PERFORMANCE PER PROGRAMME Summary of key achievements Summary of significant under-achievements

PRESENTATION TO THE SELECT COMMITTEE ON COMMUNICATIONS AND PUBLIC ENTERPRISES DEPARTMENT OF TELECOMMUNICATIONS AND POSTAL SERVICES 2013/2014 ANNUAL REPORT05 November 2014

PRESENTATION OUTLINE • PERFORMANCE PER PROGRAMME • Summary of key achievements • Summary of significant under-achievements • PROJECTS CARRIED OUT ACROSS PROVINCES • FINANCIAL PERFORMANCE • Financial statements • Transfer payments • RESPONSE TO AUDITOR-GENERAL’S FINDINGS Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

OVERVIEW OF KEY ACHIEVEMENTS • The Annual Report being presented is for the former Department of Communications (DoC) as it covers the period 01 April 2013 to 31 March 2104. • Significant achievements were noted in the following programmes amongst others: • The Cabinet approval of the National Integrated ICT Policy Review Green Paper which was followed by extensive public consultation. • The implementation of the Policy and Legislative Programmewhich saw the Cabinet approval of the following Amendment Bills: Postbank, South African Post Office SOC Ltd., Electronic Communications and ICASA. • The Cabinet approval of the National Broadband Policy referred to “SA Connect” which also contains the National Broadband Strategy and implementation approaches. • The migration of all SMS and non-SMS employees into the revised organisational structure and the process was finalized in February 2014. • The appointment of staff in critical positions such as the DDG: SOCs Oversight & Enterprise Development; DDG: Information Society Development & Research and DDG: ICT Infrastructure Support, thus ensuring a full complement of DDG’s. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT Policy, Research and Capacity Development Summary of Key Achievements (1) • ICT Policy Review • Established the ICT Policy Review Panel of experts to review the Telecommunication, e-Commerce and Broadcasting policies. • Published the ICT Policy Framing Paper for public comments and also developed and tabled the ICT Policy Review Report. • National Integrated ICT Policy Green Paper was developed and approved by Cabinet in December 2013 and gazetted for public consultation in January 2014. • National Consultative Conference on the National Integrated ICT Policy Green Paper was held on the 3rd March 2014 and Public Hearings on the National Integrated ICT Policy Green Paper commenced in March 2014 in Provinces. • Policy and Legislative Programme • Postbank Amendment Bill • Postbank Amendment Bill was introduced to Parliament after which public hearings and deliberations were held in September 2013. • Postbank Amendment Bill was thereafter passed and signed by the President Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT Policy, Research and Capacity Development Summary of Key Achievements (2) • Policy and Legislative Programme continued… • South African Post Office (SAPO) SOC Ltd Amendment Bill • SAPO SOC Ltd Amendment Bill was approved by Cabinet in June 2013. • Bill was introduced to Parliament and approved in the third quarter. • Bill was signed into law and became operational in January 2014. • Electronic Communications (EC) Amendment Bill • EC Amendment Bill was tabled in Parliament in the first quarter. • Regulatory Impact Assessment report was also aligned with the latest ECA Bill and submitted to Parliament. • Department participated in the Parliamentary processes towards the enactment of the EC Amendment Bill. • ICASA Amendment Bill • ICASA Amendment Bill was introduced to Parliament during the first quarter. • RIA report was aligned with the latest ICASA Bill and was submitted to Parliament. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT Policy, Research and Capacity Development Summary of Key Achievements (3) • e-Skills • Targeted e-Skills courseware were developed in line with the National e-Skills Curriculum Framework in collaboration with key stakeholders. • With regards to the roll-out of the e-Skills Virtual Network, Minister launched the virtual network on 20 May 2013. • In February 2014, the integrated Ikamva National e-Skills Institute was officially launched by the Minister. • e-Strategy Framework • The e-Strategy framework was developed in line with Electronic Communications and Transactions (ECT) Act and the National Development Plan (NDP). • Postbank • The application for a Banking License was submitted to the Registrar of Banks. • Names of Board members that were recommended by SAPO were approved by the Minister of Communications and submitted to the Reserve Bank for the fit and proper assessment. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT Policy, Research and Capacity Development Significant Under-achievements • Community Broadcasting Support Strategy • The draft Community Broadcasting Support strategy was developed and internally consulted however it could not be finalisedas the strategy needed to include financial implications. • However, in the 2014/15 financial year, the Department has finalised the draft Community Broadcasting Support strategy which is ready for public consultation. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT Infrastructure Support Summary of Key Achievements (1) • Broadband • The Department undertook the process of revising the National Broadband Policy. • The revised National Broadband Policy, referred to as “SA Connect”, was approved by Cabinet in December 2013. • SA Connect also contains the National Broadband Strategy and implementation approaches through a four-pronged approach: • Digital Readiness • Digital Development • Digital Future • Digital Opportunity Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT Infrastructure Support Summary of Key Achievements (2) • Radio Frequency • The National Radio Frequency Plan was approved by Minister and gazetted by the Authority. • National Radio-Frequency incorporates radio spectrum requirements of security services. • The spectrum requirements for exclusive allocations for Security Services was compiled and approved by Minister for incorporation by ICASA in the National Radio-Frequency Plan. • Broadcasting Digital Migration (BDM) • The Department reviewed the BDM Policy, largely with a view to make the use of Set Top Box (STB) Control non-mandatory. • With regards to National Digital Terrestrial Television (DTT) coverage, through Sentech, 100% coverage was achieved via Direct To Home (DTH)-Satellite tranmission. • The Satellite transmission platform was launched in September 2013. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT Infrastructure Support Significant Under-achievements • Cybersecurity • Although the National Cyber Security Advisory Council (NCAC) was appointed and the Virtual Cyber Security Hub was established, the Department was unable to establish the Cyber Security Hub as planned. • This was largely due to the reallocation of funds to other priority projects. • However, in terms of progress thus far, as an interim measure, the Department has commenced the process of operationalising the Virtual Cyber Security Hub. • Broadcasting Digital Migration • The Department did not achieve all planned elements of the BDM Programme such as the allocating 1.5-million subsidized STBs to subsidy scheme recipients, providing of STB installer training and the establishment of a National Call Centre. • Underperformance was due to delays in the broader BDM programme which was largely due to the contention on the STB control system amongst broadcasters as well certain manufacturers. • However in terms of progress to date, the Department has finalised the revised BDM Policy which is awaiting final approval. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT International Affairs Summary of Key Achievements (1) • Africa ICT Infrastructure Programmes • With regards to coordinating the implementation of the Southern African Development Community (SADC) ICT Infrastructure Master Plan, SA participated in the Committee that developed a short-term action plan for 18 projects which were adopted by SADC Ministers. The SADC regional and national integrated broadband infrastructure project was the flagship project. • DoC participated in the SADC convened workshop on the Regional Internet Exchange Point (RIXP). South Africa has made substantive progress in establishing its own Internet Exchange Points which are in Cape Town, Durban, Grahamstown, Helderberg, Johannesburg and Centurion. • With regards to the dot.Africa domain name, official approval was received from the Internet Corporation for Assigned Names and Numbers (ICANN) for .ZACR to operationalise dot.Africa. The signed Agreement between .ZACR and ICANN took place on 27 March 2014 in Singapore. • Advancing RSA ICT Position • South Africa chaired the Universal Postal Union Council (UPU) of Administration Committee on Strategy as well as the Pan African Postal Union (PAPU) committee on strategy. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT International Affairs Summary of Key Achievements (2) • Advancing RSAICT Position (continued…) • South Africa continued its role as Chair of the Africa group for International Telecommunications Union (ITU) in both World Telecommunications Standardisation Assembly (WTSA) and World Conference on International Telecommunications (WCIT) Africa report back meetings. • South Africa also successfully hosted a meeting of the Global Standards Initiative for (Internet Protocol Television (IPTV) of Study Group 16 (South Africa through CSIR is vice-chair), to address IPTV and e-health. The meeting is part of a continuing project to look at global IPTV standards through IPv6. • South Africa is the first African country to host an IPTV test bed. This has provided an opportunity for CSIR to showcase its IPTV technology, and to participate in the development of global standards in this area. • South-South Relations • With regards to BRICS ICT programmes, South Africa drafted a position paper on the operationalisation of Cooperation on the BRICS Cybersecurity, which was adopted with comments in the Ministerial meeting in Russia, Moscow. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT International Affairs Summary of Key Achievements (3) • South-South Relations (continued….) • In terms of negotiating and developing two bilatera programmes with countries of the South, a Memorandums of Understanding between South Africa and Brazil as well as South Africa and India were negotiated and agreed with the respective counterparts. • ICT Trade and Investment • An ICT Trade and Investment Strategy together with the implementation plan were consulted with Members of the Economic Cluster and approved for submission to Cabinet. • The DoC participated in the SA-SADCon-going trade negotiations, which focused on opening up markets in the audio visual sector. • With regards to facilitating the implementation of the SA-EU work programme, the Department hosted the SA-EU Dialogue on the Information Society and ICTswhich provided for an exchange of ideas and experience in implementing key priorities for the development of the information society in the areas of Broadband, DTT, Spectrum Management, Research programmes, as well as access to Europian Union research funding. Agreement was reached on a number of possible outcomes for future cooperation. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

ICT International Affairs Significant Under-achievements • Ratification of International Telecommunications Regulations • Although planned for, the Department was unable to submit the International Telecommunications Regulations to Cabinet for approval. • Delays were due to the prolonged waiting period for the International Telecommunications Regulations from the ITU so as to commence with the ratification process. Such challenges are not directly in the Department’s control however the Department has taken into consideration the implications of reliance on external stakeholders, such as the ITU, during its planning processes. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Broadcasting, Communications Regulation and Support Summary of Key Achievements (1) • ICT SMME Programme • Training workshops on the Small Medium Micro Enterprises (SMME) e-Commerce platform were conducted in 4 provinces, Limpopo, North West, Gauteng and Eastern Cape. A total of 129 SMMEs were capacitated on the use of the e- Commerce Platform and their business profiles and offerings were uploaded on the platform. Sectors covered includes travel and tourism, accommodation, arts and craft. • With regards to the development of reports on Job creations, from April 2013 to March 2014, 865 jobs were created. 63.4% (549) of these individuals were youth. Only 1.7 % of the total employed consists of people living with disabilities. Of the total jobs, 37.7% (326) were females and 37.9% (328) were males. It is also critical to note that 21.3% (185) of these individuals were employed on a permanent basis, while 54.2% (469) were employed on a temporary basis. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Broadcasting, Communications Regulation and Support Summary of Key Achievements (2) • SOC Oversight • The Medium Term Expenditure Framework (MTEF) requests of all SOCs were facilitated and all SOCs participated in the Medium Term Expenditure Committee (MTEC) process. • In order to ensure alignment and integrated planning, all SOCs participated in the DoC strategic planning workshop while the DoC participated in all SOC planning workshops. Furthermore, joint DoC/SoC Strategic Work sessions were hosted. • SoCs quarterly reports were analysed to determine the actual performance against planned targets and through engagements with executive management of SoCs, Departmental feedback was provided. • Analyses of the 2012/13 Annual Reports were conducted within 30 days of receipts. • The submission of unaudited financial statements to the external auditors was facilitated for all entities. • Monitoring of adherence to good Governance practices was undertaken on a quarterly basis and all SOCs completed King 3 compliance scorecards. • Drawdown schedulesof all entities were finalised and the payments effected as well as expenditure monitored on a quarterly basis. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Broadcasting, Communications Regulation and Support Significant Under-achievements • SMME Programme • With regards to the implementation of ICT SMME Programme delays regarding the participation of SMME’s in the BDM value chain were related to the delays in the implementation of the broader BDM programme. Of most significance was the non-achievement of the roll-out of STBs due to the contention on the STB control system amongst broadcasters as well certain manufacturers. This had a direct negative impact on the participation of SMME’s in the BDM value chain. • However in terms of progress thus far, the Department has commenced with a baseline study on SMMEs in the Broadcasting, Postal and Electronic Manufacturing sub-sectors. To date, relevant data for approximately 100 SMMEs have been gathered and is currently being analysed. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Administration Summary of Key Achievements (1) • BDM Public Awareness • In an effort to bring about public awareness regarding BDM, a Media Plan for the BDM awareness campaign was developed and the BDM awareness programme was implemented through numerous public events, media platforms, billboards, radio stations, exhibitions and literature distribution as well as key stakeholder engagements. • Organisational change and transformation • With regards to implementation of the approved migration plan focusing of placement of staff from the current to the new organisational structure, all SMS and non-SMS employees were migrated into the revised organisational structure and the process was finalized in February 2014. • Staff in critical positions were appointed such as the DDG: SOCs Oversight & Enterprise Development; DDG: Information Society Development & Research and DDG: ICT Infrastructure Support, thus ensuring a full complement of DDG’s. • Furthermore, the Chief Financial Officer (CFO); Chief Director: HRM, Chief Director: Internal Audit and Risk Management. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Administration Significant Under-achievements • BDM Public Awareness • The optimal roll-out of the BDM public awareness programme was affected by the delays in the broader BDM programme largely due to the STB control dispute which delayed the manufacturing and distribution of STBs. This had a knock on effect on the BDM awareness programme. • However in an attempt to resuscitate the BDM public awareness programme, taking into consideration the limited resources available, the Department has established a multi-stakeholder framework. This allows the Department to leverage on the available resources of other stakeholders. • Organisational change and transformation • The Department did not implement the leadership development programme as planned largely due to HR capacity constraints. • Furthermore, the culture and climate survey could not be conducted as it was dependant on the completion of the migration process. • However, going forward, in addressing the organisational change and transformation interventions, a more holistic approach has been taken through developing and implementing an internal control framework which will improve compliance and optimise the functioning of multiple functional areas across the Department. • Furthermore, preparations are underway to conduct the climate and culture survey. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROJECTS CARRIED OUT ACROSS PROVINCES BY DoC (1) SCHOOLS CONNECTIVITY The department completed connectivity to the following 1650 schools by connecting them to the Wide Area Network. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROJECTS CARRIED OUT ACROSS PROVINCES BY DoC (2) e-SKILLS The department undertook the following e-Skills related initiatives across identified Provinces. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROJECTS CARRIED OUT ACROSS PROVINCES BY DoC (3) e-SKILLS The following are the key highlights across Provinces: Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROJECTS CARRIED OUT ACROSS PROVINCES BY SOC’s (1) STATE INFORMATION TECHNOLOGY AGENCY (SITA) Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROJECTS CARRIED OUT ACROSS PROVINCES BY SOC’s (2) STATE INFORMATION TECHNOLOGY AGENCY (SITA) continued… Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROJECTS CARRIED OUT ACROSS PROVINCES BY SOC’s (3) SENTECH Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROJECTS CARRIED OUT ACROSS PROVINCES BY SOC’s (4) SENTECH continued… Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PROJECTS CARRIED OUT ACROSS PROVINCES BY SOC’s (5) Broadband Infraco Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

FINANCIAL PERFORMANCE FOR THE 2013/14 FINANCIAL YEAR Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

STATEMENT OF FINANCIAL PERFORMANCE (1) • Content – First level • Second level • Third level Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

APPROPRIATION STATEMENT • Content – First level • Second level • Third level Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

SUMMARY OF ECONOMIC CLASSIFICATION • Content – First level • Second level • Third level Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

DETAILS OF TRANSFER PAYMENTS (1) • Content – First level • Second level • Third level Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

RESPONSE TO AUDITOR-GENERAL’S FINDINGS • In the annual report for 2013/2014, the Auditor-General has raised the following key matters: • Payment of Suppliers • Human resources management • Information Technology (IT) • Supply Chain Management • Governance • Expenditure Management Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Payment of Suppliers Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Human Resources Management (1) Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Information Technology Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Supply Chain Management (SCM) Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Governance Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Expenditure vs Performance • The Department reported 100% expenditure of its budget due to the following reasons: • Prior year commitments • Ad hoc projects which were not budgeted for • Reprioritization of funds • Transfers • Currency fluctuations on international organizations membership fees Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Resolved Audit Findings (2012/13) Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

THANK YOU Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

PERFORMANCE PER PROGRAMME Summary of key achievements Summary of significant under-achievements