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Annual Report 2015Annual Report INTRODUCTION FINANCIAL STATEMENTS Chairman’s Statement 1 Members of the Board report 49 Board Members 3 Board Members Responsibilities Board Member Profiles 4 and Approval 50 Executive Managment 5 Independent Auditor’s Report 51 Chief Executive’s Report 6 Statement of Financial Position 52 Statement of Comprehensive GOVERNANCE Income 53 Board Participation 11 Statement of Cash Flows 54 Internal Audit 12 Statement of Changes in Equity 55 Policy and Legal Review 12 Accounting Policies 56 Operational Plan Review 13 Notes to the Annual Financial Licensing of ICT Service Statements 64 Providers 13 Detailed Statement of Review of Licensing Comprehensive Income 77 Framework 15 ICT Market Performance 15 Mobile Telephony Market 15 Fixed Market Segment 16 Internet Uptake 16 Mobile Internet Market 18 Value Added Services 18 Technical Services 19 Type Approval 19 Spectrum Management 20 Broadcasting Regulation 25 Postal Sector Regulation 26 Regulatory Initiatives 28 Compliance Monitoring 29 Investigations 29 Network Performance 30 Consumer Protection 35 Stakeholder Engagements 36 BOCRA Brand and Strategy Launch 39 Media Relations 39 Regional Engagements 39 International Engagements 39 Corporate Social Investment 41 Human Capital 41 TRANSPARENCY Our decision making will be open and informed by consultation with various stakeholders. We will embrace the diverse interests of our different stakeholders. CONSISTENCY We will ensure that our decisions are fair, predictable and dependable. We will be objective in our decision making and apply remedies that are proportionate. PEOPLE CENTERED We believe that our people are indispensable assets who drive our success through their commitment to excellence. We shall therefore harness individual skill and trengths and work as one. INNOVATION We will continuously explore new ways in designing proactive regulatory interventions that will respond timeously and effectively to market demands and the latest technology trends. ACCOUNTABILITY We are responsible for our actions and decisions, we take due care in the use of public resources and adhere to internationally acceptable governance principles. Annual Report 2015 1 Dr. M. A. Mpotokwane PhD (Environmental Science) University of Stirling, Scotland MSc (Rural Surveys) i International Institute for Aerial Survey and Earth Sciences, Netherlands BA (Geography and Sociology) Chairman’s University of Botswana Statement The year under review has been an eventful one from a policy and strategy point of view. The year saw BOCRA launching its first five year Strategic Plan for the period 2014-2019. Through the strategy BOCRA set itself a Big Hairy Audacious Goal (BHAG) defined by two indicators: Access and Use. The Strategy sought to position Botswana among the best in Africa by reaching a score of 6 points for access to ICT and 3 points for ICT usage as assessed by the International Telecommunication Union (ITU) through the ICT Development Index (IDI).1 The Strategy espouses a vision to have a “Connected Shareholder Compact Agreement with the then Minister and Informed Society” and uses Balanced Scorecard as of Transport and Communications, Hon Nonofo E. Molefhi a measurement and management system. It identifies M.P. The Shareholder Compact is based on and subject six key result areas through which it aims to deliver to the provisions of the Communications Regulatory consumer satisfaction. Over the five year period BOCRA Authority Act, 2012 (CRA Act) which collectively set out will focus on universal access to communications the mandate, objectives and functions of BOCRA, and services; protection of consumers; efficient management the powers of the Board. of scarce resources and competitiveness of the sector to deliver affordability among other key results areas. The Shareholder Compact is designed to give effect to the Strategic Plan by clearly stating the parameters of In line with the BOCRA strategy and in pursuit of the the relationship between the Shareholder and BOCRA, Government of Botswana’s initiative of improving the articulating the shareholder’s expectations, setting performance of public enterprises, the Board signed a performance targets, monitoring and evaluation of 1 Botswana Communications Regulatory Authority % % P108.1M P31.66 M P96,28 M P48.11 M 12 2014 2015 34 2014 2015 During the year under review, operating expenses The decline is attributable to reduction in total operating increased from P96,28 million from the previous year to revenue and an increase in operating expenses compared to P108.1 milion. previous year. Operating Expenses Total Comprehensive Income performance and confirming the Ultimately, the Fund will enable need to rethink spectrum licensing. performance targets as indicated in consumers to develop the capacity There is a critical emerging need the Strategic Plan and Business Plan. to use communications services for new business models driven by Coupled with the Strategy, BOCRA and take advantage of its many digital communications and services. launched its dynamic forward looking opportunities and benefits. All these issues which face the corporate brand that will be the communications sector, and others centrepiece and the rallying point that have not been highlighted here, in the Authority’s drive to attract “I am confident that require BOCRA to move Botswana and retain the best available talent, the inaugural Strategy to keep up with the rest of the develop a high performance culture world. The issues are as relevant for and improve employee engagement. and policy direction Botswana as they are for any other set in motion during part of the world. As at the end of the reporting period, this reporting period is the impact of the Strategy was yet to I am confident that the inaugural be fully realised. It became evident adequate to enhance Strategy and policy direction set that some of the objectives needed BOCRA’s performance in motion during this reporting to be adjusted and that the strategy to ensure that period is adequate to enhance needed manpower resourcing. consumers and the BOCRA’s performance to ensure The Strategy has been reviewed that consumers and the people accordingly to reflect the two people of Botswana of Botswana enjoy and benefit constraints identified in the aforesaid. enjoy and benefit from reliable, safe and secure from reliable, safe and communication networks. Improved Pursuant to Section 5 (1) c of the CRA secure communication performance should lead to customer Act, enjoining the Board to impose satisfaction and improve Botswana’s a universal access and services networks.” standing on the world map thus levy on identified operators for the placing the country as one of the purpose of funding universal access centres of excellence for ICT and in the communications sector, the In order to appreciate issues at communication services. Hopefully Board caused for the formation of the the forefront of the international , it will also generate sustainable Universal Service and Access Fund communications landscape over employment opportunities in the (Fund) through a Deed of Trust. The the reporting period, different Board economy. Fund is run by a seven (7) Member members attended pioneering and independent Board of Trustees with decision making fora including the ITU BOCRA serving as the Secretariat. Telecom World, Global Symposium for Regulators, International Institute The Fund seeks to ensure that all of Communications, GSMA Mobile Dr. M. A. Mpotokwane Board Chairperson Batswana have access to a set of World Conference. Throughout the basic, yet essential, communications various fora, changing ICT consumer services throughout the country at behaviour featured prominently. affordable prices and to focus its The sector is calling for consumer assistance on population groups empowerment and protection in and areas which are beyond the the digital age. It is also apparent reach of the communications market. that, in this era of big data, there is Annual Report 2015 2 Board OF Directors 2 3 9 4 1 8 5 7 6 BOARD PROFILES 1 Dr. Masego A. Mpotokwane 3 Dr. Ditshupo E. Maje Board Chairperson Member An Environmental Scientist by training, Dr. Mpotokwane Ditshupo Ecco Maje is a lecturer at the University was a lecturer at the University of Botswana for 27 years Botswana. Dr. Maje holds a PhD in Electrical Engineering before he retired. He has served as Chairman of Board from the Missouri University of Science and Technology, of Directors of the former National Broadcasting Board USA. He also holds Msc in Radio Engineering from the (NBB) for 12 years, and was also the Deputy Chairman of Vinnitsa State Technical University in the Union of Soviet the BTA Board for 7 years. Socialist Republics. Dr. Maje has served as a Board Member in the then Botswana Telecommunications 2 Ms. Esther Norris Authority (BTA). Deputy Board Chairperson Esther Norris is a Communications and PR specialist with 4 Mr. Mabalaankwe K. Rabashwa over 15 years’ experience and also Executive Director for Member Brand Management with the Botswana Investment and Mabalaankwe Rabashwa is a private sector lawyer and Trade Centre (BITC). She has previously held positions of has been a Partner with Motlhala Rabashwa Ketshabile Director, Communication Services at the Office of the Attorneys since 2004. As Counsel, he has advised varied President; Head of Corporate Affairs, Barclays Bank of clientele. His areas of focus are commercial law, corporate Botswana and PublicRelations Manager & PA to Managing law, labour law, divorce and
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