South African Institute of Electrical Engineers Presentation to

South African Institute of Electrical Engineers Presentation to the Parliamentary Portfolio Committee on Communications Convergence Bill 1

SAIEE Presentation Team Viv Crone, Pr. Eng, FSAIEE Deputy President SAIEE, CTO Spescom Dumisa Ngwenya, Pr. Eng, SMSAIEE Senior Lecturer, University of Pretoria Neël Smuts, Pr. Eng, FSAIEE Consultant, Former Councillor ICASA 2

SAIEE Background • Established 1909 • The Institute contributes to the common interests and welfare of the engineering fraternity through close co-operation with the Engineering Council of South Africa (ECSA) • Voluntary Society as opposed to Statutory (like ECSA) • Apolitical and non-discriminatory • Over 6000 members throughout Southern Africa 3

SAIEE Background • Members are professionally engaged in the full range of engineering activities including: – – – – academic research manufacturing electronics software development broadcasting and telecommunications measurement and control mining and power infra-structure services. • SAIEE is represented on and participates in a number of standing committees 4

Contents Comments divided into 2 sections: – General Comments on Convergence Bill • • Clarification of Overall Guiding Principles Promotion of Innovation and Investment Technology Neutrality Definitions and Policy Statements Bill Process Regulation of content Some suggested principles – Specific comments on sections of the Bill 5

Overall Guiding Principles • What is the big VISION? • Consensus that Bill needs to consolidate various Acts – IBA Act, Telecommunications Act and Broadcasting Act • Suggested guiding principles (vision) are – To reduce cost of doing business – To address developmental goals (e. g. Education) – To maintain technology leadership by general deployment of broadband access • Regulatory framework should draw from relevant sections of other jurisdictions and not just one – need to maintain best of imported and local that fulfills our South African vision 6

Innovation and Investment Promotion • The Bill should not inhibit innovation in any way but focus on regulating the environment • At present there are several areas in the Bill that may inhibit innovation – Requirement to license many services that should not require licensing – Not providing sufficient regulatory certainty for large investors in infrastructure 7

Technology Neutrality • SAIEE supports a policy of technology neutrality – Some technology-specific areas have been removed – How do we take advantage of the Convergence of Technology? • Concerns are: – Great details on telephone numbers – No details on newer technologies e. g. ENUM – There is bias towards “digital technologies” Section 65 to 70 • Recommendations – Numbering and portability should be dealt with broadly – Details should be dealt with in regulations 8

Definitions and Policy Statements • Definitions contain policy statements • Makes some definitions unnecessarily complicated • Policy should be in body of Bill e. g. “broadcasting services” definition consists of subsections that could be in the body 9

Bill Process • Broad concerns: – Bill did not follow the traditional Green Paper - White Paper process – This resulted in inadequate early opportunities to contribute – SAIEE however acknowledges that this traditional process is cumbersome. – Remedy: this opportunity for comment before the Portfolio Committee for Communications • Concern about not simultaneously empowering ICASA e. g. functions and funding 10

Regulation of Content • It is not necessary to deal with all content regulation in a single piece of legislation - there is other legislation (e. g. Publications Act) dealing with content • Under current legislation content is dealt with in different ways, or ignored, depending on how it is delivered e. g. Broadcasting signal distribution, Internet, Telecommunication systems (e. g. Cellular & digital lines) • There needs to be a distinction between broadcasting content and other ‘informational’ content 11

Some suggested principles • Delivery mode should be independent of content • Delivery of broadcasting services should be technology neutral • Thus content should be regulated separately from delivery systems • This does not imply that all content needs a licence 12

Specific Issues: Chapter 5 - Radio Frequency Spectrum • Section 30: Control of RF Spectrum – Inadequate provision for control of the spectrum – Suggest that Subsection 2 c be deleted as too technology specific • Section 34: RF Plan – Frequency planning needs 2 levels • Policy Level & International Level • Operational Level/Industry sectors – Provide for and accommodate the existing SA Table of Allocations as the first tier planning related to the ITU Frequency Allocations – Provide for 2 nd tier planning to accommodate the Broadcast Frequency Plan per S 31 of IBA Act and Band Plans per S 29 of Telecommunications Act to provide for the repeal of these provisions in these acts – SAIEE recommends the redrafting of this chapter to reflect above points 13

Specific Issues: Chapter 6 - Technical Equipment & Standards • The Bill does not cover the need for certificated technicians to install or maintain telecommunications facilities as provided for in S 57 of the Telecommunications Act • SAIEE recommends that an amended version of S 57(1) and the full provisions of S 57(2) of Telecommunications Act be included in the Convergence Bill • Certification however should not be done by ICASA but the Bill should refer to and be aligned with Engineering Professions Act (46 of 2000) that provides for registration of all categories of engineering practitioners and the safety related reserved work categories where required 14

Specific issues: Chapter 13 – Transitional Provisions • The timeframe for the workload imposed on ICASA in this chapter is unrealistic • S 84(4) states: “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” • All licences or authorisations existing before the promulgation of the Telecommunications Act in 1996 have not yet been converted • SAIEE recommends that realistic targets with broad priorities be set in the Bill, say a 3 to 5 year plan with per year priorities • Failure to reach the prescribed target above will lead to instability, uncertainty or exploitation in the communication industry 15

In Summary • Bill should be technology neutral • Content regulation should be separate from regulation of delivery • Definitions should be simple and not include policy issues • Repealed Acts to be comprehensively covered – e. g. RF spectrum • Certification and Engineering Professions Act • Realistic targets for transition 16

Conclusion • The SAIEE welcomes the Convergence Bill • It has the potential to dramatically increase the rate of economic and other development in South Africa • The SAIEE gladly offers assistance to re-draft relevant portions of the Bill • The SAIEE thanks the Portfolio Committee for the opportunity to make a contribution 17

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Broadcasting Service Definition ‘‘broadcasting service’’ means any service which consists of the broadcasting of television or sound broadcasting material to— (a) the public, (b) sections of the public; or (c) subscribers to such a service, but does not include— (i) a service (including text service) that provides no more than data, or no more than text (with or without associated still images); or (ii) a service or components of a service that make programmes available on demand on a point-to-point basis, including a dial-up service; 19

“Application” ‘‘application’’ means any technological intervention by which value is added to a communications network service which includes the— (a) manipulation; (b) storage; (c) retrieval; (d) distribution; (e) creation; and (f) combination, of content, format or protocol for the purpose of making such content, format or protocol available to customers; 20

“application service”/ “application service licensee” ‘‘application service’’ means a communications service provided by means of applications; ‘‘application service licensee’’ means a person licensed to provide an application service; 21

Bill’s opening statement To promote convergence in the broadcasting, broadcasting signal distribution and telecommunications sectors and to provide the legal framework for convergence of these sectors; to make new provision for the regulation of communications and network services; to provide for the granting of new licences and for new social obligations; to provide for the control of the radio frequency spectrum; to provide for the continued existence of the Universal Service Agency; and to provide for matters incidental thereto. 22