Achieving Universal Access and Service Introduction South Africa as an emerging economy is faced with a number of developmental challenges. Out of a population of 52 million people, close to half live below the poverty line, whilst unemployment is around 25% and inequality is one of the highest in the world. With respect to access to communication services about 68% of households have radios, 78% have televisions, 24% have computers and only 18% have access to the Internet. Although the country has made great strides in the area of mobile telephony over the past decade, resulting in subscription rates of over 100%, fixed broadband access has lagged considerably during the same period, with the country achieving a world ranking of 115, in 2011. Recognising the critical role played by infrastructure in accelerating economic development, government adopted a National Infrastructure Development Plan in 2012 and established a Presidential Infrastructure Coordinating Committee (PICC) to drive the plan. A total of 18 Strategic Integrated Projects (SIPs) were identified for implementation. Insofar as communication infrastructure is concerned, the plan envisages broadband coverage for all by the year 2020. This is also underpinned by the National Development Plan, which envisages 100% broadband coverage by 2020, in line with the Department of Communications’ target. Furthermore, government aims to co-invest in projects to provide access to communication infrastructure and services in townships and rural areas as well as connectivity to schools and health facilities. As seen in Chapter 2, the Framing Paper principles emphasise the right of access to communications infrastructure, content and services by all citizens in all areas on non- discriminatory terms. One way of ensuring access to services by all citizens is through universal access and service (UAS) programmes. UAS refers to policies adopted by governments to ensure that citizens have equal and fair access to a point of communication. While traditionally UAS programmes were aimed at providing fixed telephony, recently the focus has shifted to mobile telephony, Internet and broadband (fixed and wireless), and broadcasting services. A distinction is made between universal service and universal access to communication services, although the two terms are often used interchangeably. Strictly speaking, universal service is aimed at direct provision of telecommunications, broadcasting or postal services to individuals or households regardless of their geographic location. Universal access on the other hand is aimed at increasing access to communication services on a shared basis, such as on a community or village-wide level. Whilst in the past shared access has been through public pay phones, more recently universal access programmes include the installation of telecentres and cyberlabs equipped with computers for Internet and broadband access. Generally, there are three pillars to a UAS policy: Affordability – communication services need to be provided at affordable prices; Availability – communication services should be provided whenever and wherever they are needed, including in remote and rural areas; Accessibility – all citizens should be able to use communication services, regardless of location, gender, disability or any other personal characteristics. USAASA contends that the above pillars must be expanded to include ‘awareness’ of the use and benefit of communications. Another dimension is that of ‘ability’ to use ICT services, indicating the importance of relevant content and applications to stimulate demand. 1 Regulatory Framework to Achieve UAS Because of the importance of promoting universal service and access in a democratic South Africa, the legislature ensured that it was embedded in legislation as early as 1996 with the promulgation of the Telecommunications Act No 103 of 1996. This was carried over into the Electronic Communications Act No 36 of 2005 (the ECA). Chapter 14 (sections 80-91) of the ECA contains the regulatory framework for achieving UAS in South Africa. Among other things, it provided for the continued existence of the Universal Services Agency (established in 1996) as the Universal Service and Access Agency (USAASA) of South Africa, sets out how the Universal Service and Access Fund (USAF) should be administered and empowers ICASA to prescribe various regulations required for the achievement of UAS, including the following: Regulations in Respect of the Prescribed Annual Contributions of Licensees to the Universal Service and Access Fund (2011) Regulations on the Definition of Under-Serviced Areas Regulations in Respect of e-Rate Various efforts have been undertaken in the past to achieve UAS in South Africa, including licensing operators in underserviced areas, establishing a Universal Service and Access Fund, implementing an e-Rate regime for public schools and imposing universal service obligations on licensees. These measures are discussed below. Universal Access and Universal Service Definitions USAASA, after a consultative process, made the following proposals regarding definitions, as per its obligation in terms of the ECA, and which were subsequently gazetted by the Minister in February 2010: 1. Universal access is provided where all persons in all areas and communities are able to obtain quality, affordable and usable access to a publicly available minimum set of quality a) electronic communications network service and electronic communications service, including voice, messaging and data electronic communications service and, in the case of data, including a broadband connection, and access to emergency services using free calls and messaging; and b) broadcasting service, including television and sound broadcasting service 2. a) i) Universal service for Electronic Communications Services is provided where all persons. if they require it, are able to obtain quality, affordable and usable access to a minimum set of electronic communications network service and electronic communications service, on either a household or individual basis, including a voice and data electronic communications service and, in the case of data, including a broadband connection. and access to emergency services using free calls and messaging, where all services are offered on a non-discriminatory basis. ii) For the purposes of this determination, affordable means at a rate (including connection and usage charges, but not subscriber equipment charges) that does not exceed a defined percentage of a household's total expenditure. b) Universal service for Broadcasting Service is provided where all persons have access to a diverse range of television and sound broadcasting services, in terms of three categories of Broadcasting Service, that cater for all language and cultural 2 groups, including persons with disabilities, and which provide entertainment, education and information. Although the February 2010 gazette also published targets in relation to the above definitions, these largely have not been met. The Universal Service and Access Fund Section 87 of the ECA establishes the Universal Service and Access Fund (USAF). Section 89 requires every holder of a licence granted in terms of the Act to make a contribution to the USAF, which must not exceed 1% of the licensee’s annual turnover. The Regulations in Respect of the Prescribed Annual Contributions of Licensees to the Universal Service and Access Fund (2011) set the annual contributions by licensees at 0,2% of their annual turnover and prescribe how and when such contributions are to be paid. Holders of broadcasting service licences who contribute to the Media Development and Diversity Agency (MDDA) may have their contributions to the MDDA offset against their prescribed annual contributions to the USAF. The purpose of the USAF is to subsidise various activities and sections of the population in attaining UAS including: Expand the development of ICT infrastructure and extend the reach of ICT network, especially to underserved areas; Assisting needy people in meeting the cost of accessing electronic communications and broadcasting services; Financing the construction of communications infrastructure in underserviced areas; Subsidising the procurement of communication services and access to infrastructure by public schools and further education institutions; and Financing the establishment of broadcasting centres and electronic communication access centres. USAASA’s 2009/10 annual report indicates that up to that point, the agency had assisted in the development of 362 cyberlabs and 154 telecentres, in addition to the facilitation of Internet connectivity to schools and access centres and further education colleges. It should be noted that this is the reported output after approximatley thirteen years, since its incpetion. In addition, it aims to establish 1 250 new access centres by 2014. The utilisation of funds in the USAF for some of the above purposes is dependent on the development of certain regulations. For instance, section 90 of the ECA obligates USAASA to provide incentives to electronic communications network service licensees to construct, operate and maintain electronic communications networks in under-serviced areas through the award of project grants. However, before this can happen, ICASA is required to prescribe regulations defining under-serviced areas eligible for construction payments from the USAF. USAASA is also required to make recommendations to enable the Minister to determine what constitutes