Honourable House Chairperson,
Ministers and Deputy Ministers,
Honourable Members,
Leaders of the ICT Industry
Distinguished Guests,
Fellow South Africans,

INTRODUCTION
I am pleased to lead Budget Vote 32 on Telecommunications and Postal Services of 1.4 billion rand, for policy debate and adoption by the House during this historic year of the 60th anniversary of the Freedom Charter. The Charter continues to guide our policies as we implement our vision 2030, the National Development Plan. We are part of the revolution that is driven by fast speed internet broadband.

It is against this backdrop that we commend His Excellency President Zuma and the African National Congress for establishing this new department. The Department has a specific mandate which focuses on the radical socio-economic transformation of our society using ICTs to deal with the effects of persistent unemployment, inequality and poverty prolonged by the legacy of apartheid. In line with international trends, the availability and wide use of ICTs is critical for socio-economic development and will make South Africa globally competitive.

House Chairperson,

BROADBAND ROLLOUT – IMPLEMENTATION OF SOUTH AFRICA CONNECT
After much planning and consideration, it was announced by President Zuma that in this financial year we will begin with phase 1 of broadband rollout in eight rural districts which are Vhembe, Dr. Kenneth Kaunda, Pixley ka Seme, Thabo Mofutsanyane, Gert Sibande, UMzinyathi, Umgungundlovu, and OR Tambo. The objective is to roll out scalable broadband infrastructure to connect all government institutions in these districts over the next three (3) years.

At the same time we are finalising the business case and funding plan for Phase 2 of broadband rollout for the rest of the country to be implemented from 2016 until 2020.

In this current financial year, we have been allocated R200 million to begin connectivity in the eight districts.

Distinguished Guests,

We have already visited Vhembe, uMzinyathi, uMgungundlovu and O.R. Tambo. We have been encouraged by the political, traditional and community leaders who enthusiastically welcomed this project in their districts. We will be visiting the remaining districts in the next two weeks.

House Chairperson, I wish to take this opportunity to recognise the Mayor of the OR Tambo District Municipality Councillor Nomakhosazana Meth as well as my special guest Lindelani Malinda a student from Thengwe High School in the Vhembe District.

Honourable Members,

Telkom’s designation as the lead agency for broadband rollout is based on the investment it has made in rolling out an extensive fibre network which accounts for 86% of the existing 170 000 kilometres of national fibre network. The Department will be finalising the business case which will be demonstrating the value for money and the appropriate legal prescripts in designating Telkom as a lead agency in broadband rollout.

It is worth noting that Telkom, on its own, has committed most of its R5 billion capital budget towards reaching more areas and to upgrade the technology as their contribution to the implementation of SA Connect. Broadband rollout is a huge but urgent project which must not be delayed if we are to remain globally competitive.

Honourable Members
Broadband Infraco has allocated R319 million over the next two years to extend its broadband infrastructure by 1 000 kilometres. It plans to establish 41 new points of presence including underserviced towns such as Ulundi and Stanger. However, due to the projected cash flow challenge, the company has scaled down 30 infrastructure upgrade projects to the value of R450 million. In addition, we have advised Broadband Infraco to further scale down non-critical projects for it to continue as a going concern.

Fellow South Africans,

Over the last three years the Universal Service and Access Agency of South Africa (USAASA) has radically changed the lives of the people of uMsinga (KZN), eMalahleni (EC), Joe Morolong (NW) and Ratlou (NC) who previously had little or no access to telephony. USAASA deployed and upgraded mobile networks to offer broadband, benefiting schools, small businesses and community members.

I am aware that some of the committee members visited some of these sites. I also had an opportunity to visit uMsinga and eMalahleni recently where I met mayors and councillors who are monitoring the positive impact of these networks and asking for their extension. All of them testify that these technologies are improving service delivery.

As an example, we visited a local clinic at Emalahleni which is now connected to fast speed 3G network. The clinic is now online using the internet to improve service delivery. The nurses informed us how ordering medicines online has reduced supply delays from two months to two days. In addition, they no longer experience problems of expiring medicines as they now don’t order in bulk but only order what they need. We also visited an entrepreneur, Vuyiseka Xatoto, who used to sell vegetables on street corners but because of the availability of the network, now operates from home and has expanded to sell high value services such as airtime and electricity. They say these technologies are improving service delivery and people’s lives. BATHI SIYAQHUBA.

This financial year, USAASA will upgrade networks at Mutale and Chief Albert Luthuli Municipalities where they will be connecting 10 schools. The Agency is also planning to connect three schools for people with disabilities.

In this year, the department will work with ICASA the regulator, to review the levy for the Universal Service and Access Fund (USAF). The aim is to align ourselves to the 1% charged by developing countries if we are to narrow the digital divide in the underserved areas.

Honourable Members,

On the 06th of March 2015 SENTECH completed its digital network deployment for Digital Migration. The Network is ready and they have R108 million for dual illumination for this year. This entity will also spend R185 million to upgrade its infrastructure. More importantly, last year SENTECH through its social corporate responsibility connected community radio broadcasters to the parliamentary channel which means our communities are now able to easily follow the work we do in parliament. I would like to greet all the listeners of the community radio stations who have tuned in to listen to today’s Parliamentary proceedings.

House Chair,

We wish to commend mobile and IT companies that are joining hands with government in rolling out internet connectivity. Last Sunday, the community of Qunu benefitted from the upgrade of the network to LTE and received a donation of connected computers in their local library. The librarians, students, farmers, unemployed and ordinary people now have the same access to high speed internet as those in the richer suburbs of Johannesburg and Cape Town.  Indeed the people of Qunu such as our visitor Ms Anda August from the Mandela School of Maths and Science can now proudly say that the internet is the greatest equaliser in the world.’ SIYAQHUBA NGEMPELA.

Distinguished Guests,

All state owned entities responsible for ICT infrastructure, specifically broadband, are now under the Department to achieve greater coordination and efficiency. During this financial year the Department will finalise a strategy on their rationalisation.

SITA will drive e-government and the security of government networks. NEMISA will drive massification of e-skills. ZADNA will drive the allocation of domain addresses. The Honourable Deputy Minister Mkhize will elaborate on these programmes.

Sihlalo,

SOUTH AFRICAN POST OFFICE
The Strategic Turnaround Plan of the Post Office has been finalised and will be submitted to Cabinet for approval. Let me take this opportunity to thank the Honourable Deputy President Cyril Ramaphosa for his leadership and wise counsel in this process. The plan has identified and prioritised key strategic interventions to bring stability to the Post Office. We will prioritise the monitoring of the effective implementation of all aspects of the turnaround strategy.

The first and urgent priority is the appointment of the board of directors. The process is already underway. At the same time we will be expecting SAPO to appoint capable management to drive the implementation of the turnaround.

The deployment of efficient ICT infrastructure to enable the delivery of modernised and efficient postal and banking services will be critical to SAPO’s turnaround. In the next two years, the priority will be to connect all post offices to the broadband network and upgrade IT systems.

A new business model has been highlighted as key in the new approach. SAPO will reduce over-reliance on mail business and move towards balanced revenue with a focus on retail, logistics, Postbank and e-services.

We would like to thank the trade union movement which continues to work with us as we stabilise the labour environment at the Post Office. I would like to make a call to all stakeholders to join hands in efforts to regain customer confidence and loyalty.

House Chairperson,

Despite the challenges faced by SAPO, the company rolled out half a million new addresses. In addition, SAPO attracted 36 unemployed graduates from poorer communities to participate in its work experience programme. We are pleased to announce that two of those students who benefitted from that programme. Leon Isaacs and Siyanda Qoboza have joined us today as employees of SAPO. The Post Office delivers, whatever it takes.

We will work with ICASA to improve the regulation of the postal industry including that of the Extra Territorial Offices of Exchange.

Honourable Members,

POSTBANK
We remain committed to the programme of financial inclusion through the corporatisation of the Postbank.

We have made progress through the interaction with the South African Reserve bank in the following areas:
• We have finalised the assets and liabilities separation between the SAPO and the Postbank
• We have provided the five year cash projections
• We are currently finalising the fit and proper assessment of prospective candidates for the Postbank board, and
• We are finalising the discussions on the bank holding company in line with the Postbank Act. 

Fellow South Africans,

POLICY ISSUES
On the 23rd of April, I received the final report of the National ICT Policy Review process. It is evident that many South Africans participated in the process through public hearings and written submissions. The report represents an overwhelming sense of South Africans working together to bring about the policy environment that will make our task of using ICTs for development a success.

Key policy areas that are included in the recommendations of the report include:

• Policy on universal, affordable and equitable access to communication infrastructure by all South Africans.

• An open access policy that will reduce duplication, allow infrastructure sharing and direct competition away from infrastructure to services.

• A rapid deployment policy to enable the deployment of infrastructure for connectivity at least cost.

• Policy on the growth of the sector and local manufacturing in order for small businesses to thrive and to create jobs through ICTs, and
•  National Policy on Spectrum to deal with the use and allocation of this scarce resource.

Government is studying the recommendations in the report with the aim of finalising a National Integrated ICT White Paper for submission to Cabinet for approval during this financial year.

I would like to thank the panel for the sterling work done. I also want to extend my gratitude to the public for their active participation in providing us with valuable contributions.

House Chair,

ICT SECTOR PARTNESHIPS           
I am happy to announce that last Friday, more than 300 South Africans from across the spectrum of the ICT sector joined me to launch the National ICT Forum which will assist in the implementation of policy and the development of the ICT sector in South Africa. The forum has organised itself around four chambers including:

• The economy,
• Social
• Governance and security of digital networks, and
• The sector for inclusion of marginalised groupings such as people living with disabilities.

Distinguished Guests,

CYBERSECURITY
As we rollout broadband and increase uptake and use of ICTs, we need to assure confidence in the security of these networks. We have made progress in the establishment of a cybersecurity hub in collaboration with the CSIR. I recently visited the hub and was privileged to experience what it has to offer. We will continue to work together with the public and the private sector to expand the capabilities of the hub as we prepare for its launch in August this year.

INTERNATIONAL
We will continue to participate in multilateral and international fora including the World Radio Conference to be held in November this year. In addition, we will work with BRICS countries to establish an ICT working group and plan of action for collaboration on key ICT issues.

Fellow South Africans,

DEPARTMENTAL MATTERS
I am aware of the ongoing leadership challenges which have negatively impacted on the ability of the Department to execute its functions timeously. I am attending to these challenges as a matter of urgency in order to ensure that the Department delivers on its mandate.

CONCLUSION
In conclusion, I would like to extend my gratitude to all members of the Portfolio Committee under the leadership of the Honourable Kubayi for their excellent oversight work.

Thank you to Deputy Minister for your excellent support.

I also would like to thank the Director-General and all the employees of the Department for their assistance and my Ministry staff for their dedication. Let me also thank the support I receive from my wife and family.

I call on the house to endorse this Budget Vote for the Department of Telecommunications and Postal Services.

Ngiyabonga.