USAASA STRATEGIC PLANNING INDABA HOTEL JHB

1. USAASASTRATEGIC PLANNINGINDABA HOTEL JHB DOUGLAS COHEN SPECIALIST ECONOMIC DEVELOPMENT & ICT 14 JAN 2010 NATIONAL ECONOMIC DEVELOPMENT & PLANNING DIRECTORATE

2. Response Context Position on USUA Implementation Issues General Comments Contents

3. Response Context • South Africa’s currently liberalised telecommunication landscape shows that local demand is often not enough to attract broadband carriers to all regions of the country • Much of the South Africa’s economic activity is only concentrated in 6 Metros and 21 Secondary Cities. There are high disparities between urban and rural economies • This also reflected in the levels of US/UA and supporting broadband infrastructure

4. Response Context ICT Household Penetration Source: AMPS, 2009 Household, BMI-T 2010

5. Response Context • There is no agreed definition of “rural” in South Africa. The term is used loosely for different purposes and this causes confusion. • Currently the Dept of Rural Development and Land affairs is developing a proposal; similarly StatsSA is working on a definition for the 2011 Survey. • The aim of defining the terms “urban” and “rural” should be to ensure that they are “ conceptually clear, coherent, and relevant to government policy in theory ;operationally applicable in practice;”…and appropriate to South Africa

6. It has been suggested that every local municipality should be categorised according to the dominant settlement pattern and access to amenities in that municipality. Response Context • The factors underpinning of “rural areas” include the following: • Under utilisation and/or unsustainable use of natural resources • Poor or lack of access to socio-economic infrastructure and services, public amenities and government services (e.g. industrial parks lying idle especially in the former homeland areas) • Lack of access to water or lack of water sources for both household and agricultural development • Low literacy, skills levels and migratory labour practices • Decay of the social fabric (child headed households, crime, family disputes and lack of Ubuntu) • Death of cultural progress • Unresolved restitution and land tenure issues • Townships not formally established thus hindering service provision and development • Dependence on social grants and other forms of social security • Unexploited opportunities in agriculture, tourism, mining and manufacturing

7. But, people, and what happens in these places are more important… As the NSDP argued, it is actually about people, not places (everywhere, and not only in places without so-called potential, as often misinterpreted) It is about what happens in and between the people in these places, about socio-economic connections and social cohesion People create networks and interactions and transactions that vary in intensity, depth and the richness of the connection How best we factor this into rural / underserviced definition? Response Context

8. Research* in 2008 on municipal connectivity highlighted that: Of the 283 municipalities about 3/5 use Leased Lines. While the trend is moving towards broadband with only approximately a third of municipalities on Broadband (such as ADSL, Wireless Broadband or Virtual Private Networks). The reason many municipalities remain on dial-up, or basic Digital Network (ISDN) services for their Internet connection is due to the very limited access and availability of affordable broadband. Response Context *Source: ForgeAhead 2008 ICT in Government Provincial and Local Government Study

9. Response Context • From a Local Government’s perspective it is imperative that all municipalities are enabled and empowered through the provision of broadband for their own internal-use but also for the opportunities broadband can bring as a socio-economic enabler within their local economies • It is ultimately a factor supporting improved service delivery (of which LED is a component)

10. Response Context • Encouraged by the drive from multiple sectors within National Government on the importance for all spheres of government of to play a role in access to ICT’s, especially broadband • Some local governments have proactively invested resources of their own in establishing broadband networks • There are however challenges: • Is there really a business case? • Defining the role of local government in facilitating the access particularly in rural areas • The limited ICT capacity and awareness within LG

11. Contents • Response Context • Position on USUA • Implementation Issues • General Comments / Additions

12. Position on USAO • The current US/UA system functions poorly: • The system is bureaucratic and complex • The US/UA system is largely centrally planned and supply-side driven • High demand on ICASA and/or USSASA to design upfront the required deliverables and have an effective monitoring and evaluation system. • The reporting on deliverables is dependent on the “operators” providing accurate information, and that such information is up to date.

13. Position on USAO • Broadcasting Services • Radio • Television • Affordable Broadband Internet Services • Community Access (libraries, community centres) • School Access • Municipal Access (internal and inter-governmental) • Health and Safety Access (clinics, police stations) • Telecommunications (fixed and/or cellular) • Postal Services • Banking & Financial Services • Transactional & Savings Services • Government Services • National, Provincial and Local • Universal access to the Internet, and broadband access in particular, should be the current focus of this discussion • However there needs to be a more comprehensive consideration what Under Serviced really means

14. Position on USAF

15. Contents • Response Context • Position on USAO • Implementation Issues • General Comments

16. Implementation Issues • Greater focus on demand side interventions will shift the locus of intervention from the licensees to “users” and intermediaries • The effect is that the power relations are reversed and give market power to the end user community. • The UA strategy should incorporate demand side interventions (Chilean Model) in addition to supply side interventions.

17. Implementation Issues • The mechanisms manage demand side interventions are well established, including: • Funding of proposals made by intermediaries e.g. local municipalities or NGOs • Disbursement of funds to accredited intermediaries e.g. NGOs • Payment to the Service provider upon sign-off by the user • Payment vouchers

18. Implementation Issues • As highlighted in by the model successfully implemented in Chile, there is a role and an opportunity to work together with local government in driving an US/UA policy: • It is a demand side driven • Municipalities act serve as the anchor client for a local network (that ultimately benefits the larger community) • Existing Local Government facilities that could be make available / shared

19. Contents • Response Context • Position on USUA • Implementation Issues • General Comments

20. General Comments • A growing realisation of the need to not treat ‘rural South Africa’ as an amorphous mass, but to recognise rural diversity and the uniqueness of different rural lives, livelihoods, challenges and possibilities • Urgently (but creatively) define of what under serviced means: • People / community centric • Quality of Life vs. / and socio-economic development • Context of human settlements / migration • Hub, nodes and understanding (recognition) of markets

21. Expectations of USAASA: National Lottery Fund vs Thought Leader Inclusion of key stakeholders: The end user / community The private sector The National Broadband policy presents the view that all spheres of government act in unison to achieve bridging the digital divide. Given that there are municipalities in South Africa without access to broadband, how can their needs to be factored into the USAASA mandate / framework General Comments

22. General Comments • Access is essential to the economic and social development of communities, cities, countries and continents • Is the scale of our interventions appropriate to make an impact…?

23. Thank You Questions & Discussion