16 February 2016

1. Briefing on spectrum policy and processes moving forward Portfolio Committee 16 February 2016 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

2. NDP 2030 • To create an enabling ICT reality by 2030… • “There is a clear and urgent need for a full policy review, which has not been done in the ICT sector…” • A new policy framework will be needed to realise the vision of a fully connected society. • A key issue will be to decide on the role of state infrastructure interventions which have to balance the priority goal of achieving affordable and truly universal • Spectrum needed for next generation services • NDP viewed spectrum allocation as perhaps the biggest regulatory bottleneck in the deployment of wireless technologies Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

3. Radio Frequency Spectrum Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

4. Spectrum is a limited resource Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

5. The Need for Regulation • Radio-frequency spectrum is a limited finite resource- Governments must control, manage, allocate and regulate • Spectrum contributes to socio-economic development • Demand for spectrum exceeds the amount of spectrum available • International compatibility • Radio propagation does not respect international frontiers Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

6. Growing Demand for Spectrum • There is a growing demand for spectrum from different radiocommunication services throughout the radio-frequency spectrum. • The higher the frequency, the smaller the coverage. The lower the frequency the higher the coverage • Terrestrial broadcasting services generally make use of frequencies below 1 GHz to obtain large coverage areas. • Mobile services are ideally suited to frequencies below 3 GHz. • High capacity point-to-point (backhaul) services make use of frequencies above 3 GHz (3 GHz – 22 GHz) • Satellite services use frequencies above 10 GHz although for large coverage areas frequencies at 4-6 GHz are used. (4 GHz – 22 GHz) Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

7. Growing Demand for Spectrum Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

8. Historical Developments Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

9. 4th Industrial Revolution & Future spectrum demand • A technological revolution that will fundamentally alter the way we live, work, and relate to one another • 4th Industrial Revolution’s rapid pace of change and broad impacts - Government and regulator are being challenged to an unprecedented degree. • While preserving the interest of consumer and public at large Government needs to do the following: • support innovation and technological development • continuously adapt to a new, fast-changing environment, • Possibilities of billions of people connected by mobile devices multiplied by emerging technologies like, the Internet of Things (IoT), its applications, including machine-to-machine (M2M) networks • More and more spectrum needed to support the next generations networks • 2015 World Radiocommunication Conference paved the way for 5th Generations Networks which requires more spectrum Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

10. WRC Outcomes Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

11. Is the Current Spectrum Policy environment adequate to facilitate the realization of Government objectives? • As identified by the NDP, SA Connect and 2015 ICT Panel Review report spectrum allocation as perhaps the biggest regulatory bottleneck in the deployment of wireless technologies Identify mechanism to release high demand spectrum required for Broadband unclear, ambiguous policy objectives & should be revised Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

12. Legislative Framework supporting the Spectrum policy review Electronic Communication Act (Act 36 of 2006) Section 3 (1) mandates Minister to make policies on matters of national policy applicable to the ICT sector — (a) the radio frequency spectrum; Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

13. 2010 Spectrum Policy Shortcomings Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

14. Broadband and Spectrum Challenge Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

15. Policy Gaps - SA Connect Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

16. Policy Gaps - ICT Policy Review Panel Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

17. Problem Statement (Gaps in Spectrum Management) • The main policy issues identified and addressed in the spectrum policy are: • Unclear roles and responsibility between Minister & Regulator • General gaps in the current spectrum management regime with regard to: • the alignment between universal service objectives and the licensing of frequency spectrum resources, • the setting of spectrum fees, • Unclear framework on spectrum trading & spectrum sharing, • No frame on spectrum re-farming and migration • an exclusive spectrum regime which promotes economic growth for a few market players at the expense of broader socio-economic development, and therefore an inequitable assignment spectrum for broadband which is in “high demand” • FN1: In the context of this policy, “high demand” spectrum refers where demand for radio spectrum resource exceeds supply, or radio spectrum is fully assigned. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

18. Evolution in Mobile Networks ~1980 ~1990 ~2000 ~2020 ~2010 The evolution of mobile broadband The foundation of mobile broadband The foundation of mobile telephony The Network for the networked society Mobile telephony for everyone Vodacom, MTN, Cell C, Neotel, Telkom, WBS Vodacom, MTN, Cell C, Neotel, Telkom, WBS Vodacom, MTN & Cell C • Available spectrum not sufficient to meet the growing demand in data traffic & service provide • More and more spectrum required to support 4G and 5G Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

19. Current Environment Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

20. Exclusive - Spectrum Holdings Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

21. Unassigned Spectrum Innovative ways are necessary to mitigate against the spectrum constraints Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

22. Way forward to close the Spectrum Policy Gaps and facilitate the release of spectrum to achieve government’s objectives • Reviewed the 2010 Spectrum policy and finalise the Spectrum Policy as part of the Integrated ICT White Paper In finalizing the spectrum policy, Government will ensure that the principles of equality and non-discrimination are upheld Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

23. Ensure that access to spectrum benefit all citizens; promote security, safety of life and stimulate economic growth for all Licensing of broadband spectrum should contribute to the realisation of the following public interest policy objectives Policy Objectives • The policy will adopt the following enabling principlies • Promote the effective and efficient management of spectrum to ensure agility, flexibility and adaptability in spectrum administration; • Reduce bureaucracy and streamline processes for spectrum assignment • Support the attainment of the national broadband targets set out in South Africa Connect, at the speeds and within the timeframes contemplated therein; • Provide clarity on the treatment of spectrum in instances where demand exceeds supply; • Set aside spectrum for use on an open access basis and through joint private sector investment in infrastructure; and • Support the provision of, emergency services, safety and security and sector-specific operations to all South Africans Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

24. Enabling Principles • The policy will adopt the following enabling principlies • Promote the effective and efficient management of spectrum to ensure agility, flexibility and adaptability in spectrum administration; • Reduce bureaucracy and streamline processes for spectrum assignment • Support the attainment of the national broadband targets set out in South Africa Connect, at the speeds and within the timeframes contemplated therein; • Provide clarity on the treatment of spectrum in instances where demand exceeds supply; • Set aside spectrum for use on an open access basis and through joint private sector investment in infrastructure; and • Support the provision of, emergency services, safety and security and sector-specific operations to all South Africans Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

25. Anticipated Outcomes • The policy will adopt the following enabling principlies • Promote the effective and efficient management of spectrum to ensure agility, flexibility and adaptability in spectrum administration; • Reduce bureaucracy and streamline processes for spectrum assignment • Support the attainment of the national broadband targets set out in South Africa Connect, at the speeds and within the timeframes contemplated therein; • Provide clarity on the treatment of spectrum in instances where demand exceeds supply; • Set aside spectrum for use on an open access basis and through joint private sector investment in infrastructure; and • Support the provision of, emergency services, safety and security and sector-specific operations to all South Africans Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

26. Process followed to finalise the Review of the Spectrum Policy and Release of the spectrum Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

27. Thank You Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development