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27 August 2024

ICASA To Look Into New Licensing Framework For Satellite Services

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ENS

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ENS is an independent law firm with over 200 years of experience. The firm has over 600 practitioners in 14 offices on the continent, in Ghana, Mauritius, Namibia, Rwanda, South Africa, Tanzania and Uganda.
On 14 August 2024, the Independent Communications Authority of South Africa ("ICASA") published a notice regarding the intention to conduct an Inquiry into the licensing framework for satellite services ("Inquiry").
South Africa Media, Telecoms, IT, Entertainment

On 14 August 2024, the Independent Communications Authority of South Africa ("ICASA") published a notice regarding the intention to conduct an Inquiry into the licensing framework for satellite services ("Inquiry"). The Inquiry will only look into fixed satellite services, mobile satellite services, and broadcasting satellite services.

The purpose of the Inquiry is to:

  1. establish a regulatory and licensing framework for satellite services in South Africa;
  2. outline the procedures that ICASA may adopt for providing satellite services in South Africa;
  3. define the processes for authorizing user terminals, Internet of Things (IoT) terminals, and earth station user terminals that communicate with space stations while in motion, as well as ground earth stations within South Africa; and
  4. set forth the procedures for registering international satellite operators who plan to offer services either directly or indirectly (through existing licensed operators) to South African consumers.

In terms of the Electronic Communications Act, 2005 ("ECA") no person may transmit any signal by radio or use radio apparatus to receive any signal by radio, except under and in accordance with a radio frequency spectrum licence (“RFS License”) granted by ICASA to such person in terms of the ECA. In addition to the RFS License, service providers also need an electronic communication services (“ECS”) license, and specifically an individual ECS license (“IECS”) if they want to provide the ECS nationally. ECS is defined in the ECA as the conveyance of electronic communications over an electronic communications network (which includes a satellite system), regardless of whether these services are offered on a wholesale basis or directly to end users. These licence requirements have created an entry barrier into the South African market for international satellite communication service providers due to local ownership requirements. An individual ECS license holder must be a South African entity with at least 30% of its equity ownership held by historically disadvantaged groups. The Inquiry may result in satellite service providers being able to offer ECS in South Africa and is a step in the right direction for the provision of ECS in South Africa.

The proposed new framework seeks to establish procedures for satellite operators to register and operate within South Africa. This includes the creation of new categories of licences/authorisations related to radio frequency requirements for satellites, including:

Satellite gateway earth station licence: Gateway Earth stations are hubs that connect the satellite network to terrestrial networks. The licence would allow the licensee to install and operate a satellite earth station using a specified radio frequency band. This licence does not confer any right of ownership of the frequency spectrum, it simply allows the frequency channel to be used during the term of the licence in accordance with the conditions of the licence. It should be noted that the gateway earth station licensee may establish a gateway in respect of one or more satellite systems in the Approved list of authorised Space Stations (“ALOSS”), but it shall not be permitted to provide any telecommunication service or broadcasting service directly to the end-users (for which an IECS would still be required). Applicants or holders of the gateway earth station licence are legible to be treated under the private electronic communication network (“PECN”) licence regime and only need an IECS if they want to provide ECS to end-users;

User-terminal network licence: taking into consideration that the entity licensed for a gateway earth station may not necessarily be the same entity providing a service to the end-user, ICASA is proposing a separate licence that authorises access to radio frequency spectrum for user terminals to communicate with satellites. This licence will authorise the use of spectrum for user terminals to communicate with satellites, providing broadband connectivity for aircraft, ships, and ground-based terminals. These services will include residential and business broadband, private networks, and IoT applications. However, a licence may be required in order to sell or install satellite user terminal equipment in South Africa and service providers must obtain type approval for all the equipment sold and installed.; and

Registration of space segment: this is not a licence but rather a registration requirement for the operators who intend to include the territories of South Africa in their service area. ICASA will introduce a "List of Authorised Space Stations" that comprises a list of satellite space stations that are authorised space stations to provide satellite capacity over South Africa. The process of being listed will include a simple administrative process and service providers will not need any permits or licences. Upon registration, the service provider will be required to pay a once-off fee to cover the administration costs thereof. This registration does not grant the right to provide telecommunication services or/and telecommunications networks in South Africa, and a relevant licence(s) are required in each case (IECS / IECNS licenses). Locally licensed network operators (IECNS / IECS licensees) may procure satellite capacity to provide their services with Satellite operators appearing in the ALOSS.

The proposed framework will also consider the potential need to review spectrum fees, taking into account the increasing amount of bandwidth used by satellite systems operating in higher frequency bands. According to ICASA the existing formula for calculating satellite spectrum fees is unsustainable, especially in light of the large bandwidth demands of modern high-throughput satellite systems. To remedy this, the proposed framework recommends implementing lower spectrum fees for gateway earth stations, which could result in a 70 – 90% discount on the fees.

Interested parties are invited to submit written representations of their views on the proposed new licensing framework for satellite services, by 16h00 on 12 November 2024. Written representation or inquiries may be directed to: 350 Witch-Hazel Avenue, Eco Point Office Park, Eco Park, Centurion, South Africa or Private Bag X10, Highveld Park 0169 Centurion, Pretoria, or satlicensing@icasa.org.za, marked for the attention of Mr Mandla Mchunu.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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