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Electronic Communications Act, 2005 (Act No. 36 of 2005)

Regulations

Mobile Television Regulations, 2010

Schedule 1 : Procedures and Criteria for Awarding Radio Frequency Spectrum for the Provision of Mobile Television Broadcasting Service

 

(1) Definitions

 

In this Schedule any word or expression will have the meaning assigned to it in the Electronic Communications Act No. 36 of 2005 and related legislation unless otherwise specified:

a) "application fee" means the non-refundable fee specified by the Authority in the ITA which shall be payable by the applicant upon submission of an application;
b) "application process" means the process of applying for radio frequency spectrum licences in terms of these Regulations, beginning on the date on which the ITA is published by the Authority and ending on the date on which the Authority awards radio frequency spectrum licences pursuant to the ITA:
c) "auction" means an award of the radio frequency spectrum licence to the highest bidding applicant;
d) "control" means the ability to direct or cause the direction of the business affairs and management policies or practices of a person and "controlled" shall have a corresponding meaning;
e) "deadline" means the date and/or time by which any requirement stipulated by the Authority pursuant to these Regulations or the ITA must be fulfilled;
f) "reserve price" means the minimum price payable for each lot of the radio frequency spectrum within the designated range;
g) "supplementary information" means any information, which may be requested by the Authority from time to time from an applicant throughout the course of an Application Process.

 

2) Applications for Radio Frequency Spectrum Licence
a) All applications must be submitted pursuant to an ITA.
b) All applications must be submitted:
i) in writing;
ii) at the place stipulated in the ITA; and
iii) by the deadline.
c) All applications must contain the following information:-
i) a document containing the information detailed in Appendix A to this Schedule and duly signed by an authorised representative;
ii) a document containing the information detailed in Appendix B to this Schedule and duly signed by an authorised representative; and
iii) Appendix C duly completed and signed by an authorised representative.
d) An application must be accompanied by the applicable application fee as set out in the ITA.

 

3) Invitation to Apply

The ITA shall set out the following:

a) the subject of the ITA;
b) the place and deadline for submission of an application;
c) an application fee and other costs relating to the application;
d) the selection process;
e) the evaluation criteria including points allocation;
f) the terms and conditions relating to the application;
g) the proposed licence terms and conditions; and
h) any other information or requirements the Authority may deem necessary.

 

4) Changes Effected after Submission of Application
a) An applicant who, after submitting its application, effects changes to the documents containing the application information detailed in Appendix A must within 5 (five) days from the date that such change becomes effective, notify the Authority in writing.
b) The Authority shall, after being notified by an applicant of the changes referred to in regulation 4(a) of this Schedule, determine whether:
i) it shall consider the application with or without the alterations; or
ii) the application, so altered, is disqualified in terms of this Schedule, from the application process.
c) The Authority shall notify the applicant of its decision in terms of regulation 4(b) above.

 

5) Request for the Submission of Supplementary Information
a) The Authority may at any time during the application process require an applicant to prepare and submit any supplementary information regarding any aspect of its application.
b) The Authority may direct an applicant to submit any such supplementary information within 7 (seven) days of receipt by the applicant of a notice from the Authority requiring it to do so.

 

6) Disqualification of an Applicant from the Application Process

An applicant shall be disqualified from the application process where such applicant:

a) is an affiliate of another applicant; or
b) has submitted more than 1 (one) application to the Authority for the grant of a radio spectrum licence within the designated range; or
c) has submitted an application which contains false or misleading information; or
d) has obtained and utilised confidential information relating to another applicant; or
e) has failed to notify the Authority of the changes referred to in regulation 4(a) of this Schedule; or
f) has failed to comply with a request in terms of regulation 5 of this Schedule; or
g) has failed to comply with the terms and conditions of the ITA; or
h) Submits an incomplete application.

 

7) Application Requirements
7.1) Pre-Qualification Criteria

The Authority shall, in evaluating the applications, and taking into account the objects of the Act, consider the following:

a) The 30% equity ownership by persons from historically disadvantaged groups;
7.2) Business Undertakings

The applicants shall submit following business undertakings on their proposed approach to the provision of mobile TV services:

a) The nature and extent of consumer benefits to be derived by the general public from award of the radio frequency spectrum licence to the applicant;
b) The viability of the business plan of the applicant;
c) The viability of the funding model proposed by the applicant;
d) The viability and efficacy of the applicant's technical plan;
e) The experience, expertise and credibility of the applicant and/or its employees in business in general and in broadcasting in particular;

Whereas the Authority will not use the content of the business undertakings for the purposes of evaluating the applications, the undertakings made by applicants shall form part of their licence conditions once they are successful.

 

8) Auctions

Subsequent to the compliance with regulations 7(a) and (b) the Authority will invite all applicants to participate in an auction based on the following terms and conditions:

a) The Authority shall stipulate the reserve price for the auction in the ITA.
b) The Auction shall be held at the Johannesburg offices of the Authority on a date and time as shall be determined by the Authority and stipulated in the notice calling upon the relevant applicants to participate in the auction.
c) The Auction shall be conducted in such a manner and procedure as shall be stipulated by the Authority in the ITA.