The SADC Communications Environment

Home , Unitel (Angola)

Strengthening of economic and trade related

capacities and competences in SADC

An Assessment of Communications Policies, Laws and Regulations

in SADC Member States

Presented to

GIZ – Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH Germany / Botswana

October, 2013

Assessment of SADC Communications Policies, Laws & Regulations

Your contact person within GFA Consulting Group GmbH is

Christopher Smith

Strengthening of economic and trade related capacities and competences in SADC

The SADC Communications Environment: An Assessment of Communications Policies, Laws and Regulations in SADC Member States

Short‐ term Report

Prepared by: Charley Lewis & Luci Abrahams, LINK Centre, University of the Witwatersrand, Johannesburg http://link.wits.ac.za

Address

GFA Consulting Group GmbH Eulenkrugstraße 82 22359 Hamburg Germany

Phone +49 (40) 6 03 06 – 352

FaxPrepared by:+49 LINK (40) Centre, 6 03University 06 – of119 the Witwatersrand 2 E‐mail christopher.smith@gfa‐group.de 4 COUNTRY PROFILES160

4.1 ANGOLA

4.1.1 TELECOMMUNICATIONS SERVICES

Services Framework:

Angola’s 2001 Basic Telecommunications Law distinguishes principally between “public telecommunications” services and “private telecommunications” services161, although it also recognises “value added telecommunication services”162.

Its “authorizations” framework refers to “the following types of infrastructure and public services: mobile landline services… transmission infra‐structure supporting public networks… deployment of international access to the public service”163.

Radio frequency licences are treated separately164.

Whilst this is not a narrowly technology‐specific vertical licensing framework, it is also not a converged (or horizontal or unified or multi‐service) licensing framework. Neither is it in accordance with the vertical framework as set out in W/120.

160 For full details on all of the issues cionidered in respect of each ciriterion, please refer to Appendix 2. 161 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Article 2. 162 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Article 16. 163 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Article 19.3. “Mobile landline services” presumably refers to mobile cellular licensing, and “deployment of international access” presumably refers to international gateway licences. 164 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Article 34

Assessment of SADC Communications Policies, Laws & Regulations

FOCUS AREA 1: MARKET STRUCTURE

Market Structure:

Limited information is available on market share within Angola’s telecommunications sector. According to Australian research and consultancy company, BuddeComm, there are three players in Angola’s fixed‐line telecommunications market, the incumbent Angola Telecom, as well as Mercury Telecom (MSTelcom) and new entrant, Mundo Startel165. A somewhat less recent market overview additionally lists Nexus and Wezacom as fixed‐line operators166, although another earlier report suggests that Wezacom is defunct167. Mercury Telecom acquired Nexus in 2005 to form MSTelcom168.

The mobile market is a duopoly, with Unitel and Movicel as players169.

The market for Internet Service Providers (ISPs) includes: Angola Communication Systems (ACS), Snet, Multitel, Maxnet and Cabo TV (which also provides cable TV) as players170. Another recent sector analysis lists “some 20 Internet operators in Angola, the main ones being Nexus, ACS, Movinet (Movicel) and TV Cabo”171. No market share breakdown is available.

165 BuddeComm (2012) ‘Angola - Telecoms, Mobile, Broadband and Forecasts: Executive summary’, BuddeComm, Bucketty NSW, available online at http://www.budde.com.au/Research/Angola-Telecoms-Mobile-Broadband-and-Forecasts.html. The full report is available on a for sale basis. 166 Espírito Santo Research (2010) ‘Angola 2nd Quarter 2010’, Banco Espírito Santo, Lisbon, available online at http://www.bes.pt/sitebes/cms.aspx?plg=053559bd-0237-4219-b88e- cb237a26f091. 167 Southwood, R (2008) ‘The Case for “Open Access” Communications Infrastructure in Africa: The SAT-3/WASC cable: Angola case study’, Association for Progressive Communications, Johannesburg, available online at http://www.apc.org/en/system/files/APC_SAT3Angola_20080523.pdf. 168 MSTelcom (nd) ‘Company profile’, MSTelcom, Luanda, available online at http://www.mstelcom.co.ao/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3hDl5AQ UzN_QwMDC28TA08fY2dHY9MAQ3dvU6B8JJK8u7-_m4GRsUWQv4-zuYGBkzkB3eEg- _CoMMErb-BmhiaPxX6QvAEO4Gig7- eRn5uqX5AbYZDpqesIAO7ISbo!/dl2/d1/L2dJQSEvUUt3QS9ZQnB3LzZfMURUVDU2TzEwM DhLNDBJTDNDQTM1UDFHMTU!/ 169169 BuddeComm (2012) ‘Angola - Telecoms, Mobile, Broadband and Forecasts: Executive summary’, BuddeComm, Bucketty NSW, available online at http://www.budde.com.au/Research/Angola-Telecoms-Mobile-Broadband-and-Forecasts.html. 170 BuddeComm (2012) ‘Angola - Telecoms, Mobile, Broadband and Forecasts: Executive summary’, BuddeComm, Bucketty NSW, available online at http://www.budde.com.au/Research/Angola-Telecoms-Mobile-Broadband-and-Forecasts.html. The full report is available on a for sale basis. 171 Espírito Santo (2010) ,Angola 2nd Quarter 2010’, Espírito Santo Research, Lisbon, available online at http://www.bes.pt/sitebes/cms.aspx?plg=053559bd-0237-4219-b88e-cb237a26f091.

Prepared by: LINK Centre, University of the Witwatersrand 90

Assessment of SADC Communications Policies, Laws & Regulations

No definitive market share breakdown for voice telephony providers is available, although one press report gives the respective market shares in the mobile sector as Unitel 70% and Movicel 30%172.

According to the ITU, Angola in 2011 had 303 221 fixed‐line subscribers and 9 491 000 mobile subscribers, giving the country a per capita market penetration rate in telecommunications sector of 1,6% for fixed‐line, 48,4% for mobile and 14,8% for the Internet (compared to 1,6%, 46,7% and 10,0% respectively in 2010)173.

Angola Telecom remains 100% government‐owned.

MS Telcom (Mercury Telecom and Nexus) is a subsidiary of Sonangol, the state oil company174, and is hence 100% government owned.

Mundo Startel is 44% owned by Telecom Namibia, but the latter is attempting to offload this shareholding175. The remaining shareholding is held by “local Angolan shareholders”176.

A majority stake in the mobile subsidiary of Angola Telecom, Movicel, has been sold to private investors177, with the following resultant shareholding:  40% ‐ Porturil ‐ Investimentos (Angola);  19% ‐ Modus Comicare ‐ Comunicacoes e Imagem, Lda (Angola);  18% ‐ Angola Telecom (government‐owned);

172 Pinto, A & Jover, E (2010) ‘Angola a lucrative market for telecoms operators’, How We Made It In Africa, Maritz Publishing, Cape Town, 15 September 2010, available online at http://www.howwemadeitinafrica.com/angola-a-lucrative-market-for-telecoms-operators/3463/. 173 ITU (nd) ‘Time Series by Country (2000-2011)’, International Telecommunication Union, Geneva, spreadsheets covering ‘Fixed-telephone subscriptions’, ‘Mobile-cellular subscriptions’ and ‘Percentage of individuals using the Internet’ available for download via http://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx. 174 MSTelcom (nd) ‘Company profile’, MSTelcom, Luanda, available online at http://www.mstelcom.co.ao/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3hDl5AQ UzN_QwMDC28TA08fY2dHY9MAQ3dvU6B8JJK8u7-_m4GRsUWQv4-zuYGBkzkB3eEg- _CoMMErb-BmhiaPxX6QvAEO4Gig7- eRn5uqX5AbYZDpqesIAO7ISbo!/dl2/d1/L2dJQSEvUUt3QS9ZQnB3LzZfMURUVDU2TzEwM DhLNDBJTDNDQTM1UDFHMTU!/ 175 Confidénte (2012) ‘Telecom Namibia sigh of relief after N$100 million ‘divorce’’, The Confidénte, 2 August 2012, available online at http://www.confidente.com.na/2012/08/02/telecom-namibia-sigh-of-relief-after-n100million- divorce/. 176 Southwood, R (2008) ‘The Case for “Open Access” Communications Infrastructure in Africa: The SAT-3/WASC cable: Angola case study’, Association for Progressive Communications, Johannesburg, available online at http://www.apc.org/en/system/files/APC_SAT3Angola_20080523.pdf. 177 BuddeComm (2012) ‘Angola - Telecoms, Mobile, Broadband and Forecasts: Executive summary’, BuddeComm, Bucketty NSW, available online at http://www.budde.com.au/Research/Angola-Telecoms-Mobile-Broadband-and-Forecasts.html.

Prepared by: LINK Centre, University of the Witwatersrand 91

Assessment of SADC Communications Policies, Laws & Regulations

 10% ‐ Ipang ‐ Industria de Papel e Derivados (Angola);  6% ‐ Lambda ‐ Investment (Angola);  5% ‐ Novatel SA;  2% ‐ Correios Telegrafos de Angola (government‐owned)178.

Unitel’s shareholding is as follows:  25% ‐ Mercury (a subsidiary of Sonangol [government‐owned]);  25% ‐ Group GENI (Angola);  25% ‐ Vidatel (Angola);  25% ‐ Portugal Telecom179.

No information on ISPs and VANS licensees is available.

International telecommunications access is provided via two undersea cables, the South Atlantic 3/West Africa Submarine Cable (SAT‐3/WASC ‐ with a capacity of 340 Gbit/s and a landing station at Cacuaco) and the West Africa Cable System (WACS ‐ which went live in 2012, with a capacity of 5,12 Tbit/s and a landing station at Luanda)180. Access to WACS is via Angola Cables, a consortium formed in 2009 with the following shareholding:  Angola Telecom ‐ 51%;  Unitel ‐ 31%;  MSTelcom ‐ 9%;  Movicel ‐ 6%;  Mundo Startel ‐ 3%181.

Range of Services:

As can be seen from the breakdown above, despite substantial state involvement in the provision of telecommunications services, there is also substantial involvement of private sector investors, some of whom, like Portugal Telecom and Namibia Telecom are foreign‐owned. Despite such partial foreign

178 Pinto, A & Jover, E (2010) ‘Angola a lucrative market for telecoms operators’, How We Made It In Africa, Maritz Publishing, Cape Town, 15 September 2010, available online at http://www.howwemadeitinafrica.com/angola-a-lucrative-market-for-telecoms-operators/3463/. 179 Pinto, A & Jover, E (2010) ‘Angola a lucrative market for telecoms operators’, How We Made It In Africa, Maritz Publishing, Cape Town, 15 September 2010, available online at http://www.howwemadeitinafrica.com/angola-a-lucrative-market-for-telecoms-operators/3463/. 180 Many Possibilities (2012) ‘African Undersea Cables’, Many Possibilities, Cape Town, available online at http://manypossibilities.net/african-undersea-cables/. 181 Telegeography (2012) ‘Angola Cables picks crack SACS, WACS team’, Telegeography, 14 November 2012, available online at http://www.telegeography.com/products/commsupdate/articles/2012/11/14/angola-cables-picks- crack-sacs-wacs-team/.

Prepared by: LINK Centre, University of the Witwatersrand 92

Assessment of SADC Communications Policies, Laws & Regulations shareholding, there appear to be no Angolan service providers that are foreign‐ controlled.

Market Share:

From the above, it is clear that there are no foreign suppliers in the telecommunications market.

Stakeholders:

There are allegations of the involvement of high‐profile political figures and state officials in Angola in the domestic companies investing in the sector182. Such figures may resist further liberalisation.

FOCUS AREA 2: REGULATORY REGIME & STATE OF PLAY183

Restrictions on Scope of Licences:

Although Angola’s 2001 Basic Telecommunications Law appears to be technology‐neutral, referring only to public, private and value added telecommunication services184 the licensing framework appears rather more technology‐specific, distinguishing between mobile and (presumably fixed) “public networks”185.

Restrictions on Market Access:

In the absence of GATS commitments in respect of communications services on the part of Angola,186 limited information on restrictions applying to foreign investment in the sector is available.

The 2001 Basic Telecommunications Law prohibits majority ownership by foreign entities of companies operating in the sector, along with a 10% limitation on

182 de Morais, R (2010) ‘The Angolan presidency: The epicentre of corruption’, Pambazuka News, Issue 493, 5 August 2010, available online at http://www.pambazuka.org/en/category/features/66476. 183 Angola appears to have a decree governing the sector (“Decree No. 44/02 defining a regime for establishment, management, and exploitation of telecommunications for public use” - cf WTO (2006) ‘Trade Policy Review: Angola’, Report by the Secretariat, WT/TPR/S/158/Rev.1, World Bank, Washington DC, p18) - but this decree was not available to the research team. 184 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Article 16. 185 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Article 19.3. 186 WTO (2003) ‘Draft converted Schedule of Specific Commitments’, S/DCS/W/AGO, World Trade Organisation, Geneva, 30 August 1995, available online at http://www.sadc.int/files/2113/2628/9200/Angola_GATS_Schedule.pdf.

Prepared by: LINK Centre, University of the Witwatersrand 93

Assessment of SADC Communications Policies, Laws & Regulations cross‐ownership in the same market segment187. The World Bank thus describes Angola as a country that “limits foreign equity participation in its economy more so than most countries in Sub‐Saharan Africa” and claims ‐ incorrectly ‐ that “private capital participation (domestic or foreign) in the fixed‐line telecommunications infrastructure sector is prohibited”, giving the country a score of 75 out of 100 for foreign equity participation in the telecommunications sector overall188.

Foreign companies investing in Angola are required to “obtain an investment project approval from the National Agency for Private Investment (ANIP) and the Council of Ministers (Conselho de Ministros)”189 and to “open a foreign currency bank account in a local bank domiciled in Angola”. In addition the “law requires foreign companies to contract local accountants, audit companies, and legal counsel”190. However, investments in the telecommunications sector appear to qualify for tax concessions191.

Other Discriminatory Measures:

In the absence of either general GATS commitments, or any in respect of communications services, on the part of Angola,192 no further information on any discriminatory measures applicable to foreign companies is available.

Restrictions in respect of the repatriation of profits and dividends apply to amounts in excess of USD 100 000193.

Angola is ranked 172nd out of 183 countries in terms of ease of doing business by the World Bank194.

187 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Articles 18 & 17. 188 World Bank (2010) ‘Investing Across Borders 2010: Indicators of foreign direct investment regulation in 87 economies, World Bank Group, Washington DC, available online at http://iab.worldbank.org/~/media/FPDKM/IAB/Documents/IAB-report.pdf, p84. 189 World Bank (2010) ‘Investing Across Borders 2010: Indicators of foreign direct investment regulation in 87 economies, World Bank Group, Washington DC, available online at http://iab.worldbank.org/~/media/FPDKM/IAB/Documents/IAB-report.pdf, p84. 190 World Bank (2010) ‘Investing Across Borders 2010: Indicators of foreign direct investment regulation in 87 economies, World Bank Group, Washington DC, available online at http://iab.worldbank.org/~/media/FPDKM/IAB/Documents/IAB-report.pdf, p37. 191 WTO (2006) ‘Trade Policy Review: Angola’, Report by the Secretariat, WT/TPR/S/158/Rev.1, World Bank, Washington DC, p27. 192 WTO (2003) ‘Draft converted Schedule of Specific Commitments’, S/DCS/W/AGO, World Trade Organisation, Geneva, 30 August 1995, available online at http://www.sadc.int/files/2113/2628/9200/Angola_GATS_Schedule.pdf. 193 WTO (2006) ‘Trade Policy Review: Angola’, Report by the Secretariat, WT/TPR/S/158/Rev.1, World Bank, Washington DC, p5. 194 World Bank (2012) Doing Business 2012: Doing Business in a More Transparent World, World Bank, Washington DC, available online at

Prepared by: LINK Centre, University of the Witwatersrand 94

Assessment of SADC Communications Policies, Laws & Regulations

Non‐discriminatory Regulatory Restrictions:

No information on licensing procedures is available. Biggs suggests VoIP is “tolerated”195 and the VoIP Catalog lists 4 VoIP providers in Angola196.

The legislative provisions of licences for the “deployment of international access to the public service”197 suggests that international gateway licences exist, but no information on who holds these, or whether they are limited in number, is available. The legislation provides for interconnection “subject to free negotiation among the carriers” with the regulator empowered to request Ministerial intervention in cases of “unjustified refusal of requested interconnection”198, but, in the absence of interconnection guidelines or readily available interconnection agreements199, discriminatory or anti‐competitive factors cannot be ruled out.

FOCUS AREA 3: LEVEL OF COMPETITION

Dominant providers:

With limited information on market share, this cannot be determined at this time.

Pricing:

According to the International Telecommunication Union, the price of a monthly mobile basket of services for Angola in 2008 was 5,5% of monthly gross national income per capita ‐ well below the average for sub‐Saharan Africa of 23%, making Angola the 6th cheapest out of 32 African countries surveyed. The

http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Annual- Reports/English/DB12-FullReport.pdf. 195 Biggs, P (2010) ,Voice Over Internet Protocol: Enemy Or Ally?, Chapter 8 in ITU (2010) Trends in Telecommunication Reform 2009: Hands-on or hands-off? Stimulating growth through effective ICT regulation, International Telecommunication Union, Geneva, pp180,1. 196 VoIP Catalog (nd) ‘VoIP Providers in Angola’, VoIP Catalog, available online at http://www.voip-catalog.com/voip_countries_angola_1.html. 197 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Article 19.3. 198 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Articles 20.3 and 22.1 (f). 199 Angola appears to have a decree governing the sector (“Decree No. 13/04 relating to interconnection” - cf WTO (2006) ‘Trade Policy Review: Angola’, Report by the Secretariat, WT/TPR/S/158/Rev.1, World Bank, Washington DC, p18) but this is was not available to the research team.

Prepared by: LINK Centre, University of the Witwatersrand 95

Assessment of SADC Communications Policies, Laws & Regulations corresponding percentages for fixed and broadband were 9,5% and 76,7% (10th cheapest of 32 African countries)200.

BuddeComm attributes the high cost of international bandwidth to “Angola Telecom’s monopolisation of the SAT‐3/WASC international fibre optic submarine cable”201. With the landing of the West African Cable System and the Africa Coast to Europe cable in 2012, and with the South Atlantic Express cable expected to land in 2014202, this is likely to change.

Competition Regulation:

Angola does not currently appear to have a competition policy and law in place, although the government appears to be working on the approval of a Competition Law drafted in 2009203. This would imply that there is not yet a separate Competition Authority204.

Anti‐competitive Behaviour:

There is no evidence of anti‐competitive behaviour in the sector. The 2001 Basic Telecommunications Law does list the promotion of “sound competition” as an objective and does contain anti‐competitive provisions, stating that “any practice that distorts competition conditions or constitutes an abuse of the dominant position shall be banned”205.

4.1.2 BROADCASTING SERVICES

Services Framework:

Broadcasting in Angola is regulated under the 2006 Press Law206. The law distinguishes between radio and television broadcasting, but makes no provision

200 ITU (2009) ‘Information Society Statistical Profiles: Africa’, International Telecommunication Union, Geneva, pp 16, 37 & 40, available online at http://www.itu.int/ITU- D/ict/material/ISSP09-AFR_final-en.pdf. 201 BuddeComm (2012) ‘Angola - Telecoms, Mobile, Broadband and Forecasts: Executive summary’, BuddeComm, Bucketty NSW, available online at http://www.budde.com.au/Research/Angola-Telecoms-Mobile-Broadband-and-Forecasts.html. 202 Many Possibilities (2012) ‘African Undersea Cables’, Many Possibilities, Cape Town, updated 17 April 2012, available online at http://manypossibilities.net/african-undersea-cables/. 203 AllAfrica (2010) ‘Angola: Government Drafts Competition Law to Secure Consumer's Relation’, AllAfrica.com, 29 May 2010, available online at http://allafrica.com/stories/201005310181.html. 204 KluwerCompetitionLaw (nd) 'Angola', Kluwer Law International, Alphen aan den Rijn, available online at http://www.kluwercompetitionlaw.com/organizations.aspx?jurisdiction=Angola. 205 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Articles 1,3 (a) and 13.6. 206 Angola (2006) ‘The Press Law, Law No. 7/06 of May 15’, Republic of Angola, Luanda, available online at http://www.wipo.int/wipolex/en/details.jsp?id=5729.

Prepared by: LINK Centre, University of the Witwatersrand 96

Assessment of SADC Communications Policies, Laws & Regulations for ‘transmission services’ (signal distribution). The law provides for both “public service broadcasting” and broadcasting by private entities, and caters for broadcasting coverage this is either national, or local or community in scope207.

Radio frequency licences are treated separately under the 2001 Basic Telecommunications Law208.

Despite the omission of provisions for broadcasting ‘transmission services’, Angola’s classification of broadcasting services is largely in accordance with W/120.

FOCUS AREA 1: MARKET STRUCTURE

Market Structure:

Smith and Mendes list 22 state‐owned radio stations (of which two have a national footprint) and 5 privately‐owned radio stations, none of which has a national footprint209.

State‐owned radio stations include Rádio Nacional de Angola (RNA), with 4 stations in the capital, and an FM Portuguese‐language service available nationally throughout the country on FM. Another RNA station, Radio Ngola Yetu, broadcasts in five national languages and has a mixed FM / short wave national footprint. Other RNA services include Rádio Cinco (focusing on sports) and Radio FM 96.5 (focusing on music), both of which broadcast in FM to the capital, along with 18 provincial radio stations210.

Four of the 5 privately‐owned radio stations are partially funded by the ruling party, MPLA211. The fifth is the Luanda‐based Rádio Ecclésia212.

207 Angola (2006) ‘The Press Law, Law No. 7/06 of May 15’, Republic of Angola, Luanda, available online at http://www.wipo.int/wipolex/en/details.jsp?id=5729, Articles 48 & 50. 208 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Article 34 209 Mendes, C and Smith, B (2006) African Media Development Initiative - Angola Research Findings and Conclusions. BBC Trust, London available online at http://www.radiopeaceafrica.org/assets/texts/pdf/ANG_AMDI_Report_pp4%201.pdf, p 16. 210 Mendes, C & Smith, B (2006) African Media Development Initiative - Angola Research Findings and Conclusions. BBC Trust, London available online at http://www.radiopeaceafrica.org/assets/texts/pdf/ANG_AMDI_Report_pp4%201.pdf, p15. 211 This would appear to be in contravention of the law, which states that “broadcasting activity can not be carried out or financed by political parties or associations” (Angola (2006) ‘The Press Law, Law No. 7/06 of May 15’, Republic of Angola, Luanda, available online at http://www.wipo.int/wipolex/en/details.jsp?id=5729, Article 49. 212 Mendes, C and Smith, B (2006) African Media Development Initiative - Angola Research Findings and Conclusions. BBC Trust, London available online at http://www.radiopeaceafrica.org/assets/texts/pdf/ANG_AMDI_Report_pp4%201.pdf, p15.

Prepared by: LINK Centre, University of the Witwatersrand 97

Assessment of SADC Communications Policies, Laws & Regulations

There appear to be five television broadcasters in Angola. Smith and Mendes list 2 state‐owned free‐to‐air television broadcasters, of which one, Televisão Popular de Angola, has a national footprint, while the other is available only in the capital.

There are also two private‐sector satellite‐based subscription television broadcasters, available: DStv MultiChoice Africa213 and the largely Portuguese Zap TV214. Zap TV owned by Upstar Comunicações, which in turn is a joint venture between Portuguese media group ZON Multimedia (which has a 30% shareholding215), and a locally‐based group, SOCIP216. The balance of shareholding in the consortium is unknown.

FesMedia identifies a further recent private television licensee, TV Zimbo217, which is owned by Angolan media publisher Medianova218.

Angola has one cable television broadcaster – TV Cabo, a 50/50 joint venture of Angola Telecom and Portugal’s Visabeira Group.219

There are no listenership / viewership figures available for the various broadcasters.

OMD puts television penetration in Angola at 13% of households220.

Despite several references to “public service broadcasting” in the 2006 Press Law, this is made the exclusive provision of the state, and is never defined. Smith and Mendes therefore conclude that there are “currently no laws in place to impose any public broadcasting remit” 221.

213 Mendes, C and Smith, B (2006) African Media Development Initiative - Angola Research Findings and Conclusions. BBC Trust, London available online at http://www.radiopeaceafrica.org/assets/texts/pdf/ANG_AMDI_Report_pp4%201.pdf, p 19. 214 Wikipedia (2013) ‘ZAP (satellite television)’, Wikipedia, available online at http://en.wikipedia.org/wiki/ZAP_(satellite_television). 215 ZON (2012) ‘FY 2012 Earnings Announcement’, ZON Multimedia, Lisbon, available online at http://www.zon.pt/institucional/Documents/Reportes%20Financeiros/ZONFY12ENGLISH.pdf, p12 216 Briel, R (2010) ‘New Angolan DTH platform for Eutelsat’, weblog, Satellite Universe, 2 March 2010, available online at http://www.sat-universe.com/archive/index.php/t-163699.html. 217 FES (2010) African Media Barometer- Angola, p. 106, available online at http://www.fesmedia-africa.org/uploads/media/AMB_Angola_2010.pdf, 218 Wikipedia (2012) ‘TV Zimbo’, Wikipedia, available online at http://en.wikipedia.org/wiki/TV_Zimbo. 219 TVCabo- Angola, available online athttp://www.ipoque.com/sites/default/files/mediafiles/documents/case-study-tvcabo.pdf. 220 Koenderman, T (2013) ‘The Future of Media: South Africa & SADC Media Facts 2013’, OMD South Africa Johannesburg, available online at http://www.omd.co.za/media_facts/FOM029_Blueprint_OMD_mediafacts2013.pdf, p25. 221 Mendes, C & Smith, B (2006) African Media Development Initiative - Angola Research Findings and Conclusions. BBC Trust, London available online at http://www.radiopeaceafrica.org/assets/texts/pdf/ANG_AMDI_Report_pp4%201.pdf, p 9.

Prepared by: LINK Centre, University of the Witwatersrand 98

Assessment of SADC Communications Policies, Laws & Regulations

Similarly, FesMedia gives Angola a score of 1,0 out of 5 on the indicator dealing with regulation of “broadcasting services and licenses in the public interest and [ensuring] fairness and a diversity of views broadly representing society at large”222, indicating non‐compliance. They further state: Public broadcasting in Angola functions, essentially, under a state‐ owned model. The minister in charge of the media portfolio appoints the managers of both the Public Television of Angola (TPA) and Angola National Radio (RNA)... There is serious resistance in Angola against the adoption of the governance model prescribed in the African Charter on Broadcasting and in the Declaration of Principles on Freedom of Expression in Africa. 223

Range of Services:

The DStv MultiChoice Africa service, based in South Africa, is available throughout the country, but only on a satellite pay‐TV basis. The Portuguese company Visabeira owns 50% of the cable television company TV Cabo.

Market Share:

The government, through Rádio Nacional de Angola and Televisão Popular de Angola, has the biggest market share in the broadcasting sector.

Stakeholders:

The government has entrenched interests in the broadcasting sector and may be seen as threat to broadcasting liberalisation.

FOCUS AREA 2: REGULATORY REGIME & STATE OF PLAY

Restrictions on Market Access:

There do not appear to be any specific restrictions on the number of broadcasting licences, with the exception of public service broadcasting, which, as noted above, is the exclusive purview of the state.

With regards to the press, the 2006 Press Law restricts foreign entities to 30% ownership in the media sector224. The law is silent on broadcasting foreign ownership restrictions.

222 FES (2010) African Media Barometer- Angola, p. 106, available online at http://www.fesmedia-africa.org/uploads/media/AMB_Angola_2010.pdf, 223 FES (2010) African Media Barometer- Angola, p. 107, available online at http://www.fesmedia-africa.org/uploads/media/AMB_Angola_2010.pdf, 224 Angola (2006) ‘The Press Law, Law No. 7/06 of May 15’, Republic of Angola, Luanda, available online at http://www.wipo.int/wipolex/en/details.jsp?id=5729, Articles 48 & 50, Article 24.2.

Prepared by: LINK Centre, University of the Witwatersrand 99

Assessment of SADC Communications Policies, Laws & Regulations

BTI notes that, while Angola “officially open to foreign investment” and has undertaken some moves to promote foreign investment (including the adoption of a 2003 Law on Private Investment and the creation of a National Private Investment Agency (ANIP)), its “regulatory and legal infrastructure is not developed enough to facilitate or provide sufficient protection for investments” and subject to “restrictive laws and business practices”225.

Other Discriminatory Measures:

There do not appear to be any discriminatory measures based on nationality.

Non‐discriminatory Regulatory Restrictions:

The licensing regime for broadcasting is, however, complex, lacking in transparency and under the control of government rather than an independent regulator. Broadcast licences are subject to “public tender” through the “Council of Ministers, on a proposal from the Ministries of Media and Post and Telecommunications”, with the actual licence itself “granted by the Minister of Social Communication, after technical licensing and assent of the Ministry of Posts and Telecommunications”226.

As FesMedia notes, in relation to the recent licensing of private television station TV Zimbo, “It is not clear under what circumstances the license was issued. Its owners are not known, despite the law being clear in that shareholders in media companies have to be clearly identified. There was no transparency in this process”227

Regulatory Best Practice:

FesMedia notes that “there is no independent regulator for either radio or television [in Angola]. These functions are currently exercised by the National Media Council” (NMC), and gives Angola a score of 1,3 out of 5 in terms of the indicator that “broadcasting [be] regulated by an independent body adequately protected by law against interference whose board is appointed ‐ in an open way – involving civil society and not dominated by any particular political party” 228.

225 BTI (2012) ‘’’BTI 2012 Angola Country Report’, Bertelsmann Stiftung, Gütersloh, p5, available online at http://www.bti- project.de/fileadmin/Inhalte/reports/2012/pdf/BTI%202012%20Angola.pdf. 226 Angola (2006) ‘The Press Law, Law No. 7/06 of May 15’, Republic of Angola, Luanda, available online at http://www.wipo.int/wipolex/en/details.jsp?id=5729, Articles 45 & 47. 227 FES (2010) African Media Barometer – Angola, p. 106, available online at http://www.fesmedia-africa.org/uploads/media/AMB_Angola_2010.pdf. 228 FesMedia (2010) African Media Barometer – Angola, p. 105, Friedrich-Ebert-Stiftung & Media Institute of Southern Africa, Windhoek, Namibia,, available online at http://www.fesmedia- africa.org/uploads/media/AMB_Angola_2010.pdf.

Prepared by: LINK Centre, University of the Witwatersrand 100

Assessment of SADC Communications Policies, Laws & Regulations

Mendes and Smith note that the NMC is “staffed by parliamentarians and civil society... [and] has effectively remained dormant since its foundation and is seen by many as a mouthpiece for the government”229.

FOCUS AREA 3: LEVEL OF COMPETITION

Dominant providers:

As noted above, the state broadcaster has the biggest market share in the broadcasting sector.

Competition Regulation:

As noted above, despite some progress, Angola does not currently appear to have a competition policy and law in place.

The 2006 Press Law, however, does include anti‐monopoly provisions, viz: Concentration of companies or media organisations in one single entity in order to build a monopoly, posing a threat to objectivity and pluralism as well as to healthy competition is prohibited230.

Anti‐competitive Behaviour:

There is no specific evidence of anti‐competitive behaviour in the broadcasting sector.

4.1.3 STATE OF LIBERALISATION

WTO Commitments:

Angola joined the WTO in November 1995231, but has made no overall horizontal commitments, and no specific commitments in relation to communications services232.

229 Mendes, C and Smith, B (2006) African Media Development Initiative - Angola Research Findings and Conclusions. BBC Trust, London available online at http://www.radiopeaceafrica.org/assets/texts/pdf/ANG_AMDI_Report_pp4%201.pdf, p 16 230 Angola (2006) ‘The Press Law, Law No. 7/06 of May 15’, Republic of Angola, Luanda, available online at http://www.wipo.int/wipolex/en/details.jsp?id=5729, Article 25. 231 WTO (nd) ‘Understanding the WTO: The Organization - Members and Observers’, World Trade Organisation, Geneva , http://www.wto.org/English/thewto_e/whatis_e/tif_e/org6_e.htm. 232 WTO (2003) ‘Draft converted Schedule of Specific Commitments’, S/DCS/W/AGO, World Trade Organisation, Geneva, 30 August 1995, available online at http://www.sadc.int/files/2113/2628/9200/Angola_GATS_Schedule.pdf. Commitments have been made in relation to Financial Services, Tourism and Travel-Related Services, and Recreational, Cultural and Sporting Services.

Prepared by: LINK Centre, University of the Witwatersrand 101

Assessment of SADC Communications Policies, Laws & Regulations

WTO Implementation:

The World Bank notes a considerable degree of trade liberalisation on the part of Angola since 2002, but points out that its “commitments under the GATS remain sparse” and ranks the country 126th out of 148 countries on its GATS Commitments Index233.

The previously noted prohibition of majority foreign ownership of telecommunications licensees creates substantial restrictions in respect of commercial presence under both market access and national treatment. No clear information is available in respect of presence of natural persons.

MFN Barriers:

There is no evidence of MFN inconsistent measures in the communications sector234.

4.1.4 REFERENCE PAPER READINESS

Angola is a not signatory to the WTO Reference Paper on Telecomms Services 235.

By way of comparison, the Regulatory Governance Index of Waverman and Koutroumpis, which is comprised of 18 elements within five categories that have limited overlap with the Reference Paper categories, places Angola 6th out of 38 African regulators236.

Regulatory Best Practice:

1. Competitive safeguards: Partially Compliant (3/5). As pointed out above, the 2001 Basic Telecommunications Law contains provisions outlawing abuse of dominance and behaviour that distorts competition. However, the country does not yet have a competition authority.

2. Interconnection: Somewhat Compliant (2/5). As pointed out above, the 2001 Basic Telecommunications Law contains provisions requiring interconnection, but these do not specifically require non‐discriminatory terms or timeliness, and do not specifically deal with points of interconnection. In the

233 World Bank (2010) ‘Angola Trade Brief’, World Bank, Washington DC, available online at http://info.worldbank.org/etools/wti/docs/Angola_brief.pdf. 234 Kruger, P (2008) ‘MFN exemptions of the SADC EPA group’, TRALAC Trade Law Centre, Stellenbosch, available online at http://www.tralac.org/2008/05/21/mfn-exemptions-of-the-sadc- epa-group/. 235 WTO (2003) ‘Draft converted Schedule of Specific Commitments’, S/DCS/W/AGO, World Trade Organisation, Geneva, 30 August 1995, available online at http://www.sadc.int/files/2113/2628/9200/Angola_GATS_Schedule.pdf. 236 Waverman, L & Koutroumpis, P (2011) ‘Benchmarking telecoms regulation – The Telecommunications Regulatory Governance Index (TRGI)’, Telecommunications Policy, No 35, pp 450–468, doi:10.1016/j.telpol.2011.03.006.

Prepared by: LINK Centre, University of the Witwatersrand 102

Assessment of SADC Communications Policies, Laws & Regulations apparent absence of interconnection guidelines the public availability of procedures is unclear. In the absence of publicly available interconnection agreements or reference interconnect offers, adherence to the transparency provision is likewise unclear. There is a dispute settlement provision, but this falls short of the independence requirement, requiring as it does the intervention of the Minister237.

3. Universal service: Partially Compliant (3/5). The 2001 Basic Telecommunications Law does deal with Universal Access and Service, specifically under Articles 14 (“Basic service and universal service”) and 15 (“Planning the universal service”), which deal respectively with the imposition of universal service obligations on the “incumbent carrier” and “public utility carriers” and the establishment of a Universal Service Fund, financed by contributions from “public network carriers and... service providers for public use” 238. The extent of the implementation of these is, however, unclear.

4. Public availability of licensing criteria: Not Compliant (0/5). As indicated above, there is little information on telecommunications or broadcast licensing criteria, terms, conditions and procedures, other than that contained in the 2001 Basic Telecommunications Law, which sets out labyrinthine licensing procedures, whose implementation is unclear and lacking in transparency.

5. Independent regulators: Partially Compliant (3/5). The 2001 Basic Telecommunications Law establishes INACOM (Instituto Angolano das Comunicações) as the regulatory body, separate from suppliers of services. However, a number of important regulatory competencies are retained in the hand of the state (which also has shareholdings in several operators) via the Department of Telecommunications, thereby creating structural conflicts of interest. In addition, the appointments process for the regulator is not specified, and it would appear effectively to be an extension of the Ministry.

6. Allocation and use of scarce resources: Largely Compliant (4/5). The 2001 Basic Telecommunications Law deals with frequencies, rights of way and numbering. Frequency is co‐regulated by the Department of Telecommunications and the regulator; rights of way are enforced by the Department of Telecommunications; numbering is the province of the regulator, INACOM. The band plan does not appear to be publicly available.

237 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Articles 20 & 22. 238 Angola (2001) ‘Basic Telecommunication Law’, Republic of Angola, adopted by the National Assembly, Luanda, 23 January 2001, available online at.http://unpan1.un.org/intradoc/groups/public/documents/cafrad/unpan004730.pdf, Articles 14 & 15.

Prepared by: LINK Centre, University of the Witwatersrand 103

Assessment of SADC Communications Policies, Laws & Regulations

Angola is currently not a signatory to the Regulatory Reference Paper. Some changes to legislation and regulatory practice would be required to ensure compliance and enable signature.

‐ ‐ ‐ o ‐ ‐ ‐

Prepared by: LINK Centre, University of the Witwatersrand 104