BRIDGING THE DIGITAL DIVIDE UNIVERSAL SERVICE & ACCESS AGENCY OF SOUTH AFRICA Presentation to the Portfolio Committee on Communications 24 March 2010

Acknowledgements The Board and Management of the Universal Service and Access Agency of South Africa (USAASA) would like to thank the honourable members of the Portfolio Committee on Communications for affording it the opportunity to amend its business plan and make this presentation once again for clarity purposes. The Agency would further like to acknowledge and thank all present here today and wish to reiterate its commitment to fulfil its mandate as envisaged in the electronic communications Act 36 of 2005..

Contents USAASA Vision, Mission & Mandate Organogram Key Strategic Priorities Project Budget Summary Conclusion

VISION Achieving digital inclusion by accelerating affordable universal service and access in South Africa for socio-economic development MISSION Facilitate and maintain universal service and access to ICT services to all South Africans in partnership with other stakeholders to achieve an inclusive information society

USAASA KEY STRATEGIC ELEMENTS The Agency, intends to move away from operation and implementation to facilitation / subsidizing and monitoring as provided by the mandate. We will facilitate a handover process of the existing cyberlabs and Telecentres to appropriate government structures, communities and entrepreneurs in order to have a sustainable model of ownership. Partnering with other stakeholders both from public and private sectors in facilitating provision of ICT infrastructure in the under serviced areas and communities. Focus on partnerships to implement provincial strategies relating to ICT initiatives particularly at the district and municipal levels to ensure that the Agency plays a critical role in facilitating universal service and access at the grassroots level. Facilitate and subsidise the implementation of schemes targeting the needy persons and communities. Facilitate and provision of subsidies to schools, FET’s, community centres and to licensed operators in accordance with a subsidy model to be developed. Facilitate the introduction of a competitive tender model that will use the lowest subsidy required in awarding subsidies to licensed operators interested in going to the high-cost and under serviced areas.

The Corporate scorecard 1. Strategic Objective: Provide universal service and access strategy, policy and leadership   Key Outcome Key Output Performance Indicator/Measure 2010/11 Target Accountable Unit Integrated and co-ordinated approach to implementing universal access programmes and projects. An all encompassing, well researched and balanced universal access and service strategy. Adoption and publishing of the Universal Access and Service Strategy by Minister of Communications. Finalization of the Universal Access& Service Strategy. Research, Strategy & Policy Effective and efficient facilitation and proper coordination of universal access and service issues in the Republic. Centre of Excellence on universal access and service issues. Evidence-based policy recommendations which are informed by the needs of the communities. Establish more strategic research partnerships. Effective implementation of the Universal Access and Service Strategy for South Africa. Clear roadmap on the implementation of universal access projects developed and implemented. Active participation in relevant fora to advance the universal access & service agenda. More focused research Identify topical themes and conduct investigations on such themes in order to advice ICASA and DoC on universal access and service related matters. Number of articles on Universal Access and Service published. Number of submissions made to ICASA and DoC. Two articles published in a relevant ICT publication. Advance the universal access and service agenda in all relevant for a organised by key stakeholders. Broaden the knowledge base of USAASA mandate within USAASA. Internal workshops on universal access and service Number of internal workshops organised for Agency staff. Four internal workshops

Corporate scorecard…cont. 2. Strategic Objective: Facilitate interventions in ensuring affordable and equitable access and usage Key Outcome Key Output Performance Indicator/Measure 2010/11 Target Accountable Branch Improved quality of life through access to information and services Fully functional and sustainable access centres Percentage of access centres handed over and fully functional 100% Community access centres and School Cyberlabs handed over to relevant structures and sustainable over long term PMO Increased Broad Band access Number of (declared) under-serviced areas covered with broadband infrastructure 3 (declared) under-serviced areas with Broad Band infrastructure Poor TV-owning households with access to Digital Broadcasting Services Number of poor TV-owning households subsidised (for purchase of STBs as part of BDM) 367,000 subsidised STBs distributed

Corporate scorecard cont… 4. Strategic Objective: Efficient and effective management of the Universal Service and Access Fund Key Outcome Key Output Performance Indicator/Measure 2010/11 Target Accountable Branch Sound financial management and stable internal control environment Unqualified external audit opinion with no emphasis of matter Compliance by business units with the prescribed policies and processes / reduction in the number of audit findings Effective, efficient and transparent systems of financial, risk management and internal controls maintained CFO Provide support/advice to business units on SCM and financial matters Compliance to policies & procedures; reduction in irregular/fruitless & wasteful expendituture Improved financial management by business units & Agency at large. Minimum incidents of irregular, fruitless& wasteful expenditure Appropriate use/application of the Fund USA Fund allocated/applied as intended by the Act and approved plans No audit findings Corporate scorecard cont…

Performance Indicator/Measure Corporate plan Cont… 4. Strategic Objective: Ensure Achievement of project-based organisational excellence Key Outcome Key Output Performance Indicator/Measure 2010/11 Target Accountable Branch Improved quality of life through access to information and services Fully functional and sustainable access centres Percentage of access centres handed over and fully functional 100% Community access centres and School Cyberlabs handed over to relevant structures and sustainable over long term PMO Increased Broad Band access Number of (declared) under-serviced areas covered with broadband infrastructure 3 (declared) under-serviced areas with Broad Band infrastructure Poor TV-owning households with access to Digital Broadcasting Services Number of poor TV-owning households subsidised (for purchase of STBs as part of BDM) 367,000 subsidised STBs distributed

Corporate plan continues… Strategic Objective: Achieve multi-sectoral network agreements to achieve universality Key Outcome Key Output Performance Indicator/Measure 2010/11 Target Accountable Branch Improved quality of life through access to information and services Fully functional and sustainable access centres Percentage of access centres handed over and fully functional 100% Community access centres and School Cyberlabs handed over to relevant structures and sustainable over long term PMO Increased Broad Band access Number of (declared) under-serviced areas covered with broadband infrastructure 3 (declared) under-serviced areas with Broad Band infrastructure Poor TV-owning households with access to Digital Broadcasting Services Number of poor TV-owning households subsidised (for purchase of STBs as part of BDM) 367,000 subsidised STBs distributed

ORGANISATIONAL STRUCTURE TO SUPPORT MANDATE USAASA BOARD OF DIRECTORS OFFICE OF THE BOARD CHAIRMAN SECRETARY OF THE BOARD Chairperson: sub-committee Audit and Risk Management Functional areas Internal Audit Reports Auditor General Reports Risk Management Oversight Role Audit Plans Finance and Business Development Information Communication Technology (ICT) Financial Statements & Budgets Financial Management Management Letter (Audit) Supply Chain Management USAF Projects Research and Strategy National Programmes Management Activities Broadcasting Services Public and Stakeholder Relations Human Resources and Remuneration Human Resource Management Remuneration Organizational Development Performance Management System and Change Management Labour Relations Legal and Regulatory

ADMINISTRATIVE STRUCTURE CHAIRMAN: BOARD CHIEF EXECUTIVE OFFICER (CEO) Internal Audit Function Performance Management Function Stakeholder Relations Function BUSINESS DEVELOPMENT Executive Manager: Business Development Functional areas USAF Projects Research, Strategy & Policy National Program Management Broadcasting Services FINANCIAL SERVICES Chief Financial Officer (CFO) Budget Information Communication Technology (ICT) Financial Statements Financial Management Internal Audit Queries Supply Chain Management CORPORATE SERVICES Executive Manager: Corporate Services Human Resource Management Remuneration Organizational Development Performance Management Change Management Labour Relations Administration Legal and Regulatory

KEY STRATEGIC PROJECTS Development of the Universal Access and Service Strategy Publication guidelines for US Fund application All USAASA subsidized sites mapped in a Geographical Information System (GIS) Development of measurable ICT access and impact indicators. Implementation of STB Scheme-of-Ownership Model Development of Competitive Bidding Strategy and Implementation Continued Implementation of handover strategy Development and Implementation of an ICT Hub Model Implementation of Rapid Deployment Strategy

KEY STRATEGIC PROJECTS Aim: Provide universal access and service strategy, policy and leadership Unit Sub-Objectives (in line with Target) April – June 2010 Milestone July – Sept 2010 Oct – Dec 2010 Jan – March 2011 Responsibility Budget Development of the Universal Access and Service Strategy Phase 1 & 2 Report ICT Sector Review; Socio-economic status among population; Status of communications infrastructure and extent of services. Indicators for the measurement of levels of attainment; Ascertain current levels of attainment of UA/US; Provide assessment & quantification of access gaps; Needs Analysis; Targets & Definitions of UA/US Report on Phase 3 Cost analysis to address access gaps; Assess contributions contributions to USAF; Strategy Proposal (action programmes and 5 year plan) Phase 4 Report Identify suitable indicators for measurements of progress towards imlementation of strategy. Develop a consultative framework to solicit views of interested parties and the general public Analysis of written representations; Draft Recommendations and submit final report. Implementation and monitoring of strategy. Head: BD R2,700,000 (2009/10 USAASA budget) (see Note3)

KEY STRATEGIC PROJECTS Aim: Provide universal access and service strategy, policy and leadership Unit Sub-Objectives (in line with Target) April – June 2010 Milestone July – Sept 2010 Oct – Dec 2010 Jan – March 2011 Responsibility Budget Clear guidelines for the application of the Fund Identify key documents and sources required to undertake the project analysis; Analyse the contents of section 88 of the EC Act, PFMA, PAJA, PAIA, and any other laws or regulations identified as relevant for the project. Consult with National Treasury, DoC, MDDA, ICASA, industry, and users of the Fund Manual. Investigate how other developments funds in SA operate and review their operational procedures and manual. Review of current trends and practices on the administration and management of the Fund. A comparison with selected countries drawn from the four continents: Asia, Africa, North America, South America & Oceania. Recommendation on the most appropriate model for South Africa. Develop criteria for the agency to use in evaluating proposals. The criteria will contain the ff: Clear & easy to use pre-qualification process for bidders of subsidies. An unambiguous process flow to use in evaluating the proposals. Evaluation criteria to judge which proposals offer the greatest value. Determine maximum allowable subsidies. Develop subsidy design. Develop framework for determining subsidy. Develop bidding strategy. Develop subsidy & distribution process. Draft the process by which inspection, payment & M&E will be handled. Head: BD R2,100,000 (2009/10 USAF budget) (see Note3)

KEY STRATEGIC PROJECTS Aim: Provide universal access and service strategy, policy and leadership Unit Sub-Objectives (in line with Target) April – June 2010 Milestone July – Sept 2010 Oct – Dec 2010 Jan – March 2011 Responsibility Budget Advance the goals of universal access and universal service. Organise a seminar and present a simplified mandate of the Agency, its vision & mission going forward and the current projects Identify a theme for investigation Identify a research journal to publish article Invite an ICT expert to address staff on universal access and service issues Conduct research on a theme identified using different methods Publish the article Staff update on implementation of business plan. Tracking on progress & other developments in the ICT sector Identify a topic for investigation Conduct the research based upon topic chosen Update of staff on project performance and planning for the new financial year Invite an expert to a seminar for staff and Management and Board Publish the findings of the research Head: BD R700,000 (USAASA Budget)

KEY STRATEGIC PROJECTS Aim: Provide universal access and service strategy, policy and leadership Unit Sub-Objectives (in line with Target) April – June 2010 Milestone July – Sept 2010 Oct – Dec 2010 Jan – March 2011 Responsibility Budget All USAASA subsidized sites mapped in a Geographical Information System (GIS) Appoint a service provider to map Agency subsidized sites. Identification of key documents and sources of information. Identification of key stakeholders and meetings with those stakeholders to solicit their databases. Purchase of both software and hardware for Geographical Information System (GIS); GIS server, Global positioning System devices, cameras, etc. and set up of the infrastructure in house. Fieldwork to take GPS co-ordinates of all sites and new ones. Mapping of Agency subsidized sites. Electronic Report on Access Gap Maps Continuous update of maps based upon implementation of community public access centres. Head: BD R2,000,000 (USAASA Budget)

National Program Management KEY STRATEGIC PROJECTS Aim: Provide universal access and service strategy, policy and leadership Unit Sub-Objectives (in line with Target) April – June 2010 Milestone July – Sept 2010 Oct – Dec 2010 Jan – March 2011 Responsibility Budget Development of measurable ICT access and impact indicators. Finalisation of a list of baseline ICT indicators. Final identification of sources of data sets. Consultation with key stakeholders on baseline document. Stakeholder workshop on the format of reports needed. Final List of ICT Indicators and indicators of access and impact agreed upon and adopted. Alignment of ICT Indicators to agreed upon targets. Head: BD R250,000 (USAASA Budget) National Program Management Capacity in USAASA 2 Provinces Conduct Road-Shows in 2 Provinces Establishing Strategic Partnerships Capacity in USAASA 4 Provinces Conduct Road-Shows in 4 Provinces Capacity in USAASA 6 Provinces Conduct Road-Shows in 6 Provinces Capacity in USAASA 9 Provinces Conduct Road-Shows in 9 Provinces R2,452,000

KEY STRATEGIC PROJECTS Aim: Facilitate interventions in ensuring affordable and equitable access and usage Unit Sub-Objectives (in line with Target) April – June 2010 Milestone July – Sept 2010 Oct – Dec 2010 Jan – March 2011 Responsibility Budget Planning of STB Scheme-of-Ownership Model Implementation strategy formulation Appoint service provider to manage implementation R 17,300,000 Implementation of STB Scheme-of-Ownership Model 183,500 STB’s subsidised Head: BDS R180,000,000 USAF Competitive Bidding Strategy and Implementation Development and Approval of Competitive Bidding Strategy Publishing of Invitation to Apply (ITA) Infrastructure deployment subsidised in 3 (declared) under-serviced areas R14,926,700 USAF (see note 1)

KEY STRATEGIC PROJECTS Unit Sub-Objectives (in line with Target) April – June 2010 Milestone July – Sept 2010 Oct – Dec 2010 Jan – March 2011 Responsibility Budget Continued Implementation of handover strategy Continued procurement and rehabilitation Training and Skills Development programme commences Continued Training and Skills Development programme Agreements signed with stakeholders Funds disbursed (where needs) to relevant stakeholders 100% Community access centres handed over Monitoring and Evaluation commences Head: BDS R23,686,300 USAF Facilitate strategic partnerships and other empowerment initiatives Development of strategic partnership strategy Sourcing external funding and implementation of partnerships R1,000,000 USAASA R2,000,000 USAF (see note 2) Development and Implementation of an ICT Hub Model ICT Hub Model formulation Facilitation of procurement processes Deployment commencement Continued deployment R27,000,000 USAF Implementation of Rapid Deployment Strategy 50 Access Facilities Deployed R13,080,000 USAF

PROJECT – BUDGET SUMMARY

USAASA 2010/11 Budget Broad Categories  Percentage Amount Advertising Total   128,600.00 Audit fees Total 407,010 Bank Charges Total 25,708 BDM-set top boxes Capacity Building Total 25.9% 17,300,000 Board Fees Total 2.0% 1,332,502 Board workshop attendance fees Total 75,000 Business planning Total 1.5% 1,000,000 CAPEX Total 473,000 Catering and Refreshments Total 160,250 Cleaning service Total 171,796 Communication Costs Total 972,000 Consultants Total 280,000 Corporate identity, Branding & Stakeholder Management Total 3.1% 2,054,059 Corporate Services Total 2,350,000 Courier & postage Total 48,300 Entertainment Total 60,000 Events, Conferences & Workshops Total 352,800 Insurance Total 267,000 Interest Total 68,200 IT Systems upgrade & Maintanance Total 3.9% 2,600,000 Municipal Charges Total 250,000 Printing Total 630,000 Rental Total 3.7% 2,484,261 Repairs & Maintenance Total 92,686 Replacement of Assets Total 1,212,000 Research costs Total 4.4% 2,950,000 Security Total 6,000 Skills Development Total 1,762,600 Staff Costs Total 38.2% 25,456,829 Stationery Total 152,000 Subscriptions & Membership Total 195,400 Travel Costs Total 2.1% 1,386,000 Grand Total 84.8% 66,704,000

PROJECT – BUDGET SUMMARY

By 2020 USAASA, with its partners, has facilitated that: CONCLUSION By 2020 USAASA, with its partners, has facilitated that: “Every man, woman and child whether living in the remote areas of the Kalahari or in urban areas of Gauteng - can connect, speak, explore and study - using ICT”