PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC

ENTERPRISES

BROADBAND INFRACO BILL01 August 2007

INTRODUCTION

USAASA Mandate Purpose of the INFRACO Bill Current Scenario USAASA Response to the INFRACO Bill Conclusion

EMBARK ON PUBLIC

AWARENESS

CAMPAIGNS ON ICTs

AND CAPACITY AND

TRANINING

PROGRANMMES

MANAGE THE

UNIVERSAL

ACCESS AND

SERVICE FUND

RESEARCH,

PROMOTE,

PROVIDE

GUIDANCE,

CONSULT THE

PUBLIC AND

RECOMMEND ON

UNIVERSAL

ACCESS AND

SERVICE

MONITOR AND

EVALUATE

PROGRESS

TOWARDS

UNIVERSAL

ACCESS AND

SERVICE

CORE MANDATES AREAS FROM THE EC ACT

USAASA CORE MANDATE

PURPOSE OF THE INFRACO BILL

Expand the availability of broadband access to underdeveloped areas

Owning infrastructure to provide affordable access to broadband services

CURRENT SCENARIO

Short-comings of narrowband: Inhibits E-education programs

Prohibits the delivery of e-government services

(general service counters)

Prohibits delivery on e-health

Limits community Access to information

Broadband infrastructure - developed

metropolitan areas

The high costs of broadband impedes the

effective delivery of Universal Service and

Access of all South Africans to ICTs

USAASA RESPONSE TO THE INFRACO BILL

Objects of INFRACO

Licensing of INFRACO

INFRACO Obtaining Rights

Way – under the INFRACO Bill

and the EC Act

OBJECTS OF INFRACO

Preamble of the INFRACO Bill

Expand broadband access to underdeveloped

areas

Owning communications infrastructure to provide

affordable access to broadband services

Objects of the INFRACO Bill (s 2)

Establish INFRACO

Objects of INFRACO (s 4)

Provide affordable broadband access

Proposal – state that object of INFRACO is also to

expand broadband access to underserviced areas

INFRACO LICENCE

The provision of a network is an ECNS in

terms of the EC Act

Only licensed ECNS providers may provide

ECNS

INFRACO is not currently an ECNS licensee

Therefore, it needs to:

either obtain an ECNS licence; or

be deemed to be an ECNS Licensee; or

be exempt from the licensing requirements by

ICASA

ALTERNATIVE TO LICENSING OF INFRACO

As an alternative to licensing, INFRACO may

contract with a licensee (such as Neotel) to

provide ECNS under its licence

In order to meet the object of the INFRACO

Bill, the contract must –

Guarantee open access to the INFRACO

infrastructure

Guarantee cost based pricing (from INFRACO to

Neotel and from Neotel to customers)

DEEMED LICENSING OF INFRACO

Proposal – the INFRACO Bill should deem

INFRACO a licensee in terms of the EC Act

Icasa should issue an ECNS licence to

INFRACO in terms of the current licence

conversion process

RIGHTS OF WAY

INFRACO Bill Section 6 – Servitudes Section 7 – Expropriation of Land

EC Act Chapter 4 – rights of way Ministerial Guidelines – not yet made Icasa Regulations – not yet made

USAASA supports additional rights of way envisaged Proposal – the provisions in the INFRACO Bill do not

negate any rights granted to INFRACO in terms of the EC Act

Proposal – Subject to Ministerial Guidelines and ICASA Regulations being made, provisions of INFRACO Bill must be revisited, as to align rights of way in both Acts

CONCLUSION

USAASA supports the intention in lowering the costs of communications in this country

USAASA welcomes the intention to expand broadband access to under-served and under-developed areas

USAASA offers to assist INFRACO, ICASA and Minister of Communications

USAASA hopes that all parties will make sure that INFRACO contributes to improved Universal Service and Access in South Africa

THANK YOU