74
No. 37261
GOVERNMENT GAZETTE, 24 JANUARY 2014
9.2.1 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 purpose of the USAF is to subsidise various activities and sections of the population in
attaining UAS including:
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.
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.
9.2.2 The Education Rate (E-Rate)
To address the affordability of accessing services by specific institutions, the ECA empowers
ICASA to prescribe regulations regarding the E-Rate. According to the SADC USF
implementation guidelines, an E-Rate can be used to address universal access challenges
for schools that already have an infrastructure connection. However, quality bandwidth and
the existence of one or several ISPs in the desired geographical areas for the schools to
choose from are important factors for the success of an E-Rate programme.
9.2.3 Underserviced Area Licences (USALs)
Underserviced
Area
Licences
(USALs)
were
issued
in
terms
of
the
2001
Telecommunications Amendment Act. The idea behind USALs was to extend
telecommunication services in under-serviced areas, that is, those areas with a teledensity
of less than 5%. As indicated above, service exclusion may arise because users may be
living in areas that are uneconomical to serve or have low population density. USALs were
also an attempt at promoting entry by SMEs, historically disadvantaged persons, and women
in the telecommunications sector. The Minister of Communications identified 27 areas that
were declared as under-serviced. USALs were subsidised from the USAF to the tune of R15
million each to roll out infrastructure over a period of three years.
9.2.4 Universal Service and Access Obligations
Universal service and access obligations (USAO) refer to various obligations imposed on
licensees, related to either their service or spectrum licences. The rationale for USAO stems
from the general recognition that in their absence there will be a significant number of people
who are excluded from specific services, such as telecommunications, broadcasting or
postal services.
There are various types of obligations that together or individually are generally referred to
as universal service and access obligations. Examples include the following: universal
70
This gazette is also available free online at www.gpwonline.co.za