We want to be more connected

Let me, in the first instance, welcome, on behalf of our government, our foreign guests here, in particular, Mr Vint Cerf, the Vice president of Google, and Dr Bitange Ndemo, former ICT Permanent Secretary in Kenya, and other foreign visitors, and let me acknowledge too our local leaders, not least Ms Qedani Mahlangu, MEC of Infrastructure Development in Gauteng, Luke Mckend, CEO of Google SA Alexandra Fraser, Chairperson of Silicon Cape and Big Tent Johannesburg Partner, Nathi Maramnco, Publisher of Business Day and Big Tent Johannesburg Partner and all of you really. And let me say too I’m pleased to be here.

I’m 8 weeks young in this role of Minister of Communications, and speaking to an informed audience like this, I’m not sure what value I can bring beyond the symbolic. But it is certainly of value to me to be with you. In putting together this speech, I’ve had the opportunity to better understand the digital economy and its potential. So I have already benefitted. And, of course, I will too by listening to the other speakers this morning.  Consistent with the theme of this gathering, my input is entitled “More Actively Fulfilling the Potential of the Digital Economy in South Africa”.  

Of course, the growth of the internet in South Africa is intimately linked to the growth of Google, as it is elsewhere in the world. Google has become part of our everyday lexicon, far beyond what its beginnings as a humble search engine suggested. Today in parts of our society it is as familiar as Coca-Cola. ICTs have transformed our society in ways not imaginable just a few decades ago. All this has  made possible by the Internet, for which we have to thank the hard work of Mr Cerf and his colleague, Bob Kahn. I’m sure they had no idea that their work would change the very nature of our society as it has.

From being a data network that connected individual computers with wires, to now connecting all manner of portable devices from tablets to phones, the Internet has evolved into a fundamental feature of the economy. The future is connected and we in South Africa very much want to be part of this connected future. And we are taking more active steps towards this.

 

The Sweeping Digital Revolution

Today the world finds itself in the midst of a Digital Revolution. Just as the Agricultural and Industrial Revolutions transformed the very nature of our society, so too is the Digital Revolution changing the very fabric of our society.  On average Radio Broadcasters
took 38 years to reach audiences of 50 million people. Television took
13 years. The internet took just 4 years.

 

Today, as technology continues to change the way the world interacts, to be left out is to live in a separate world.  We will either be swept aside by this Revolution or we can utilise our circumstances to further the growth and development of our country.

Google is at the forefront of the development of the digital global village and bringing us closer than ever before with features such as Google Translate and Google Earth.

Of course, the impact of broader Internet usage in the developing world in general, and in South Africa in particular, could be huge - from economic growth, to promoting democratic change via social-networking, as was seen with the Arab Spring, to combating disease by providing health information and to educating through the internet. Only yesterday, The Times carries an article on a new “digital pill” that can monitor your health. 

 

ICTs and the Internet are powerful tools for social and economic growth and this is particularly true for our current economic climate. There is enormous potential for these technologies to foster innovation, particularly in developing countries. It is said that a 10% increase in high speed Internet connection can lead an increase in economic growth of up to 1.38% for developing countries.

 

While the world has endured an economic crisis since 2008, the ICT sector has in many senses continued to thrive bringing providing oringinal solutions to many challenges facing our societies. Tablets and smartphones are making desktop computers obsolete. The growth of mobile internet is ensuring that everything digital can be accessed everywhere. In the commercial sector, new business models have been developed to take advantage of the Internet and the efficiencies it offers, while whole new industries, including  online banking and internet-based retail stores have developed.

Particularly promising for governments is the opportunity to deliver better services to citizens.

Already the Internet is now connecting other devices that did not have communication capabilities such as fridges and cars. The first wave of connectivity involved connecting business and homes with wired Internet connections. The second wave was mobile user devices - laptops, smartphones, tablets - connecting to businesses and each other over wireless Internet connectivity.

Now we are in a third wave, which is expected to connect hundreds of devices that previously did not have such capabilities.  It is “The Internet of Things”,  driven by the proliferation of networks and the decreasing cost of connection. This includes automobiles, airplanes, medical machinery, personal medical devices, windmills, environmental sensors and natural gas extraction platforms. In all of this the expansion of broadband as well as the development of e-skills and the taking advantage of employment opportunities is crucial.

The internet economy can reduce the gap between large and small businesses. Currently about 410 000 SMEs in South Africa have websites. The Internet Matters report by World Wide Worx indicates that SMEs with an online presence are more likely to be more profitable than those without. Of those with a website, 27 percent are strongly profitable, while only 11 percent of those without a website are. It is said that SMEs  account for 7,8 million jobs in South Africa. It is suggested that 1,56 million jobs would be in jeopardy were it not for their online presence.

It seems certain that data transmission speeds will increase phenomenally globally. According to Akamai Technologies the average global data transmission speed in late 2009 was 1.7 megabits per second. Compare that to the record for data transmission speed set by Bell Labs: 100 petabits per second. That's equivalent to 100 billion megabits per second. At that speed, you could transmit 400 DVDs worth of data every second.

As time passes, the costs of producing ultra-high-speed networks will decrease. Eventually, the average consumer will be able to download a high-definition movie in a second or play cloud-based video games without a hint of delay or lag.

Of course, while this may be the reality for many of us sitting here today, they’re not the reality for all South Africans. And that is the challenge for us today. It’s a challenge that all of us, as government, the private sector and civil society, have to address.

South Africa and the Digital Economy

The growth of the Digital Economy in South Africa is significant, even it does not benefit people equitably. Currently it stands at approximately R59 billion or 2 percent of South Africa’s GDP. Agriculture contributes 2,1 percent to our GDP. That might help to give a sense.

E-commerce is growing at 30 percent a year and the potential for expansion is great when one considers that more people are coming online as a result of the increase in the use of smartphones.

In South Africa, as broadband becomes more prevalent and TV’s gain more intelligence, the switch from Analogue to Digital TV broadcasting will create significant opportunities for creativity and innovation. TVs are already capable of connecting to the internet. Jobs in the ICT industry will open up for young people and the Internet will be the starting point on this path forward.

But these opportunities must benefit the poor and disadvantaged fairly. We have to guard against the country’s existing socioeconomic divides being reinforced through technology between those who are connected and those who are not.

 

Significant sections of our society are far behind those who benefit most from ICT. Socio-economic circumstances, education imbalances, as well as language barriers, are some of the factors in this exclusion.

 

In remote areas that are often sparsely populated and located in difficult geographical environments, telecoms infrastructure is usually underdeveloped because providing telecom services in such areas means low returns on investment for service providers.

 

We need to harness the potential of ICT to reduce, not increase, the divides in our country. That’s essentially the challenge.

 

So what are we doing?

So where are we in this country in responding to the digital society? We have, we believe, made some progress but not enough. We are lagging behind our peers at present. We are clear that we have to do more. We are about 8 months away from the elections, and have reviewed our strategy and programme to set more realistic and realisable targets. You can find this on our website. Very briefly here:

Our strategy revolves around 6 inter-realted aspects:

1. Using the National Development Plan,  New Growth Path and the ANC’s Mangaung policy resolutions on the communications sector as the broad framework.
2. A more effective Department of Communications.
3. A less fragmented and fractious ICT sector.
4. Realistic and realisable goals in our programme for the period until the 2014 elections.
5. Choosing these goals carefully to set a firmer foundation for more effective service delivery in the 2014-2019 term.
6. Finalising the ICT Policy Review.

 

So what of our programme? We recognise the close links between broadband, spectrum and digital migration, and this constitutes a crucial aspect of our programme.  Key elements of the programme ias a whole nclude:

1. Broadband Policy, Strategy and Plan: We intend to finalise this by the end of November.
2. An Effective Spectrum Policy: A Spectrum Policy to facilitate the deployment of wireless technologies in support of universal access and economic development will be developed by March 2014.
3. Beginning the Roll-Out of Digital Migration:  We are significantly behind schedule, but now want to get going. A major stumbling block is the impasse among the broadcasters and other private sector stakeholders on whether the Set Tob Boxes should have a control system or not. A meeting is being convened of the contending parties this month to see if consensus can be reached. We will consider all points of view and then move forward as soon as possible. If all goes well, we should begin the roll-out of didgistal terrestial television within a few months.
4. Greater focus on the rural and other underserviced areas: We are going to place greater stress on delivering in rural and underserviced areas. We intend to connect 788 schools by the end of the financial year. This figure will be higher if our current negotiations with some of the operators on implementing their universal service obligations go well.   The South African Post Office has also committed to building 50 new post offices by the end of the financial year.
5. Further Reducing the Costs to Communicate: How can it be that our telecoms operators are able to offer cheap prices in other African countries, but at home they charge huge amounts? This is one of the major factors inhibiting the growth of the Internet Economy in South Africa. The more people online, the more successful our e-commerce ventures will be. In that regard we are liaising with the regulator ICASA on their review of Mobile Termination Rates. We have to sensibly and sensitively set a firm foundation for a further reduction in the costs of communication. The needs of the users and the service providers will both be taken into account. A new policy directive on transparent pricing policy will be finalized by the end of September. By the end of September we will be convening a pricing workshop as part of a consultative process on the cost-to-communicate.       
6. Towards Greater Stability in the SOCs: The primary focus will be on the SABC and post-office. The post office needs to re-position itself more effectively to play new roles in this Internet Age.
7. ICT Policy Review: A National Integrated ICT Policy Green Paper will be ready within 3 months. Public hearings will follow and a White Paper will be finalized either shortly before the 2014 elections or soon thereafter.
8. National ICT Forum: A National ICT Forum bringing together government, the industry, trade unions, and other civil society roleplayers will be held in late November or early in 2014.

We are also seeking a co-ordinated effort towards the roll-out of e-skills and better utilisation of state funds in ensuring that our citizens are not merely consumers of ICTs. In the long run we want our people to also be developers of ICT applications and technology. We want citizens to know how to use ICTs to gain better access to government services and a better quality of life.

 

The Role of Google in South Africa

Google is doing its bit, and we express our appreciation. Google is helping to  reduce some  divides. Google is also available in Afrikaans, Sesotho, isiZulu, IsiXhosa, Setswana and Northern Sotho. Google Translate also helps those of us who are not so familiar with other languages to breach the language barrier.

 

Google is actively working with governments and local authorities in countries across Africa to link up the Internet. Google and other partners including the Meraka Institute (an ICT Research division of the CSIR) launched a TV White Spaces (TVWS) broadband trial in Cape Town in March 2013 and the results show that the technology holds huge possibilities for South Africa in terms of providing internet connectivity in rural areas.

 

Google is partnering with Vodacom, LeadSA and our Department of Trade and Industry in the Woza Online project. Woza Online has now connected 45 000 small and medium enterprises to the internet through free websites. This has given them an online presence leading to an increase in revenue. It is through initiatives such as these we can take our country forward.

 

This co-operation is something that we need to build on and we call upon  industry in this country to do more to work with us towards creating the e-literate society envisioned in our National Development Plan.

 

The term ‘cognitive surplus’ was popularised by the US  expert, Clay Shirky to describe the creativity and knowledge that the internet makes available to the public. The government  recognises the role of the Internet,  both as a stimulus for learning and a creator of employment. We also acknowledge its potential in improving the quality of life for all citizens.

 

In short then, we recognises the potential of the Digital Economy, especially for a developing country such as ours. While some other African countries may have over-taken us in terms of ICT roll-out, our enviable infrastructure overall means that we have the ability to ensure that more citizens play a greater role in the Digital Economy. We simply have to work together to fulfill that potential.

Digital Economy must reduce, not increase, the Divides

Let me end with this. That one of the most significant developments on the internet and knowledge-building occurred when South Africa was awarded the right to host the Square Kilometre Array (SKA) as part of a consortium of African countries and, also, of course, Australia. Pilot work has already started at the identified sites as technologies that will constitute the SKA are tested. This will require the development of human resources and capabilities that we have never had as a country because of the level of complexity of the project.

That complexity and attendant demand for higher technological and technical skills means the deployment of more effective and new forms of communications and internet infrastructure. The technology will capture, transport and store the data that will emanate from the universe. It is likely that the volume of data expected to flow from the SKA will be more than the traffic currently experienced in all South African networks.

So there it is, the SKA, a world-calss project. But in the same country we have people who are in the rural areas who may have cellphones but are not connected enough to benefit significantly from the digital economy.

Of course, the digital economy is the way to go – but in ways that ensures that its enormous potential to reduce divides in our society is fully harnessed, and its potential to increase the divides is significantly reduced. It’s up to all of us, not just government, to ensure this. Let’s all just work together to see to this.