Parliament, Cape Town, 13 August 2002
In February this year the Ministers of the Economic and Employment Cluster, addressed you on the challenges faced by our country and the programmes that government was going to implement to promote the living conditions of the majority of our people. In our presentation we indicated that we would focus on human resource development, SMME development, economic empowerment, job creation and poverty eradication.
The press briefing was followed by the presentation of the Budget Vote 26 of the Department of Communications in which we highlighted a wide range of initiatives to be implemented in order to create a better life for all.
Our economy has to grow and develop to higher levels if the social ills of poverty, unemployment, illiteracy and underdevelopment are to be effectively combated. Attracting foreign and domestic investment thus becomes one of central factors in addressing these challenges.
Managed liberalization
Through the policy instrument of managed liberalization of the telecoms sector we have created an environment for competition with the introduction of the Second National Operator, the licensing of Sentech to provide international long distance services as a carrier of carriers, multimedia services and the licensing of under-serviced areas to take place in the near future.
Early this year, we issued the invitation to apply for the 19% equity stake in the SNO. After weeks of evaluation the regulator recommended Nexus Connection for my consideration. We are currently studying the recommendation after which we will pronounce on the matter.
As part of the SNO process, we also issued the invitation to apply for the 51% set aside in the SNO in May. This presents the most crucial component of foreign and domestic investment.
Since last year, the global telecoms market has been experiencing an unprecedented downturn, which has had an impact on the growth of the sector worldwide. The recent reports on corporate scams in the sector have further dampened investor confidence. In light of these negative economic factors we have decided to extend the deadline of the 51% applications from 30 August to 31 October 2002. We hope that the extension will open a window of opportunity for us to continue mobilizing for investment in the prevailing environment.
Following on the issuing of the Sentech licenses to provide international gateway telecommunications as a carrier of carriers, and multimedia services, the company launched its new business initiatives in July, and is currently preparing to implement its new mandate.
E-commerce
On 31 July the President electronically signed the Electronic Communication and Transactions Bill into law. We expect the President to make a proclamation soon thus paving the way for the implementation of the following key provisions:
Broadcasting Amendment Bill
Since the democratization of the country, broadcasting policy has rightfully grappled with the issue of bringing into being a broadcasting dispensation that addresses the needs and aspirations of all South Africans. There have been and still are many challenges including the need to:
The Broadcasting Amendment Bill that will be debated during the course of this quarter addresses these challenges. A major part of the Bill deals with the restructuring of the SABC to fit into the changing broadcasting environment. The Bill requires that the SABC board establishes two management boards to focus on the public and public commercial services. Under the new dispensation, the public broadcasting wing will execute and meet its public service mandate free from commercial interests. The commercial wing will be allowed to generate profit to be self-sustainable.
The Bill also provides for the establishment of two regional television services one for the inland and the other one to cover the coastal part of the country. We believe that these initiatives will increase diversity and promote local content as they will focus on issues pertaining to the specific needs of the regions such as language and local content. While government will initiate these services, I wish to put on record the fact that there is no intention to establish state broadcasters. We believe that free and diverse media are important ingredients of any democracy. While the law will provide for the establishment of the two services, it will be the responsibility of the regulator to manage the licensing process including the universal service obligations - thus the services will have the responsibility to develop their own editorial policies free from any other influence including commercial interests.
National Electronic Media Institute of SA
In the past few years, NEMISA has made significant strides in producing high quality graduates in the fields of digital broadcasting and multi-media services. There are currently 26 trainees from the Delta State of Nigeria who are being trained in radio and television skills.
This co-operation proves that it is possible for African countries to co-operate in pursuit of the objectives of Nepad.
Institute for Satellite and Software Applications
As indicated in our budget vote, we have established through ISSA a partnership programme on virtual reality research with Miralab at the University of Geneva. The research focuses on the development of different scientific tools for diagnostic and educational purposes.
At the beginning of this year we sent nine students to do a Masters Degree in IT Software Engineering at Carnegie Mellon University, and the next group of nine students will follow early next year. Some of our graduates are using their skills to put African languages on the Internet.
Advanced Institute for ICT
In addition to the work of Nemisa and ISSA, we will continue with the process of establishing the Advanced Institute for ICT (formerly the ICT University). The Cabinet Lekgotla held in July approved the model for the Institute including how it will relate with other institutions.
ICASA
Regulatory certainty and stability are crucial for the fulfillment of the objectives of creating a sector that contributes to the national social and economic development. Accordingly, the department would continue to work with the regulator to ensure that it has the necessary resources to carry out its mandate. Various options are being looked at regarding capacitating the regulator to be able to deal with technology, policy, research and other aspects of operations. We are also discussing with ICASA and operators the assessment of the different capacities needed and to plan the requisite skills for present and future needs, as well as dealing with enormous backlogs.
Telkom
In the budget vote we reported on the achievements of Telkom during the exclusivity period. The company is now gearing itself to deal with the challenges of the post exclusivity period with specific focus on competition and the initial public offering. Following the expiry of the term of Mr Eric Molobi as Chairperson of the board of Telkom, on 31 July I announced the appointment of Nomazizi Mtshotshisa as the new chairperson of the board. We also announced the appointment of Mr Themba Vilakazi as a member of the board.
Universal Service Agency
Based on the Telecommunications Act a new board has been appointed to oversee the work of the Universal Service Agency and the Universal Service Fund. Today I am happy to announce the board of the agency:
These people were appointed after nominations were received from the operators.
In the initial year the Universal Service Fund will be capped at R50 million to allow for building of capacity and staggered implementation, monitoring and evaluation of universal services.
SAPO
Corruption and graft have for a long time characterized the operation of the SA Post Office, inhibiting the company from meeting some of its universal service obligations. Since the appointment of the new board and management, the clean up process is beginning to bear fruits and some of the cases have even been reported in the media. Because of the sensitive nature of corruption and some of the findings, we are unable to make the reports public except to say that we are co-operating with all the necessary institutions to ensure that all the culprits are brought to book. There is no doubt that rooting out corruption will not happen overnight, but will be a process that will require patience and determination from all those involved.
Edu-Net
The ICT sector provides opportunities for e-learning and teaching. Based on the provisions of the Telecommunications Act, the Department of Communications is collaborating with the Department of Education to establish Edu-Net which seeks to link all public schools to a single network. The model and the project plan have been developed by the two departments thus paving the way for the rollout of pilot projects.
Khuluma Radio Project
Yesterday we registered yet another positive development when we signed a co-operative agreement on training communities in radio technical and journalism skills. The project, which is known as Khuluma Radio Project, will go a long way in diversifying and increasing community participation in the community radio sector therefore ensuring that the sector meets its mandate of servicing the needs of their respective communities. It was rather unfortunate that on the eve of signing this agreement we lost one of the stalwarts of the community media sector Mr Tshepo Rantho who died in a tragic car accident last week. Once more we send condolences to his family, friends and colleagues.
Intergrated development
The Cabinet Lekgotla held in July recommitted government to integrated governance, which requires all departments to work together in conceptualization, planning, budgeting and implementation of programmes in order to maximize the benefits of service delivery. Given the cross cutting nature of the ICT sector, we are reconceptualising some of the programmes of the department to ensure that they are in step with the new approach. From now on, all our universal access programmes such as the rollout of citizen post offices, community radio stations, and public information terminals will be implemented as part of integrated development. The Department will work together with other departments including the local and provincial spheres of government. We will do much more work with local government to ensure the necessary infrastructure for e-government is put in place for better service delivery.
Nepad
The Department of Communications is involved in various activities on the continent aimed at enhancing the development of the sector, which is central to the attainment of the goals of African Renaissance. As the chair of the Ministerial Oversight Committee of the African Telecommunications Union during the last week of August we will attend the plenipotentiary of the ATU in Kenya, which will focus on the development of the ICT sector in Africa.
We will also continue to participate in the activities of the e-Africa Commission that was announced last year during the ITU Africa Telecom 2001. The inaugural meeting of the Commission will take place in September, and the programme and focus areas will be unveiled then.
As part of the endeavours to create an equitable global ICT sector we will also participate in the World Summit on Information Society to take place in 2003 in Africa and 2005 in Europe.
The launch of the SAT3/SAFE/WASC which connects South Africa to the far East via Mauirtius and which connects Portugal to South Africa via West Africa marked a new beginning for Africa because for the first time African countries became connected directly to each other instead of being linked to each other via Europe. Given the importance of ICTs in socio-economic development there is no doubt that the launch of the cable will open economic opportunities for all the peoples of Africa.
The challenges our country and Africa face demand that all of us to make our contribution in the spirit of Vuk'uzenzele.
Thank you.