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Date : 28/05/2004
Source: Ministry of Communications
Title: T Padayachie: Parliamentary Media Briefing, May 2004


INPUT TO THE ECONOMIC CLUSTER II PARLIAMENTARY MEDIA BRIEFING, BY DEPUTY MINISTER OF COMMUNICATION, RADHAKRISHNA ROY PADAYACHIE, Cape Town, 28 May 2004

The overwhelming mandate received by government following the 14 April Elections, places enormous responsibility on us to deliver on expectations.

In his State of the Nation Address to the joint sitting of parliament, President Mbeki said that the struggle against poverty and underdevelopment rests on three pillars:

1. Encouraging the growth and development of the first economy, increasing its possibility to create jobs;
2. Implementing our programme to address the challenges of the Second economy; and
3. To meet the objectives of poverty alleviation.

In relation to this, Department of Communications will address the following:

* The Department of Communications, together with the Departments of Public Service and Administration, and Provincial and Local Government, are charged with ensuring that modern information and communication technologies (ICTs) are introduced in the development nodes as quickly as possible, to assist in all their developmental and governance efforts. In this regard a strategy is being worked out in consultation with the two departments, premiers and SALGA, and will be announced in the next three months.

* With regard to First and Second Economy Interventions the President highlighted the need for concrete interventions and emphasized the role of ICTs in this regard.

* The Department of Communications is implementing a strategy that has 2 focal points: i. Programmes that support economic growth in the ICT sector and other sectors of the economy.

ii. Examine new ways in which Information and Communication Technologies can be accelerated in the advancement of the second economy.

UNDERSERVICED AREAS LICENSES (USALS)

The Minister has received recommendations from ICASA for the granting of USALs to the following bidders:

i. Amatole Telecoms: Amatole district, Eastern Cape
ii. Bokamoso Communications: Lejweleputswa district, Free States
iii. Bokone Telecoms: Capricorn district, Limpopo
iv. Ilizwe Telecoms: OR Tambo district, Eastern Cape
v. Karabotel: Central district, North West
vi. Kingdom Communications: Zululand district, KZN
vii. Thinta Thinta Telecoms: Ugu district, KZN.

A decision on the granting of the licences will be taken in the coming week. This should extend ICT to some of the most disadvantaged areas. As the president said, this should facilitate and enhance second economy interventions by government and first economy businesses to spur job creation in these communities.

The Department welcomes the participation of historically disadvantaged individuals, women and communities in this process. This is a classical example of how policy and licence conditions can help us to meet the need of our people to take advantage of opportunities in and through the ICT sector.

* The licensing of the next 20 USALs will be initiated after a discussion has been held with the regulator to draw lessons from the first process.

SECOND NETWORK OPERATOR

In line with the President's Address the DoC is committed to stimulating greater competition in the sector, reducing administrative prices and driving the cost of doing business in South Africa. With regard to the Second National Telecommunications Operator, the finalisation of the process is well underway. The Minister will submit a report and her decision to Cabinet.

MARKET STUDY

* We have also completed a market study, which was required by law by December 2003, which further enhance competition. The Minister will soon be issuing determinations outlining activities.

BROADCASTING

* Broadcasting constitutes the biggest and most important provider of information to the South African public, especially those in the second economy. Given the potential of broadcasting, especially radio, to assist with meeting the challenges of the second economy, the following will be done:

* The establishment of a Satellite Communication Network has started with service providers still being sought, after which the first batch of 30 radio stations will be selected and thus allowing for the installation and community testing of the network. This network will offer a Dedicated Parliamentary Service, programme sharing among the community stations, as well as government information services. The entire process will be completed before the end of 2005
* Seven Community Radio Stations - 5 in Gauteng and 2 in the Western Cape - will be rolled-out before the end of this calendar year
* We will need in particular, to pay attention to a more adequate balance in terms of programming and language accessibility
* We will be embarking on a Public-Private Partnership (PPP) model for Regional TV Services. This model is the accepted PPP project model for the National Treasury.

* In line with global technological trends, a digital migration strategy for broadcasting, to introduce new technologies and more services and greater choice to consumers - in terms of language and content- will be finalised in 2005.

POSTAL SERVICES

* We are restructuring the Postbank to provide basic financial services to the poor and rural areas. In the next six months, the Post Office will issue a report of a model to deliver social grants using its extensive infrastructure network, based on the pilot projects that are currently running in the North West and Eastern Cape.

* The Post Office will complete its roll-out of 600 Public Internet Terminals (PITs) over the MTEF period. The roll-out of 17 more Citizen's Post Offices is envisaged for this year.

* Also in line with global trends, we are finalizing regulations within the postal sector, which will bring about certainty to the industry players in the non-reserved areas before the end of this year.

112 EMERGENCY SERVICES

* In responding to the need for immediate access to emergency services, we aim to provide one-stop service for emergency and life-threatening situations for all our citizens. The Department has established a pilot project in the Western Cape. The aim is to test the technology that will be rolled-out throughout the country. This service will be rolled out with the core Ministers and Premiers.

CONVERGENCE BILL

* The Department will soon table to Cabinet, the redrafted Convergence Bill. Comments received from the public and stakeholders have been analysed and incorporated into the draft Convergence Bill. It is our intention to table the bill after Cabinet approval to parliament during the last quarter of this year. This Bill is of fundamental importance in terms of ensuring South Africa's competitiveness in the global economy, the introduction of first class ICT infrastructure and services and the harmonization of the communications sector.

ICT EMPOWERMENT CHARTER

* The current industry-led ICT Empowerment Charter process, which seeks to redress the disparities in the ICT sector, is well advanced, following the release of the third draft charter. The Department of Communications is setting up an Inter-Departmental Task Team composed of the relevant ministries in order to finalise government position on the charter. The Department welcomes the involvement and participation of key stakeholders in the process and supports the development of internal coherence in respect of discussions on all the issues under debate within the sector.

* As part of reducing the cost of doing business in South Africa the Department has started with the process of reviewing the tariff structures in the ICT sector, especially the cost of telecommunications.

* At a global level there exist a vast gap between access to resources, information and communication technologies, infrastructure, networks and services between the developing nations and the developed nations. As part of addressing this gap, Cabinet has approved the launch of the Advance Institute of ICT in the third quarter of this year.

REDRESSING AFRICA'S E-MARGINALISATION

* The President also highlighted the importance of South Africa's contribution to the renewal of the African continent.

* The Department of Communications has contributed significantly to the process that led to the establishment of the NEPAD ICT Task Force, the e-Africa Commission which is housed at the CSIR.

* The e-Africa Commission has prioritised two projects. East Africa Submarine Cable System (EASSY) that will complete the submarine cable loop around the African Continent as well as provide links to landlocked countries. This project is expected to be completed within three years. Several South African companies are involved.

* The second project is the NEPAD e-Schools project, whose principle objective is to ensure that all African children leaving our school system have the skills to function and participate in the information society. South Africa is in the group of 16 countries that form the first phase of implementation. Six South African schools will be identified to join other 94 schools from the 15 other African countries, to be part of the demonstration of the NEPAD e-schools project that will be launched before the end of this year.

* In the area of broadcasting, Cabinet recently approved the corporatisation of Channel Africa as a subsidiary company of the SABC. The corporatisation of Channel Africa will be finalised this financial year. A new board has been appointed and will meet by the end of June.

INFLUENCING THE GLOBAL AGENDA FOR A BETTER WORLD

* In line with our mandate to build a better world, South Africa played an important 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. Preparations are underway for the final leg of WSIS to be held in Tunisia in 2005.

* Similarly, we are preparing ourselves to attend the most important meeting of the global postal sector, the Universal Postal Union (UPU) Congress, which starts 14 September and ending 5 October 2004.

Issued by: Ministry of Communications
28 May 2004

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