| A) | INTRODUCTION AND BACKGROUND |
| 1) | This Position paper sets out the reasons for the Authority's decision on the amendment to the USAF regulations. |
| 2) | The Universal Service and Access Fund Regulations are prescribed in terms of section 89 of the Electronic Communications Act 36 of 2005, (The Act). The regulations were published on 10 October 2008 |
| 3) | On 16 September 2010, the Authority published the draft revised USAF regulations and the Explanatory memo contextualizing the proposed revisions in General Notice 857 contained in Government Gazette 33557. Submissions were received from the following entities: |
| a) | Association of Christian Broadcasters |
| 4) | The submissions were assessed by the committee and revisions were made to the published draft regulations. As no contentious issues were raised, the committee has elected to not convene public hearings in line with the discretion conferred in terms of section 4(6) of the Act. |
| 5) | The Authority has considered the following revisions to the regulations: |
| i) | Deletion of the following unused definitions : |
Adjusted Gross Revenue
| ii) | Insertion of the definitions of the following: |
Annual Turnover
BS Licensee
ECNS Licensee
ECS Licensee
USAF Contribution
| iii) | Revision of the following definitions is proposed: |
Applicable Interest Rate
Licenced Activity
| b) | Payment of Contributions |
The Authority has revised the entire clause to align it with recent developments in drafting principles. Further, the period for payment of submissions has been extended from three (3) months to six (6) months.
In light of the wording of section 89(1) the Authority has decided to not create an exemption for any licensees from the payment of USAF contributions as the section does not confer such powers to the Authority. An exemption may only be considered after an amendment to the act that allows for same.
| d) | Interest on late payments |
The clause has been revised to align it with recent developments in drafting principles and to align it with section 80(1)(b) of the Public Finance Management Act, 1 of 1999.
| e) | Contraventions and Penalties |
The clause has been revised to align it with recent developments in drafting principles. The fines have been adjusted in line with the submissions received.
| f) | Private Electronic Communications network |
PECNs have been deleted from the ambit of the regulations because they are not licensees. Section 89 specifically requires Licensees to contribute.
| 6) | The Authority thanks the industry and is grateful for the constructive engagement. |
