01/07/2014Sandile Nene1 PRESENTATION TO THE PCCS ON COMMUNICATIONS, TELECOMMUNICATION AND POSTAL...

01/07/2014 Sandile Nene 1

PRESENTATION TO THE PCCS ON COMMUNICATIONS,

TELECOMMUNICATION AND POSTAL SECTOR

2014/15 Budget Analysis of the Department of Telecommunications and Postal Sector

By: Sandile Nene

IntroductionSouth Africa is to some extent, entrenched in

the 1st wave. The economy of RSA still relies on the primary

forms of production such as agriculture production, forestry and fishing.

In addition, RSA has been the biggest gold producer for nearly a century... production has recently fallen, and RSA is now the 3rd largest gold producer after China and Australia.

Dagada, R. et al(2011)


Separation of functions Policy formulation-government Post and Telecoms regulation- independent regulator (ICASA) Telecoms services-operators


Telecoms at A GlanceAccording to the 2011 Census Survey:89 % households have access to mobile

phones75 % households have access to Television;68 % households have access to Radio;35 % have access to the Internet; and15% have access to a landline phone


ICT and contribution to GDPEmployment figures : In India, the expansion of the last 20 years has added more than 14 million direct and indirect jobs IT-ITES industry over the years.

In South Africa, the industry employed 100,000 workers directly and indirectly by 2009 alone. In the Philippines, 900,000 people were employed directly or indirectly by IT-ITES by 2010.

Economic growth: In 2009, the Indian IT-ITES industry contributed an estimated US$70 billion to the GDP or 6 % share of total GDP.

In the Philippines, the industry‘s contribution in 2010 reached US$13 billion, or 8 per cent of GDP.

In RSA, telecommunication sector growth grew from R8.2 billion 1993 to more than R164 billion, or 8 per cent of GDP in 2016.

193 Community radio stations/ Postal and Courier services valued at more than R10bn Postbank started around 1900s around the world and SA Postabnk has just over 5

million customers

Increased productivity: The rapid spread of e-applications and digital tools to diverse areas is transforming the economies of developing countries. IT investments raise worker productivity three to five times than that of non-IT capital. U.S

Source: ITU World Telecommunication/ICT Indicators database.


Analysis of the Budget allocation of Telecoms and PostFinalisation of a new policy directive on

Transparent Pricing Policy;Operator’s proposal for Minister to establish an

ICT industry forum pricing matters and state of the sector

STB TenderConnect 788(61) schools as part of increased

focus on rural and under-serviced areasCorrective action plans on how to address

negative audit findings 2012/13 and 2013/14 FY


Issues for Consideration SAPO Board Appointment SAPO ‘s 50 new post office each financial year Finalisation of Community Broadcasting Support Policy SABC will be able carry out its BA which requires it to have regional tv DTT regulations and tarrif structures(MNET, etv, etc R0. million put aside fro the consumer awareness campaign There is need to develop ICT engineering-conduct foresight, nearsight

trend analysis, international peer benchmarking, National Spectrum Policy ICT International Trade-issue around trade and investment opportunities

should be projectised and prioritised in next Strategic Plan Risk register 112 Emergency Call Centre- all provinces to have access to one number

112 for all emergency eqnuiries(2012/13) Assist 8 provinces and municipalities that has static content to upload

interactive content on their SMMEs. This will enhance levels of access to information by local communities


2014/15 Budget Allocation


Budget allocation on DTT, BroadbandThe SABC is allocated 195 million for DTT vs R7 billion it

requires;R700 million will allocated to USAASA for DTT in 2016/17 vs ITU

deadline June 2015?Conduct extensive sector analysis to inform policy making vs sub-

programmes, Research and Economic and Market) sector is literature intensive but it does not allocate more than R3 million in both Research and Economic and Market Analysis.

Research and Economic and Market only has two employees yet the market and economic studies must consistently be tracked, complied and produced to inform policy development in the country including but not limited to cost communicate, broadband, geo-spatial news versus traditional community media, etc.

Equally there are concerns about the implementation of the 112 Emergency Centre whose planned roll-out dates as far back in 2008/09 financial year, answers are needed around the project timelines

Sub-programmes- Broadband –NDP calls for 100 per cent broadband by 2030


Budget allocation continue...

The budget is to increase, however, there is still no allocation for the SAPO’s subsidy for Funding Services Obligation (USO). The subsidy is used to fund costs for universal services to all citizens.

The Committee should ensure that universal postal services in accordance with the Universal Postal Union(UPU) which permeates that for every 10 000 people there must be a fully functional post office?


Thank youThank you!


01/07/2014Sandile Nene1 PRESENTATION TO THE PCCS ON COMMUNICATIONS, TELECOMMUNICATION AND POSTAL...

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