CHAPTER 1

Replace with

MTN believes carrier pre selection is a very specific switched voice service whereby a user is directly routed to the network of a different provider of voice services (eg. for long distance calls) without having to dial a prefix.

MTN fundamentally challenges that market concentration is an indication of the essential nature of a good, especially in an environment where much of the inputs scarcity is created by regulatory restrictions.

Essential goods may be provided by a plethora of players (eg. call termination), while very "common" goods could easily be provided by a limited number of players (see aircraft building).

Market concentration is a function of cost structures and/or regulatory restrictions, not an indication of whether goods produced are essential or not. So the fact that an interconnection service is produced by a limited number of players (say, voice call origination on mobile) does not necessarily make it "essential" (nor uncompetitive).

The risk is any piece of infrastructure is deemed to be essential, just because it is being requested by an entrant unwilling / unauthorized to invest.

The "essential facilities" doctrine has been abandoned in Europe. Rather, inputs considered "essential" to the development of competition in the communications market are made eligible for ex ante regulation by being included in the list of "relevant markets" (see Schedule 2).

These markets are protected from monopolization by imposing regulatory remedies aimed at neutralizing market power wherever a situation of dominance is found.

CHAPTER 3

5. (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 in the prescribed manner, grant individual licences for the following:

(a) subject to subsections (4) and (5), communications network services;

(b)radio frequency spectrum licences;

(c)subject to subsection (6), broadcasting services licenses; and

(d) such other services as may be prescribed.

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

(a) communications services, which must include resellers;

(b) applications services; and

(c) such other services as may be prescribed.

(4) The Authority may only accept and consider applications for communications network services licences as from a date to be fixed by the Minister by notice in the Gazette,

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

(6) The Authority must prescribe regulations—

(a ) setting out—

(i) the process and procedures for applying for 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 11;

(ii) the documentation that applicants must include with their applications;

(iii) the licence fees applicable to the licences specified subsections (2) and (3), 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 research and development; and

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

(7) When applying for a licence an applicant must demonstrate that the applicant 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 company, 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.

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

(a) ensure that 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 groups including women and the youth.

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

(a) are issued for a period of 25 years unless a shorter period is requested by the applicant 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 or specified in the licence.

Section 8 Terms and Conditions for licenses

8(3) The Authority may prescribe additional terms and conditions that may 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

5. (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 in the prescribed manner, grant individual licences for the following:

(a) subject to subsections (4) and (5), communications network services;

(d) such other services as may be prescribed.

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

(b) applications services; and

(c) such other services as may be prescribed.

(6) The Authority must prescribe regulations—

(a ) setting out—

(i) the process and procedures for applying for 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 11;

(ii) the documentation that applicants must include with their applications;

(iii) the licence fees applicable to the licences specified subsections (2) and (3), 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 research and development; and

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

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

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

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

(a) ensure that 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 groups including women and the youth.

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

(a) are issued for a period of 25 years unless a shorter period is requested by the applicant 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.

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

8(3) The Authority may prescribe additional terms and conditions that may be applied to one or more licensees within a category of individual or class licences where the Authority finds that a particular licensee or a number of licensees within such categories has (have) significant market power in a relevant market for ex-ante intervention.

(4) The process for determining

(a) a relevant market for the purpose of additional terms and conditions; and

(b) whether a licensee is considered to have significant market power

are specified in Chapter 8: "ex-ante economic intervention".

(5) The initial list of relevant markets for the purpose of SMP analysis is specified in Schedule 2 to this Act.

(6) The additional terms and conditions contemplated in subsections (3) are specified in Schedule 3 to this Act.

(8) In imposing the additional terms and conditions contemplated in sections (3) and (7), the Authority will ensure it acts proportionately, i.e. that the additional terms and conditions imposed on the operator with SMP or designated USO operator are the minimum necessary to remedy the lack of effective competition.

Retaining the existing process currently contained in the Telecommunications Act.

MTN believes the intervention mechanisms in the current Bill need to be re-examined, namely:

All encompassing scope of ex-ante intervention.

SMP defined as only a market share;

Essential facilities.

The risk is to regulate competitive markets with monopoly tools.

The issue is compounded by the fact that ICASA has full control over eligible markets, licensees, facilities and applicable regulatory remedies: there are no concepts of regulatory proportionality.

The practical impact of these methodological issues is that:

Competitive infrastructure investment could be "taxed" with unnecessary and onerous access obligations (eg. cost-based facilities leasing).

Communications service providers are being encouraged to free-ride on existing infrastructure rather than "build their own".

Network service licensees will not be investing in further network coverage and density, being encouraged to piggyback on competitors´ infrastructure

Retail and wholesale regulations will be imposed where competition could deliver.

Innovation could be constrained as innovative services or facilities could be taxed with regulation on the basis of market share gains or "essential facilities" treatment.

MTN proposes to remedy these issues by:

Ensuring Sector specific economic regulation is limited to a small set of services that benefit from an ex-ante treatment rather than the standard competition law process – focused ex-ante regulation.

Requiring that regulatory intervention be driven by market analysis establishing lack of effective competition in these specific markets – a sound economic basis for intervention.

Ensuring regulatory obligations deployed in case of market failure must be proportionate to the seriousness of problem – regulatory proportionality.

Its proposal is to:

Have the Authority issue a list of relevant markets for the purpose of SMP analysis and ex-ante intervention.

Replace market share thresholds with an economic analysis to assess market power in these relevant markets.

Pre-define the remedies available to the Authority to correct market failures, and require the Authority to use them proportionately to the gravity of the market failure which may be found.

These proposals are described in a new Chapter 8 called "ex-ante economic intervention".

CHAPTER 4

Proposal for new addition

MTN believes some of the all-encompassing provisions of the Bill´s current Chapter 8 (communications facilities leasing) are in fact driven by environmental or public disruption concerns.

MTN believes it is important to distinguish between facilities sharing (a service only available between communications network service licensees to avoid unnecessary duplication / environmental damage or disruption to the public) and facilities leasing (a service that may be provided across licence boundaries for commercial purposes).

CHAPTER 7

Obligation to interconnect

37. (1) A communications network service licensee must, on request, interconnect to any other communications network service licensee in accordance with the terms and conditions of an interconnection agreement entered into between the parties for the purposes of delivery of any service authorised in terms of this Act or the related legislation, unless the Authority considers such request to be unreasonable.

(2) The Authority must, within 14 days of receiving the request, or such longer period as is reasonably necessary in the circumstances, determine the reasonableness of the request.

(3) For the purposes of determining whether a request is reasonable the Authority must take into account whether the requested interconnection—

(a) is technically and financially feasible; and

(b) will promote the efficient use of communications networks.

(4) In the case of unwillingness or inability of a communications network service licensee to negotiate or agree on the terms and conditions of interconnection, either party may notify the Authority in writing and the Authority may—

(a) impose terms and conditions for interconnection consistent with this Chapter;

(b) propose terms and conditions consistent with this Chapter which, subject to negotiations among the parties, must be agreed to by the parties within such period as the Authority may specify; or

(c) refer the dispute to the Complaints and Compliance Committee for resolution on an expedited basis in accordance with the procedures prescribed in terms of section 38.

(5) For purposes of subsection (4), a party is considered unwilling to negotiate or unable to agree if an interconnection agreement is not concluded within the time frames prescribed.

(6) Subject to section 38(3), where a communications network service licensee has an interconnection agreement on file with the Authority in terms of section 39 and another communications network service licensee agrees to interconnect with such communications network service licensee on the same terms and conditions as contained in the agreement on file with the Authority, the agreement must be considered technically and financially feasible and promoting the efficient use of communications networks.

Interconnection regulations

38. (1) The Authority must prescribe regulations to facilitate the conclusion of interconnection agreements by stipulating interconnection agreement principles and those regulations may include the regulations referred to in section 41.

(2) The interconnection regulations and interconnection agreement principles may include matters relating to—

(a) the time frame and procedure for—

(i) the negotiation of an interconnection agreement, including time frames contemplated in section 37(4)(b);

(ii) the conclusion of an interconnection agreement; and

(iii) the technical implementation of the interconnection agreement;

(b) the quality and level of service to be provided;

(c) subject to and in accordance with section 41, interconnection pricing principles;

(d) the provision of facilities to establish points of interconnection;

(e) the sharing of technical information, including obligations imposed in respect

of the disclosure of current and future communications network planning activities;

(f) contractual dispute-resolution procedures;

(g) billing and settlement procedures;

(h) interconnection services such as calling line identification, signalling services,

supervision, functionality, unbundling of interconnection services, fault

reporting, co-operation in the event of faults and co-location;

(i) the framework for determining technical and financial feasibility and promotion of efficient use of the communications network contemplated in section 37(3); and

(j) the requirement that a communications network service licensee negotiate and enter into an interconnection agreement with an applicant for a communications network service licence.

(3) Where the regulations require negotiations as contemplated in subsection (2)(j), references in this Chapter to a communications network service licensee must be considered to include a reference to an applicant.

(4) The interconnection regulations may—

(a) provide for different terms and conditions for different communications networks and associated services; and

(b) exempt (in whole or in part) communications network service licensees from the obligation to interconnect under section 37(1) where the Authority finds such communications network service licensees lack—

(i) significant market power; or

(ii) control of essential facilities in the relevant market or market segment as determined by the Authority.

Filing of interconnection agreements

39. (1) An interconnection agreement must be in writing and must be submitted to the Authority.

(2) An interconnection agreement becomes effective and enforceable upon filing with the Authority in the prescribed manner, unless—

(a) an order of a court of competent jurisdiction is granted against such agreement; or

(b) the Authority notifies the parties to the interconnection agreement in terms of

subsection (6).

(3) The Authority must publish interconnection agreements submitted in terms of

subsection (1).

(4) The Authority must, at the request of any person and on payment of such fee as

may be prescribed, furnish that person with a copy of any interconnection agreement.

(5) The Authority may review an interconnection agreement submitted in terms of

subsection (1) to determine whether the agreement is consistent with the regulations

prescribed.

(6) Where the Authority determines that any term or condition of an interconnection

agreement is not consistent with the regulations, the Authority may in writing—

(a) notify the parties of the non-complying terms and conditions; and

(b) direct the parties to agree on new terms and conditions consistent with the

regulations.

(7) The parties must, upon reaching agreement and amending the non-complying

terms and conditions of the interconnection agreement, submit the amended agreement

to the Authority for consideration and review.

(8) The provisions of subsections (5) and (6) apply, with the necessary changes, to

such consideration and review by the Authority.

Notification of interconnection disputes

40. (1)A party to a dispute arising under an interconnection agreement may notify the Complaints and Compliance Committee in writing of the dispute and such dispute must be resolved, on an expedited basis, by the Complaints and Compliance Committee in accordance with the regulations prescribed by the Authority.

(2) A party who is seeking to exercise his or her rights under subsection (1) may, at

any time, withdraw the notice in writing.

(3) A decision by the Complaints and Compliance Committee resolving any dispute or a decision resolving a dispute contemplated in section 37(4) is, in all respects, effective and binding on the parties to the interconnection agreement unless an order of a court of competent jurisdiction is granted against the decision.

Interconnection pricing principles

41. (1) Where—

(a) the Authority determines that there is insufficient competition in a relevant market or market segment as defined by the Authority; or

(b) the interconnection requested in terms of section 37(1) involves a party found by the Authority to have significant market power in the relevant market or market segment or involves essential facilities,

the Authority may prescribe regulations establishing a framework of interconnection rates to be charged for specified categories of interconnection and associated interconnection services.

(2) Interconnection rates must be determined on the basis of the following principles,

namely that—

(a) rates must be related to costs; and

(b) rates must be structured and levels set to ensure reasonable rates of return.

(3) The regulations made under subsection (1) may include regulations on—

(a) the rates and changes in rates for specific interconnection services within the relevant market or market segment as determined by the Authority;

(b) the publication or disclosure of interconnection rates and rates for specific interconnection services within the relevant market or market segment which may include a reference interconnection offer; and

(c) rate control mechanisms applied to specified communications network service licensees for specific interconnection services within the relevant market or market segment.

37 Obligation to interconnect

(1A) Where a communications network service licensee who is determined by the Authority to have significant market power in the relevant access market, the Authority may deploy proportionate remedies, including access obligations as the last recourse.

(2) The Authority must, within fourteen (14) days of receiving the request, unless the period is extended by the Authority on good cause, determine the reasonableness of the request.

(3) For the purposes of determining whether a request is reasonable the Authority must take into account whether the requested interconnection─

is technically and financially feasible; and

will promote the efficient use of communications networks.

(4) In the case of unwillingness or inability of a communications network service licensee to negotiate or agree on the terms and conditions of interconnection, either party may notify the Authority in writing and the Authority may –

(a) impose terms and conditions for interconnection consistent with this Chapter;

(b)propose terms and conditions consistent with this Chapter which, subject to negotiations among the parties, must be agreed to by the parties within such period as the Authority may specify; or

(c) refer the dispute to the Complaints and Compliance Committee for resolution on an expedited basis in accordance with the procedures prescribed in terms of section 38.

Interconnection r egulations

2 The interconnection regulations and interconnection agreement principles may include matters relating to ─

(a)the time frame and procedures for─

the negotiation of interconnection agreements, including time frames applicable to section 37(4);

the conclusion of interconnection agreements; and

the technical implementation of the interconnection agreements;

(b) the quality and level of service to be provided;

c) subject to and in accordance with section 41, interconnection pricing principles;

d)the provisioning of facilities to establish points of interconnection;

e) the sharing of technical information, including obligations imposed in respect of the disclosure of current and future communications network planning activities;

f)contractual dispute resolution procedures;

g) billing and settlement procedures;

h) interconnection services such as calling line identification, signalling services, supervision, functionality, unbundling of interconnection services, fault reporting, cooperation in event of faults;

(i)the framework for determining technical and financial feasibility and promotion of efficient use of the communications network contemplated in section 37(3); and

4)The interconnection regulations may

a) provide for different terms and conditions for different communications networks and associated services; and

b) exempt (in whole or in part) communications network service licensees from the obligation to interconnect under section 37(1) where the Authority finds such communications network service licensees lack significant market power.

39. Filing of interconnection agreements

An interconnection agreement must be in writing and be submitted to the Authority.

An interconnection agreement becomes effective and enforceable upon filing with the Authority in the prescribed manner, unless─

a stay or equivalent order of a court of competent jurisdiction is granted; or

the Authority notifies the parties to the interconnection agreement in terms of subsection (6).

The Authority must publish interconnection agreements submitted in terms of subsection (1).

The Authority must, at the request of any person and on payment of such fee as may be prescribed, furnish that person with a copy of any interconnection agreement.

The Authority may review an interconnection agreement submitted in terms of subsection (1) to determine whether the agreement is consistent with the regulations prescribed.

Where the Authority determines that any term or condition of an interconnection agreement is not consistent with the regulations, the Authority may in writing─

notify the parties of the non-complying terms and conditions; and

direct the parties to agree on new terms and conditions consistent with the regulations.

The parties must, upon reaching agreement and amending the non-complying terms and conditions of the interconnection agreement, submit the amended agreement to the Authority for consideration and review.

The provisions of subsections (5) and (6) apply, with the necessary changes, to such consideration and review by the Authority.

Notification of interconnection disputes

40(1) A party to a dispute arising under an interconnection agreement may notify the Complaints and Compliance Committee in writing of the dispute and such dispute must be resolved, on an expedited basis, by the Complaints and Compliance Committee in accordance with the regulations prescribed by the Authority.

(2) A party who is seeking to exercise his or her rights under subsection (1) may, at any time, withdraw the notice in writing.

(3) A decision by the Complaints and Compliance Committee resolving any dispute or a decision resolving a dispute as contemplated in section 37(4) is, in all respects, effective and binding on the parties to the interconnection agreement unless a stay or equivalent order of a court of competent jurisdiction against the decision is granted.

Interconnection pricing principles

41(1) Where─

the Authority may prescribe regulations establishing a framework of interconnection rates to be charged for specified categories of interconnection and associated interconnection services.

(a) rates must be related to costs; and

(b) rates must be structured and levels set to ensure reasonable rates of return.

(3) The regulations made under subsection (1) may include regulations on the following matters:

(a) the rates and changes in rates for specific interconnection services within the relevant market;

(b) the publication or disclosure of interconnection rates and rates for specific interconnection services within the relevant market which may include a reference interconnection offer; and

(c) rate control mechanisms applied to specified communication network service licensees for specific interconnection services within the relevant market.

CHAPTER 8

MTN is extremely concerned this Bill may be on the verge of undermining its universal connectivity objectives by promoting arbitrage and free riding by non-infrastructure based licensees.

The current facilities provisions are, in MTN’s view, flawed in principle and application.

According to these provisions, any communication service licensee is allowed (cost based) access to existing infrastructure on the basis of SMP or scarcity of supply. This does not appear to be appropriate regulation.

MTN believes regulatory intervention should only be applied as a last recourse.

MTN believes automatic thresholds for intervention (based on market share) are widely discredited as appropriate triggers for regulatory intervention.

It has been shown that firms with much larger shares than 35% may not hold market power, while firms with much lower market shares could well hold such powers (in other jurisdictions, every provider of fixed voice call termination is deemed to have market power on that service, regardless of its overall market share).

Market share thresholds also create market-distorting behaviours, with players strategically managing growth to escape regulation.

They also create asymmetries in regulatory treatments which are not justified on an economic basis: why should a firm with 36% market share be obliged to provide cost based facilities while a firm with 34% doesn’t?

MTN therefore proposes to make ex-ante intervention subject to economic analysis at two levels:

demonstrate that a given market is such that it benefits from ex-ante intervention rather than a traditional ex-post process.

demonstrate there is no effective competition in such a market – so as to avoid deploying intervention in competitive segments of the market.

To address regulatory resourcing issues, MTN is willing to accept the burden of proof to demonstrate that:

the relevant market in the Authority’s list is NOT appropriately defined (eg. it is too "narrow), or

despite a market share above 40% (a standard threshold for presumption of market power), the firm does not, in fact, hold market power.

MTN also believes an SMP operator should be given the opportunity to give remedial undertakings to the Authority to alleviate the market failure. Only then could the Authority be able to decide whether to impose specific terms and conditions to the SMP operator.

That decision, together with the proportionality of the chosen remedy should be open to appeal.

NEW CHAPTER 9

CHAPTER 10

Retail and wholesale tariffs

61(1) The Authority may—

(a) only in respect of those markets or market segments where the Authority determines that no or ineffective competition exists; or

prescribe the manner of determining retail and wholesale tariffs which may be levied by a licensee in respect of the provision of—

(i) communications network services;

(ii) communications services; or

(iii) any other service contemplated by this Act or the related legislation.

(2) Ineffective competition exists where a licensee in any market or market segment has significant market power or control of essential facilities.

Retail and wholesale tariffs

61(1) The Authority may—

prescribe the manner of determining retail and wholesale tariffs which may be levied by a licensee in respect of the provision of—

(i) communications network services;

(ii) communications services; or

The sole mandate for intervention should be lack of effective competition in an ex-ante market.

CHAPTER 11

CHAPTER 13

84. (1) Subject to Chapter 3—

all licences granted, issued or considered to be granted or issued in terms of the Telecommunications Act;

radio spectrum licences and signal distribution licences granted or issued or considered to be granted or issued in terms of the Broadcasting Act and the IBA Act;

all licences granted or issued or considered to be granted or issued in terms of the Sentech Act; and

all public, commercial and community broadcasting licenses considered to be granted or issued in terms of the Broadcasting Act and the IBA Act, (in this chapter collectively referred to as "existing licences") remain valid under this Act until converted by the Authority in terms of section 85.

(2) Despite section 7 and subject to subsection (3), any person who, immediately before the commencement of this Act, lawfully provided a communications service without a licence is considered to have permission to continue to provide such service, if—

(a) such person applies to the Authority for the necessary licence within 90 days of the commencement of this Act; or

(b) the Authority exempts such service in terms of section 6.

(3) The permission granted in terms of subsection (2) is considered to continue until the Authority either—

exempts such service in terms of section 6;

refuses the application; or

grants the licence.

(4) Existing licences referred to in subsection (1) must be converted by the Authority in terms of section 85 within 12 months from the commencement date of this Act.

(5) The holder of an existing licence must, within 90 days of the commencement date of this Act, submit a written notice to the Authority offering to surrender its licence upon conversion and to be granted one or more new licences in terms of section 85.

(6) Where the holder of an existing licence does not submit the notice within the time frame provided in subsection (5), such existing licence expires upon the 180^th day from the expiration of the period of 90 days.

(7) Any current applications pending before the Authority upon the coming into force of this Act must be considered to have been submitted in accordance with the provisions of this Act.

(8) The Authority may require applicants to amend their applications where the Authority determines that such applications do not conform to the requirements of this Act.

Licence Conversion

85. (1) In any case where a holder of an existing licence notifies the Authority within the period of 90 days in accordance with section 84(5), the Authority must convert the existing licence of such licensee by granting one or more new licences that comply with Chapter 3

(2) The Authority must, subject to section 84(5), publish by notice in the Gazette a schedule in terms of which the Authority plans to undertake the existing licence conversion process. Such notice must—

(a) identify the existing licences that must be

converted through the process of granting new licences and those services that are exempted as provided for in section 6;

(b)set out (b) set out a time frame for such conversion,

including but not limited to the expected time frame for grantin granting new licences under this Act;

(c) set out the form and content, including

information that must be provided to the Authority by the holders of existing licences to assist the Authority in the conversion process;

(d)set out the process the Authority plans to

undertake in converting such existing licences; and

(e (e) confirm the rights of the applicants to participate in such process.

(

(3) To the extent that existing licensees comply with section 84(5), the following framework must be used by the Authority for converting existing licences and re-issuing new licences:

(a) Where an existing licence authorises the holder of such licence to both provide services and operate facilities or networks, the Authority must re-issue to that licence holder—

one or more licences relating to the communications services or application services; and

separate licences relating to the radio frequency spectrum and communications network services, consistent with the licence categories set out in Chapter 3.

Where a licence holder licensed in terms of the IBA Act or the Broadcasting Act at the time this Act comes into force provides any services identified in Chapter 3 (whether authorised by separate licence or in connection with, or part of, a broadcasting license or any other licence) such licence holder must comply with section 84 regarding—

surrendering such licence or licences; and

receiving re-issued licences from the Authority in accordance with this section.

(c) When a frequency assignment forms part of a broadcasting licence the licence holder must be re-issued its broadcasting licence and a corresponding radio frequency spectrum licence in accordance with this Act.

(d) Guidelines relating to—

(i) categories;

(ii) classifications of services; or

functions and facilities,

identified in the related legislation or any regulation or licence must be used by the Authority in converting and re-issuing licences in compliance with this Act.

(e) The following are communications services:

(i) Value-added network services

(ii) a multi-channel distribution

(iii) a carrier of carriers

(iv) common carrier services

(v) international telecommunications services

(vi) local access telecommunications services

(vii) mobile cellular telecommunications services

(viii) multimedia services;

(ix) national long distance telecommunications services

(f) The following are communications network services or communications facilities, regardless of whether the authority to provide such facility, system, network, apparatus, station or other similar service was authorised in connection with any service or whether such authorisation was contained in one or more licences:

(i) Broadcasting signal distribution;

(ii) a telecommunication facility;

(iii) a local exchange facility;

(iv) a telecommunication system;

a mobile cellular telecommunication

network;

a public switched telecommunication

network;

(vii) a radio apparatus;

(viii) a radio station;

(ix) any other similar facility identified in the

related legislation, any regulation or licence

as a telecommunication facility.

Public, commercial, and community sound and television broadcasting services identified in the related legislation whether provided—

(i) free-to-air;

(ii) via terrestrial subscription, satellite subscription, cable subscription or

any other class of broadcasting service prescribed by the Authority from time to time,

are broadcasting services under this Act.

Short-term radio frequency spectrum licences are special temporary authorisations contemplated in section 5(6)(a)(iv).

Spectrum licences are radio spectrum licences.

(4) As part of the conversion process, the Authority may grant additional rights to the licensees with commensurate licence obligations in order to convert the existing licences in accordance with provisions of this Act.

(5) Upon conversion of any existing licence through the process of granting a new licence or exemption of any service in terms of section 6—

such new licence or exempted service, as applicable, is governed by the provisions of this Act; and

the existing licence is considered to have been surrendered and has no further force or effect.

Subject to subsection (1), existing licences remain in full force and effect until converted by the Authority in terms of this section.

The Authority may not grant or include in any licence converted in terms of this section any monopoly or exclusionary rights in any service contemplated by this Act or the related legislation.

(8) No existing licensee may have any claim against the Authority or any other person asserting such monopoly or exclusionary rights.

84. (1) Subject to Chapter 3—

all licences granted, issued or considered to be granted or issued in terms of the Telecommunications Act;

radio spectrum licences and signal distribution licences granted or issued or considered to be granted or issued in terms of the Broadcasting Act and the IBA Act;

all licences granted or issued or considered to be granted or issued in terms of the Sentech Act; and

all public, commercial and community broadcasting licenses considered to be granted or issued in terms of the Broadcasting Act and the IBA Act, (in this chapter collectively referred to as "existing licences") remain valid under this Act until converted by the Authority in terms of section 85.

(2) Despite section 7 and subject to subsection

(3), any person who, immediately before

the commencement of this Act, lawfully

provided a communications service without

a licence is considered to have permission

to continue to provide such service, if—

(a) such person applies to the Authority for the necessary licence within 90 days of the commencement of this Act; or

(b) the Authority exempts such service in terms of section 6.

(3) The permission granted in terms of subsection (2) is considered to continue until the Authority either—

exempts such service in terms of section 6;

refuses the application; or

grants the licence.

(4) Existing licences referred to in subsection (1) must be converted by the Authority in terms of section 85 within 12 months from the commencement date of this Act.

Licence Conversion

(a) identify the existing licences that must be

converted through the process of granting new licences and those services that are exempted as provided for in section 6;

(b)set out (b) set out a time frame for such conversion, including but not limited to the expected time frame for grantin granting new licences under this Act;

consistent with the licence categories set out in Chapter 3.

(d) Guidelines relating to—

(i) categories;

(ii) classification of service; or

(iii) functions and facilities ,

(iv) common carrier services

(v) international telecommunications services

(vi) local access telecommunications services

(vii) mobile cellular telecommunications services

(viii) multimedia services;

(ix) national long distance telecommunications services

(i) Broadcasting signal distribution;

(ii) a telecommunication facility;

(iii) a local exchange facility;

(iv) a telecommunication system;

a mobile cellular telecommunication

network;

a public switched telecommunication

network;

(vii) a radio apparatus;

(viii) a radio station;

(ix) any other similar facility identified in the

related legislation, any regulation or licence

as a telecommunication facility.

(g) Public, commercial, and community sound and television broadcasting services identified in the related legislation whether provided—

(i) free-to-air;

(ii) via terrestrial subscription, satellite subscription, cable subscription or

any other class of broadcasting service prescribed by the Authority from time to time,

are broadcasting services under this Act.

(h) Short-term radio frequency spectrum licences are special temporary authorisations contemplated in section 5(6)(a)(iv).

(i) Spectrum licences are radio spectrum licences.

(5) Upon conversion of any existing licence through the process of granting a new licence or exemption of any service in terms of section 6—

(a) such new licence or exempted service, as applicable, is governed by the provisions of this Act; and

(b) the existing licence is considered to have been surrendered and has no further force or effect.

(6) Subject to subsection (1), existing licences remain in full force and effect until converted by the Authority in terms of this section.

(8) No existing licensee may have any claim against the Authority or any other person asserting such monopoly or exclusionary rights.