Source: Ministry of Communications
Title: I Matsepe-Casaburri: Communications Dept Budget Vote 2004/2005
ADDRESS BY THE HON. 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, 21 June 2004
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:
Madame Speaker
Today's budget vote is debated against the backdrop of the 2004 national elections and continuing celebrations to mark 10 years of democracy. There is the general perception that as a nation we can overcome the debilitating effects of apartheid and build a successful future for ourselves. The national mood and stronger sense of national identity and unity is demonstrated by collective efforts that won the 2010 Soccer Bid and the subsequent celebrations that further cemented our nationhood. We thank SABC in particular for contributing to this through the election coverage, the inauguration and bid coverage.
But this mood has been dampened by the passing away of Mr. Aggrey Klaaste, one of the doyens of the South African media. Mr. Klaaste's relentless work together with that of government over the past ten years in all spheres, including reconciliation and building a sense of national unity has helped our country to redefine a new future for itself. A robale ka Khotso.
The results that gave the ruling party an overwhelming victory in the 2004 elections must be seen and understood for what they are: an overwhelming vote of confidence in the polices that are pursued by the democratic movement to undo the legacy of the past and usher in an environment that will uplift the living standards of all South Africans. We are truly humbled by this vote of confidence that however puts greater responsibility on us. We have entered into a Peoples Contract that we as representatives of the people will deliver on and do so with commitment to succeed in working with and for our people.
A Clarion calls for delivery
President Mbeki sent out a message of hope and upliftment and issued a clarion call to all levels of government to accelerate service delivery and fight a relentless struggle against poverty and underdevelopment by doing the following:
* Encouraging growth and development of the first economy, increasing its possibility to create jobs
* Implementing intervention programmes to address the challenges of the 2nd economy and accelerate its development
* Meeting the objectives of poverty eradication
* Implementing governance strategies that strengthen institutional capacity to implement, sequence, monitor and evaluate.
DELIVERY ON OUR MANDATE
The Department of Communications realises that the call to hasten delivery can only be realised through an effective and re-aligned organisation and mandate. The Department has emerged form a major re-engineering exercise that looked at its mandate, delivery programmes, structures, performance and value systems while also anticipating the convergence of the broadcasting telecommunications, and postal services and recognising the importance of ICT's in the global context and in the reorganisation of world trade. Through this exercise, the Department is positioned to deliver on the mandate, which informs key components of its five-year strategy of accelerating the managed liberalisation of the ICT sector by:
* Supporting economic growth in the ICT sector and facilitating economic growth in other sectors through the use of ICTS. This will be achieved through the establishment of an environment that will: raise investments in the ICT sector and minimise input cost; introduce competition and a managed programme of licensing new players; allow existing players to play a bigger role through the introduction of legislation and policy directives; address regulatory constraints on infrastructure; promote the development of the SMME sector through appropriate interventions including the BEE Charter. There will also be a phased introduction of some of the recommendations of the telecommunications market study that was completed.
* Creating an enabling environment for the uptake and diffusion of ICT's to meet development challenges. This will be achieved through a massive awareness campaign, working in collaboration with other government departments and local government to expand the number and locations of Public Internet Terminals, the Citizen Post Offices, the Multipurpose Community Centres and Community Radio Stations. This will also include the introduction of an e-rate for public schools.
* Developing the necessary capacity for human resource development in the ICT sector. The department is working with other government departments for the successful launch of the Advanced Institute of ICT.
* Ensuring better governance of SOE's and harnessing their capacity to make strategic interventions in expanding the economy especially in meeting the challenges of the second economy.
* Enhancing social cohesion by improving contributions of the Public Broadcasting Service to national unity; development of television, radio and ICT content that is South African and relevant to our cultural and developmental goals. All of these are intended to stimulate local industry.
Building on the success of the past Ten Years
Much of what we do, will build on the achievements of the last ten years. Investment in the telecommunications sector has exceeded R60 billion. The telecommunications sector has made strides in aligning its equity incentive structures with global norms. Mobile communication has grown by 19 million subscribers and continues to grow and South African companies have grown the cellular industry in Africa. Today we are witnessing the world's fastest cellular market growth in Africa. Investment in and launch of the Sat3/WASC/SAFE submarine cable system has led to great interest in the extension, through NEPAD, of the cable on the east coast and linkage with landlocked countries. Sentech was awarded two licences, culminating in the launch of their VSaT and Wireless broadband services. Over the ten years the public broadcaster has extended quality radio and television coverage to more than 5 million additional South Africans, and community radio licences now stand at 94. The Post Office has grown its network to more than 2500 outlets offering millions of South Africans access to postal services. Of particular importance is the fact that today more than 500 000 South Africans receive their pension payouts through these outlets and more is being done to extend this service to many more pensioners.
Overview of the 2003/2004 Budget Vote
During my Budget Vote speech last year, we said that, in the interest of the people, as per our constitutional mandate, we wish to broaden access to services, stimulate economic growth, focus on human resource development and create conditions for a better and safer South Africa and for greater efficiency in delivery. It was our firm belief that all of these goals could 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. I am proud to say that considerable work was done to realise many of the objectives that were set for our sector, which has risen to world-class status. However the challenge still remains for us to meet the needs of the second economy, and adding value.
A draft Convergence Bill was published for public comment in December last year. The sixty-five submissions received have been analysed and the necessary redrafting work has been done. The redrafted Bill will be submitted to Cabinet shortly and thereafter for parliamentary consideration during the last quarter of this year. This Bill should unleash further economic growth and reduce costs of doing business, and enhance price competition in line with Cabinet's decision.
In responding to the need for immediate access to emergency services, the Department established an emergency service pilot project in the Western Cape
The SABC finalised its editorial policies for news and other programming that covers amongst others things, the issues of content accuracy and impartiality. These policies, drafted after extensive public consultation, have been submitted to ICASA for consideration in amending the SABC's licence. The SABC was also corporatised and registered as a public corporation that was restructured into separate Public and Commercial Broadcasting divisions.
Measures to ensure that the Post Office is run along efficient lines have yielded results. The CEO of the Post Office indicated in his address to the Portfolio Committee last week that a turn around has been achieved in the last year.
The dot ZA Domain Name Authority was established and incorporated as a section 21 company as per the Electronic Communications and Transactions Act of 2002 and a representative board was appointed, reflecting cultural and linguistic diversity.
The department hosted provincial summits to discuss issues of local content and the broadcasting needs of the urban and rural areas of the country. At the end, a national summit was convened in which ordinary people of our country highlighted the need for a better reflection of their languages and cultures in the broadcasting system. Together with the Departments of Arts and Culture and Trade and Industry we proposed to Cabinet a local content strategy that will address some of the issues identified during these consultations. In this way we continue to open the doors of culture and learning wider and wider and assist in realising constitutional rights and dignity of freedom.
Cabinet approved the corporatisation of Channel Africa as a subsidiary of the SABC. A new Board has been appointed and the corporatisation process will be concluded before the end of this year. The link with Africa is being strengthened.
In last year's Budget Vote, I spoke extensively on the need for us to develop Human Resources that will enable us to deploy and use the new technologies to improve the lives of South Africans. We indicated concrete measures to be undertaken by various institutions and the number of graduates to emerge from the various training schemes. I am happy to indicate that those measures were achieved in the past year. The Advanced Institute for ICT (AIICT) is currently being established, based on Cabinet's acceptance of the concept and the governance structure. The institute will be a collaborative effort with industry, institutions of higher education and the research community and will include components of the Council for Scientific and Industrial Research (CSIR) as well as the Institute for Satellite and Software Applications (ISSA).
Programme of Action for 2004/2005
Madam Speaker
Allow me now to focus on what we seek to do during the current financial year.
A decision on the SNO will be announced before end of August this year.
The Department will officially launch the 112 emergency services in partnership with local government. This will be a major breakthrough for the most vulnerable sectors of our population, the aged, children, and women and will be a major crime-fighting vehicle.
In line with Government's intention for more equitable geographic spread of economic activity and gender participation, four companies have been granted approval to start operating telecommunications businesses in various under-serviced areas. These areas include the Capricorn District in Limpopo Province, Zululand and Ugu Districts in KwaZulu-Natal; and the OR Tambo Municipality in the Eastern Cape. I will issue Invitations To Apply (ITA) for the remaining 20 licences by October of this year.
To promote investments in the development of telecommunications infrastructure in these areas, the Universal Service Agency (USA) will subsidise the licences with five million Rand each, per annum - over a three year period - provided that they meet their community service obligations as set out by ICASA. This is a major intervention in the second economy to accelerate its development.
To improve public access to government services, the Agency, working with the Department of Public Service and Administration, is deploying ICT's to the first ten MPCCs that are part of the first phase of the Batho Pele Gateway portal. The hardware, software and satellite connectivity rolled out will provide streamlined government services online within two months as specified by the President in his state of the Nation address. This is yet another strategic intervention in underdeveloped areas.
To further ensure that modern ICT's are introduced as quickly as possible in the 21 urban and rural nodes identified in terms of our Urban Renewal and Integrated and Sustainable Rural Development Programmes, the Agency will deploy an additional 50 e-school cyberlabs before the end of this financial year.
The National Electronic Media Institute of South Africa has established the Batho Portal as one of the vehicles to promote social cohesion. It seeks to provide a platform through which South Africans can look at themselves and communicate, including the !Xun and Khwe, which is yet another example of constitutional rights to dignity.
The first phase of this portal looks more at static information that focuses on the history of the different peoples. This is an affirmation of indigenous languages on the Internet.
In the second phase, the information will become live by December 2004 and we are working in partnership, with the Department of Health (health promotion), Ntsika, Umsobomvu Youth Fund and the National Youth Commission.
The study into the market structure of the telecommunications sector made recommendations on a number of issues including the need for policy directives to allow for VOIP, the reselling of spare capacity by the Public Telephone Networks, self provisioning by the mobile operators and serviced based competition. I will announce in the coming months, a detailed programme to further liberalise this sector with attendant timetables.
In the area of Broadcasting, we will be piloting a policy framework for the adoption and uptake of digital technologies and the migration from analogue to the digital broadcasting system. By the end of this year a complete strategy for migration will be announced. This strategy, which ushers in new technologies, will allow us to expand the diversity of services and programmes, broaden the choice of programmes especially those that contribute to nation building and social cohesion.
This year, the Department of Communications and the National Treasury will finalise a Public Private Partnership model for the funding of the regional television services that will broadcast in the official languages that do not find sufficient coverage in the present broadcasting system as per our constitutional mandate.
The Department will work together with Parliament, the Community Radio sector and the Government Communications and Information Service (GCIS) for the launch of the Satellite Communication Network. This network will make it possible for grass root communities, through their community stations, to access the workings of parliament, government information and services as well as news about other communities and general national developments, thus, further democratising access to information.
In the postal sector, and in line with global trends, we will continue with our programme of modernisation and the introduction of new technologies. Over the next three years the Post Office will rollout a further 600 Public Internet Terminals to enable ordinary people to enjoy the convenience of also using the Internet for accessing government services and information.
The Post Office has expanded its network to 2500 outlets making it one of the most extensive infrastructures for easy access to many services including government services. The Post Bank will be restructured to offer financial services to the poor and rural areas, focusing on mobilising savings.
Preparations are underway for the separation of the Postal Regulator from the Department in line with international norms.
In a few months the Departments of Communication and Education together with Telkom will finalise preparations for the introduction of an e-rate for all public schools. From the beginning of the next school year, public schools will be charged only 50% of the normal rate for their Internet calls. This exercise is also intended to facilitate the adoption and usage of the Internet and other ICT's to access needed educational material in our public schools.
Sentech has initiated a pilot project that promises to enhance the use of the ICT's in the health and related fields, helping to bring increasing levels of primary healthcare to many who are far from the urban centres. Sentech is also working with other private partners to provide remote diagnostics using teleradiology for hospitals in the Eastern Cape whereby images and diagnostic reports are carried on Sentech's network. It will embark on expansion on the basis of results of this pilot.
There seems to be general consensus about the BEE Charter including that of the scorecard. Therefore there is a need to finalise the methodology of application and to communicate the same message by government and the industry players. A meeting of government and the industry will be taking place shortly to finalise these matters.
The Department will develop a Policy Framework that will allow for the introduction of broadband and other advanced services.
Africa-NEPAD
Globalisation is a reality we cannot wish away. We agree with President Mbeki's argument that benefits of globalisation will not automatically accrue to Africa but must be fought for through various forums and platforms. Its impact on Africa is part of our shared destiny. Indeed, we need to use our resources wisely to shed the negative image of Africa. Therefore, our participation in world forums has been strategic and is now bearing fruit.
In his address to this House the President highlighted the importance of South Africa's contribution to the renewal of the African continent. We see the closing of the development gap between Africa and the developed countries as one of our foremost challenges. That is why we continue to play our role in the NEPAD ICT Task Force and the e-Africa Commission which is hosted at the CSIR.
We have been active in the reform of the International Telecommunications Union (ITU), chairing its Restructuring Committee and sitting on the Council. We also chaired the Ministerial Oversight Committee (MOC) of the African Telecoms Union (ATU) for four years during which time we have been active in its reform. We also hosted, at the DBSA, its African Connection Strategic Centre, which developed a rural telephony Toolkit and helped shape policy and regulation development. ATU and the Centre also helped shape Africa's common positions on standards setting, coordinated spectrum management and frequency planning, harmonising regulation, as well as coordinating African positions for the World Summit on the Information Society. We have also continued to work with other African countries to ensure that as Africans we play a meaningful role in the administration and growth of the Internet on the continent. To this end, the African Network Information Centre (Afrinic) that is responsible for the management and allocation of Internet addresses has started its technical operations in South Africa with the assistance of the Department of Communications and the CSIR.
South Africa is also a vice chair of the Regional Planning Group for coordinating African positions and preparations for Digital Migration that will be discussed at the next ITU Regional Radio Communications Conference.
South African companies will make our contribution to the deployment of the East Africa Submarine Cable System that will complete the cable loop around the continent. This project will facilitate communications between African countries, fostering trade on a continental basis.
We will also work with our partners for the realisation of the NEPAD e-Schools project. This important initiative will ensure that African children leaving the school system have the necessary skills to function and participate in the information society. South Africa is part of the group of 16 countries that form the first implementation phase. Six South African schools will be identified to join 94 others from 15 other countries to be part of the demonstration project to be launched this year.
South Africa will play a major role in providing Africa's inputs at the Universal Postal Union (UPU) Congress later this year.
In line with our mandate to build a better world, South Africa played a leading role in the first phase of the World Summit on the Information Society (WSIS) that took place in December 2003 and adopted a comprehensive plan of action and will continue to do so in all events leading to the WSIS Summit in Tunisia in 2005.
Conclusion
Madam Speaker
Special thanks must go to the various organisations and individuals who acted consistently over the past years to deepen our democracy and in further pursuance of our country's objectives.
A special mention must go to the SABC that managed to bring home to the millions of South Africans both the elections of 2004 and the 2010 Bid. Their sterling work in covering the campaigns has already been recognised by many as contributing to the declaration of the elections as free and fair. I would like also to mention other broadcasting organisations that went beyond their call of duty to ensure that the people of South Africa could participate in the elections as informed citizens.
The successful holding of the elections in an atmosphere of impartiality could not have happened without the work of ICASA in drafting, publishing and monitoring party political broadcasts that gave space for the parties to air their manifestos without let or hindrance.
A special thank you also goes to ICASA for the work it has achieved over the past year including the licensing of the Under serviced Area Operators and Community Radio Stations and in the Regulatory functions that it fulfilled under difficult circumstances. We will work together to increase ICASA's funding and strengthen its capacity through the Convergence Bill.
I would like to thank MTN for the devoted manner in which it has rolled-out its programme of deploying ICT's in schools. The extra efforts towards ensuring safe use of the facilities and their sustainability that are empowering our communities are commendable.
Cell C's program "Take A Girl Child To Work" is helping to break the gender stereotypes of our society and we commend and thank them for this national effort.
For Vodacom's widely covered support for Madiba's school's project and sport events and for support of schools and youth in my own constituency, we say thank you.
Telkom has also been active in the field of ensuring the infusion of the ICTs in our schools through the 1000 School's project which enables students in disadvantaged areas to benefit from the latest teaching materials in such crucial areas as mathematics and science.
We also thank Alcatel for sponsoring the Department's computer training programme for the Self-employed Women's Union. I would like to acknowledge the presence of Thabisile Sonqishe from SEWU and a beneficiary of this training programme.
Nonke, Ningadinwa Nangamso!
I must thank the officials and staff of the Department for the work that was done during the past year and look forward to more dedication to the work that awaits us during this budget year.
My special thanks go to Andile Ngcaba, our previous DG for the foundation he has laid for the Department.
I would also like to take this opportunity in welcoming our Deputy Minister, Mr. Roy Padayachie to the Department and look forward to working together with him in building the sector.
I must also thank members of Parliament, in particular members of the Portfolio Committee on Communications and say that I look forward to an exciting new year.
Thank you
Issued by: Ministry of Communications
21 June 2004
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