DEPARTMENT OF DEPARTMENT OF COMMUNICATIONSCOMMUNICATIONS

PRESENTATION TO

THE PORTFOLIO COMMITTEE on COMMUNICATIONS

11 MARCH 2003

MISSIONMISSION

To enable ordinary people to have access to traditional media and the convenience of information technology

VISION VISION

Improve the lives of ordinary South Africans whilst contributing to economic growth

Make South Africa a knowledge based society and help create an information economy

2002/ 03 Review2002/ 03 Review

Multimedia licenses to Sentech Telkom IPO on JSE and NSEPromulgation of Electronic and Communications

lawEconomic Growth and Foreign Direct Investment

– Investment by MTN and Vodacom in Nigeria and Congo respectively

– Increase in local mobile lines by 2,5 million

2002/ 03 Review2002/ 03 Review

Broadcasting Amendment Act 2002Programme Production for Community sectorSkills Development and Training in basic and

advanced multimedia skillsInitiation of Language Portal Programme Installation of 15 community stationsDevelopment of programming hubs in 9 provincesFinalized business plans for Rhino Recording

Studios

Review 2002/2003Review 2002/2003

Appointment of the Postal RegulatorAppointment of the Chairperson of the

RegulatorStart to the repositioning of SAPO7 Citizen Post Office Rolled Out

KEY ISSUES AND KEY ISSUES AND CHALLENGES FOR 2003CHALLENGES FOR 2003

Advisory Bodies Reports National Summit on Broadcasting Content and

Languages Launch of the Language Portals Repositioning the Post Office National Address System (NAS) Multi-purpose Communication Centres (MPCC’s) Citizens Post Office (CPOs) Legislation International

KEY ISSUES AND KEY ISSUES AND CHALLENGESCHALLENGES

Public Internet Terminal (PiT)Tabling of the Space Affairs Amendment

BillTelecommunications Amendment BillFeasibility study for the period 2005

onwards in terms of the liberalization of the sector

KEY ISSUES AND KEY ISSUES AND CHALLENGESCHALLENGES

Convergence Policy Connecting South Africa Underserviced area licences 112 emergency project Edunet BEE Inculcating Culture of Savings Content and Language

ADVISORY BODIES REPORTSADVISORY BODIES REPORTS Appointed to advise Government & the

Department of Communications on the following issues:- Issues relevant to the introduction of digital

broadcasting in South Africa- All issues pertaining to development, utilization

and approach of broadcast content production in South Africa.

- Recommendations have been submitted by the two bodies and the Department hopes to advice Cabinet on the recommendations

ADVISORY BODIES REPORTSADVISORY BODIES REPORTS The Digital Advisory Body Made

Recommendations on the following issues:– Policy and Legislative processes– Regulatory and licensing issues– Frequency spectrum planning– Network and coverage planning– Technical Standards– International Participation and Relations– Detailed migration plan

Economic feasibility study Consumer research Technical aspects requiring further analysis

ADVISORY BODIES REPORTSADVISORY BODIES REPORTS The South African Broadcast Production Advisory

Body Made Recommendations on the following issues:– strategic interventions that are critical to the

improvement of production and broadcasting of South African content.

– the establishment or realignment of existing specialised institutions to build the required capacity

– strategic issues that require further interventions in order to expand the production and display of South African content in both the South African and international markets.

ADVISORY BODIES REPORTSADVISORY BODIES REPORTS interventions at both the South African and

external markets. situations that warrants immediate redress. meeting the needs of the African continent for

relevant programming. new policy measures, structures or Specialized Agencies,

financing and marketing strategies.

NATIONAL SUMMIT ON NATIONAL SUMMIT ON BROADCASTING CONTENT AND BROADCASTING CONTENT AND

LANGUAGESLANGUAGES DoC intends holding a National Summit on

Content and Language Broadcasting and their implications for public service, community as well as commercial broadcasting in South Africa

The objective of the Summit is to advance policy directives as contained in the Broadcasting Amendment Act and the White Paper Policy on Broadcasting

NATIONAL SUMMIT ON NATIONAL SUMMIT ON BROADCASTING CONTENT AND BROADCASTING CONTENT AND

LANGUAGESLANGUAGES The National Summit will be preceded by

provincial mini-summits which will be convened in all nine Provinces

The National Summit to be convened in September 2003

LAUNCH OF THE LAUNCH OF THE LANGUAGE PORTALSLANGUAGE PORTALS

As part of the programme to use technology to advance some of the Constitutional imperatives. DoC has developed a strategy of making computers & Internet relevant & meaningful to the ordinary person in South Africa

The strategy includes:- Development of language portals- Registration of domain names in indigenous languages- Translating of Microsoft desk-top interface to

indigenous languages

LAUNCH OF THE LAUNCH OF THE LANGUAGE PORTALSLANGUAGE PORTALS

The strategy has the ff objectives:- Populate the Internet with indigenous languages- Afford all languages an equal status- Increase the usage of the Internet by ordinary

people- Preserve and expose South African culture and

heritage• The Department requests your presence when it

launches the portals during April 2003

REPOSITIONING THE POST REPOSITIONING THE POST OFFICEOFFICE

The Post Office can be strategically repositioned to play a key role in Government’s commitment to effective social service delivery

Government needs to reconsider its current Post Office Policy within the context of initiatives such as ISRDS & e-government strategies

REPOSITIONING THE POST REPOSITIONING THE POST OFFICEOFFICE

Consultation on this matter with other Government departments, SAPO & the Social Cluster of Director Generals is ongoing

It is hoped that this matter will be taken to Cabinet at the beginning of the new financial year

NATIONAL ADDRESS NATIONAL ADDRESS SYSTEM (NAS)SYSTEM (NAS)

To develop a national address system which will ensure that every citizen has an address

To develop legislation to facilitate the establishment of a structure within the South African Post Office which will manage the National Address System

Legislation will be submitted to Parliament during the second term of the year

MULTI-PURPOSE MULTI-PURPOSE COMMUNICATION CENTRES COMMUNICATION CENTRES

(MPCC’S)(MPCC’S)

To roll-out and implement the sustainability plan of the communications infrastructure and related services to rural communities and those from disadvantaged areas within the GCIS initiatives and ISRDP/Urban Rural strategy initiatives

CITIZEN’S POST OFFICE CITIZEN’S POST OFFICE (CPOs)(CPOs)

To provide access to digital communications infrastructure and services to those communities historically disadvantaged by apartheid policies

7 CPOs have been rolled out and are operational. A phased approach has been adopted in the rollout

of the remaining 18 CPOs. Seven pilot sites will be rollout before the end of

the financial year and the roll out of the remaining 11 sites as identified will be done in the coming financial year

LEGISLATIONLEGISLATION

Tabling of the Amendment to the Postal Services Act of 1998 before Parliament during the second half of the calendar year

This will address the issue of the schedules defining the reserve areas as well as the Post Bank

INTERNATIONALINTERNATIONAL

To become members of the Postal Operations Council and Council of Administration

Invite the Department of Foreign Affairs into a workshop to discuss this objective

This will allow SA to participate fully in Global Postal matters and grant us the status to be able to vote during the Council meetings

Participate in the development of e-Post Strategy for Africa

PUBLIC INTERNET PUBLIC INTERNET TERMINALS (PIT’S)TERMINALS (PIT’S)

The plan is to have 200 new design kiosks to be manufactured during this financial year

Each province will have a PiT truck and there will be one built for the Presidency

Intergovernmental projects are also on the pipeline where DoC will be working with DoH on the Telemedicine Project, Dept of Agriculture and Department of Public Service and Administration on digitising government forms.

TABLING OF THE SPACE TABLING OF THE SPACE AFFAIRS AMENDMENT BILLAFFAIRS AMENDMENT BILLThe Bill focuses on ISSA, Space

applications and services

Focus area: BEEFocus area: BEE Advancement of BEE at DoC, Portfolio organizations

sector. Industry led agreement focusing on:

- Ownership and Equity

- Management and control

- Skills Development

- Corporate Social Responsibility

- Investment in enterprise development

- Procurement Study on BEE component in sector underway

Industry led in that Department will play facilitating role – SACF, BBC, Nedlac and others to spearhead.

SONA

Industry led in that Department will play facilitating role – SACF, BBC, Nedlac and others to spearhead.

SONA

BEE: Ownership and EquityBEE: Ownership and Equity Establishment of fund to finance BEE initiatives

(BEE Fund Banks and sector , R10 Billion in budget, Umsombovu Fund)

Policy development to target BEE Ownership and Equity

Management and Control

Set “targets” and monitor BEE components in Portfolio organizations including SITA and Arivia.Com & Sector

Government ICT privatization process to target BEE

SONA Cost of Capital

IPO – R4 B

SNO – R

SONA Cost of Capital

IPO – R4 B

SNO – R

BEE: Skills developmentBEE: Skills developmentICT InstituteISSA, NEMISA and Postal InstituteISSET and MAPP – SETA’sSector wide internship program Develop e-

learning centre for research and content development

Establish e-learning to upgrade teachersLearnership programs with ISETT SETA –

incubators and ISSA R90 million over 3 years

Investment and Enterprise Investment and Enterprise DevelopmentDevelopment

SMME / BEE / Incubator Directorate Research and development into new

productsEntrepreneur development - New ventures

Procurement Procurement Procurement in DoC (Matrix) Targets for Portfolio Organizations Targets for sector in general – industry led

Corporate Social Responsibility

Mentorship'sEntrepreneur developmentAccess to capitalSkills development

Promoting Culture of savingsPromoting Culture of savingsRationale Poor Savings RateDisparate Living StandardsLack of Financial LiteracyInvestmentPostal Financial Services and Postal Savings

BanksThe Postal Network

Post Bank to benefit by increasing

Post Bank to benefit by increasing

Objectives Objectives Promote the Culture of Saving among SA Encourage SA to use Post Bank as 1st choice Provide majority of South Africans with financial service

infrastructure

Critical Success Factors

Interest rates and ATM charges Electronic connection of Post Offices Postbank’s distinct identity Security of Funds

•CSF – might have to outsource banks IT infrastructure:

•CSF – might have to outsource banks IT infrastructure:

Promoting Culture of Savings Promoting Culture of Savings

Projects to achieve desired objectives Pension PayoutNational Youth Savings ProgrammeSavings Month Symposium on Culture of SavingsContinued Awareness Programme

Languages and Content Languages and Content

Objectives Promotion of indigenous languagesGeneration of relevant content Demystifying technologyNation-buildingIncome generation

Relevant content Poverty alleviation, HIV Aids, youth, Gender, disability etc.

Relevant content Poverty alleviation, HIV Aids, youth, Gender, disability etc.

Languages and Content Languages and Content Projects plannedLanguage PortalsChildren’s Portals Program productions – HIV Aids, Gender,

Youth, Disability, etc. Translation of government websitesLanguage and content summitTranslation of government forms information to at least 6 languages

Connecting SA Connecting SA

ObjectivesUniversal access through electronic communications

servicesGrowth, increased penetration and accessibilityEmpower communities by providing access to ICT’s

Connecting SAConnecting SA

ProjectsPiT’s, Telecentres, Citizen’s Post OfficesInternet laboratories training programsElectronic CommerceTelemedicineE-learning

4. MTEF Budget 4. MTEF Budget

Transfers

Total

Operations

649,464 m

842,515 m

193,051 m

2003/04

659,614 m

866,843 m

2,88%

207,229 m

2004/05

680,218 m

907,129

4,65%

226,911 m

2005/06

Budget per programBudget per program

Program 2003/04

R’ m

2004/05

R’ m

Administration 83,607 90,912

Telecoms Policy 135,900 134,649

Postal Services 353,082 356,490

Broadcasting 263,244 277,668

Auxiliary Services 6,682 7,124

TOTAL 842,515 866,843

Transfer PaymentsTransfer Payments

Transfers 2003/04 R’ m 2004/05 R’ m 2005/06 R’ m

Infrastructure

(MPCC’s, PITs )

15,500 16,430 22,100

Emergency Call Centres

E-Business 5,000 5,000 6,863

Advanced ICT Institute 20,000 13,000 7,000

Transfer cont’Transfer cont’

Transfers 2002/03 R’ m 2003/04 R’ m 2004/05 R’ m

USA 11,211 11,884 14,500

USF 24,745 26,230 29,400

SAPOS 300,000 300,000 300,000

Broadcasting

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

31,500 33,390 34,440

Transfers cont’Transfers cont’

2003/04 R, m 2004/05 R, m 2005/06 R’ 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

Transfers contTransfers cont

2002/03 2003/04 2004/05

ICASA 128,646 134,947 137,489

NEMISA 13,753 14,578 17,263

Total Transfers 649,464 659,614 680,218

TELECOMMUNICATIONS TELECOMMUNICATIONS AMENDMENT BILLAMENDMENT BILL

Provides for amendment of sections dealing with public emergency

Provides for spectrum allocationProvides for Communications MuseumProvides for provision of customer premises

equipmentProvides for HRD

FEASIBILITY STUDY FOR THE FEASIBILITY STUDY FOR THE

PERIOD 2005 ONWARDSPERIOD 2005 ONWARDS This includes consideration of a fourth

mobile licence, service licences without construction of networks, self provisioning and broadband

DEPARTMENT OF DEPARTMENT OF COMMUNICATIONSCOMMUNICATIONS

THANK YOU