Mr Mondli Gungubele
Minister of Communications and Digital Technologies
Private Bag X921
Cape Town
8000
and
Mr Enoch Godongwana
Minister of Finance
PO Box 29
Cape Town
8000
and
Ms Tshiamo Maluleka-Disemelo
Chief Executive Officer
Communications Authority of South Africa
Private Bag X10
Highveld Park
0169
Dear Minster Gungubele, Minister Godongwana and Ms Maluleka-Disemelo:
ICASA’s ability to handle the issues of network quality monitoring, traffic and tariff tracking and mobile device standards compliance, as well as failed completion of Bid ICASA 27-2022
1. The United Democratic Movement (UDM) herewith raises with you the Independent Communications Authority of South Africa’s (ICASA) ability to handle the issues of network quality monitoring, traffic and tariff tracking and mobile device standards compliance.
2. Network Quality Monitoring
2.1. Telecommunications companies are charging consumers for 3G, 4G and 5G networks. Yet, there are no reliable tools with which ICASA can verify and monitor the quality of telecommunication services being provided by the telecommunications companies.
2.2. This is a matter which directly impacts the quality of the coverage within the South African territory and speaks to the regulator’s statutory obligation to ensure quality network coverage for South Africans.
3. Traffic and Tariff Tracking
3.1. ICASA is further required to track traffic, tariffs and billing of consumers to ensure amongst other things that billing for voice, SMS, data and the rolling over and transfer of services is executed in accordance with the End-user and subscriber service charter (EUSSC) Regulations, as applicable in South Africa.
3.2. At present, ICASA is not protecting the public from unscrupulous operators who take advantage of the fact that these legally binding regulations are not enforced by the regulator. For instance, in data/internet packages, consumers routinely pay for services and receive only a fraction of the data package. This is highly unfair to millions of hard working South Africans.
4. International Voice Gateway
4.1. ICASA is required to curb the practice of international interconnect bypass activities through the deployment of an international Voice Gateway monitoring tool.
4.2. The bypass activities in question, deprive the regulator and the Fiscus of taxes and revenue as the regulator is currently unable to verify the declarations of telecommunication operators as to both local and international traffic against the licensed revenue and income declarations provided in the remittance of taxes.
4.3. As such, the regulator is unable to detect fraud and potential loss of revenue from recalcitrant operators.
4.4. The regulator is currently unable to detect and monitor trends in data traffic patterns and associated revenue streams, resulting in revenue losses due to the increased adoption of new technologies at the expense of traditional services, to the detriment of the South African state, the Treasury and the nation at large.
5. Mobile Device Standards Compliance
5.1. Grey or black-market devices are rampant in the South African market.
5.2. Often these devices are used in the commission of crime and the furtherance of criminal enterprises.
5.3. The regulator is obligated to ensure that grey and black-market devices, including stolen devices can be identified across various networks to ensure that all subscriber equipment and devices are compliant with the law.
6. ICASA has failed the South African public in these abovementioned regards. In summary, ICASA is:
6.1. Failing in its duty to adequately regulate the industry to the detriment of the consumer;
6.2. Depriving the fiscus and Treasury of critical and much needed revenue from unscrupulous telecommunications companies; and
6.3. Not protecting the consumer or the state appropriately, by failing to put means in place for the state to collect its tax dues and by creating an environment where illegality, including the widespread use of unregistered devices continues unchecked.
7. The conclusion is blatant that the Regulator has and continues to fail the South African public and the state. An inquiry is necessary and merited by this unacceptable state of affairs.
8. In addition, on 15 July 2022, ICASA had issued, according to it’s website, the “Appointment of consultancy services to design and implement a multi-modular compliance monitoring system for a period of 3 years for development of the system and 5 years for ex-post development support on an 90/10 PPPFA 2000, Preferential Procurement Regulation: 2017” to address the abovementioned concerns.
9. Yet, this bid seems to have never awarded? Two years later and the South African public is still being cheated and the State is being deprived of the income this system would generate for it.
10. I would like to enquire from
10.1. the ICASA CEO, Ms Maluleka-Disemelo, what the status of the bidding process is and why the project has been delayed so long; and
10.2. Communications and Digital Technologies Minster Gungubele, what his office’s opinions are on ICASA’s failure to address the current situation around network quality monitoring, traffic and tariff tracking and mobile device standards compliance and what his office will be doing about the entire matter; and
10.3. Finance Minister Godongwana, what his office’s opinions are on the missed opportunities as described above in terms of the losses of revenue to the state.
Yours sincerely
Mr Bantu Holomisa, MP
President of the United Democratic Movement
