USAASA seeks EC Act amendment

By Damaria Senne for USAASA

Johannesburg, 28 Jan 2008

The Universal Service and Access Agency of SA (USAASA) and the Media Development and Diversity Agency (MDDA) could clash over the millions of rands broadcasters are to contribute to government to enable communications access for the poor.

USAASA would like the Electronic Communications (EC) Act to be amended to accommodate the convergence of the telecommunications and broadcasting industries, with universal service contributions by broadcasters being made to one institution (itself).

The EC Act currently requires that licensed broadcasters and telecoms network providers contribute to the Universal Service and Access Fund (USAF).

Draft universal service regulations, developed by the Independent Communications Authority of SA (ICASA), prescribe a contribution of 0.2% of annual revenue from licensed activities.

The regulations also recommend broadcasters continue to voluntarily contribute an unspecified amount to the MDDA, as was initially recommended by the old Broadcasting Act.

"While we appreciate that we have to come to a practical arrangement [with the MDDA] that is not catered for in the Electronic Communications Act, dual contributions create confusion and an administrative burden for broadcasters and ICASA," says USAASA CEO James Theledi.

USAASA and the MDDA share a mandate and it makes absolute sense to work together, he says. The agencies are in discussion to develop a memorandum of agreement that would enable joint projects where their universal service activities meet, he says.

But, 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, he says.

"We must deal with the issue that the two agencies implement the same issue [communications] and report to the same portfolio committee," Theledi says.

Theledi also highlights that the law mandates USAF contributions, while MDDA contributions are voluntary.

Alternative solution

MDDA CEO Lumko Mtimde says both the EC Act and the draft Universal Service Regulations Act acknowledge that broadcasters are already making contributions to MDDA.

"If broadcasters increased their contributions to meet the USAF 0.2% threshold, then their contribution would be offset against contributions to the USAF."

The MDDA would also shoulder the implementation of the broadcasting sector`s universal service programmes, with USAASA reporting to government on them as strategic partnership initiatives, he says.

Executive decision

Mtinde says USAASA and the MDDA have different mandates and their areas of convergence are too small to warrant anything beyond strategic partnerships. "If you read the functions of USAASA in terms of the EC Act, it does not necessarily talk to the same mandate as the MDDA."

Also, the MDDA is an independent institution, formed by law, under the jurisdiction of the minister of the presidency, Essop Pahad, while USAASA falls under the Department of Communications and is not independent from that institution, he says.

USAASA has requested guidance from the Department of Communications on the matter, Theledi says. Chairman Cassandra Gabriel has written to the department and Theledi also made a presentation to government on the matter.

"There are two ministries involved and at some point the matter will require executive-level consultation," says Theledi.