VZCZCXYZ0001
RR RUEHWEB

DE RUEHSA #0180 0281455
ZNR UUUUU ZZH
R 281455Z JAN 08
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 3301
INFO RUCPDC/DEPT OF COMMERCE WASHDC
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE

UNCLAS PRETORIA 000180 
 
SIPDIS 
 
SENSITIVE BUT UNCLASSIFIED 
SIPDIS 
 
DEPT FOR EEB/CIP/BA 
USTR FOR CATHERINE HINCKLEY 
 
E.O. 12958: N/A 
TAGS: ECPS ETRD USTR SF
SUBJECT: USTR: SAG RESPONSE TO SECTION 1377 TELECOM TRADE AGREEMENTS 
2008 REVIEW 
 
REF:  STATE 03689 
 
¶1. (U) Summary. ICT Officer provided the Independent Communications 
Authority of 
South Africa (ICASA) with a copy of the USTR question regarding the 
rules that 
govern market access for foreign satellite operators and the 
industry comments 
USTR has received concerning the telecommunications regulatory 
environment in 
South Africa (reftel).  ICASA officials requested additional time to 
provide a 
formal response to the question and comments provided by post. 
ICASA Councillor 
Dr. Tracey Cohen responded informally to the question as an interim 
response and 
stated that South Africa currently does not have a set of aggregate 
rules that 
govern access for foreign satellite operators.  ICASA is in the 
process of 
implementing new legislation intended to improve competitiveness in 
the South 
African telecommunications market.  Post will report further 
information once 
ICASA has provided its formal response.  End Summary. 
 
¶2. (U) Post contacted ICASA Councillor Dr. Tracey Cohen to request a 
response to 
USTR questions and comments outlined in reftel.  Dr Cohen reported 
that ICASA 
has tried for a year and a half to develop an aggregate set of rules 
to govern 
the practices of South African telecom licensees and their partners. 
 ICASA has 
not been able to formalize a regulatory framework for 
telecommunications issues 
despite an initiative started in July 2007.  Dr. Cohen stated that 
ICASA is 
still in the process of defining regulations and there has only been 
a push in 
the last month to do so.  She believed that it will take some time 
for this 
process to "get off the ground".  With respect to the question 
concerning access 
for foreign satellite operators, Cohen stated that the major rule 
that affects 
foreign satellite operators is that they have to contract with 
telecom licensees 
that have local (South African) ownership. 
 
¶3. (U) The press has been critical of the lack of competitiveness in 
the South 
African telecommunications market.  Telkom South Africa enjoyed a 
protected 
monopoly status until the Electronic Communications Act (ECA) of 
2005 was 
passed.  ICASA was charged with implementing the ECA, which removed 
monopoly 
elements from old licenses and ensured that licensees have no 
special privileges 
over one another.  A second fixed-line operator Neotel entered the 
market as a 
result.  ICASA was also tasked with issuing new licenses to mobile 
operators and 
Internet service providers.  However, ICASA missed its original 
timeframe to 
issue these licenses as expected in November 2007.  The 
telecommunications 
market is expected to become more competitive once these licenses 
are approved 
in early 2008. 
 
END TEXT 
 
BOST