The Independent Communications Authority of SA's (ICASA) claim, that if it does not receive additional funding it will not be able to fulfil its mandate, is trite, say analysts.
In its corporate strategy for 2011-2014, ICASA says it is unlikely to achieve any of its objectives for the future if funding is not increased.
ICASA CEO Themba Dlamini says the strategy shows the proposed way forward in contributing to government's service delivery strategy. “However, a significant risk exists in terms of inadequate funding to carry out our mandate. The current shortfall is some 36% of budget.”
More please
The authority says the growth in revenue, from R291 million to R313 million, for 2011/2012 will be used for an increase in staff costs, rent, and projects like the development of broadband and spectrum strategy, and local loop unbundling.
“The authority is using the interest accrued that it receives from favourable balance of ICASA's main account and national revenue fund which is being used to collect licence fees to augment the shortfall of its allocation.”
ICASA will move its head office to cheaper premises. This will result in savings of about R2 million per annum.
“The authority also aims to reduce the international training costs by bringing international expertise for training purposes locally instead of sending its personnel overseas for training. This will result in a saving of R500 000 per annum.”
ICASA says it is also starting to reap the savings on the investment made on voice over IP, which has seen savings of R360 000 since it was implemented in the 2008/9 financial year.
To ensure economic and financial sustainability, ICASA will implement an appropriate financial model, obtain sufficient levels of Parliamentary grant funding, place a limit on further growth of the total “permanent” staff complement, identify innovative opportunities for more cost-effective research, and ensure strict adherence to all guidelines set by funding agencies.
It will also obtain support from the Department of Communications (DOC) and National Treasury to address funding shortfalls for infrastructural support. These include funds for purchasing a new building, IT equipment and software support.
“The realisation of the strategic objective requires skilled human capital which is contingent upon appropriate funding levels. If funding is not optimal, then the human resource capabilities to address this will be suboptimal, resulting in a prolonged transformation of the ICT sector. Experience has shown that ultimately ICASA needs increased funding, not less,” says ICASA.
Throwing it away
Mark Walker, director of vertical industry practice at IDC Middle East and Africa, says ICASA is not using its available resources efficiently enough.
“The question is to look at what the head count is at ICASA and see if that is sufficient manpower to fulfil the mandate. A small group of skilled, highly qualified people will make the mandate achievable.”
“It is almost trite to say that insufficient funds will result in ICASA's mandate not being reached. The key issue is that ICASA has not shown that it is an efficient, decisive and well run organisation,” says WWW Strategy MD Steven Ambrose.
He adds that its record of delivery and performance has been erratic. “In this environment, simply throwing more money at the problem will not help in any way, and inevitably lead to requests for ever greater resources.”
Ambrose suggests that ICASA needs to revamp its operations and become lean and efficient, professional and truly independent of the current or future government's interference.
“Only then can we expect good value for our hard earned taxpayers' money.”
But wait...
World Wide Worx MD Arthur Goldstuck says there is no question that better funding will make for better performance.
”We've argued for years that ICASA does not have enough resources. However, they have been their own worst enemy in the past.”
Goldstuck recalls participating in a conference a few years before the 2010 Fifa World Cup to look at ICT readiness for and benefits from the event.
“I stated that ICASA needed more resources to do their job properly. The previous ICASA chairman was in the audience and had one of his councillors object to my statement, saying that ICASA was well enough resourced, thank you very much. It was seen as an attack on ICASA and, in being overly defensive, they were not willing to acknowledge that there might be gaps in their service delivery.
”We need to see muscular support from the DOC and from Cabinet for any decisions or initiatives by ICASA to further liberalise the telecoms sector.”
Broadband hopes
ICASA chairperson Stephen Mncube says that at the top of the agenda is the move to continue licensing new operators to level the playing field, and to formulate regulations that will enhance fair competition in these two industries.
He also says ICASA has placed the provision of broadband services at the front and centre of its work plan, and is committed to ensuring a successful migration to digital terrestrial television.
Dlamini says the authority will ensure broadband is made available to all citizens by promoting competition, encouraging infrastructure-sharing, and developing an allocation strategy for spectrum suitable for fixed, mobile and unlicensed broadband.
Flagship projects for the new year include developing local loop unbundling regulations, the licensing of spectrum in the 2.6GHz and 3.5GHz bands, and monitoring the impact of the call termination regulations.
ICASA's strategic objectives are to ensure effective participation by historically disadvantaged individuals in the industry, ensure the provision of broadband services, optimise the use of the radio frequency spectrum to support the widest variety of services, promote the protection of consumers and accessibility for persons with disabilities, focus on digital migration, ensure compliance with legislation and regulation, strengthen and modernise ICASA, and promote competition.
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