DEPARTMENT OF COMMUNICATIONS PRESENTATION TO THE SELECT COMMITTEE ON LABOUR AND PUBLIC ENTERPRISES 25 May 2011 A global leader in the development and use of Information and Communication Technologies for socio-economic development

2 DoC Team Dr Harold WessoActing Director-General Mr Sam VilakaziActing DDG: Finance & ICT Enterprise Development Mr Themba PhiriActing DDG: Presidential National Commission A global leader in the development and use of Information and Communication Technologies for socio-economic development

Contents DoC Vision, Mission & Mandate Flagship Programmes Financial Information (budgets) 3

4 DoC Vision, Mission & Mandate A global leader in the development and use of Information and Communication Technologies for socio-economic development South Africa as a global leader in the development and use of Information and Communication Technologies for socio- economic development To create a vibrant ICT Sector that ensures that all South Africans have access to affordable and accessible ICT services in order to advance socio-economic development goals, support the African Agenda and contribute to building a better world Vision Mission Building an inclusive information society through a sustainable world class information and communication technologies environment Mandate

A global leader in the development and use of Information and Communication Technologies for socio-economic development Contents DoC Vision, Mission & Mandate Flagship Programmes Financial Information (budgets) 5

The following have been identified as Flagship Programmes: 1.Job Creation - to establish an ICT Industry Wide Working Group on job creation whose purpose will be to facilitate the identification of priority areas for job creation. 2.E-Skills - through the e-Skills Institute, massify the e-skilling of our nation for a rightful place in the Information Society and Knowledge-based Economy, ensuring (i) that citizens improve their quality of life through the use of ICTs, and (ii) that employment ready students are “delivered”. 3.Broadband - plan to improve broadband penetration to match those of our comparative countries such as India, Brazil and Chile. Develop an Integrated Broadband Plan that will facilitate capital investment, innovation and rural access. Plans for connecting schools, health and government centres will not only improve service delivery, but also improve the uptake and usage of broadband by government and individuals. A global leader in the development and use of Information and Communication Technologies for socio-economic development Flagship Programmes (1) 6

4.Digital Terrestrial Television (DTT) - South Africa has formally adopted DVB-T2 as the preferred standard for the migration of analogue to digital broadcasting. In implementing the Digital Migration Policy in South Africa, the programme will focus on finalising the set-top box manufacturing strategy, scheme of ownership support for poor households, and the local and digital content development strategy. 5.Postbank - Post Bank Bill was signed into an Act late last year. Work will begin to fast-track the roll-out of the Post Bank centres or outlets throughout the country. 6.Rural Connectivity - ICT Rural Development Strategy which will be implemented through various key programmes during the financial year 2011/12. A global leader in the development and use of Information and Communication Technologies for socio-economic development 7 Flagship Programmes (2)

8 Flagship Programme: Broadband Broadband Interventions  Increase broadband penetration  Develop Broadband Strategy and implementation plan  Incorporate Broadband legislation in the ECA Amendment Bill and introduce in Parliament  Finalise Provinces and Municipalities Broadband guidelines A global leader in the development and use of Information and Communication Technologies for socio-economic development

9 Broadband cont… A global leader in the development and use of Information and Communication Technologies for socio-economic development Broadband DefinitionBroadband Value Chain Telecommunication in which high-speed internet connection is available enabling data transmission with a wide band of frequencies and capable of achieving data transfer rates of at least 256 Kbps Network Providers Value Chain Content Providers Service Providers Broadband Impact Government Online Tax Filing Online Licensing Health Sector Telemedicine Education Online Distance Education Business e-Commerce Outsourcing e-Procurement Entertainment Sports News s Movies Frost & Sullivan

10 Broadband cont… A global leader in the development and use of Information and Communication Technologies for socio-economic development Currently the DoC is focusing on the roll-out of Broadband Infrastructure to schools, clinics, health centres and other government centres in the following districts: KZN  Msinga  Sisonke  Imphenge  Ilembe  Amajuba Limpopo  Greater Tzaneen

11 Flagship Programme: Postbank Postbank interventions  Develop the following Policies for the Postbank:  Borrowing Policy,  Investment Policy and  Lending Policy A global leader in the development and use of Information and Communication Technologies for socio-economic development

12 Postbank cont…  During the roll-out of Postbanks, priority will be given to the under- served rural areas  Postbank focuses on the unbanked population who are not part of the formal banking sector hence during roll-out such communities will be targeted A global leader in the development and use of Information and Communication Technologies for socio-economic development

Digital Terrestrial Television (DTT) interventions  Accelerate the implementation of the Broadcasting Digital Migration Policy in totality.  Ensure the availability of affordable set-top-boxes and the rollout of the scheme for ownership support for the STBs.  Ensure that there is proper governance model for the BDM Programme  Capacitate the Digital Migration Project Office  Amend the BDM Policy to reflect the new timelines adopted by Cabinet  Finalize and implement the STB Manufacturing Sector Development Strategy  Finalize and implement the SOS for DTT STBs rollout plan  Implement the consumer and education awareness campaign  Develop the Local and digital content development strategy  Facilitate and monitor the DTT infrastructure roll-out - 80% of population coverage achieved 13 A global leader in the development and use of Information and Communication Technologies for socio-economic development Flagship Programme: Digital Terrestrial Television Flagship Programme: Digital Terrestrial Television

 DTT transmitters have been rolled-out to reach 60% population coverage  This coverage is largely in the metros however impact at the local level will be realized at a later stage following the distribution of STBs  The extensively populated or high density areas are quick-wins as fewer DTT transmitters are needed to gain a high population coverage  By March 2011 an estimated 75% population coverage is a targeted while in December 2013, 95% population coverage is targeted  DoC will also facilitate the implementation of the action plan to benefit SMMEs in the Broadcasting Digital Migration value chain monitored (manufacturing, distribution, installation and maintenance) 14 A global leader in the development and use of Information and Communication Technologies for socio-economic development Digital Terrestrial Television cont…

15 e-Skills interventions:  Implement e-Skills training programmes  Develop and implement an e-Skills awareness campaign  Expand the ICT career expo  Expand the Network of Universities, FET Colleges and Corporate Schools by another 4 universities and / or corporate schools and / or FETs  Implement e-skills training for 1100 youth and unemployed graduates A global leader in the development and use of Information and Communication Technologies for socio-economic development Flagship Programme: e-Skills Flagship Programme: e-Skills

Towards e-Skills: a Model (e-Skills UK) e-Skills cont… A global leader in the development and use of Information and Communication Technologies for socio-economic development 16

Towards e-Skills: a Model e-Skills cont… A global leader in the development and use of Information and Communication Technologies for socio-economic development 17  Currently DoC has MoUs with 5 Universities in the following 5 Provinces: 1.Gauteng 2.Northern Cape 3.Western Cape 4.Eastern Cape 5.KwaZulu Natal  The department is commencing with training courses in conjunction with these 5 Universities through e-Community Centres  MoUs are being initiated with Limpopo and North West  Work has commenced with 20 FET Colleges across all Provinces to conduct proprietary IT training.  Infrastructure is being rolled-out to these FET Colleges while curriculums are also being finalised  Teachers are also being trained in embedded software and multimedia (train the trainer programme)

18 Rural connectivity interventions  Adopt and implement the ICT Rural Development strategy  Operationalise the SMME e-commerce portal  Establish 400 Digital Hubs in rural areas  Facilitate the roll-out of low power transmitters to cover 5 million inhabitants A global leader in the development and use of Information and Communication Technologies for socio-economic development Flagship Programmes: Rural Connectivity

Job Creation Job creation interventions  The DoC has identified 4 critical areas which could facilitate the creation of approximately jobs over the medium to long term period;  They include: 1.Broadband Infrastructure and services; 2.Digital Terrestrial Television Infrastructure; 3.Creative Industries; (Digitization, Animation, Multi-channels content, Content production) 4.SMME and Capacity Building; 5.Manufacturing of Electronics; 6.Regulatory environment and; 7.Postal Sector, including PostBank outlets roll-out. For each project possible job opportunities are estimated as well as the budget. A global leader in the development and use of Information and Communication Technologies for socio-economic development 19 Flagship Programmes: Job Creation Flagship Programmes: Job Creation

20 Creative Industries

PROJECTTOTAL JOBS CREATEDBUDGET 2011/12 Broadband Infrastructure7880 ( )R31 million Digitisation (NDR and Military Vets/Content Practioners 8400 jobsR13 million Content Hubs/Radio70 JobsJobs fund / Partnerships Content Hubs/TV210 JobsJobs fund /partnerships e-Cadre Programme2160 ( )Jobs fund /partnerships Incubation Hubs1800R14 million Set-Top-Boxes24 300R220 million e-Cooperatives/CRCs990R3 million E-Cafes/LAN Houses900Jobs fund /partnerships BPOs40 000Jobs fund /partnerships National Broadband InfrastructureUnknown (business model) R100 million Animation Programme300R10 million PostBank Roll-out72000Jobs fund /partnerships Grand Total (over 3 years)R391 million 21 Summary: Jobs & Budget A global leader in the development and use of Information and Communication Technologies for socio-economic development

Contents DoC Vision, Mission & Mandate Flagship Programmes National Broadband Infrastructure has been allocated R450 million over the MTEF period, spread as follows R100 million in 2011/12, R150 million in 2012/13 and R200 million in 2013/14. Set-Top-Boxes subsidies is being allocated R690 million over the MTEF, spread as follows R220 million for the 2011/12 financial year, R230 million for the 2012/13 financial year and R240 million for the 2013/14 financial year. R180 million was allocated for the 2010/11 financial year. A roll over request has been submitted. 22

FINANCIAL INFORMATION 23 A global leader in the development and use of Information and Communication Technologies for socio-economic development

24 A global leader in the development and use of Information and Communication Technologies for socio-economic development MTEF Baseline Allocation 2011/ /14 Budget allocation 2011/12 R’ /13 R’ /14 R’000 GRAND TOTAL1,889,1121,721,7051,851,681 Less once off Items: (Sentech: Dual Illumination, USAASA/USAF: STB Subsidy and Broadband ICT- Universal Access) 440,000380,000440,000 Total allocations1,449,1121,341,7051,411,681 % increase / decrease(11,6)(8,9)7,5

25 A global leader in the development and use of Information and Communication Technologies for socio-economic development MTEF Baseline Allocation 2010/11 – 2013/14 PROGRAMME 2011/12 R’000 Budget % allocated 2012/13 R’000 Budget % allocated 2013/14 R’000 Budget % allocated 1.Administration148,5057,86%157,6159,15%165,4998,94% 2.ICT International Affairs and Trade 40,8902,17%38,7462,25%39,8702,15% 3.ICT Policy Dev.-ops Transfers 77,0364,08%76,3724,44%78,2064,22% 17,6630,9318,3811,07%19,3921,05% 4.ICT Enterprise Dev. - ops Transfers 12, %15,9210,92%16,8610,91% 1,276,52814,79%1,044,04960,64%1,101,38259,48% 5.ICT Infrastructure Development - ops Transfers 279,4110,08%335,69719,50%394,07121,28% 1,5000,08%1,5000,09%1,5830,09% 6.Presidential National Commission 34,6911,84%33,4241,94%34,8171,88% GRAND TOTAL1,889,112100%1,721,705100%1,851,681100%

26 A global leader in the development and use of Information and Communication Technologies for socio-economic development 2011/12 BUDGET ALLOCATIONS

27 TRANSFERS 2011/12 – 2013/14 A global leader in the development and use of Information and Communication Technologies for socio-economic development

THANK YOU 28 A global leader in the development and use of Information and Communication Technologies for socio-economic development