SOUTH AFRICA: SPECTRUM MANAGEMENT DEMARCHE RESPONSE

UNCLAS PRETORIA 000675 SIPDIS SIPDIS DEPT OF COMMERCE FOR NTIA STATE FOR EB/CIP/MA E.O. 12958: N/A TAGS: ECPS SF SUBJECT: SOUTH AFRICA: SPECTRUM MANAGEMENT DEMARCHE RESPONSE REF: 05 SECSTATE 225777 ¶1. Per reftel questions, Woutjek Skowronski, General Manager of Technology and Engineering and Dr. Tracy Cohen, Councilor, both with the Independent Communications Authority of South Africa (ICASA),provided the following responses. ¶2. Responsible Authority. The responsible authority for radio frequency management is ICASA, the independent telecommunications and broadcasting regulator, which derives its authority from the Telecommunications Act (1996) and Broadcasting Laws (1994 and 1999). ICASA is a statutory body, established in terms of the ICASA Act (2000). Currently, the Minister of Communications sets broad spectrum management policy via legislation, and where necessary, augmented by Ministerial Policy determinations, which must be implemented by ICASA. Seven ICASA Councilors, appointed by the President, take all regulatory decisions. The Minister of Communications is appointed by the President and is part of the President's Cabinet. These above laws are subject to pending legislation: The Electronic Communications Bill (repealing telecommunications and broadcasting law) and the ICASA Amendment Act. The South African Parliament passed both bills; they await the President's signature, which will signify their commencement. The two Bills are inextricably linked by cross-references. The ICASA Amendment Bill places more authority with the Minister of Communications and effectively authorizes the Minister, rather than the President, to appoint ICASA councilors. The pending legislation will not result in a significant change in the powers of the Minister with regard to spectrum policy formulation and ICASA,s role in implementing spectrum management policy. ¶3. Assignment Process. ICASA assigns spectrum on a first-come, first-served basis. There are no auctions, lotteries, or comparative hearings. The military manages its own spectrum assignment within its own assigned bandwidth assigned. ¶4. Licensing Regime. ICASA awards licenses on an annual basis for a specific service. Licensees may renew their licenses upon notification to ICASA. ¶5. License Privileges. Licensees have no flexibility in transferring spectrum rights to other parties. Licensees may not aggregate or subdivide licenses. Licensees may not make all or part of their spectrum available to other entities based on geography or time, nor may licensees generally accept payment in exchange for spectrum access. An exception is made for WiFi service providers which make their routers available to individual retail users on a per minute or per hour basis. ¶6. Spectrum Fees. The standard annual fee for spectrum users is R770 ($128) per mHz for non-bulk users and R1540 ($256) per mHz for bulk users such as the national telephone operator, Telkom and the recently licensed second national operator (SNO). In addition, spectrum users in the 900 mHz to 1800 mHz range, the so called 3-G (third generation) spectrum, pay a one-time license fee of R5 million (i.e., $83,333) as well as a percentage of revenue. Access to this category was granted through legislation. Spectrum users in this category include Telkom, the SNO and the three mobile phone providers (Cell C, Vodacom, and MTN). The only users exempt from spectrum fees are those operating in the ISM band 2.4-2.5 MHz (industrial, scientific, and medical research band). ¶7. Treatment of Government versus Commercial Users. Government and non-commercial users are subject to the same rules as commercial users as described in Paragraphs 2 through 6 above. ICASA may waive spectrum fees for higher purpose organizations, such as non-governmental organizations which use spectrum for the greater public good. ¶8. Other Incentives. ICASA did not identify other means to encourage the more efficient use of spectrum. ¶9. Government Spectrum. Paragraphs 2 through 7 above also describe management of spectrum for government agencies. ¶10. In Country Contacts and Studies. Discussion of ICASA's spectrum management policies requires a formal meeting request to the ICASA Chair, Mr. Paris Mashile, telephone: ( 27 11 321 8202) pmashile1@icasa.org.za. Clarification of the answers above may be directed to Mr. Woutjek Skowronski, ICASA General Manager of Engineering and Technology (Tel: (27)(11) 321-8328)wskowronski@icasa.org.za. Postal address for ICASA is Block A, Pinmill Farm, 164 Katherine Street, Sandton, Private Bas X10002, Sandton, 2146, South Africa. ICASA's website address is www.icasa.org.za. Questions regarding the Department of Communications' spectrum management policies may be directed to Mr. Peter Zimeri, Chief Director of Technology ( 27 12 427 8000). Postal address for Department of Communications is Block C, iParioli Office Park, 399 Duncan Street, Hatfield, Private Bag X860, Pretoria 0001, South Africa. Department of Communications website is www.doc.gov.za. TEITELBAUM