FILMS AND PUBLICATIONS AMENDMENT BILL, 27 OF 2006 CELLULAR OPERATORS’ JOINT PRESENTATION 16 October 2007 OUTLINE OF PRESENTATION INTRODUCTION CONTENT PROVISION OVER COMMUNICATIONS NETWORKS - Content Value Chain Challenges for network operators OPTIONS OF REGULATION COMMENTS ON SPECIFIC PROVISIONS OF THE FP BILL - Definition of Chat Rooms - Classification Committees - Co-regulation - Review/Appeal - Exemptions - Licensing: Virtual Premises GENERAL PRINCIPLE COMMENTS - Self Regulation: Operators Code/WASPA CONCLUSION INTRODUCTION The operators would like to thank the NCOP for allowing us to jointly present our views on the issue of mobile content. We support content regulation and would like to use the opportunity to provide an industry perspective. CONTENT PROVISION OVER COMMUNICATIONS NETWORKS INTRODUCTION CONTENT ON COMMUNICATIONS NETWORKS There are a variety of means that any content may be accessed by a subscriber, for example: • Content portal of a network operator – “MTN Loaded / Vodafone Live / Cell C Juice” • Third party content providers – by agreement with network operator • The Internet • Peer to peer communications Content can be requested and delivered via: • SMS, IVR, WAP, WIG, USSD, MMS • Content can be requested on one bearer and delivered on another. STAKEHOLDERS These entities can be loosely classified as: • Content creators • Content distributors (Internet Service Providers (ISPs), website owners, Wireless Application Service Providers (WASPs). • Third party content aggregators (WASPs with own infrastructure) • Portals • Network operators • Consumers • Manufacturers • All of the abovementioned parties play a role in the development, advertising and delivery of services of which adult content provision is a portion AREAS WHERE MOBILE OPERATORS DO NOT HAVE CONTROL The Internet as an Open Network (not operator business) • Inherently the internet is the ultimate open network. Any destination is an accessible IP address, therefore the Mobile Operators do not have control over content accessed by its subscribers via the internet. • It is ultimately the responsibility of the person to whom the communication is destined to secure the content • The enacted balance between civil liberties and consumer protection must be managed • Peer to Peer Communications (subscriber responsibility) Direct communications between individual subscribers (eg. SMS, MMS) • Operators may not access or intercept communications in terms of the Constitution and privacy legislation ( except if permitted by and in terms of other applicable law) AREAS WHERE MOBILE OPERATORS DO 1 NOT HAVE CONTROL Content Creator Content Distributor Third party Content Aggregator Portal Network operator Consumer 2 The operators have partial control over the actions of WASPS due to contractual relationships based on the use of numbers and the use of their networks. Due to the level of control, the operators have taken a number of self regulatory steps which will be explained below SPECIFIC COMMENTS Chat Rooms • Definition proposed: “Means a World Wide Web site in which people hold discussions by sending messages to people on the same site in real time, both generally and on a peer to peer basis” • SMS texts / MMS does not constitute a “chat room” • Moderate: Request clarity on the requirements on a moderator SPECIFIC COMMENTS Classification Committees • Constitution of classification committees, and criteria of appointment? • Capacity of classification committees? Proposal for co-regulation • Pertinent that content be up-to-date and refreshed frequently therefore timeframes are very important • Individual classification would therefore be difficult (1000’s of units of content on a daily basis) • More practical to only classify content that could possibly qualify as age restricted content • A co-regulatory approach wherein the classification of content is conducted by an existing self-regulatory body such as WASPA/similar organisation, subject to oversight by the FPB is proposed SPECIFIC COMMENTS Review/Appeal • Power to remove should not be unfettered • Unless material is clearly illegal, material that is subject to a classification review or appeal does not have to be removed. Exemptions • Inclusion of exemptions is welcomed, but should be expanded to not only include films and games but also other publications Virtual Premises • Currently only content providers operating from a physical premise can obtain a licence • Is it the intention of the legislator to exclude virtual operators regardless of technological safeguards to restrict access, that may be implemented? GENERAL PRINCIPLE COMMENTS Co-ordination between statutory and self regulation • - Pro-active measures by industry include: Operators Code of Conduct WASPA Code of Conduct and Advertising Guidelines Ensuring that all WASPs are members of an industry body such as WASPA and comply to the WASPA Code of Conduct • The following measures were / are being implemented - reasonable steps to limit access to adult services - migrate content of adult or sensitive nature to specific number range for easy identification - Introduction of filtering measures to prevent access by children to ageinappropriate content It is proposed that a co-regulatory framework be established by recognising self regulatory bodies The Board can benefit from the experience of the self-regulatory regime while the industry can gain exposure and align regulatory measures with the Board. CONCLUSION The operators appreciate the opportunity to make input on the proposed amendments and recognise that the clarification of ‘mobile’ content services regulation is long overdue It is important that the amended legislation recognise and leverage the experience and lessons of the industry to date In order to ensure that regulation serves the interests of all stakeholders (incl. protection of children) without unduly compromising the sustainability of the industry, it is suggested that a co-regulatory approach be considered THANK YOU