ICASA 2020/21 Annual Performance Plan

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Communications and Digital Technologies

16 May 2020
Chairperson: Mr B Maneli (ANC)
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Meeting Summary

Annual Performance Plan (APP) of Government Departments & Entities 20/2021

Youtube Video: ICASA 2020/21 Annual Performance Plan
 

The Portfolio Committee on Communications met with the Independent Communications Authority of South Africa (ICASA) for the presentation of its Annual Performance Plans and budget in a virtual meeting.

The entity said its plans were focused on four key milestones:

  • Milestone 4 - Establish a competitive base of infrastructure, human resources and regulatory frameworks;
  • Milestone 6 - Broaden ownership of assets by historically disadvantaged groups;
  • Milestone 12 - Make high-speed broadband internet universally available at competitive prices;
  • Milestone 14 - Broaden social cohesion and unity while redressing the inequities of the past.

ICASA said that the COVID-19 pandemic had been identified as the key risk factor, as it was affecting the production of local content and the normal operation of the entity. However, measures had been implemented to ensure that the organisation continued to function. It had made updates to the national radio frequency plan, and was about to roll out the implementation of the frequency migration plan. It had provisioned a temporary spectrum in response to the pandemic, and the spectrum would remain available to till December, after which it would be auctioned.

The Committee asked ICASA for a detailed explanation as to why it had not consulted local content producers with regard to the COVID-19 exemption on local content, as the pandemic could last for longer than expected causing the producers to go without a stable income. It wanted to know if there was enough spectrum allocated to the Department of Education while the pandemic persisted, as this was essential to ensure learning could continue in a secure home environment. It also questioned whether the deployment of 5G technology had any potential to cause severe health complications.

 

Meeting report

The Chairperson said the first item on the agenda would be the presentation by the Independent Communications Authority of South Africa (ICASA), which had been allocated 20 minutes. He requested ICASA to give a summarised version of the presentation, because it had been sent early and Members had had enough time to engage with it.

ICASA 2020/21 Annual Performance Plan
Mr Omega Shelembe opened the presentation by giving a brief overview of the presentation structure, stating that it would be focused on delivering the ICASA Annual Performance Plan (APP) for  the 2020/21 term  and the Strategic Plan for the period 2020 to 2025. 

Dr Keabetswe Modimoeng, ICASA Chairperson, said the presentation covered the policy and legislative mandate of the entity, with specific attention given to its alignment to the National Development Plan (NDP) 2030, Information Communication Technology (ICT) licensing, and the infrastructure framework. ICASA was working towards the promotion of those who had been classified as being historically disadvantaged. It needed to find alternative funding methods, and had plans in place to reduce its operating costs.

With respect to alignment with the NDP2030, there were four key milestones that he wished to highlight to the Committee. These were:

  • Milestone 4 - Establish a competitive base of infrastructure, human resources and regulatory frameworks;
  • Milestone 6 - Broaden ownership of assets by historically disadvantaged groups;
  • Milestone 12 - Make high-speed broadband internet universally available at competitive prices;
  • Milestone 14 - Broaden social cohesion and unity while redressing the inequities of the past.

He said that the Wireless Open Access Network (WOAN) plan was under way and scheduled to be concluded by 2021. There were plans in place to introduce higher frequency bands, especially for the purpose of offloading the 700 and 800 Megahertz (MHz) range.

He discussed the vision and mission of the entity, before moving on to opportunities and threats, stating that the International Telecommunication Union (ITU) was providing ICASA with opportunities to learn and expand, as proven by the recent conference that was held in Egypt. Digital migration was fast becoming a reality, and the entity was looking into the release of high band spectrum.

There were indeed a lot of opportunities arising, as the industry was forever changing. The entity needed to develop an expedited implementation plan for the rolling out of new spectrum.  However, although there were opportunities, there were threats of various natures -- political, economic and social.

He said that ICASA had very experienced staff, but they were always taken by industry because their skills made them attractive, so ICASA had become like a training ground for industry. There were plans in place to extend the entity’s graduate development programmes.

Mr Willington Ngwepe, CEO, ICASA, presenting the entity’s APP and statement impact and outcomes, said ICASA was planning to increase its quality broadband services and enhance the status of social cohesion (inclusive of diversity of views). It was in the interests of the entity to ensure that the rights of consumers were always protected.

ICASA wanted to ensure that competition in the ICT sector was promoted in order to achieve and maintain high quality service standards. There was a key focus towards the maintenance of organisational service delivery.

Addressing the key risk factors affecting the entity, he said that the COVID-19 pandemic had been identified as the key risk factor, as it was affecting the production of content and the normal operation of the entity. However, measures had been taken to ensure that the organisation continued to function.

ICASA had established its ninth provincial office, making it accessible in all nine provinces. This was a major achievement in terms of ensuring that service and support was rendered to stakeholders country- wide.

Mr Ngwepe said the target of all the stated outcomes was to ensure that the entity delivered on its mandate and worked towards obtaining a clean audit report in the next financial year. The critical factors for achieving a clean audit were centered on the improvement of internal audits through internal control measures. The entity was working towards maintaining a relatively low vacancy rate by capacitating itself and putting measures in place to ensure it retained its employees

Referring to the legal risks, he said these were inherent, especially in administrative duties, and the entity was planning to ensure that it maintained organisational service delivery and that legal services were provided to clients within Service Level Agreement (SLA) turnaround times.

Addressing the licensing of community television broadcasting, he said that the process to assign broadband spectrum had been completed and that the process to develop regulations on the limitation of ownership and control and equity ownership by historically disadvantaged groups had also been completed, together with the process of developing equipment authorisation regulations.

Mr Ngwepe said ICASA had developed an engineering and technology plan which had already led to the update of the national radio frequency plans, and the implementation of the frequency migration plan.

In conclusion, he showed the budget breakdown without going in to detail on the figures projected, stating that ICASA had make relevant allocations of the budget to its programmes to ensure that it achieved a clean audit report in the next financial year.

Discussion

Ms P van Damme (DA) asked for a detailed explanation as to why ICASA had not consulted local content producers with regard to a COVID-19 exemption on local content. The lockdown might last longer than anticipated, and those local content producers would need to find a means of earning an income. She suggested that ICASA should go back and consult with the local content producers in order to find innovative ways in which content production could continue without having to impose such an exemption, which in turn was promoting foreign content.

Ms P Faku (ANC) said she was especially happy with the efforts that were being made towards virtual learning, for which a temporary (emergency) spectrum had been allocated in response to the COVID-19 pandemic’s effect on conventional schooling systems. She requested ICASA to explain why some of its board members were suddenly resigning from their posts.

Dr Modimoeng answered that ICASA was operating under a “business unusual” mode, and had realised that it was in the public interest to make it “business usual”. ICASA had plans to consult with the local content producers to ensure that their needs were taken heed of.

Referring to litigations, he said that ICASA had a model to mediate as it litigates, as it found that in most cases, matters could be settled through constructive dialogue. At an organisational level, there was a lot of uncertainty and it was leading to the resignation of staff.  A refined communication model was required in order to ensure that the needs of the staff were expressed and responded to. In one case, a resignation in the Council had cited “family matters” as the reason for resigning.

Ms Van Damme said that regulations needed to be changed in favour of the local content producers. They were creative people, and consultation with them would produce innovative constructs as to how production could be continued in the light of the pandemic. ICASA needed to work towards assisting those producers, despite the fact that it had powers to exercise the decision it had already exercised, of exempting local content production.

She said there were cases of actors complaining of not being paid their due royalties from years ago, and asked ICASA to look into its legislative framework and find a way in which those actors could be assisted.

Ms N Kubheka (ANC) said she was particularly happy to hear that the entity had plans in place aimed at ensuring the achievement of clean audit reports. She asked if ICASA had difficulties relating to its memorandum, and wanted to know if the entity had a large enough budget to cater for all of its projects. Was enough spectrum allocated to the Department of Education for the period of the existence of the Covid-19 pandemic?

Mr V Pambo (EFF) said that there had been too many relaxations made to ICASA’s regulations, with not much thought being given to the passing of those relaxations. There should have been prior consultation with local content producers, highlighting that it did not make sense to move all the way down to zero percent of local content. Local content should not be contesting for space with foreign content.

Mr L Molala (ANC) said there was a contradiction in terms in what ICASA had presented to the Committee, and asked the entity to give elaborate details about the suspension of its Chief Financial Officer (CFO). With regard to the installation of 5G technology, it was interesting that Parliament had no interest in discussing its safety, while it had been a topic of debate in other countries around the world. There were claims that 5G technology had the potential for causing health complications, and asked if ICASA had looked into the health risks and what they were, if any.

Dr Modimoeng said the question about plans on improving audit reports would be left to the chief audit executive to answer.

The information memorandum had been analysed by the entity, and the response to it had been contested. He said 48 submissions had been made, which was very good.

He said ICASA had released an emergency spectrum for educational programmes, and the Committee could expect to see more enhanced user experience. The entity could definitely do with more money in  their budget, as their programme was ever expanding, but was going to work with what it had, although it would be ideal to have more.

Regarding local content, he said ICASA was empowered to amend its regulatory frameworks in alignment with providing as much assistance as possible to local producers. The dynamics behind the amendments would be difficult to regulate. He asked what the meaning of a Level 3 lockdown was on content production, emphasising that local shows could not start producing content with their actors wearing masks -- that would not be ideal for the target market. He pointed out that most recently, a journalist had died.

ICASA hoped that things would get back to normal sooner than anticipated. It did not believe that it was regulating unpatriotic producers. What would happen if production labels could not submit work due to complications relating to the pandemic? He said ICASA would have a re-look at its regulations and the situation in general.

Giving clarity on political clearance, he said that the entity’s space was heavily contested. An amendment to the regulations would be affected by political interference -- this was the case all over the world. 

Regarding the suspension of the CFO, he said that six weeks ago some irregularities had occurred involving the CFO. A hearing was still pending, after which the details of the matter could be made available to the Committee. He stressed that if the hearing proved the CFO was not guilty, he would be expected to resume his duties in office.

With regards to the health implication of 5G technology, he said that South Africa was a signatory to the ITU, and it was the ITU that had provided information on the matter at hand. ICASA had conducted a study following claims that 5G caused the Corona virus, and this would be submitted to the Minister once completed. He stated that there was no link between 5G and the Corona virus.
 
On the availability of emergency spectrum, he said that ICASA issued spectrum on a technology neutral basis, and that the emergency/temporary spectrum would be provisioned for use till December, after which it would be auctioned.

He said there were plans to set up virtual class rooms in rural areas to benefit the local community.

Ms Setlalemetsi Sekano, Chief Audit Executive, ICASA, answering on plans to improve the entity’s audit outcome, said that there had been issues around Supply Chain Management (SCM), so the focus would be put on the eradication of fruitless and wasteful expenditure. After a tender had been published, all the documents relating to it would be taken in for audit.

She said that all COVID-19 related projects of the entity were subjected to audit by default, and that those involved in SCM were expected at a meeting to present their measures for reducing irregular expenditure.

Mr T Gumbu (ANC) commended ICASA, stating that they were doing good work. He asked for clarity on the delays relating to the national radio frequency plans.

Mr Pambo said that half of ICASA’s response to his question about local content had been speculative. He stressed that if ICASA had consulted the local content producers, it would have been able speak from an informed position as opposed to this speculative one. The process of consultation was important, and even though ICASA had the powers to make such decisions, it was important to ensure that it consulted with those who would be affected by changes in legislation. He said that this was a question of profit, and that ICASA was regulating on behalf of foreign content producers.

Ms Kubheka asked what ICASA was doing to speed up the process of amending regulations.

The Chairperson asked ICASA to go back to how it was monitoring the spectrum periphery, giving detail and clarity on that. Areas that were near national boarders were experiencing problems with the quality of connectivity, and were sometimes subject to paying international call prices. He requested ICASA to brief the Committee as to whether it had plans to work around that.

ICASA had said that the deployment of 5G was a heavily contested space – what had it meant by that?

Dr Modimoeng answered about the auctioning of spectrum, and said that it was important to note that the spectrum was going to be auctioned to companies in December.

Mr Ngwepe referred to the national radio frequency plan, and said that the spectrum was being distributed to different sectors – security, for example -- and not only to typical sectors like television and radio. For this reason the work done by ICASA was onerous, and it needed help from the Department.

Answering on local content production, he said that the amendments that had been made were based on information that had been provided by the broadcasters. He agreed that the entity should have consulted the local content producers before amending its regulations.

Regarding the temporary assignment of spectrum and its monitoring, he said ICASA did not have the necessary resources to monitor the spectrum performance across the whole country. Monitoring only happened by sending a car to a particular area with monitoring devices to go test the performance of the network in that particular area. Apart from that, there was no other form of monitoring on a nationwide scale.

The Chairperson said there was a general feeling of appreciation for the work that was undertaken by ICASA. The Committee was particularly happy to know that the audit team had plans to ensure the entity received clean audit reports. There were lessons to be learned on the journey as ICASA continued to serve the nation. It was important for it to acquire all the resources it needed to ensure efficient functionality.

The meeting was adjourned.



 

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