Chairperson of the Parliamentary Portfolio Committee Representatives from ICASA Distinguished Guests Representatives of member organisations Ladies and Gentlemen On behalf of the Executive Committee of the NAB, I wish to express my appreciation to you all for joining us today. We are particularly honoured and delighted to have the chairperson of the Portfolio Committee on Communications, Mr Lekgoro with us. My special thanks to Mr Joe Mjwara for making the time to come speak to us. Joe has recently left the Department of Communications for the IT sector which puts him in the unique position of being able to deliver what I hope will be an insightful and unrestricted 10 year retrospective on broadcasting – with hopefully a few words of advice for members going forward.

This last year NAB has seen many important developments for the broadcasting sector. We have witnessed a number of matters that were pending for some time, come to a head in the last few months. Unfortunately, we have also seen a number of urgent matters remain unresolved. By way of example, the NAB has for some time been advocating for the establishment of an enabling national policy on digital migration that would enable ICASA, government and industry to put in place a migration plan. We were therefore very pleased when earlier this year we saw the publication of a digital migration issues paper by the Department of Communications and later the Minister established the Digital Migration Working Group. We were of course, keen to participate in these public processes and I think you will agree that the NAB put forward a comprehensive and detailed set of submissions, once again confirming our reputation as a leader in broadcasting policy development. The NAB together with the regulator, for the most part, has taken the lead in this process and significant progress has been made towards developing a national policy for digital migration. On the other hand, the amendment of the ownership and control obligations in the IBA Act are yet to be effected. We saw a public enquiry and subsequent position paper and proposed amendments by ICASA. We all thought that the work was done and eagerly awaited the Parliamentary process to discuss the proposed amendments. Yet, eighteen months later this process has not been concluded and new legislation in the form of the Electronic Communications Bill and ICASA Amendment Bill are about to be passed into law. These amendments particularly have far reaching implications for the economy of the radio sector. It is that principle of participating fully and constructively in all processes which affect our industry, that guides the NAB in its work. In reflecting on our challenges as the industry association, it is worthwhile remembering that the NAB has been a feature of the South African broadcasting landscape since the very start of the process of re-regulation. Since its inception the NAB has been striving to accommodate all three tiers of broadcasting and signal distribution, a decision which brought about very challenging situations. Balancing the interest of all stakeholders in the broadcasting industry sometimes means the NAB has to be less robust and more pragmatic in its approach to policy and regulation in the industry. However, our representivity has over the years meant that the industry speaks with one voice and has always meant that we are able to speak from the perspective of what would be good for the entire industry – not just what would advance narrow interests. NAB’s objective is to ensure that the regulatory environment is one of stability, predictability and fair to all. It is this ability that allows the NAB to be taken seriously by key decision and policy makers in our industry. As time has passed, as licences have been awarded and media companies have grown, our work has had to become more sophisticated. In recent times we have had to grapple with more complex issues. In Parliamentary Portfolio Committee for Communications’ process on establish convergence legislation and amending the ICASA Act we had to grapple with which legal instruments would best assist in promoting the future growth of our industry while also guaranteeing some measure of future stability. In particular, we continue to fight to maintain the independence of the regulator. As our industry has grown so has our understanding and appreciation of the public policy objectives that guide the sector’s regulation. Other challenges include the formulation of a Black Economic Empowerment charter that sets clear goals for the industry as well as the empowerment regulations that ICASA is likely to produce and how these two are to be harmonised. We also participated in debates around public interest such as universal access, consumer protection and the matter of adult content on TV and radio. During all of these complex discussions, the NAB has consistently endeavoured to remain true to the goal which unites us all – to build a strong and healthy broadcasting industry of which South Africa can be proud. Now, in looking back then, we can see that over the years, the NAB has seen many of its initial aims met. We have an open and free broadcasting industry. We have a range of opportunities available to people wishing to invest and participate in broadcasting, both at a commercial and a community level. We have an efficient and credible system of self-regulation on matters of content. But does this mean that the work of the NAB is over? As we look forward to the year ahead, it is my sense that the challenges facing our industry are likely to become even more complex, and the work of the NAB, even more important. It should be noted that the then convergence bill provided an unprecedented result – broadcasters were actively collaborating in the drafting process. The impetus for this collaboration will continue as broadcasting faces new challenges brought about convergence. New competition is unlikely to come from traditional sources especially broadband, IPTV and services like broadcasting to handheld devices. The telco’s are clearly stepping into the content business. Mobile companies have formed content arms – one led by the former CEO of the SABC and Telkom has announced plans for IPTV in 2006. USALS wishing to use CDMA technology want access to broadcasting spectrum and internationally telco’s have started to suggest that should be no bias towards broadcasters in the broadcasting frequency bands. The advent of convergence will call for increased co-operation and collaboration by broadcasters. We will have new legislation that governs the broadcasting industry in South Africa and we will all have to go through a process of converting our licenses accordingly. We will possibly see the introduction of subscription broadcasting licenses, commercial sound licensees in secondary and primary markets, new low power sound broadcasters and regional public television services. Under the new legislation ICASA will face huge pressure to introduce new regulations that govern our activities and we will be required to engage the regulator in these processes. The work of the Digital Migration Working Group will continue and the NAB will remain part of this process to formulate national policy on digital broadcasting. A digital regime is likely to radically change the way our broadcasting industry looks and I think its going to be a key challenge for the NAB, together with partner organisations like SADIBA, to prepare broadcasters to meet those challenges. We will also be faced with the challenge to continue our efforts to consolidate our work in community broadcasting – both internally among our members and externally with the NCRF. On a strategic level the NAB has identified the need to implement a process of reputation building and profiling. It is our vision to entrench the NAB as a knowledge leader in the areas of policy formulation and regulation. We hope to introduce regular opportunities for interaction with the Ministry for Communications and ICASA. We also hope to establish the habit of voluntarily reporting to the Portfolio Committee on Communications and ICASA on the matter of content regulation. I would therefore like to appeal for your ongoing support and participation in the various committees and structures of the NAB. In closing, I would like to thank you all for your support over the last year. I would particularly like to mention my colleagues and friends on the executive committee who have been energetic and committed and a pleasure to work with. It is always difficult to single out individual executive committee members, but I must especially thank the deputy chairperson Pheladi Gwangwa – a phone call away and always available to assist and give guidance even though she has immense responsibilities as the newly appointed station manager of Radio 702. An appointment by the way that we all welcomed and celebrated. The tangible advancement of women in our sector is something we should all celebrate but I think there were many of us myself included who also celebrated as friends. I must also thank the chair of the finance committee Keith Giemre – Keith always gave me comfort that our finances were in good hands and was always willing to give his time and expertise to the NAB. Assistance that I probably abused from time to time. Allow me to also express my gratitude to my predecessor, Dr Rensburg. I speak for all the NAB membership when I thank you for your commitment, wisdom and leadership in guiding the NAB through three years of a changing industry. Finally, of course, my thanks to the executive director and his team of staff at the NAB and at the BCCSA who have kept things running efficiently and smoothly over the last year. I thank you.