The funds that licensed telecommunications providers and broadcasters pay to the Universal Service and Access Fund (USAF) will come under review between 12 and 14 March, when the Independent Communications Authority of SA (ICASA) holds public hearings.
The hearings follow the publication of the draft regulations in which ICASA invited interested parties, stakeholders, and the public to submit written representations and submissions.
Organisations scheduled to present at these hearings include the Universal Service and Access Agency of SA (USAASA), the Media Development and Diversity Agency (MDDA), Mobile operators Vodacom, MTN, Cell C, fixed-line operators Telkom and Neotel, as well as broadcasters Telkom Media, On Digital Media, etv, Multichoice and YFM.
The Internet Service Providers Association of SA (ISPA) and Internet Solution are also presenting.
Some provisions
The draft USAF regulations, which are a review of earlier regulations published in 2003, retain the recommendation that licensed telecommunications providers contribute 0.2% of annual revenue generated from licensed activities to the fund.
The document also recommends that such contributions be made no later than July each year, with the first contribution made in 2008.
A new element in the regulations, brought about by convergence and the promulgation of the Electronic Communications Act, is that broadcasters that previously contributed an undetermined amount to the MDDA, also contribute 0.2% of annual revenue generated through licensed activities to the USAF.
The regulations also recommend that broadcasters continue to make their regular contributions to the MDDA.
The issues
USAASA CEO James Theledi has previously noted that the 0.2% figure was challenged by licensed communication providers as lacking a scientific basis. He said USAASA is looking to review the amount, on the basis of the scope of the work that needs to be done to enable universal service access in under-serviced areas over a specific period of time.
This could result in an increase in the contributions operators make to the fund, but would also ensure there is a time-frame set, and the operators would not have to contribute to a USAF once the job is done, he said.
The issue of broadcasters' contributions is also another potential hotspot. USAASA said dual contributions to USAASA and the MDDA creates an administrative burden to the broadcasters and regulators.
In the long run, government and the agencies must discuss what amendment needs to be made to the EC Act to accommodate the convergence of telecoms and broadcasting sectors, said Theledi.
However, the MDDA argues that broadcasters should simply top up their voluntary contributions and make the whole 0.2% of their universal service contributions to that agency.
The law allows broadcasters to offset their MDDA contributions against their USAF contributions, said MDDA CEO Lumko Mtimde.
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