1. 1 ORGANISATIONAL PERFORMANCE AGAINST THE STRATEGIC PLAN PERIOD: 01 APRIL to 30 SEPTEMBER 2010 (Mid-year) PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONS BY DR. HAROLD WESSO ACTING DIRECTOR-GENERAL A global leader in the development and use of Information and Communication Technologies for socio-economic development

2. 2 Introduction  The Department’s 2010-2013 Strategic Plan is in line with the Medium Term Strategic Framework that is informed by the electoral mandate period (2009- 2014).  Stemming from this Strategic Plan, the Department has identified 135 Targets for the 2009/10 Financial year of which 80 have been identified as flagship projects based on the fact that they appear in either of the following:  Minister’s 2010 Budget Vote Speech  2010 Estimates of National Expenditure (ENE)  Minister’s Performance Agreement  These 135 Targets are allocated to a relevant Programme/Branch (Doc consists of 6 Programmes/Branches)  Annual Branch Business Plans unpack the Target into quarterly milestones  Progress against milestones are monitored on a quarterly basis A global leader in the development and use of Information and Communication Technologies for socio-economic development

3. 3 Snapshot of Organisational Performance A global leader in the development and use of Information and Communication Technologies for socio-economic development In terms of progress made at the end of mid year, as indicated in Figures A and B below, 53 (39%) of Targets are on track while 74 (55%) of Targets are in-progress. No progress has been made with 8 (6%) of Targets. Fig. AFig. B

4. 4 Progress to Date LEGISLATIVE PROGRAMME:  Postbank Bill - Introduced to Parliament and the DoC actively participated in the public hearings. The Bill was deliberated on and passed by the Portfolio Committee on Communications. The Bill was also passed by National Assembly and is currently being deliberated on by the NCOP’s Select Committee on Labour and public enterprises  ICASA Amendment Bill - Approved by Cabinet. Published for public consultation and public comments received are currently being analysed.  Integrated ICT Policy framework - A concept document developed and an inter- branch task team established to finalize the concept document  Public Service Broadcasting Bill - Second Draft Bill was prepared and will be undergoing the relevant government processes towards finalisation. A separate money Bill on the funding of the public broadcaster was also prepared. The hosting of further consultation on the PSB Bill in the form of oral hearings is to be held in the month of October 2010, in order to reignite public discussion on the Bill.  ECA Amendment Bill – The Bill was drafted and published for public comments. A global leader in the development and use of Information and Communication Technologies for socio-economic development

5. 5 INFRASTRUCTURE  DTT infrastructure roll-out (60% of population coverage) - 33% population coverage has been achieved. DTT Roll-out plan received from Sentech indicates project on track to achieve 60% population coverage by April 2011  Radio quiet zones for SKA - The Square Kilometer Array policy directive was signed off by the Minister and Gazetted.  Spectrum pricing methodologies – A research report was compiled and appropriate pricing methodologies analyzed for a South African context. Policy Directions on Spectrum Pricing were also developed.  Broadband – A draft Broadband Legislation and Provincial and Municipal Guidelines have been developed  National Internet Governance - A draft Policy was finalized. It was resolved that the following Policy issues will be taken forward: IPv4-IPv6 Migration and Geographic domain names. A global leader in the development and use of Information and Communication Technologies for socio-economic development Progress to Date cont..

6. 6  ICT Infrastructure for 2010 FIFA Soccer World Cup and IBC FWC ICT Infrastructure at the 10 FWC host stadia and International Broadcast Center (IBC) successfully delivered as per FIFA specification and within schedule Significant savings were realized from the allocated budget and contractual funds The Infrastructure was succefully operated for the duration of the FWC event (11 June to 11 July 2010) o Telkom and Sentech respectively confirmed 100% and 99.99% availability of broadcast signal from the 10 host stadia to the IBC o The IBC Operated successfully for the duration of the event o ICASA and SABC successfully dispensed their respective obligations for the FWC  2010 FWC Legacy Legacy Plan and Approach completed Concluded consultations with host cities and relevant stakeholders Identified equipment to be redeployed with host cities Identified schools connectivity as a legacy project Investigating the scope, interoperability, operations and maintenance of legacy redeployment A global leader in the development and use of Information and Communication Technologies for socio-economic development Progress to Date cont..

7. 7  International Programme – Signing of the SA-Cuba MOU in ICTs Successful participation at the SADC ICT Ministerial meeting in May; WTDC in June; AU CIT in August; ATU Plenipotentiary Conference in September 2010; and UPU High Level Strategic Conference DoC developed the following position papers: SADC DDT Roadmap, SADC Home and Away roaming, aimed at reducing interconnection pricing SADC Frequency band plan WTDC (proposed resolution on Cyber-security) AU CIT- towards implementation of the Oliver Tambo Declaration UPU High Level Conference: the common African vision towards 2012 UPU Congress SA successfully elected to the Administrative Council of the African Telecommunications Union (ATU) governing body. SA successfully coordinated and presented at the UPU High Level Strategic Conference the African position towards 2012 UPU Congress During this period, the Department participated in the following bilateral engagements: Working visit by Deputy President to Tunisia, April 2010 Presidential visit to Algeria, May 2010 State Visit to India, June 2010 A global leader in the development and use of Information and Communication Technologies for socio-economic development Progress to Date cont..

8. 8  SOE OVERSIGHT Monitoring Task Team established to monitor performance of the SABC in compliance with conditions of Government Guarantee, report progress & early warnings to Minister Bilateral meetings; a forum for discussion of critical issues between Minister and the boards of SOEs; held bi-monthly Bilateral meetings; a forum for discussion of critical issues between Director General and CEOs of SOEs; held bi-monthly DoC currently developing guidelines for remuneration of Boards of SOEs & Council of ICASA Undertaking a review of financial controls of USAASA, NEMISA & ICASA Reviewing Articles of Associations of SOEs to comply with law & best practices A global leader in the development and use of Information and Communication Technologies for socio-economic development Progress to Date cont..

9. 9  SOE OVERSIGHT continued… Undertaking analysis of quarterly & annual reports, financial statements to assess performance of SOEs; financial & operational performance & provide early warning, feedback & guidance Monitoring compliance of SOEs with legislative mandates and requirements & good corporate governance practices Facilitating alignment of SOE plans with Government priorities Facilitating meetings between officials of SOEs & DoC to discuss & resolve matters relating to compliance & other oversight & governance issues as & when they arise. Ministerial Task Team appointed on the turnaround of the SABC & Sentech which; made specific recommendations for the turnaround of Sentech & developed a turnaround plan for the SABC The new Board of Sentech developed a 2010/11 turnaround strategy based on the Task Team recommendations A global leader in the development and use of Information and Communication Technologies for socio-economic development Progress to Date cont..

10. 10  E-Health - A GIS database of health facilities has been compiled and mapping of the facilities done. A draft connectivity plan has also been developed  E-literacy training programme for children in conflict with the law – e-Readiness report of the training sites has been developed and the identification of the youth offenders who will participate in the training has commenced  Hospital Websites - A total of 180 hospital website designs have been developed. The Hospital Websites were officially launched by Minister on 30 September 2010 in Bloemfontein.  SMME’s - An action plan to facilitate the involvement of SMMEs in the STB value chain has been developed.  ICT Rural Development Strategy- The Strategy has been developed and approved in principle. A global leader in the development and use of Information and Communication Technologies for socio-economic development Progress to Date cont..

11. 11 Broadcasting Digital Migration  Digital Dzonga Council has been re-appointed and is functional  Provinces have been consulted on Scheme of Ownership Support (SOS) Framework  BDM Strategies have been finalised Finalisation on the decision of the DTT Standards is expected in November from SADC Post November:  Set up of STB Conformance Scheme  Finalisation of STB Control System by SABC  Finalisation of the STB manufacturing RFP  Finalisation of DTT implementation plan  Finalisation of STB Subsidy Coupon System by USAASA  Approval of BDM strategies by Cabinet for implementation STB Manufacturing Strategy SOS Support Framework A global leader in the development and use of Information and Communication Technologies for socio-economic development Progress to Date cont..

12. 12 Key Challenges A global leader in the development and use of Information and Communication Technologies for socio-economic development  Prolonged internal decision-making / approval process (cancellation of key governance fora – Q1)  Human resource capacity constraints  Departmental instability Low staff morale Suspension of key senior managers Development of factions Adhoc redeployment of staff within DoC Management by fear Resulting in delays in projects and related expenditure

13. 13 Mitigating Measures A global leader in the development and use of Information and Communication Technologies for socio-economic development  Department has stabilised  Following additional Management Structures have been put in place and are functional resulting in effective decision making and periodic performance reviews:  EXCO: Ministerial Executive Committee  DEC: Departmental Executive Committee  TMM: Top Management Meeting  BMM: Branch Management Meeting  DBAC: Departmental Bid Adjudication Committee has been reconstituted  Recruitment of critical posts has commenced  Conclusion of the Organisational Review process  Prioritisation of SOE oversight Improvement in project implementation and expenditure

14. 14 ICT Policy Development Branch Status of Targets A global leader in the development and use of Information and Communication Technologies for socio-economic development ICT POLICY DEVELOPMENT BRANCH ON-TRACK IN-PROGRESSNO PROGRESS Concept paper on Integrated ICT Strategy developed Study on the impact of ICT s on the environment conducted Additional 10% of South African homes with postal Addresses and e- mail addresses Public Service Broadcasting Bill introduced to Parliament Digital Migration Policy implemented(Phase 2) Five platforms of engagement supported and institutionalized SAPO Bill enacted into law 500 000 locally assembled/manufactured STBs distributed and operational in the market Annual stakeholder survey conducted Postbank Bill enacted into law Additional 5% quota increase in local content and digital content output Business models for USALs and community radio and television stations reviewed 15% reduction in telecommunications costs 2% increase in the broadcasting network coverage to remote rural areas Policy direction on quality of services (telecoms and broadcasting) issued to ICASA 5% increase of households broadband penetration Development of 2 new Thusong Post Office monitored Policy directive issued to ICASA, on an implementation plan for the unbundling of the local loop by the set target date of 2011

15. 15 ICT Policy Development Branch cont… Status of Targets A global leader in the development and use of Information and Communication Technologies for socio-economic development ICT POLICY DEVELOPMENT BRANCH ON-TRACK IN-PROGRESSNO PROGRESS Policy directive on pricing for Broadband services developed Wireless/Satellite Policy directive on mobile termination rate issued to ICASA, with specific reference to cost-base pricing Policy instrument to separate pricing on the backbone network elements based on LRIC and/or TELRIC methodology developed (V-Sat, cable, fibre, antenna, mast, POP, etc.) Policy direction on aligning interconnection costs for public pay phones to those of community service telephone issued to ICASA Comprehensive Uptake and Usage Policy, aimed at increasing mobile telephony and internet uptake developed ECA Amendment Bill and ICASA Act developed and enacted into law Impact Assessment conducted on key legislation and policies and recommendations implemented National standard on all EIA requirements for ICT infrastructure roll out developed (Infrastructure- TSAG) Policy directive to ICASA on declaration of essential facilities issued Compliance with ICASA Postal quality of service standards monitored

16. 16 ICT Infrastructure Develop. Branch Status of Targets A global leader in the development and use of Information and Communication Technologies for socio-economic development ICT INFRASTRUCTURE DEVELOPMENT BRANCH ON-TRACK IN-PROGRESSNO PROGRESS Audit on number usage conducted National Broadband Legislation submitted to Cabinet Fully functional South African Accreditation Authority (SAAA) Cabinet approval obtained on the e- Connectivity plans for health centres Cabinet approval on the e-Connectivity plans for school obtained Provinces and Municipalities engaged on individual Broadband guidelines Authentication service providers accredited Conceptual framework for advancing wireless mesh network in targeted communities implemented Identification of Critical Information Infrastructure facilitated Establishment of access network in 2 rural municipalities of facilitated Establishment of the cyber inspectorate commences Establishment of radio quite zones for SKA facilitated Establishment of CSIRT approved by Cabinet Facilitation and monitoring of DTT infrastructure roll-out commenced (60% of population coverage) ECT Amendment Bill developed and enacted into Law Outcomes of WRC-07 implemented through appropriate regulatory instruments SAAA legal framework reviewed and policies to support SAAA mandate developed Outcomes of WTSA-08 implemented through relevant departmental projects 50% Dinaledi schools connected

17. 17 ICT Infrastructure Develop. Branch Status of Targets continued… A global leader in the development and use of Information and Communication Technologies for socio-economic development ICT INFRASTRUCTURE DEVELOPMENT BRANCH ON-TRACKIN-PROGRESSNO PROGRESS Preparations for WRC-12 and WTSA-12 undertaken Roll out of low power transmitters to 15 rural communities by the SABC facilitated Spectrum pricing methodologies investigated and policy direction for commercial competitive spectrum issued to ICASA National Internet Governance Policy approved and implemented ICT Infrastructure for 2010 FIFA Soccer World Cup and the International Broadcasting Centre(IBC) fully Operationalised Current National Radio Frequency Spectrum Plan validated from 500MHz to 20GHz Consultation with Municipalities of all Host Cities and Broadcasters on the implementation of the 2010 FIFA World Cup Legacy Plan concluded ISSA capacitated and programme launched focusing on:  Software development and research  Remote sensing  Feasibility study on STB conformance testing  Training on software development Implementation of the Legacy Plan on future utilization of ICT infrastructure rolled out for the 2010 FIFA world Cup facilitated Two additional institution accredited as training centres for STBs (Installation, repairs and maintenance)

18. 18 ICT Infrastructure Develop. Branch Status of Targets continued… A global leader in the development and use of Information and Communication Technologies for socio-economic development ICT INFRASTRUCTURE DEVELOPMENT BRANCH ON-TRACK IN-PROGRESSNO PROGRESS Secured and robust IT infrastructure and business systems implemented to enable ease of access and use of departmental information Broadband Inter-governmental implementation Committee to coordinate all Broadband initiatives established Integrated strategy on network roll-out in under-serviced and un-served areas developed Cyber security Advisory Council established Policy on use of satellites for communication developed Impact Assessment Reviewed and Mitigation Measures Considered Measures to improve spectrum usage in accordance with the National Radio Frequency Spectrum policy and taking into account the outcome of the 2009/10 validation

19. 19 ICT International Affairs & Trade Branch Status of Targets A global leader in the development and use of Information and Communication Technologies for socio-economic development ICT INTERNATIONAL AFFAIRS & TRADE ON-TRACK IN-PROGRESSNO PROGRESS African multilateral organizations further strengthen through the influencing of key debates via the submission of at least 2 SA position papers Bilateral relations with “Anchor” African countries further strengthened in order to be effective and mutually beneficial through the formation and implementation of Strategic Partnerships/ Programmes Participation in OECD reviewed to ensure more beneficial participation for South Africa Candidates/countries identified and supported for election in Multilateral Organisations Post Conflict Reconstruction and Development Programme facilitated in Prioritised Countries SA & ITU/UPU co- operation agreement reviewed to ensure effective projects to enhance regional development Country position papers influencing key debates on various ICT issues aligned with SADC PoA adopted and implemented IBSA information society annual Programme of Action with specific actions aligned with SADC PoA adopted and implemented IBSA information society annual plan with specific actions adopted and implemented International training and development opportunities secured through bilateral cooperation with India, Cuba, South Korea and China Economic development interests promoted as well as e- skills development Proposed standards for international spectrum pricing in SADC and AU advocated North-South bilateral relations promoted SADC ICT structures further strengthened on order to achieve socio-economic development and regional integration through submission of one SA Position Paper per meeting Placement opportunities in Multilateral Organisations identified and taken up Strategic multilateral engagement and partnership implemented with EU, UNECA, CTO, UNESCO IBSA Free Open Source Software Sub-Working Group established IBSA Portal extended to include civil society Status of the Portal elevated as critical platform for IBSA

20. 20 Presidential National Commission Status of Targets A global leader in the development and use of Information and Communication Technologies for socio-economic development PRESIDENTIAL NATIONAL COMMISSION (PNC) ON-TRACK IN-PROGRESSNO PROGRESS 25 %municipality websites interactive Implementation of the e-Government blueprint facilitatedNone Biennual e-Barometer Paper report published Provincial ISAD framework/guidelines adopted and Provinces supported to develop ISAD Strategies for implementation Country Position Paper for WTDC-10 developed 14 District Municipalities supported to incorporate the ISAD Plan into IDPs Development of content that documents and profiles the contribution by military veterans towards the creation of the South African democratic dispensation commenced with Implementation of efficient and effective systems and processes to support services offered by PNC on ISAD e-Literacy training programme for children in conflicts with the laws, Eastern, Western, and Northern Cape implemented Research and Foresight Centres of Excellence piloted for e-Education and e-Health Health content framework developed Implementation of e-skills council, National ISAD council PIAC, ISAD multi-stakeholder forum and IGRF PoAs facilitated to fulfill the National ISAD Programme ICT Rural Development Strategy developed and implemented Provincial content captured for additional 4 Provinces into the National Digital Repository (KZN, Mpumalanga and N.C., N.W.) Sustainability strategy for the e-Cooperatives developed e-Commerce Platform for SMMEs developed Websites for district hospitals developed and fully functional Implementation of e-Health strategy supported Final 3 Provinces supported to incorporate the ISAD Plan into Provincial development plans (E.C, NW, FS) Portal to capture content on military veterans developed

21. 21 Finance & ICT Enterprise Dev. Branch Status of Targets A global leader in the development and use of Information and Communication Technologies for socio-economic development FINANCE & ICT ENTERPRISE DEVELOPMENT BRANCH ON-TRACK IN-PROGRESSNO PROGRESS 25 ICT Business Linkages facilitated Action plan, to benefit SMMEs in the Broadcasting Digital Migration value chain including the manufacturing, distribution, installation and maintenance of set top boxes, developed Performance agreements of ICASA councilors concluded and performance monitored on a quarterly and annual basis Reviewed business management process and systems implemented to ensure sound financial management and other services ICT SMME portal to host and SOE ICT tenders and with links to all government tenders, for access by SMMEs through the internet and mobile phones developed 30% spend on BEE owned companies Establishment of two ICT hubs in two under-served Provinces facilitated (one per Province) Alignment of the plans of SAPO, Sentech, USAASA, NEMISA and SABC with government priorities ensured Migration of at least 5 large ICT SMMEs into mainstream (non SMME) businesses facilitated Performance of SOEs monitored against set KPIs as per their Corporate Plans Self sustainability Funding model of Sentech, SABC (PSB) and NEMISA developed Articles of association of all SOEs revised in line with the new company’s Act Corporate governance reviews at Sentech, SABC, SAPO, NEMISA,.zaDNA & USAASA undertaken

22. 22 Governance & Administration Branch Status of Targets A global leader in the development and use of Information and Communication Technologies for socio-economic development GOVERNANCE & ADMINISTRATION ON-TRACK IN-PROGRESSNO PROGRESS MOUs signed with host cities on legacy projects Two MoUs on ICT Hubs signed with under- served provinces None Integrated, progressive and innovative HR Strategy Implemented within prescribed legislative requirements Action plan on DoC engagement model developed Integrated Strategic Management and Project Management Frameworks implemented within the prescribed legislations Nine provinces and all the district municipalities engaged on BDM, Broadband Policy, Radio Frequency Spectrum Policy, Cybersecurity Policy, enacted legislation, ICT SMME Strategy, e- Skills programme, e-connectivity plans for schools and health centers, roll out of low power transmitters Comprehensive Annual Communications Strategy implemented which supports the priority and focus areas of the department and is in line with applicable standards and guidelines 50% gender representativity at SMS level 2% representation of people with disability across the department

23. 23 Director-General’s Office Status of Targets A global leader in the development and use of Information and Communication Technologies for socio-economic development DIRECTOR GENERAL’S OFFICE ON-TRACK IN-PROGRESSNO-PROGRESS Issues related to gender, disability, youth and children in the programmes of the Department and its SOEs (SABC, NEMISA and USAASA) mainstreamed in the following 3 Branches (International, Policy and Infrastructure) through the development and implementation of sector-specific strategies Service deployment for the 800 e-Cadres concluded None Second intake for training for 450 ICDL Learners concluded Exit strategies for at least 20% of the e- Cadre confirmed Relevant government initiatives related to Second Economy Interventions supported

24. 24 Meraka e-Skills Institute Status of Targets A global leader in the development and use of Information and Communication Technologies for socio-economic development MERAKA e-SKILLS INSTITUTE ON-TRACK IN-PROGRESSNO PROGRESS Piloting of short and certificated e-Skill course facilitated in collaboration with Universities and Corporate Schools to impact the employment readiness of status e-Skills Programmes developed None Platforms of the virtual offering of training programmes developed Agreed framework of multi-stakeholder partnerships for the knowledge production and e-skilling developed

25. Expenditure for the 1 st six months of the 2010/11 Financial year A global leader in the development and use of Information and Communication Technologies for socio-economic development

26. 2010/11 Expenditure 2010/11 Economic Classification Adjusted Appropriation Actual Expenditure as at 30/09/2010 Percentage spent Current payments502 178135 69827.02% Transfers and subsidies 1 631 704423 98325.98% Payments for capital assets 4 11982420.00% TOTAL 2 138 001 560 505 26,21% A global leader in the development and use of Information and Communication Technologies for socio-economic development

27. PROGRAMMEAdjusted Appropriatio n Projections as at 30/09/201 0 Actual Expenditur e as at 30/09/201 0 % spent of total allocatio n R’000 Administration159 00178 27166 30141.69% ICT International Affairs and Trade 44 61829 7347 18016.09% ICT Policy Development80 31439 06827 92327.33% ICT Enterprise Development13 2637 5623 92326.42% ICT Infrastructure Development 180 15679 21020 92911.61% Presidential National Commission 34 07019 41710 60231.11% Total511 422253 262136 85726.21% 2010/11 Operational Expenditure A global leader in the development and use of Information and Communication Technologies for socio-economic development

28. Budget vs Expenditure

29. Transfer and Subsidies to SOEs Adjusted Appropriation Projections as at 30/09/2010 Actual transfer as at 30/09/2010 % spent of total allocation ICASA290 923141 548 48.65% NEMISA32 60216 3018 15125.00% USAASA66 70443 499 65.21% USAF218 61334 339 15.71% SAPO: Subsidy306 07758 117 18.99% SABC: Public Broadcaster 230 014136 41847 54720.67% SABC: Channel Africa38 89619 446 49.99% Sentech: Digitisation270 90071 000 26.21% Telkom: 2010 FIFA World Cup 150 000 -0% SABC: Programme Production 15 000--0% SABC: Community Radio Stations 6 850--0% Total1 626 579670 668423 64726.05% 2010/11 Transfer payments Expenditure

30. Budget vs Expenditure

31.  The under spending for the 1st six months of the financial year 2010/2011 is mainly under the current payments.  This is due to capacity constraints and the delay in the implementation of the projects. However, management has taken corrective action by prioritizing key projects and expediting the implementation thereof. Deviations A global leader in the development and use of Information and Communication Technologies for socio-economic development

32. THANK YOU 32 A global leader in the development and use of Information and Communication Technologies for socio-economic development