1. Department of Communications 2004/05 Annual Report Presentation to Portfolio Committee 8 November 2005 the doc Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development

2. THE DoC LEADERSHIP TEAM Gerda Gräbe:COO Harry Mathabathe:CFO Gift Buthelezi: Acting DDG: Strategic Policy Co-ordination, Integration and International Relations Norman Munzhelele:Acting DDG: Policy Development Mthobeli Tengimfene:Acting DDG: Innovative Applications and Research Peter Zimri:CD: Technology and Research: Frequency Spectrum Basani Baloyi:CD: Human Resources Farhad Osman:CD: Strategic Planning and Monitoring Brenda Ntombela:CD: DG’s Office

3. VISION A global leader in harnessing Information Communication Technologies for Socio-economic development

4. MISSION To enhance the well being of the peoples of South Africa, the African continent and the world through the creation of a sustainable and enabling Information Communication Technology environment. We shall through leveraging our world class knowledge, skills and experience, deliver on our social contract to the people in a professional manner reflective of our national value system informed by the Batho Pele.

5. MANDATE To create a favourable ICT environment that ensures South Africa has capacity to advance its socio-economic development goals, support the renewal of Africa and build a better world. Core functions: To develop ICT policies and legislation that stimulates and enhances the sustainable economic development of the South African 1 st and 2 nd economy and positively impact on the social well being of all our people To evaluate the economic social and political implementation impact, outcomes and processes of the said policies To exercise oversight on State Owned Enterprises (SOE ’ s) To fulfil South Africa ’ s continental and international responsibilities in the ICT field

6. KEY PERFORMANCE AREA: Policy Development 1.Broadcasting Policy Restructuring and conversion of the SABC into a public company Cabinet approved the restructuring of Channel Africa into a subsidiary company of the SABC Commissioned feasibility study on a funding model for the public regional language television service Infrastructure funding of the SABC Commenced with the development of a Digital Policy Framework Commenced with process for the connection of all community radio stations to Parliament and amongst themselves 4-year agreement to subsidise signal distribution fees for community radio stations to optimally cover their licensed areas

7. 2.Telecommunication Policy Policy determinations around Voice over IP, Resale of Spare Capacity, E-rate and VANS to acquire facilities from other licensees Licensing of SNO progressed 7 USALs licensed and invitation was issued to apply for licenses in 14 additional districts ICASA issued 1800 and 3G Frequency Spectrum licenses to Vodacom and MTN Publication of the Convergence Bill KEY PERFORMANCE AREA: Policy Development (cont)

8. 3.Postal Policy Extended SAPO ’ s exclusivity period for a further 3 years Commenced with the development of an information booklet on the role and functions of the Regulator and complaints handling procedure Appointed postal inspectors KEY PERFORMANCE AREA: Policy Development (cont)

9. 4.Universal Service and Access to ICT Services in SA ICT BEE charter at an advanced stage Reported on the Government ad-spend as part of its marketing Cabinet approved a strategy to support local content production in the film and broadcasting industries KEY PERFORMANCE AREA: Policy Development (cont)

10. Commenced with PPP feasibility study on the 112 Emergency Call Centre Implementation of the Electronic Communications and Transaction Act  Published draft regulations on the cryptography service providers registry  Published draft guidelines for the establishment of a body of information system service providers  Published the draft regulations for the Accreditation Authority  Established the.za Domain Name Authority  Commenced with the establishment of the Register of Critical databases Rolled out the satellite data acquisition and the space weather prediction projects (ISSA) KEY PERFORMANCE AREAS: Innovative Applications and Research

11. 1.DOC contribution to the Integrated Sustainable Rural Development Programme and Urban Renewal Programme Awareness campaigns to inform government structures on the role of ICTs in service delivery Rolled out ICT facilities in the nodes – in partnership with portfolio organisations – telecentres, cyberlabs, public internet terminals (PiTs) and community radio stations PiT kiosks rolled out to every nodal point – each district municipality has a minimum of 5 terminals KEY PERFORMANCE AREA: Strategic Policy Co-ordination, Integration and International Affairs (SPCIIA)

12. 2.International Supported NEPAD ICT Programme - e-Africa Commission; e-schools; ICT infrastructure programme Participated in preparations for the World Summit on Information Society (WSIS) – November 2005 Participated in key international conferences KEY PERFORMANCE AREA: SPCIIA (cont)

13. 3.Bilaterals SA/South Korea: agreed on 6 areas of co-operation SA/India: ICT MoU signed SA/Cuba: Joint Bilateral Commission established SA/Algeria: 4 th session of the Bi-National Commission; draft MoU on Expedited Mail Services IBSA Forum: Hosted IBSA Working Group on the Information Society PIAC on ISAD: 4 th PIAC meeting, made recommendations on education, health, SMMEs, e- government, local content KEY PERFORMANCE AREA: SPCIIA (cont)

14. 4.Special programmes Gender  Launched a Women in ICTs portal Youth  Facilitated, with the National Youth Commission, SA youth ’ s participation in the ITU African Telecom Youth Forum  Contributions to the Annual Youth Guide of the National Youth Commission KEY PERFORMANCE AREA: SPCIIA (cont)

15. Restructured the Department in order to more effectively carry out its mandate in a changing sector Strategic Plan 2004-2009 developed and tabled 4 major pieces of legislation developed and submitted to Parliament – Telecommunications Amendment Act; Convergence Bill; ICASA Amendment Bill; Postal Services Amendment Bill In collaboration with ISSA, started investigating the viability of open source software within the Department 327 posts on the establishment of which 283 are filled Staff turnover rate – 11.6 Employment equity: KEY PERFORMANCE AREA: Organisational Excellence and Operations MaleFemale Total AfricanColouredIndianWhiteAfricanColouredIndianWhite 90 (1 disabled) 2622 (1 disabled) 12611719283 (2 disabled)

16. KEY PERFORMANCE AREA: Financial and Shareholder Management Unqualified audit report for third consecutive year Established Supply-Chain Management Business Unit Implemented policies aligned with supply chain management Implemented LOGIS as a procurement instrument Facilitated strategic linkages between departmental policy objectives and SOE ’ s strategic and corporate plans Developed a framework for interacting with SOE ’ s, in the form of planning cycle Commenced process of corporatising the Post Bank Reviewed shareholder compacts of entities Facilitated the finalisation of SAPO ’ s materiality frameworks the doc Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development

17. Budget vs Actual Performance the doc Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development

18. Appropriation per Programme the doc Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development 2004/05 Final Appro- priation R’000 Actual Expenditure R’000 Variance R’000 Expenditure as % of final appropriation 1. Administration98 20994 0454 16495.8% 2. Telecommunication Policy 148 586145 4123 17497.9% 3. Postal Services1 086 7841 081 8794 90599.5% 4. Multimedia Policy339 548326 66812 88096.2% 5. Auxiliary & Associated Services 6 7901 9354 85528.5% Total1 679 9171 649 93929 97898.2% Administration consist of other programs e.g Legal, international & other support.

19. Appropriation per Economic Classification the doc Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development 2004/05 Final Appro- priation R’000 Actual Expenditure R’000 Variance R’000 Expenditure as % of final appropriation Current Payments231 020215 93315 08799.4% Transfers and subsidies 1 441 5721 430 84110 73199.9% Payment on capital assets 7 3253 1654 16056% Total1 679 9171 649 93929 97898.2% 15 0ps 85 trfs Disc 750 = 25 ops 75 trf’s 15 0ps 85 trfs Disc 750 = 25 ops 75 trf’s

20. Variance Analysis the doc Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development Final Appropriation1 679 917 Expenditure1 649 939 BALANCE29 978 Roll-over requested23 206 Approved roll-over14 180 Deficit/ Surplus15 798 Saving as % of budget1.8%

21. Details of transfer payments the doc Making South Africa a Global Leader in harnessing ICT’s for Socio-Economic Development Adjusted Appropriation Act R’000 Actual Transfer R’000 Variance USA15 884 - USF26 230 - ICASA186 928 - NEMISA17 803 -.za Domain Name Authority1 500 - SABC: Public Broadcaster47 400 - SABC: Channel Africa27 865 -

22. Details of transfer payments (cont) Adjusted Appropriation Act R’000 Actual Transfer R’000 Variance SABC: Programme Production 28 500 - SABC: Community Radio Stations 16 5766 50010 076 SA Post Office: Recapitalisation 750 000 SA Post Office: Subsidy300 000 African Advanced Institute for ICT 13 000 -

23. Funding requirements for the 2004/05 MTEF Challenges to overcome without funding (limited to four options): - Regional Television Broadcasting - Advanced Institute for ICT - Sentech - Presidential National Commission Others -Universal Service fund -ICASA For VAT Challenges request vs budget. 245 b vs 60 b

24. Other Funding Challenges Levying of VAT on transfer payments SA Post Office SABC licences ICASA

25. CONCLUSION Although we have not achieved all that we set out to achieve during the 2004/05 financial year, we are poised to became the employer of choice in the public sector and the preferred place in the ICT sector for intellectual stimulation, leadership growth and national service.

26. THANK YOU