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

Chapter 14 : Universal Service and Access Agency of South Africa

Purchase

(1)	The Agency must 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.

(2)	The Agency must, in consultation with the Authority—

(a)	publish a notice in the Gazette stating its intention to award one or more project grants and invite interested electronic communications network service licensees to submit proposals;

(b)	identify the targeted under-serviced area or under-serviced areas where project grants will be awarded and determine—

(i)	the time and place for submitting proposals;

(ii)	the scope of the projects which may vary according to the needs of the targeted under-serviced area or under-serviced areas;

(iii)

the criteria for evaluating proposals;

(iv)	the projected cost of the proposed project; and

(v)	such other matters as may be helpful in securing qualified proposals.

(3)	The criteria for evaluating proposals may take into consideration—

(a)	the objects of this Act set out in section 2;

(b)	the scope of the electronic communications network service licensee’s proposal, including the electronic communications network proposed for construction in the under-serviced area and the technologies proposed;

(c)

any electronic communications services the electronic communications network service licensee proposes to offer in terms of its electronic communications network service licence and, as applicable, any electronic communications service licence or other licence held by the electronic communications network service licensee;

(d)	the terms and conditions relating to any proposed services, including wholesale and retail pricing, taking into account the lack of competitive electronic communications networks and services in the targeted underserviced area; and

(e)	such other matters as the Agency, in consultation with the Authority, finds appropriate for the targeted under-serviced area.

(4)	The subsidy for project grants must be paid out of the Universal Service and Access Fund.

(5)	The Agency must supervise the execution of projects awarded under subsection (1).