EC Act comes into effect today

By Damaria Senne, ITWeb senior journalist

Johannesburg, 19 Jul 2006

President Thabo Mbeki has proclaimed the commencement of the Electronic Communications (EC) Act and the Independent Communications Authority of SA (ICASA) Amendment Act as of today. The proclamation was published yesterday in the Government Gazette.

The two pieces of legislation, which were signed into law by the president earlier this year, repeal the Telecommunications Act of 1996 and some sections of the Broadcasting Act, excluding those that deal with public broadcasting.

The ICASA Amendment Act incorporates the Postal Regulator into ICASA with immediate effect.

The Department of Communications intends to present the Postal Services Amendment Bill of 2006, which seeks to align postal services law with the new regulatory and legal environment in the country, to Parliament later this year, says department spokesman Albi Modise.

No big bang

The traditional boundaries between telecoms and broadcasting are now eroded, resulting in increased collaborations across platforms, lowering costs and accelerating delivery of services, Modise says. The benefits from implementing the Acts will be realised much sooner than most people expect, he adds.

Deputy communications minister Roy Padayachie said yesterday the short-term impact of the two Acts will be to lower access costs and increased efficiency of telecoms in SA.

Mike Silber, a consultant with Michalsons Attorneys, notes the EC Act does not contemplate a "big bang" approach in its move to the new licensing regime, but rather a series of transitional provisions.

The EC Act is unlikely to have an immediate effect on the ICT sector and even its impact over the next 30 days is likely to be muted, he says.

Conversion of licences

ICASA has previously stated it will map out the licence conversion process in the next 30 days. Silber says ICASA needs to act quickly and decisively in order to avoid a farce following the consequent repeal of the Telecommunications Act of 1996.

"There are likely to be many operators jumping into the market with unlicensed offerings which may hurt consumers and other market players," he says.

The conversion process will give a clear indication of ICASA`s thinking regarding the licensing needs of the sector, explains ICASA spokesman Jubie Matlou.

It is also understood that the commencement of the EC Act opens the door for ICASA to announce its new ADSL pricing model - since the regulator now has legislative powers to make regulatory changes unilaterally.