Presented by :
Lumko Mtimde
Chief Executive Officer
Media Development and Diversity Agency
30 August 2006
Convergence – Broadcast $ Telecommunications Summit
The Wanderers Club, Johannesburg



Roadmap of the presentation

Introduction - About the MDDA

Highlights of the Broadcasting history in S.A.

Broadcasting Regulatory Framework – mandate and core functions

The current broadcasting landscape MDDA

The current broadcasting landscape MDDA

The current broadcasting landscape MDDA


Conclusion


Map of South Africa


About MDDA
Section 16 and 32 of the Constitution Act provides for freedom of expression and access to information.
The MDDA Act provides for a statutory body entrusted with the responsibility of promoting media development and diversity in S.A. by providing financial and other support to community (non profit) and small commercial media projects.

About MDDA
Help create an enabling environment for media development and diversity that is conducive to public discourse and which reflects the needs and aspirations of South Africans.
www.mdda.org.za

Pre 1993 Regulated via the then Apartheid’s Government, Department of Posts and Telecommunication, and to some extent self-regulation. 1996 Telecommunications Act established the SATRA to regulate telecommunications in the public interest. Minister retained various policy-making powers, more importantly certain licensing functions and a veto power on all telecommunications regulations. Constitution Act No. 108 of 1996 re-enforced the IBA. 1999, enactment of the Broadcasting Act providing a new broadcasting policy and legislative framework.   1993 IBA Act established a functionally independent and impartial regulator, the IBA, for broadcasting and signal distribution, in the public interest. The Interim Constitution No. 200 of 1993 guaranteed this independency. 2000 Anticipating convergence of technologies - the two regulators (IBA and SATRA) were merged into a single regulator, ICASA, in terms of the ICASA Act Retained the independence character enshrined in the Constitution Act.

Broadcasting history in S.A

Prior to 1994
SABC run as a state broadcaster, mouthpiece of the Nationalist Party regime.
702 Radio, Capital Radio and the homeland broadcasters (TBVC stations)
No other private broadcasters and no community broadcasters
No policy and proper legislative framework
1994 and post 1994
Transformation of SABC
Establishment of the IBA
Protection of the independence of the regulator through the Constitution and the Act
Convergence.

S.A. Regulatory Framework – mandate and core functions

1993 and 1996 Constitution Act of S.A.
Section 192 provides that national legislation must establish an independent authority to regulate broadcasting in the public interest, and to ensure fairness and a diversity of views broadly representing South African society

ICASA is the independent authority to regulate broadcasting and telecommunications in the public interest

ICASA’s mandate is to perform duties and exercise powers under:

the Telecommunications Act of 1996, re - telecommunications

the IBA Act of 1993 and the Broadcasting Act of 1999, re - broadcasting

from 19 July 2006, the Electronic Communications Act of 2005, which repeals the above laws except the Broadcasting Act.

In respect of broadcasting matters, ICASA remained functionally independent, in respect of its licensing and regulatory powers, whereas in telecommunications matters the Minister retained some licensing powers and veto powers on regulations developed by the Authority.

Electronic Communications Act (ECA) strengthens ICASA’s licensing and regulatory powers over the entire electronic communications sector.

S.A. Regulatory Framework – mandate and core functions

Policy and regulatory development by ICASA in the sector is informed by, amongst others,:

The Constitution, Act 108 of 1996 (as amended)
Independent Broadcasting Authority Act, No. 153 of 1993 (as amended) repealed by ECA
IBA’s Triple Inquiry Report, 1995
White Paper on Broadcasting Policy, 1998
Broadcasting Act, No. 4 of 1999 (as amended)
Independent Communications Authority of South Africa Act, No. 13 of 2000 (as amended)
Broad-Based Black Economic Empowerment Act, No. 53 of 2003
Telecommunications Act, No. 103 of 1996 (as amended) repealed by ECA
Films and Publications Act, No 65 of 1996 (as amended)
Draft ICT BBEE Charter, 2005
Competition Act, No. 89 of 1998 (as amended)
Promotion of Administrative Justice Act (as amended)
Electronic Communications Act of 2005 (ECA) from 19 July 2006
S.A. Broadcasting Regulatory Framework – mandate and core functions

1994 and post 1994
ICASA regulates in terms of the law and is obliged to conduct public processes in conducting its functions
Regulator required by law to promote administrative justice, in terms of the Promotion of Administrative Justice Act, which stipulate timeframe for consideration matters by administrative bodies and require “Reasons for Decisions” to be provided.
Regulator obliged to act transparently and in the public interest
Regulator developed a number of regulations (through public participation) in order to provide clarity and certainty regarding its positions on a number of regulatory areas
Regulations give meaning and effect to the laws.

S.A. Broadcasting Regulatory Framework – mandate and core functions

In the main, ICASA’s mandate and core function is :
Licensing, including the issuing of clear and measurable terms and conditions for licenses,
Developing a Regulatory framework,
Managing the broadcasting frequency spectrum,
Monitoring compliance to the license, regulations and the law, and
Regulating the industry in the public interest.
ICASA invites applications, consider applications, grant and issue licenses
Three tiers of broadcasting licenses in South Africa:
Public
Commercial
Community

Current S.A. Broadcasting Landscape

Broadcasting Division (Licensees)
Television

3 Public National Free-to-air Broadcasting Services (SABC)
1 Commercial National Free-to-air Broadcasting Service (e-tv)
1 Terrestrial Subscription Broadcasting Service (M-net)
1 Community Television Broadcasting Service (TBN, which was grand-fathered) and (a few others from time to time on special events licenses, Soweto, Grahamstown, Cape Town, Durban)
2 Public Regional Television Broadcasting Services (SABC – not operational yet)
SABC Africa

In addition to these licenced services there are 2 satellite based television broadcasting services (Vivid and DsTV) which are not licensed yet, but which do have permission to continue broadcasting until their applications have been dealt with by the Authority.

Current S.A. Broadcasting Landscape

Broadcasting Division (Licensees)
Sound Broadcasting (Radio)
18 Public Sound Broadcasting Services
13 Commercial Free-to-air Sound Broadcasting Services
100 (82 are currently on air) Community Sound Broadcasting Services

In addition there is 1 satellite based commercial sound broadcasting service (WorldSpace) which has permission to continue broadcasting until its application has been dealt with by the Authority.

Broadcasting Signal Distribution
1 Category One Licence – Common Carrier (Sentech)
1 Category Two Licence – Commercial (Orbicom)
Some Community Sound Broadcasters are licensed to self provide their own signal distribution as Category Three Broadcasting Signal Distribution licences.

ECA
Promotes convergence in the broadcasting, broadcasting signal distribution and telecommunications sectors;
Provide the legal framework for convergence of these sectors;
Make new provision for the regulation of electronic communications services, electronic communications network services and broadcasting services;
Provide for the granting of new licenses and new social obligations;
Provide for the control of the radio frequency spectrum;
Provide for the continued existence of the Universal Service Agency and the Universal Service Fund;
Provide for other related matter incidental thereto.

ECA and broadcasting

Chapter 14 provides for continued existence of Universal Service Agency, henceforth called Universal Service and Access Agency of South Africa.
Section 89 (2) provides that the Authority must prescribe—
(a) the basis and manner of determination of such contributions, which must not exceed 1 per cent of the licensee’s annual turnover or such other percentage of the licensee’s annual turnover as may be determined by the Minister after consultation with the affected parties, by notice in the Gazette; and
(b) the dates when such contributions become payable and the manner in which they may be paid.
Section 89 (3) provides that broadcasting service licensees contributing to the Media Development and Diversity Agency (‘‘MDDA’’) must have their annual MDDA contribution set off against their prescribed annual contribution to the Universal Service and Access Fund.

ECA and MDDA Act

Chapter 14 provides for continued existence of Universal Service Agency, henceforth called Universal Service and Access Agency of South Africa.
Section 89 (2) provides that the Authority must prescribe—
(a) the basis and manner of determination of such contributions, which must not exceed 1 per cent of the licensee’s annual turnover or such other percentage of the licensee’s annual turnover as may be determined by the Minister after consultation with the affected parties, by notice in the Gazette; and
(b) the dates when such contributions become payable and the manner in which they may be paid.
Section 89 (3) provides that broadcasting service licensees contributing to the Media Development and Diversity Agency (‘‘MDDA’’) must have their annual MDDA contribution set off against their prescribed annual contribution to the Universal Service and Access Fund.

CONCLUSION
The two Agencies (MDDA and USAASA) need to discuss how best to implement their respective mandates, in the interest of growth of the communications sector and the promotion of the goals of universal service and access.
The era of convergence provides for an opportunity for growing the industry and therefore, facilitate economic growth and development, empowerment, people driven democracy and poverty reduction.

Ndiyabulela
Ke a leboga
Ngiyabonga
I thank you

Lumko Mtimde
lumko@mdda.org.za
www.mdda.org.za
30 August 200