The Chairperson and the ICASA Council
Committee members
Esteemed stakeholders
Ladies and gentlemen

I wish to welcome you all to the public workshops on the published Invitation To Apply (ITA) for the licensing of the Individual Electronic Communications Network Service (I-ECNS) and Radio Frequency Spectrum (RFS) Licence for the Wireless Open Access Network (WOAN).

The Council of the Authority delegated myself, Councillor Thembeka Semane, to be the Chairperson of this Committee.  I am assisted by another Councillor, Ms Yolisa Kedama and very capable ICASA Officials. Furthermore, in our midst, we have external legal experts from Kunene Ramapala Attorneys Inc. (“KRA”) who will be providing legal support to the Authority in relation to the process of licensing the I-ECNS and RFS licence for the WOAN.

Ladies and gentlemen

We have gathered here these three days (from 9 to 11 December 2020) to be part of the most critical and very important projects under the Authority’s radar this financial year i.e. the licensing of the WOAN. As part of our regulatory mandate and in keeping with the requirements of the law and in particular, the Promotion of Administrative Justice, we decided to convene these workshops mainly to assist and touch-base with all interested stakeholders; and to provide a platform as well as an opportunity for prospective applicants to unpack the requirements of the WOAN ITA; and of course to ensure a successful licensing process.

We are doing this to ensure that when prospective applicants put together their applications, they fully understand what is required. This will make it easier for the Authority when going through these applications; and indeed expedite the process for the licensing of the WOAN. Experience has taught us that most licensing processes get delayed by, among others, the lack of understanding of the requirements which often lead to stakeholders requesting extensions; and the Authority requesting additional information due to incomplete submissions. These workshops provide an opportunity for stakeholders to raise any issues or seek clarification arising from the published ITA and these will be responded during this workshop.   

Esteemed stakeholders

On 26 July 2019, the then Minister of Telecommunications and Postal Services, who is now known as the Minister of Communications and Digital Technologies issued a Policy on High Demand Spectrum and Policy Direction on the licensing of the WOAN (“the Policy Direction”) in terms of sections 3(1), 3(2) and 5(6) of the Electronic Communications Act 36 of 2005 (“the ECA”). 

Section 5(6) of the ECA provides that “the Authority may only accept and consider applications for individual electronic communications network service licences in terms of a policy direction issued by the Minister in terms of section 3.” 

In line with the Policy Direction, on 1 November 2019, the Authority published an Information Memorandum (IM). The purpose of the IM was to outline the Authority’s intentions with regards to the licensing process for the International Mobile Telecommunications (IMT) spectrum pursuant to considerations of the Policy Direction.

The IM also provided the Authority’s licence considerations and obligations related to the WOAN and solicited written representations from interested parties. The Authority received a number of written representations in that regard.

In coming up with the ITA, the Authority considered and analysed all representations received in response to the IM. The key considerations emanating from the representations into the IM included the following, among others:

The requirement for successful bidders to support the WOAN through the procurement of a minimum 30% national capacity from the WOAN;

• The imposition of empowerment obligations on the WOAN in order to ensure that it is a credible empowerment tool to achieve the     Information and Communications Technology (ICT) sector’s transformation agenda; and
• The obligations for roll-out of broadband infrastructure to identified underserviced areas. 

On 23 March 2020, the Authority published a Notice in the Government Gazette outlining the process that we would undertake in the licensing of the I-ECNS and the accompanying RFS Licence in terms of sections 9 and 31 of the ECA, as well as Regulation 7 of the Radio Frequency Spectrum Regulations 2015, as amended.

On 2 October 2020, the Authority published the ITA in respect of this licensing process in Government Gazette No. 43767. In announcing this ITA, the Chairperson of the Authority mentioned that the spectrum that has been set aside for the WOAN has been considered thoroughly by the Authority and has been prescribed in such a way that the WOAN will become a credible national wholesale player in the market. Furthermore, the sufficient and lucrative sub-1 GHz spectrum combined with the capacity enabling spectrum has been afforded to the WOAN. This spectrum is therefore consistent with the proposals made in the IM and the amount of spectrum currently used by credible Tier 1 National Wholesale operators in our country.

It is worth noting that the Authority has since published the Reasons Document in Government Gazette No. 43968 on 4 December 2020 in respect of the public representations received by the Authority, in response to the IM on issues relating to the WOAN.

Ladies and gentlemen

It remains our view that the WOAN should be a pro-transformation and empowerment tool that will indeed address the imbalances of the past and give an opportunity to new entrants in the telecommunications and ICT sector. There is still lack of competition in the sector, and unfortunately consumers bear the brunt of high costs of communication. Once completed, this process should be able bring about the diversity of ownership in the telecommunications sector to ensure meaningful participation of all involved, and this includes the small, medium and macro enterprises. 

Therefore, the Authority remains committed to its plans of licensing WOAN in a sustainable manner, and we hope to see different sectors of the society benefitting, and participating meaningfully in the digital economy; and to the broader government plans aimed at ensuring universal access and affordable broadband services for all in line with the objectives of the National Development Plan.

Our strategic plan takes into account government’s national policy and legislation; and provides a blueprint for effective regulation of the ICT sector to stimulate and grow the economy. Our plan and indeed our vision is to build an inclusive digital society; to expand as well as modernize the ICT sector, and to ensure affordability and accessibility to communications services, particularly broadband services. Our regulatory processes, including this licensing process, set out various measures to promote competition and reduce the cost of communication; promote the efficient use of radio frequency spectrum and of course increase access to quality broadband services in accordance with the 2013 Broadband Policy.

This licensing process forms part of our broader plan of ensuring business development, promoting investment, stimulating economic growth, and lastly, promoting good quality broadband services, as well as enable licensees to lower the cost of communications in South Africa. ICASA is indeed at work and we are regulating in the public interest.

Finally, ladies and gentlemen, allow me to outline today’s workshop as follows: 

I am going to allow the Team to take you through the presentation which comprises different sections of the ITA.  We will then have a Question and Answer session at the end of the presentation.

It is therefore important to note that:

• This workshop is strictly on the WOAN ITA. This means that only questions related to the WOAN ITA will be addressed and responded to by the Committee. Any further questions, which are not responded during the three days will be responded to in writing within seven (7) working days from the last day of the workshop.
• We hereby request that all questions in respect of the Finance Section be in writing. The Authority will provide written responses within seven (7) working days of the last day of these workshops.

Please mute your microphones when not addressing the panel to avoid interference with the sound quality of the proceedings and/or other people on the call.  Cameras shall be switched off at all times except when asking a question/s. Kindly raise your hand to attract our attention once the presentation has been concluded.

A copy of this the presentation will be made available on request. We will now start with the presentation.

THANK YOU VERY MUCH!!!