Strategic Plan Presentation to the Portfolio Committee on Communications

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Strategic Plan Presentation to the Portfolio
Committee on Communications

• 20 August 2003

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Vision

• Our vision in the Department of Communications
  is to improve the quality of life of all our
  people, make South Africas 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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Mission

• 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 Values

• Value South African citizens
• Value Democracy
• Put South African citizens first in terms of
  Batho Pele Principles
• Consultation
• Service Standards
• Access
• Courtesy
• Information
• Openness and transparency
• Redress
• Value for money

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Mandate of DoC

• The DoCs 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 Legislation

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

• 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 SATRA
• To 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

• Telecommunications Act (No. 64 of 2001)
• to amend Act No. 103 and to make provisions for
  radio frequency access in the 1800 MHz frequency
  band
• to make provision for new kinds of licenses and
  the applications thereof
• to provide for public switched telecommunications
  services and public switched telecommunication
  networks
• to regulate mobile cellular telecommunications
  services and private telecommunication networks

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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 Postbank
• to establish the Postal Regulator

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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 SMMEs

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Other mandates

• DoC derives other mandates from
• Cabinet directives and National Priorities
• Public Finance Management Act (No. 1 of 1999)

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Development of ICT in past Ten years

• 1992 1995
• Independent Media Commission
• Vodacom and MTN established
• Independent Broadcasting authority Act
• Post, Broadcasting Telecommunications integrated
  into one Department
• Community Radio licenses issued

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Development of ICT in SA

• 1996 1998
• Establishment of SATRA and USA
• Broadcasting White Paper
• Licensing of Greenfields Private Radio
• Licensing of Free to Air television
• Four years Community Radio licensed
• Former TBVC States Radio stations into the SABC
• Sentech Act and Privatisation of Capital Radio

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Development of ICT in SA

• 1999 2001
• Broadcasting Act
• Telecommunications Act revision
• IBA and SATRA merged
• Postal Regulator established
• Third Cellular licensed
• Establishment of the SA Production Advisory and
  SA Digital Broadcasting Bodies
• Reintroduction of the SAPO Subsidy

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Development of ICT in SA

• 2002 2003
• SNO and Under Serviced Area licenses
• Postbank Corporatisation
• Positioning SAPO to deliver social services
• Electronic Communications and Transactions Act
• Community Electronic Media Policy
• Broadcasting Amendment Act
• Convergence Process
• Corporatisation of the SABC

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Strategy 2003 - 2005

• CONVERGENCE

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STRATEGY 2003- 2005

• CONVERGENCE
• BLACK ECONOMIC EMPOWERMENT
• SOUTH AFRICAN LANGUAGES AND CONTENT
• REPOSITIONING POST BANK
• CONNECTING SOUTH AFRICA

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Convergence

• 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?

• 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?

• Social benefits
• Universal access to broadband and all its
  inherent information and communication benefits
• Improvement of government service delivery
• Greater opportunity for entrepreneurship and
  economic development
• Development of skills through the use of
  knowledge systems that will improve lives of
  learners

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Why Convergence?

• Key growth drivers
• Growth of internet
• 14 million mobile subscribers
• 5 million fixed subscribers
• High data growth
• Demand for high speed internet
• Increasing broadcasting footprint

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Why Convergence?

• Other drivers
• Globalisation
• Growth of diverse technology
• Digitisation Regulatory reform is imperative
• Addressing the development gap and addressing
  universal service
• Stimulate investment in the sector

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Convergence Policy Programme

• Stakeholder briefing held by the Director-General
  
• Convergence Colloquium
• Presentation of Colloquium Report to the Minister
  
• Establishment of a Drafting Committee
• Draft Bill to Cabinet
• Convergence Bill to be tabled in Parliament

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Issues to be Considered when developing
convergence strategy

• Legal framework for providing and using ICT
  infrastructure that is stable and predictable
• Objectives for infrastructure policy that allows
  for fair competition
• Transitional mechanisms that are transparent
• Definition of a Role of the Regulator
• How to attract additional job creating investment

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Issues cont

• Resale of infrastructure capacity
• Spectrum management
• Governments role in facilitating and building
  new infrastructure
• Universal Service Obligations

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Infrastructure

• 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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Regulator

• Well resourced and independent Regulator
• The 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

• 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 Empowerment

• Strategy to Support SMMEs
• Development of an Industry led Charter
• Annual review of empowerment key indicators
• Skills developmen through SETAS
• Development of a Staregy for Incubation
• Clear BEE framework for Procurement

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South African Languages and Content

• Promoting language, cultural and social issues
• Development of a networked content strategy for
  South Africa
• Digital migration
• Supporting the expansion of the broadcasting
  system for content services

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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

• Deal with the Globalisaion of Networks and
  Services
• Promote Local Production
• Position South Africa as a production hub
• Market South African production in South African
  and other markets

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Digital 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 date
• Develop an industrial staregy to support
  Digitisation

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Govt National Priorities

• Expanded services to the people
• BEE, including gender equity and people living
  with disabilities
• Integrated Sustainable Rural Development
• Accelerating the process of formulation and
  implementation of first NEPAD projects
• Development of SMMEs

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SWOT Analysis

• Strengths
• Clarity of mandate
• Extensive infrastructure resident in portfolio
  organisations
• Regulatory and legislative frameworks in place
• Strategic plan aligned with national priorities

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SWOT Analysis

• Weaknesses
• High turnover
• Poor compensation relative to private sector
• Limited presence in provinces
• Need for further harmonisation with portfolio
  rganisaions

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SWOT Analysis

• Opportunities
• Key role in effecting economic growth initiatives
• Bridging the digital divide
• Technological advancement and convergence
• Positioned to play a meaningful role in
  e-government
• Advance BEE/SMME in the sector

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SWOT Analysis

• Threats
• Negative effects of competition may lead to poor
  service delivery to HDIs
• Loss of ICT experts to the private sector
• Consolidation of ICT players
• Depressed state of global economy in the ICT
  sector

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Approved 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 program
Program 2002/03 R m 2003/04 R 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 Payments
Transfers 2003/04 R m 2004/05 R m 2005/06 R m
Infrastructure (MPCCs, 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
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
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
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Transfers cont
2003/04 R m 2004/05 R m 2005/06 R m
ICASA 128,646 134,947 137,489
NEMISA 13,753 14,578 17,263
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Additional approved funding

• R5m, R7m and R8m provided over MTEF for the PNC
• R20m, R13m and R7m for the Advanced Institute for
  ICT
• In collaboration with DOE and DTI

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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