On 16 March 2009, the Authority published a notice¹ calling for comments by 30 April 2009 on the draft Radio Frequency Spectrum Licence Fees Regulations (Spectrum Fees Regulations). The draft Spectrum Fees Regulations were accompanied by a Discussion Document, outlining the reasoning behind the proposed clauses.

The introduction to the Discussion Document on Spectrum Fees states that the Authority intended to revise the annual Radio Frequency Spectrum Licence Fees currently specified under the E1 Licence Fees Chapter of the Radio Regulations (GNR 2862 of 1979) (E1 Spectrum Licence Fees) published in terms of the Telecommunications Act, 1996 (Act No. 103 of 1996). The review, however, does not cover the E2 Examination and Certificate Fees and the E3 - Application Fees by Type of Radio Communication Services.

The Authority notes that the current E1 Spectrum Licence Fees have a number of deficiencies, including the fact that they. are outdated, manifestly unfair with wide differences between the fees paid by different users for comparative services, encourage spectrum hoarding and do not encourage efficient use of spectrum, among other things. The draft Spectrum Fee Regulations therefore proposes incentive-based prices that are designed to reflect the economic value of spectrum. The rationale for the proposed fee structure, therefore, is essentially to incentivise the efficient use of spectrum, or conversely, to prevent or minimize inefficiency. Implicit in the fee structure, is that, at a minimum, the administrative costs of managing spectrum use are covered.

By the closing date for comments on the draft regulations the Authority had received 32 written submissions from the following:

MTN

Cell-C

Vodacom

Neotel

Sentech

Telkom

Transtel

Smile Communications

MWeb

Eskom

National Association of Broadcasters (NAB)

South African Police Services (SAPS)

Wireless Access Providers Association of South Africa

On Digital Media

Infraco

Internet Solutions

South African Tetra Association (SATA)

Professional Mobile Radio Association (PMRA)

Kenwood

Fleetcall

Internet Service Providers Association

Telemedia

Orbicom

Wireless Business Solutions (WBS)

Transnet

Sasol

Department of Defence

Webber Wentzel Bowens

Radio Data Communications

Altech Netstar

Kitso Tech Coopers Radio

Telemedia

Only 21 of the 32 listed entities requested an opportunity to present orally at the public hearings and only 16 finally made presentations at the public hearings held from 02 to 04 September 2009. The hearings were held before a Committee of Council, which comprised the following members:

Clr Fungai Sibanda - Chairperson of Committee

Clr Thabo Makhakhe - Co-Chairperson

Clr Marcia Socikwa - Co-Chairperson

Mr Mandla Mchunu - Engineering and Technology (Project Leader)

Mr Gert Visser - Engineering and Technology

Ms Mashudu Netshiongolwe - Markets and Competition

Mr Pieter Grootes - Markets and Competition

Mr Bethuel Makola - Legal Services

Mr Roger Blackshaw - Datacon Consulting

Mr Simon Biaou - Datacon Consulting

¹ Government Gazette No 32029 (Notice No. 304 of 2009)