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