the share capital of the person providing such service; and
(e) (d) such other services as may be prescribed.that the Authority finds have significant economic or social impact.

(4) (3) The Authority may, upon applicationregistration in the prescribed manner, grant class licences for the following:

(a) communication netwerk services;
(b) broadcasting services; and
(c) communications services.

(5) (a) Communications services, which must include resellers;Communications network services, broadcasting services and communications services that require a class licence, include, but are not limited to -

(a) communications networks of district municipality or local municipal scope operated for commercial purposes;
(b) applications services; andcommunity broadcasting and low power services whether provided free-to-are or by subscriptions;
(c) such other services as may be prescribed. that the Authority finds do not have significant economic or social impact.


(6) (4) TheIn consideration of the implementation of the managed liberalisation policies, the Authority may only accept and consider applications for individual communications

network services licences as from a date to be fixedper a policy determination issued by the Minister by notice in the Gazette.in terms of section (3).


(5) The Minister may determine the date when and the geographical area within which communications network services licences may be granted.


(7) (6) The Authority must prescribe regulations—

(a) setting out—

(i) the process and procedures for applying for or registering, amending and renewing one or more of the licences specified in subsections (2) and (3), including identifying which radio frequency spectrum licences may be exempt from the requirements contained in sections 9 and 114);

(ii) the documentation that applicants or registrants in the case of class licences must include with their applications or registrations;

(iii) the licence fees applicable to the licences specified in subsections (2) and (34), taking into account any policy directions issued by the Minister in terms of section 3(2); and

(iv) the terms and conditions for granting special temporary authorisations for testing purposes and, demonstrations, research and development; and

(b) on any matter relating to the licensing process.


(8) (7) When applying for a licence an applicant or registrar must demonstrate that the applicant or registration or the person to be awarded the licence, in the case of—

(a) a natural person, is a citizen of the Republic; or

(b) a companyjuristic person, is, or will be, registered under the laws of the Republic and has, or will have, its principal place of business located within the Republic.


(9) (8) The Authority must, in granting a licence—

(a) ensure that broadcasting services and communications services, viewed collectively, are provided by persons or groups of persons from a diverse range of communities in the Republic; and

(b) promote the empowerment of historically disadvantaged groupspersons including women and the youth in accordance with the requirements of the ICT charter.

(10) (9)Individual licences and class licenses for applications services and communications

services—

(a) aremay be issued for a period ofnot to exceed twenty-five (2520) years unless a shorter period is requested by the applicant or designated by the Authority at the time such applicant applies for the licence; and

(b) may be renewed in accordance with the terms set out in this Act.


(10) During the transition period, existing licences are considered to be individual licences for the provision of communications network services or communications services, as applicable, granted by the Authority in terms of this Act and, despite section

8, remain subject to all terms and conditions associated with such licences until such licences are converted and re-issued in terms of section 85.

(11) Licences granted by the Authority in terms of this section are effective and valid on the date specified in the licence unless an order of a court of competent jurisdiction is granted.


(12) A licence confers on the holder the privileges and subjects the holder to the obligations provided for in this Act orand specified in the licence.


6. Licence exemption

The

(1) Subject to subsection (2), the Authority may prescribe the -

(a) type of communications service that may be provided;
(b) type of communications network services that may be operated;
(c) type of communications network services that may be provided; and
(d) radio frequency spectrum that may be used

without a licence.


(2) The communications services, communications networks, communications network services and radio frequency use contemplated in subsection (1) may include, but are not limited to -

(a) communications services provided on a not-for-profit basis;
(b) communications services that are provided by resellers;
(c) private communications networks used principally or integrally related to the internal operations of the network owner, except where the private communications networks’ additional capacity is resold the Authority may prescribe terms and conditions;
(d) small communications networks such as local area networks; and
(e) uses of the radio frequency spectrum that were permitted without a licence prior to the coming into force of this Act and uses of the radio frequency spectrum that the Authority finds would not cause harmful interference with radio frequency spectrum licensees such as low power uses.
(f) such other services deemed to be exempted, as may be prescribed by the Authority.

(3) Any regulations prescribed by the Authority pursuant to this section 6 may contain terms and conditions applicable to the exempted communications services, communications networks, communications network services and radio frequency use and declare contravention of the regulation an offence subject to section [68].


7. Prohibition of provision of service without licence

Subject to the provisions of this Act and of the related legislation, and such

exemptions as may be prescribed by the Authority,Except for services exempted pursuant to section 6, no person may provide any service identified in section 5(2) and (3) except under and in accordance with the terms and conditions of an individual or class licence.without a licence.

8. Terms and conditions for licences

(1) The Authority must prescribe standard terms and conditions applicable to each

category of individual and class licence.to be applied to individual licences and class licences. The terms and conditions may vary as among the different types of individual licens and, as among different types of class licences.

(2) Such standard terms and conditions may take into account—

(a) whether the service is intended for the public generally or a limited group such as the provision of communications network services or communications services to other licensees contemplated under this Act.

(i) application services;

(ii) communications services; or

(iii) communications network services, to broadcasting service licensees or providers of content services;


(b)
subject to section 5(9), the geographic reachthe licence area of the authorised service;

(c) the duration of the licence;

(d) the nature of the service;

(d) (e) the protection of the interests of the end userssubscribers, including, without limitationbut not limited to


(i) the handling and resolution of complaints and disputes;

(ii) the resolution of disputes; (iii) the provision of appropriate remedies and redress in respect of such complaints and disputes;

(iv) making(iii) transparency of information about services, tariffs and the rights of end users

availablesubscribers; and

(viv) any other matter the Authority determines to be beneficial for securing effective protection for end users of the licensed services identified in Chapter 3subscribers;

(e)(f) the public interest in ensuring service interoperability, non-discrimination and ensuringopen access, interconnection and facilities leasing;

(f) (g) the public interest in securing efficient functioning of communications networks and communications facilities, including but not limited to preventing or restricting harmful interference within the radio frequency spectrum;

(g) (h) any universal access and universal service obligations;

(h) (i) the public interest in the provision, availability and use, in the event of a disaster, of communications networks, communications facilities and communications services;

(i) (j) the public interest in securing the protection of public health for the prevention or avoidance of the exposure of individualsnatural persons to electro-magnetic fields created in connection with the operation of communications networks and the provision of broadcasting and communications services;

(j) (k) the international obligations of the Republic, including compliance with relevant international standards adopted by the Republic;

(k) (l) the public interest in ensuring the distribution of broadcasting services;

(l) (m) the public interest in facilitating an environment of sustainable competition;the dissemination and development of a diverse range of sound and television broadcasting services on a national, regional and local level, that cater for all language and cultural groups and provide entertainment, education and news;

(m) the public interest in facilitating and maintaining a competitive communications environment and in regulating and controlling anti-competitive practices; and
(n) the efficient use of the radio frequency spectrum and migration to digital use of such radio frequency spectrum; and

(o) rollout targets in respect of radio frequency licences to ensure that the allocated radio frequency spectrum is utilised and to ensure the withdrawal of the licence when such rollout targets are not met.


(3) The Authority may prescribe additional terms and conditions that maybemay be applied to one or more licensees within a category of individual or class licences or across individual or class categories, where the Authority finds that a particular licensee within such categories, in the market or market segments applicable to the particular category of licence—any individual licence or class licence in accordance with [Chapter 10],

(a) has significant market power;

(b) has control of essential facilities;

(4) (c) should have a universal access and service obligation imposed; orThe Authority may by regulation make provision for the designation of licensees to whom universal service and universal access obligations are to be applicable.

(d) is vertically integrated and the Authority determines such vertical integration could harm competition in the market or market segments applicable to the particular category of licence.


(4) A licensee is considered to have significant market power in relation to a market or submarket if the licensee enjoys a position within such market or market segments which amounts to or is equivalent to dominance of the market or market segments.


(5) A licensee is considered to be dominant in a market or submarket if that licensee—
(a) has a market share equal to or in excess of 35 per cent; or

(b) individually or in combination with other licensees, by reason of its or their position in a closely related market, allows the market power held in the closely related market to be used in a way that adversely affects or influences the first market or market segments.


(6) The additional terms and conditions contemplated in subsection (3) may include—

(a) an obligation to act fairly and reasonably in the way in which the licensee responds to requests for interconnection and facilities leasing;

(b) a requirement that the obligations contained in the licence terms and conditions must be complied with within the periods and at the times required by or under such terms and conditions, failing which a penalty may be imposed;

(c) a prohibition against discriminating in relation to matters connected with interconnection and facilities leasing or with the provision of communications network services and communications services;

(d) an obligation requiring the licensee to publish, in such manner as the Authority may direct, all information for the purpose of ensuring transparency in relation to—

(i) interconnection and facilities leasing; or

(ii) the provision of communications network services and communications services;

(e) an obligation to publish, in such manner as the Authority may direct, the terms and conditions for—

(i) interconnection and facilities leasing; or

(ii) the provision of communications network services and communications services which may take the form of a reference offer;

(f) an obligation to maintain a separation for accounting purposes between different matters relating to—

(i) interconnection;

(ii) facilities leasing; and

(iii) the provision of communications network services and communications services;

(g) a requirement relating to the accounting methods to be used in maintaining the separation of accounts referred to in paragraph (f);

(h) price controls, including requirements relating to the provision of wholesale and retail prices in relation to matters connected with the provision of—

(i) interconnection and facilities leasing; or

(ii) communications network services or communications services;

(i) matters relating to the recovery of costs and cost orientation; and

(j) with regard to broadcasting services, the appropriate amount of South African

programming, including—

(i) music content;

(ii) news and information programmes; and

(iii) where appropriate, programming of local or regional significance.


(7) In prescribing the terms and conditions for each type of individual or class licence,

the Authority must have regard to the need to create and maintain a competitive

environment in the communications sector.


9. Application for and granting of individual licences

(1) Any person may, upon invitation of the Authority subject to the provisions of this Act and of the related legislation, where applicable, apply for an individual licence in the prescribed manner.


(2) In the case of an application for an individual licence The Authority must give notice of the invitation to apply in the Gazette and

(a) give notice of the application in the Gazette and invite interested persons to apply and submit written representations in relation to the application within the period mentioned in the notice;

(b) publishinclude the percentage of equity ownership to be held by persons from historically disadvantaged groups, which must not be less than 30%;

(c) publishset out the proposed licence conditions that will apply to the licence;and

(d) give applicantsinterested persons an opportunity to submit written responses to any representations submitted in terms of paragraph (a);

(e) submit to the Minister the proposed licence conditions for approval.

(3) The Authority may require an applicant or an interested party who has submitted written representations in terms of subsection (2)(a) to furnish the Authority, within the period specified by it, with such further information as may be reasonably necessary in order to consider the application.


(4) (a) Applications, representations, responses and other documents relating to an application which are submitted to the Authority are, subject to this subsection, open to public inspection during normal office hours of the Authority.

(b) The Authority must, at the request of any person and on payment of such fee as may be prescribed, furnish him or her with copies of documents requested by such person.

(c) (i) The Authority may, at the request of an applicant or person who has submitted representations or responses, decide that—

(aa) any document or information that is commercially sensitive; or

(bb) any other matter reasonably justifying confidentiality,

is not open to public inspection, if such document or information can be separated from the application, representations or other documents in question.

(ii) For the purposes of this subsection, commercially sensitive document, information or other matter reasonably justifying confidentiality excludes documents, information or other matter that should, as a matter of law, be generally available to the public.

(d) If the Authority refuses a request contemplated in paragraph (c)(i), the applicant or person concerned may withdraw the document or information in question.

(5) The Authority must, after considering—

(a) any application for an individual licence made in terms of this Act; and

(b) any written submissions referred to in subsection (2)(a) in relation to the application,

notify the applicant of its decision, the reasons for that decision and any licence conditions applicable thereto.


(6) Whenever the Authority grants an individual licence, the Authority—

(a) must do so on the standard terms and conditions applicable to the relevant categorytype of licence, as prescribed in terms of section 8(1); and

(b) may impose such additional terms and conditions as may be prescribed in terms of section 8(3) that the Authority considers—.

(i) appropriate to such licence, taking into account other licences held by the licensee, relevant legislation and market conditions;

(ii) consistent with the objects of the Act and of the related legislation; and

(iii) similar to any additional terms and conditions of other licences of the same category.


(7) Despite subsection (6), the Authority may impose on the applicant any other specific terms and conditions resulting from undertakings made by the applicant.