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Strategic Plan Presentation to the Portfolio Committee

on Communications

20 August 2003

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VisionVision

“Our vision in the Department of Communications is to improve the quality of life of all our people, make South Africa’s future generations a knowledge based society and help create an information economy. This will be achieved by establishing a networked information community to empower the way people work, live and play, and to make South Africa globally competitive”

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MissionMission

“ is to strive towards universal service to enable ordinary people to have access not only to traditional media but also the convenience of information technology”

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Core ValuesCore ValuesValue South African citizensValue DemocracyPut South African citizens first in terms of “Batho Pele”

Principles:ConsultationService StandardsAccessCourtesyInformationOpenness and transparencyRedressValue for money

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Mandate of DoCMandate of DoC

The DoC’s main objective is to develop, formulate and implement policies for the Telecommunications, Postal and Broadcasting Services sectors

The Department also acts as a Shareholder and administers fiscal transfers to public entities (South African Post Office, SABC, Sentech, ICASA, Nemisa, USA)

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Enabling LegislationEnabling Legislation

Independent Broadcasting Act (No. 153 of 1976)to provide for the regulation of broadcasting activities

in the public interestBroadcasting Act (No. 4 of 1999)

to provide for classes for broadcasting activities in the public interest and for that purpose to provide a Charter for the SABC, establish Frequency Spectrum Directorate in DoC and to establish the South African Broadcasting Production Advisory Body

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Enabling Legislation cont’Enabling Legislation cont’

Telecommunications Act (No. 103 of 1996)to make new provision for the regulation of

telecommunications activities other than broadcasting, and for the control of the radio frequency spectrum

Establish SATRATo repeal the Radio Act of 1952 and the Radio

Amendment Acts of 1957, 1962, 1963, 1969 and 1974

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Enabling Legislation cont’Enabling Legislation cont’

Telecommunications Act (No. 64 of 2001)to amend Act No. 103 and to make provisions for radio

frequency access in the 1800 MHz frequency bandto make provision for new kinds of licenses and the

applications thereofto provide for public switched telecommunications services

and public switched telecommunication networksto regulate mobile cellular telecommunications services and

private telecommunication networks

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Enabling Legislation cont’Enabling Legislation cont’

Postal Services Act (No. 124 of 1998)to provide for the regulation of postal services for the

operational functions of SAPO including its universal service obligations

to provide for the operation of the Postbankto establish the Postal Regulator

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Enabling Legislation cont’Enabling Legislation cont’

Electronic Communications and Transactions Act (No 25 of 2002)

to provide for the facilitation and regulation of electronic communications and transactions

to provide for the development of a national e-strategy for the Republic

to promote universal access to electronic communications and transactions and the use of electronic transactions by SMME’s

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Other mandatesOther mandates

DoC derives other mandates fromCabinet directives and National PrioritiesPublic Finance Management Act (No. 1 of 1999)

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Development of ICT in past Ten years

Development of ICT in past Ten years

1992 –1995Independent Media CommissionVodacom and MTN establishedIndependent Broadcasting authority ActPost, Broadcasting Telecommunications

integrated into one DepartmentCommunity Radio licenses issued

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Development of ICT in SADevelopment of ICT in SA

1996 – 1998Establishment of SATRA and USABroadcasting White PaperLicensing of Greenfields Private RadioLicensing of Free to Air televisionFour years Community Radio licensedFormer TBVC States Radio stations into the SABCSentech Act and Privatisation of Capital Radio

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Development of ICT in SADevelopment of ICT in SA

1999 – 2001Broadcasting ActTelecommunications Act revisionIBA and SATRA mergedPostal Regulator establishedThird Cellular licensedEstablishment of the SA Production Advisory and SA

Digital Broadcasting BodiesReintroduction of the SAPO Subsidy

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Development of ICT in SADevelopment of ICT in SA

2002 – 2003SNO and Under Serviced Area licensesPostbank CorporatisationPositioning SAPO to deliver social servicesElectronic Communications and Transactions ActCommunity Electronic Media PolicyBroadcasting Amendment ActConvergence ProcessCorporatisation of the SABC

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Strategy: 2003 - 2005

CONVERGENCE

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STRATEGY 2003- 2005STRATEGY 2003- 2005

CONVERGENCEBLACK ECONOMIC EMPOWERMENTSOUTH AFRICAN LANGUAGES AND

CONTENTREPOSITIONING POST BANKCONNECTING SOUTH AFRICA

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ConvergenceConvergence

Convergence in the ICT industry means the migration from separate service sectors with separate infrastructure to a spectrum of services provided on a multi-service general-purpose network infrastructures

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Why Convergence?Why Convergence?Economic benefits

Achievement of economies of scales to enable operators to reduce cost structure and lower consumer prices

Greater choice, range and quality of service for consumers

Broadband access to historically disadvantaged communities

Achieve efficient and effective utilisation of existing infrastructure

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Why Convergence?Why Convergence?

Social benefitsUniversal access to broadband and all its inherent

information and communication benefitsImprovement of government service deliveryGreater opportunity for entrepreneurship and

economic developmentDevelopment of skills through the use of knowledge

systems that will improve lives of learners

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Why Convergence?Why Convergence?

Key growth driversGrowth of internet14 million mobile subscribers5 million fixed subscribersHigh data growthDemand for high speed internetIncreasing broadcasting footprint

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Why Convergence?Why Convergence?

Other driversGlobalisationGrowth of diverse technologyDigitisation Regulatory reform is imperativeAddressing the development gap and addressing

universal serviceStimulate investment in the sector

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Convergence Policy Programme

Convergence Policy Programme

Stakeholder briefing held by the Director-General Convergence Colloquium Presentation of Colloquium Report to the

Minister Establishment of a Drafting CommitteeDraft Bill to CabinetConvergence Bill to be tabled in Parliament

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Issues to be Considered when developing

convergence strategy

Issues to be Considered when developing

convergence strategyLegal framework for providing and using ICT

infrastructure that is stable and predictableObjectives for infrastructure policy that allows for

fair competitionTransitional mechanisms that are transparentDefinition of a Role of the RegulatorHow to attract additional job creating investment

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Issues con’tIssues con’t

Resale of infrastructure capacitySpectrum managementGovernment’s role in facilitating and building new

infrastructureUniversal Service Obligations

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InfrastructureInfrastructure

Provision of ICT infrastructure over any appropriate infrastructure should be permitted (including existing water, sewerage and electricity infrastructure)

Strategy should ensure that infrastructure provision/licensing is technology neutral

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RegulatorRegulator

Well resourced and independent RegulatorThe policy should separate the roles and

jurisdiction of government, the regulator and other authorities with regard to licensing and regulatory functions

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Universal Service Obligations

Universal Service Obligations

Convergence strategy should review present approach to Universal Access and Service

Universal Access and Service not just to basic telephony and broadcasting, but should also include access to advanced services such as broadband infrastructure

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Black Economic EmpowermentBlack Economic Empowerment

Strategy to Support SMMEsDevelopment of an Industry led CharterAnnual review of empowerment key indicatorsSkills developmen through SETASDevelopment of a Staregy for IncubationClear BEE framework for Procurement

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South African Languages and Content

South African Languages and Content

Promoting language, cultural and social issuesDevelopment of a networked content strategy for

South AfricaDigital migrationSupporting the expansion of the broadcasting

system for content services

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Promoting Languages and Culture

Promoting Languages and Culture

Regional Broadcasting to focus on all South African languages

Developemnt of Internet in South African languages

Educational Content in all South African languages

Government content in all South African languages

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Development of Strategy for Networked content

Development of Strategy for Networked content

Deal with the Globalisaion of Networks and Services

Promote Local ProductionPosition South Africa as a production hubMarket South African production in South African

and other markets

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Digital MigrationDigital Migration

Develop a Strategy for Migration from analogue to Digita

Outline a Regulatory Regime for Digital Future within the converged environment

Determine the cut-off dateDevelop an industrial staregy to support

Digitisation

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Gov’t National PrioritiesGov’t National Priorities

Expanded services to the peopleBEE, including gender equity and people living

with disabilitiesIntegrated Sustainable Rural DevelopmentAccelerating the process of formulation and

implementation of first NEPAD projectsDevelopment of SMME’s

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SWOT AnalysisSWOT Analysis

StrengthsClarity of mandateExtensive infrastructure resident in portfolio

organisationsRegulatory and legislative frameworks in placeStrategic plan aligned with national priorities

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SWOT AnalysisSWOT Analysis

WeaknessesHigh turnoverPoor compensation relative to private sectorLimited presence in provinces

Need for further harmonisation with portfolio rganisaions

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SWOT AnalysisSWOT Analysis

OpportunitiesKey role in effecting economic growth initiativesBridging the digital divideTechnological advancement and convergencePositioned to play a meaningful role in e-

governmentAdvance BEE/SMME in the sector

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SWOT AnalysisSWOT Analysis

ThreatsNegative effects of competition may lead to poor

service delivery to HDI’sLoss of ICT experts to the private sectorConsolidation of ICT playersDepressed state of global economy in the ICT

sector

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Approved fundingApproved funding

2003/04

R’ million

2004/05

R’ million

2005/06

R’ million

MTEF 842,515 866,843 907,129

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Funding per programFunding per program

Program 2002/03R’ m

2003/04R’ m

Administration 85,776 83,607

Telecoms Policy 134,064 135,900

Postal Services 330,501 353,082

Multi-Media Services 331,970 263,244

Auxiliary Services 5,379 6,682

TOTAL 887,690 842,515

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Transfer PaymentsTransfer Payments

Transfers 2003/04 R’ m

2004/05R’ m

2005/06R’ m

Infrastructure(MPCC’s, PITs )

10,000 10,480 15,200

Training(SETA)

2,104 2,350 3,500

Emergency Call Centres 20,000 20,000 21,200

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Transfer cont’Transfer cont’

Transfers 2003/04 R’ m

2004/05 R’ m

2005/06 R’ m

USA 11,211 11,884 14,500

USF 24,745 26,230 29,400

SAPO 300,000 300,000 300,000

Broadcasting(Program content Children, youth, aids, women, disability)

31,500 33,390 34,440

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Transfers cont’Transfers cont’

2003/04R’ m

2004/05R’ m

2005/06R’ m

SABC – PBS 44,717 47,400 50,455

SABC – TBVC - - -

Channel Africa 26,288 27,865 29,616

Community Radio 9,000 9,540 10,255

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Transfers contTransfers cont

2003/04R’ m

2004/05R’ m

2005/06R’ m

ICASA 128,646 134,947 137,489

NEMISA 13,753 14,578 17,263

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Additional approved funding

Additional approved funding

R5m, R7m and R8m provided over MTEF for the PNC

R20m, R13m and R7m for the Advanced Institute for ICTIn collaboration with DOE and DTI

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Additional approved funding

Additional approved funding

R10m, R9m and R4m to ICASA for:R1m (2003/04) and R2m (2004/05) to monitor elections

R4m, R6m and R4m over the MTEF to acquire spectrum monitoring equipment

R5m (2003/04) and R1m (2004/05) to develop, manage and maintain a numbering database

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END

Thank You