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Date : 29/05/2003
Source: Ministry of Communications
Title: Matsepe-Casaburri: Communications Dept Budget Vote 2003/2004, NCOP


ADDRESS BY THE MINISTER OF COMMUNICATIONS, DR IVY MATSEPE-CASABURRI, TO THE NATIONAL ASSEMBLY, ON THE OCCASION OF THE BUDGET VOTE OF THE DEPARTMENT OF COMMUNICATIONS, Cape Town, 29 May 2003

Madame Speaker
President Thabo Mbeki
Deputy President Jacob Zuma
Colleagues in the Executive
Members of the Portfolio Committee of Communications
Honourable Members of Parliament
Distinguished Guests:

We meet here at the end of a month that marks the sad passing away of Ntate Walter Sisulu from our midst, a hero of our people and a freedom fighter who all through his life worked tirelessly and selflessly to make our country great, and who nearly ten years ago - paying tribute to our new democracy - said that:

"It was a remarkable moment I can never forget. A situation I am unable to describe properly, where the masses gave us all leadership in an amazing way".

We too, must never forget that moment. We cannot betray the trust the masses placed in this leadership.

This week we celebrated the 40th anniversary of the OAU, now called the African Union, an organisation that contributed greatly to the achievement of our democracy.

Introduction

Now nine years into our democracy, as I rise to present this Budget Speech, the masses of our people are armed with determination to work hard in united action to bring about transformation and sustained development. The South African democracy continues to be strengthened. The government of this country knows where it is going, where we come from and we have no intention of going back there. In partnership with the people, we are driven by a commitment to democracy and are engaged in collective efforts to push back the frontiers of poverty and expand access to a better life. Our challenge is to do this in and through the ICT sector.

The President has said that the tide has turned and our task is to take this tide at the flood, so as to make social and economic progress. In our sector the tide has indeed turned. The recent past that saw the fall of Dot Coms and the slump in the telecoms industry is receding. It is in this vein that we speak about greater hope for using ICTs to expedite social and economic development and to change peoples' lives.

Yet in recent months, the world has not been at peace. We have recently seen the use of ICTs not for creative purposes or for social development, but for the purposes of destruction. A moment-by-moment account of loss of lives and destruction was relayed to all corners of the world through the utilisation of ICTs about a war we didn't want but could not stop in Iraq.

As South Africans who believe in building relations of human solidarity with all the peoples of the world and in contributing towards a more caring, humane world, we are determined that the new technologies must be used for developmental purposes as we strive to meet our obligations to the people of this land, of Africa and of the world.

It is in this context that our processes for transforming the ICT sector continue apace and will be intensified in the months to come, as we move with determination and unwavering commitment.

Nine years ago most of our people could not imagine a world where anyone in a village or a town could access information about the history of that community through the push of a button and in the languages spoken within that community. None could imagine a world where we would not have to queue for access to basic government services and where we would be able to access these services at one point. None could imagine a world where e-learning flourishes so that those who are far from centres of learning can have access to the same information as those who are located near educational institutions. Today, our people can imagine this and many already experience this.

Today you can imagine a situation where access to telemedicine can improve the health of thousands of our people. Contemplate a world where new entrepreneurs in rural areas emerge, where new SMMEs generate more interest in their products and services through expanding market access by using Public Information Terminals in their neighbourhoods and where rural electronic banking will be possible. Today we can imagine a South Africa where our youth run community media projects and make use of development communications, especially community radio, to create national networks that help to bring all of our people together, and to strengthen democracy and participate at local level, inculcating a new consciousness of change.

This imagined world is not a far-fetched idea, but one that is beginning to happen. Our embrace of the new technologies, our meeting the policy, legislative and regulatory challenges, will bring about the overall transformation of our society. This is why we stress the major role ICTs can play in our lives and in the economy. This is why we speak about e-governance, e-learning, e-health and of an array of ways in which technology can enhance the quality of our lives and expedite service delivery. This is why we speak about universal access through the use of ICTs.

Overview of Budget 2002

Honourable Members,

In May 2002 I delivered the Budget Vote of the Department. We undertook to work together with our portfolio organisations and other government departments to broaden access to a better life. I am proud to say that my Department has worked hard to succeed in accomplishing this.

On the legislative front, electronic communications and transactions are now written into the law.

As required by the ETC Act a selection panel to appoint the Domain Name Authority Board is in place and more than 130 nominations were received for the Board. The cyber inspectorate is now up and running and a Trust Centre (this is the technology which allows your electronic signature to be legally recognised) is operational and located in a safe harbour.

With regard to the 112 emergency services, the pilot project started in Klerksdorp has now been completed. The 112 services will allow safety, security and emergency services to be connected to the public in real time and to be deployed effectively to where they are needed through a dedicated national network. Lessons learned from the pilot will inform the roll out process.

The Broadcasting Amendment Act provides for the launch of regional television stations, in two regions of the country. To this end, it has been decided to close the Bop Broadcasting operation and replace it with a service to deliver indigenous languages of the northern region.

The SABC has now developed its editorial policies for news and other programming that covers amongst other things, the issues of content accuracy and impartiality, which are now open for public comment.

Last year we said that government would launch a dedicated parliamentary service. This has been thoroughly researched and investigated, and it has become clear that both a television and radio service of a broader nature is required. Having taken cognisance of this, we will be launching an interactive information service that will give the public access to events both nationally and at provincial level. It is envisaged that the initial channel of delivery will be through radio satellites link-ups. This matter is now before Cabinet.

We had planned to have a Convergence Bill before parliament. However, because of international developments, a depressed global industry and the need for broader international consultation we embarked on a feasibility study to develop a policy framework for dealing with the complexities of convergence. This will now be followed by a national colloquium this year, preceded by regional campaigns. We are however still targeting the end of the year to table the Bill, which will revolutionize the sector before parliament.

The amendment to the Postal Act has strengthened the mandate of the Postal Regulator by separating policy from regulation resulting in the appointment of the Chairperson of the Regulator who has extensive experience in the industry. I believe he will be an asset in leading the regulator as an independent monitor on ongoing developments in the industry.

Regarding our Budget 2003

In our national effort to eradicate poverty and to transform our country into a just and prosperous one, we also champion the People's Contract for a Better Tomorrow. It is in the interest of the people that we wish to broaden access to services, stimulate economic growth, focus on human resource development and create the conditions for a better and safer South Africa and for greater efficiency in delivery. I am of the firm belief that all of these goals can be accomplished through harnessing ICTs so that they can be used to the collective benefit of all of our people and to increase South Africa's competitiveness in the world economy.

Wider Access to Services

1800 Spectrum

The Telecommunications Act provides for 1800 MHz spectrum (as well as 2,4 GHz - 3G spectrum) to be issued to existing operators, the SNO and Under Serviced Area Operators. A key element in this process is the determination of access fees and universal service obligations for the allocation of the frequency spectrum. We were able to negotiate the above, which include new service fees and additional universal obligations, with the industry. These proposed obligations will include amongst others:

* Supply of 250 000 free phones and numbers to public emergency services over a period of 5 years
* Provision of Internet and phone links including computers in schools
* Public pay phones in accessible places in rural areas and multi purpose community centres
* 4 million free SIM cards over 5 years to be issued. These will add to the 12 million existing SIM card users, which means that 4 million more disadvantaged South Africans will have access through the cellular phones to the economic lifeline of the country.

In line with government's co-ordinated working method, these obligations are to be delivered on the basis of a framework decided upon by an interdepartmental team composed of Departments of Communication, Health, Education, Local Government, Social Welfare, National Treasury, SAPS, South African Post Office and operators.

Postal

In the postal sector, the tide has indeed turned and implementation is on track. Considerable progress has been made operationally by the Post Office since last we reported to this House, with many cost efficiencies having been implemented.

During the past two years, the Post Office has made significant breakthroughs in the fight against crime and corruption. Therefore, it did not come as a surprise when the Post Office was nominated into the top five for the most secure mail services during the International Mail Awards held in Rome two weeks ago. We congratulate the CEO and officials for making us proudly South African.

The emphasis is now being placed on new business development to account for the erosion of traditional business as a result of new technologies; and the future foundations of the Post Office are to be based on social and financial services as well as a separation of the Post Bank. We will be able to make this shift as more post offices get connected. Through focusing on the establishment of PITs in the rural areas, we are contributing to Government's goal of integrated, sustainable rural development.

The main challenge is to provide financial services infrastructure with a particular emphasis on promoting a culture of savings amongst youth. A campaign to inculcate a culture of savings is well underway. In this regard, a National Youth's Saving Programme is also being planned as a joint project between DOC and Post Bank. This programme will be targeting youth from the ages 10-24 mainly through schools, youth groups and community organisations to inculcate a culture of savings early on in one's life.

The Department, along with the Post Bank officials, has also, through the North West Department of Social Development started a pilot project, which will encourage senior citizens to use the bank in accessing their pensions and thereby encourage them to save with the bank.

The Post Office has developed a secure and integrated solution using the latest biometric and encryption technology for registration of beneficiaries of social services. This will enable other Government departments to also deliver services rapidly, for example discussions are taking place with Home Affairs to accept ID and passport applications at SAPO counters and submit them electronically to Home Affairs for speedy delivery.

In memory of some of the best sons of our land the Post Office has decided to remember some heroes by designing an everlasting commemorative stamp of Chris Hani and O.R. Tambo. Siyabonga.

In the Broadcasting Sector

Madame Speaker,

More South African families today have access to TV sets. Almost 48% of rural households have one or more TV sets compared to 27% in 1994.

In radio more of our people can now access the world via public, commercial and community radio. Eighty-eight percent of the rural population listens to radio on a 7-day period, compared to 79% in 1994.

South African Broadcast Content and Languages Summit

The Department is planning to host a National Summit on Broadcasting that will draw together policy makers, regulators, and operators, broadcast content producers and civil society to look into the state of South African broadcasting. This major public event, taking place in September, will enable delegates to assess the state of the South African broadcasting system, the services it provides against the back drop of public needs and look into the future of public broadcasting in South Africa, with a focus on content development and provision.

A growing economy that expands economic opportunities

Telecommunications

Managed liberalisation of the telecommunications sector has meant that we have to make careful and flexible decisions about what is to be done and to create workable action plans and find solutions for the problems that exist. This was done both in the case of the SNO and the Telkom IPO.

SNO

You may recall that in May 2002 I issued an ITA for a 51% stake in the SNO. Applications were received from 2 consortia, but ICASA recommended that neither of the applicants were in a position to take up the 51% equity stake. I concurred with the recommendation and set about preparing an alternative process that would facilitate the way forward. Accordingly, I applied Section 35(A) of the Telecommunications Act of 1996 as amended that provided for the Minister, in specific instances, to determine the manner in which applications may be made, the licensing process and conditions that will apply.

Thus on 31 March 2003 I issued an invitation to express interest to apply for a 51% stake. The process was to be conducted in phases, namely:

* The submission of Expression of Interest to qualify for consideration
* One on one negotiation with the SNO Committee that was established to manage the application process and make recommendations to the Minister who would consider it
* Consideration of the recommendations by the Minister
* Evaluation of applications by ICASA
* Integration, awarding and issuing of the license

The SNO Committee has considered all expressions of interest and conducted negotiations. Yesterday I received the committee's recommendation and I will be considering it for later processing by ICASA.

I expect that the license should be issued in the third quarter of this year and the new player ought to be in operation soon thereafter.

Telkom IPO

Last year, we announced the end of exclusivity for Telkom. On 4 March this year, as a result of the co-ordinated work effort of the Departments of Public Enterprises and Communications, Telkom and ICASA. Telkom was successfully listed on the Johannesburg Securities Exchange and New York Stock Exchange. This was an important milestone in Government's programme to liberalise the telecommunications sector.

I wish to assure industry and consumers that Government is committed to the introduction of a strong and vibrant future ICT sector.

SENTECH

Sentech received its multimedia and international gateway licences in May last year. Its international gateway is operational and the company has already signed up with a mobile operator. It commenced work with a phased rollout of its multimedia network, which will be offering a select number of products. This multimedia business will be launched before the end of the year.

Under-serviced area licence

The Department has had regional road shows to facilitate the implementation of the legislation that provides for these licenses.

The ITA was issued, for the first phase of licensing in the following provinces:

* Limpopo; Eastern Cape; Free State; KwaZulu-Natal and North West

The closing date is 30 June 2003.

Universal Service Agency

In accordance with the act we have appointed a board and a new CEO. This has contributed to the changing of the stature of the organisation. A business plan has been developed to reposition the agency and redefine its corporate identity. Its tide has indeed turned.

Human Resource Development

Madame Speaker,

When we say that the tide is turning, we see evidence of it particularly in Human Resource Development and in how we are working together with in government and with SOEs, civil society and the communities in accelerating training of our young people and transferring skills to meet social and new economic demands.

The valuable work done by Institute for Satellite and Software Applications and National Electronic Media Institute of South Africa is based on the understanding that as Africans we need to assert our ownership and control over the production, management and dissemination of knowledge. It is part of reclaiming our dignity and self-worth, our desire to reclaim our African identity as scientists, as well as meeting the needs of the present with confidence. As indeed, we should also find solutions to the problems that emerge in the future.

ISSA

The Institute for Satellite and Software Applications has continued its work in satellite development and remote sensing; telecommunications; software and network engineering. The institute has now changed from a primary academic training institute to product development. Some of the projects at the institute are:

1. A satellite development group that is building a micro satellite that can scan water and electricity meter readings from above - saving the municipality millions in both time and money and providing service payers with a more reliable account
2. A computer virus monitoring centre
3. An electronic testing facility that enables industry to test products locally instead of in foreign laboratories.

Some of the graduates are ready to patent their inventions.

Many of these young scientists and entrepreneurs are with us in the gallery today.

NEMISA

The strengthening of our democracy is dependent on the full use and sustained development of all our languages so that together they contribute to a vibrant South African culture and identity. NEMISA's work through developing web-based language portals takes us further along the road to language equality and is proof of how ICTs can be used to assert the rights of our people.

NEMISA has undergone a strategic shift from traditional broadcasting training to a fully-fledged multi-media training institute. Learners have received intensive hands-on experience to develop indigenous language based portals. The portals are being used to record the history of various languages and communities.

This year some 65 learners will graduate in radio, television and creative multimedia production and many of the previous graduates have already been placed in the industry. Future plans include the development of an internal content production house.

NEMISA has also been involved in imparting production skills to the Community Radio Sector. Thirty five stations have benefited from this intervention. During 2003, NEMISA will be administering the Khuluma Radio Project, a three-year skills development programme for the Community Radio Sector. The Department of Education and NEMISA are working on an e-learning initiative through which education becomes accessible to a wider audience.

Twenty-six people from Nigeria were trained in the use of modern multimedia technology at NEMISA. Similar services are under discussion with other SADC nations.

Advanced Institute for ICTs

The business plan for the Advanced Institute for ICTs has been finalised by the management team working with various departments. This document will be submitted to the committee of Ministers soon.

Black Economic Empowerment

My department has already aligned its procurement policies with national Black Economic Empowerment objectives. Our portfolio organizations have also paid major attention to this. In structuring the SNO, we set aside 19% to BEE. Our broadcasting legislation has also included BEE quotas. Guided by the BEE Mining Charter and work done by the Department of Trade and Industry, we are in a consultative process to decide if we need a BEE Charter for the ICT sector. The Department has also undertaken a Sector Ownership survey of the industries in our sector. This study has been described by industry players as the most comprehensive audit of BEE players in these industries to date.

Honourable Members,

Human Experience

I would like to share with you the experiences of the community of Westbury in Johannesburg and how they have come together to change their lives. Westbury has a tragic history of gang violence. It took the genuine care and ingenuity of community leaders, especially through the efforts of Don Mattera and Joseph Cottey and many others to bring the warring youth together through the establishment of the Westbury Community Development Centre, which introduced the use of ICTs. The results have surpassed all expectations.

Members of this previously distressed community acted in concert to reclaim their community, restore their dignity and to take their destiny in their own hands. Youth were taught computer, television and production skills. Some have prospered to careers as production managers, producers and directors. The community has also built its own outside broadcast van and basic radio studio and has even established a technical partnership with Sentech and Multichoice to further its development.

We thank SABC for taking on board 8 out of 9 of these trained youngsters.

I would like to pay tribute to mentors such as Joseph Cotty and some of the Westbury group who are with us today for the good work they have done as true community builders and for making a difference.

Africa's renewal in a more peaceful world

Madame Speaker, As part of our contribution to a better Africa and a better world, we are currently supporting the work of the NEPAD ICT Task Team, the e-Africa Commission that was established to formulate action programmes and projects to bridge the digital divide. Our efforts were further encouraged when in Abuja in March 2003, the NEPAD Heads of State and Government Implementation Committee (HSIC) commended the e-Africa Commission for its work and called for the immediate implementation of ICT projects that include an e-schools project, an e-Readiness study and the development of the East Coast Submarine Cable. Telkom is also involved in the extension of the SAFE/WASC fibre optic cable to our Eastern Seaboard. We are also grappling with how to link landlocked countries so as to make the African renaissance a reality.

Last week at our meeting of the Ministerial Oversight Committee here in South Africa, we discussed Africa's preparations for the forthcoming World Summit on Information Society. A national preparatory committee consisting of government departments, civil society and the ICT industry has been constituted to work on South Africa's input. We call for public participation in this process.

Future Plans

Madame Speaker,

The Digital Partnership South Africa project, a public private partnership established, in collaboration with the Prince of Wales International Business Leaders Forum, acquires used computers from multinational organisations, gets them refurbished and deployed in schools countrywide. A refurbishment factory at ISSA is run by 15 women. This financial year we will receive 67 000 computers. Together with the Department of Education, and Universal Service Agency we are preparing a roll-out plan, to schools.

The world of new technologies has also meant the arrival of new languages in the form of SMSs and new shorthand. People are communicating more, quicker and better and the new applications are revolutionising social behaviour. Soon MMs (multimedia short messages) will come into common use and we will be able to see the person we are talking on the other side. Soon we will be able to know exactly where people are calling from and this will contribute to bringing about greater security and community cohesion.

Technological evolution and our policy interventions have made this possible Madame Speaker, in the forthcoming year we will:

* Revolutionise the role of the South African Post Office
* Create a policy framework for convergence, which will lead to new services,
* Deliver indigenous languages to regional broadcasting,
* Develop more local content
* Inculcate a culture of saving with the youth leading the way
* Help create a save haven for our people

Madame Speaker,

At the beginning of my speech, I said that the government of this country knows where we come from and we have no intention of going back there. It knows where it is going. I also asked you to imagine what the future would look like if we armed ourselves with the new technologies and used them to make a difference in our people's lives. I said that nine years ago these achievements would not have been possible without the policies and programmes of this government. So much has been done and will still be done to improve the lives of the masses of our people. I remain convinced of this and of the truth of Ntate Sisulu's words, of what makes our revolution one of the greatest, for indeed we have a country of remarkable people who are ready, willing and able to make this country an even more remarkable place and to do so with the use of new technologies.

I would like to conclude by thanking the management team and the entire staff and my advisors of the Ministry and the Department of Communications for their hard work over the past year under the sterling leadership of the Director General, Andile Ngcaba. My special thanks go to the Outgoing Chairperson of the Communications Portfolio Committee, Mr Nkenke Kekana and all members of the committee for their unflinching commitment to realising the vision of the Department.

Our loss of a chairperson who not only new the sector well and continually kept abreast of developments, but also gave leadership to the committee in a manner that was most inclusive and avoided undue contestation on issues that we needed to tackle as South Africans interested in our country and its prosperity is however a gain to the industry.

We wish you well in the future Cde.

Honourable members, I invite you to help us in our endeavours by voting to approve the budget for this financial year.

For further information contact: Jerry Majatladi at 082 889 3381, Lisa Combrinck at 082 821 4886
Issued by Ministry of Communications
29 May 2003

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