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2020 ANNUAL REPORT Contents A CONVERGED AUTHORITY FOR GROWING THE COMMUNICATIONS INDUSTRY 2020 ANNUAL REPORT Contents Botswana Communications The fast Regulatory Authority read Report 2020 01 About Us Our history iii 2 Chairman’s Statement 4 Board of Directors What is our purpose? iii 6 Chief Executive’s Statement 8 Management How we get things done iii 10 Governance 12 Corporate Governance 13 Board Participation 14 Policy and Legal Review Empowering 14 Organisational Performance communities iv 18 Reviews 20 Market Review Governance iv 22 Mobile Money Services 22 Postal Regulation 24 Broadcasting Regulation How we are doing v 25 Content Monitoring 31 Network Quality of Service 33 Spectrum Management Strategy Our facilities vi 38 Universal Access and Services 41 Compliance and Monitoring of Service providers 44 Local, Regional and International Participation 53 Stakeholder Engagement Icons used in this report 54 Consumer Education 55 Corporate Social Investment 57 Human Capital Printed Section The printed version of the integrated annual 64 Annual Financial report aims to provide concise, relevant and reliable information addresing the Statements Corporation’s objectives and activities 66 General Information 67 Board Members’ Report 68 Board Members’ Responsibilities Online Section and Approval The online version is made available to 69 Independent Auditor’s Report provide convenience of accessibility. The integrated annual report aims to provide 74 Consolidated and Separate concise, relevant and reliable information Statements of Financial Position addressing the Authority`s objectives and 75 Consolidated and Separate activities https://www.bocra.org.bw/ Statements of Comprehensive Income 76 Consolidated and Separate Statements of Cash Flows 77 Consolidated and Separate Statements of Changes in Equity 79 Accounting Policies 88 Notes to the Consolidated and Separate Financial Statements 106 Detailed Income Statement “BOCRA entered 03 into a Memorandum of Agreement with the Companies and Intellectual Propriety Authority (CIPA) to formalise working relations, with a specific focus on facilitating development and consumption of local content for the broadcast sector.” “The reporting period saw the increased 07 deployment of FTTx or Fibre to the cabinet, business or home, as the case may be.” Commercial radio broadcasting also witnessed an increase in coverage from 16 the baseline of 57% to 68% The Authority revised the Spectrum 33 Management Strategy, which will be implemented over a five-year glide path 62 BOCRA held its annual Wellness Week in March 2020 to encourage staff to value and lead healthy lives. BOTSWANA COMMUNICATIONS REGULATORY AUTHORITY ANNUAL REPORT 2020 I THE FAST READ Botswana Communications Authority has 4 REGULATORY AREAS 1 TELECOMMUNICATIONS Under the Communications Regulatory Authority Act 2012, BOCRA has authority - within the guidelines established by the 1995 Telecommunication Policy to regulate telecommunications, among other sub-sectors communications. The telecommunications sector, spurred by the mobile technology, continues to experience significant growth in terms of the total number of consumers and variety of services. 2 BROADCASTING The CRA Act mandates BOCRA to regulate all broadcasting; subscription management services and re-broadcasting activities save for the state broadcasting. It is in this light that BOCRA regulates Yarona FM, Duma FM, Gabz FM and eBotswana. 3 POSTAL The CRA Act, 2012 ushered in a new dawn of regulation for the postal sector as BOCRA assumed the mandate of supervising the provision of postal service in Botswana. 4 INTERNET Electronic Records (Evidence) Act, 2014 empower BOCRA to establish an approved process for the production of electronic documents and also certify electronic records systems for purpose of integrity. The Electronic Communications and Transaction Act No 14 of 2014 gives BOCRA responsibility for the accreditation of the secure digital signature service providers and administration of the take down notices. Read more about our business units at www.bocra.org.bw II BOTSWANA COMMUNICATIONS REGULATORY AUTHORITY THE FAST READ OUR HISTORY BOCRA was established through the Communications Regulatory Authority Act 2012 (CRA Act) on the 1st of April 2013. The CRA Act replaced the Broadcasting Act [Cap 72:04], the Telecommunications Act [Cap 72:03], and caused the amendment of the Postal Services Act to create an integrated regulatory authority for the communications sector. WHAT IS OUR PURPOSE? We regulate the communications sector in Botswana, to promote competition, innovation, consumer protection and universal access. HOW WE GET THINGS DONE We achieve our mandate through, among others: Licensing; Tariff regulation; Consumer protection; Quality of Service Monitoring; Spectrum Management; Numbering Resources Management. GOVERNANCE In discharging its mandate, the Board’s decisions and directives are guided by the Board Charter and the Shareholder Compact Agreement between BOCRA and the Ministry of Transport and Communications. BOTSWANA COMMUNICATIONS REGULATORY AUTHORITY ANNUAL REPORT 2020 III THE FAST READ FINANCIAL SUMMARY Group Authority Revenue Revenue P183.1million P132.7million 11% 9% F2019: P164.9million F2019: P121.7million Operating Expenses Operating Expenses P147.3million P121.9million 10% 1% F2019: P163.3million F2019: P120.2million Net Assets Net Assets P592.6million P322.2million 9% 0% F2019: P545.3million F2019: P322.2million Cash and cash Cash and cash equivalents equivalents P426.0million P194.3million 9% 6% F2019: P392.0million F2019: P182.8million Return on Capital Return on Capital Employed (ROCE) Employed (ROCE) 8.0% 4.8% 220% 100% F2019: 2.5% F2019: 2.4% Surplus for the year Surplus for the year after tax after tax P47.3million P15.5million 245% 101% F2019: P13.7million F2019: P7.7million IV BOTSWANA COMMUNICATIONS REGULATORY AUTHORITY THE FAST READ FINANCIAL SUMMARY Group OPERATING REVENUE 120,000,000 100,000,000 80,000,000 Pula 60,000,000 40,000,000 20,000,000 - Others UASF Levy UASF Radio licence fees licence Radio Service licence fees Service licence System licence fees licence System Turnover fees - Postal fees Turnover 2020 2019 Turnover fees - Broadcasting fees Turnover Turnover fees - Telecommunications fees Turnover Authority OPERATING REVENUE 120,000,000 100,000,000 80,000,000 Pula 60,000,000 40,000,000 20,000,000 - Others Radio licence fees licence Radio Service licence fees Service licence System licence fees licence System Turnover fees - Postal fees Turnover 2020 2019 Turnover fees - Broadcasting fees Turnover Turnover fees - Telecommunications fees Turnover BOTSWANA COMMUNICATIONS REGULATORY AUTHORITY ANNUAL REPORT 2020 V THE FAST READ OUR ROLE Complying with international standards BOCRA ensures that, as a member of the International Telecommunication Union (ITU), Botswana’s ICT networks and devices comply with international standards that are critical to the interoperability of ICTs and enable global communications by speaking the same language with the rest of the world in exchanging services including voice, video or data messages. Complaints Process BOCRA will investigate a consumer complaint against a service provider if there is sufficient evidence to establish possible breaches of any provisions under CRA Act Tariffs BOCRA is mandated by Section 90 of the CRA Act to establish tariff principles to be applied in the setting of tariffs and other charges including price caps or other price controls, for different classes or categories of services or products and for different areas for the regulated sectors. Regulatory Tools In the discharge of its mandate, BOCRA, in consultation with various stakeholders, periodically develops regulatory tools to establish minimum regulatory requirements and guide licensees, consumers and other stakeholders on regulatory expectations. Equipment Approval BOCRA is mandated by Sec 84 of the CRA Act to Type Approve communications equipment that may be connected, used or operated to provide broadcasting or telecommunications services in Botswana. In addition, BOCRA is mandated to ensure consumer protection. The purpose of Type Approval procedure is to ensure that all radio communication and telecommunication equipment used in Botswana complies with international standards that are applicable in Botswana as a member of the ITU Region 1. VI BOTSWANA COMMUNICATIONS REGULATORY AUTHORITY ABOUT US 01 2 CHAIRMAN’S STATEMENT 4 BOARD OF DIRECTORS 6 CHIEF EXECUTIVE’S STATEMENT 8 MANAGEMENT ANNUAL REPORT 2020 1 LEADERSHIP CHAIRMAN’S STATEMENT The 2019/20 reporting period marked the inaugural year of the five-year Strategic Plan for the period 2019/24. Ms. Tsaone Ruth Thebe Board Chairperson The BOCRA Strategy is anchored on six strategic Given that telecommunication permeates the entire pillars of Competition, Consumer Protection, Resource economy, the Board recognised the need for the Optimisation, Universal Access and Service, Stakeholder regulator to establish strategic alliances with other Engagement, and Talent Management. stakeholders to leverage their expertise for the benefit of the sector. Acknowledging this, BOCRA entered into Under these strategic pillars, BOCRA established 10 a Memorandum of Agreement with the Companies strategic objectives and achieved an 80% performance and Intellectual Propriety Authority (CIPA) to formalise rating. Specifically, I would like to highlight the progress working relations, with a specific focus on facilitating made towards creating a competitive market and development and consumption of local
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