1 / 31

Outline

Contributing to South Africa’s Growth USAASA: Budget, Strategy Plan and Priorities for 2008/09 Presentation to the Portfolio Committee: Communications 18 March 2008 Parliament. Outline. Introduction The Board Executive Management The Agency within the ICT Framework

denton-rush
Download Presentation

Outline

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Contributing to South Africa’s GrowthUSAASA: Budget, Strategy Plan and Priorities for 2008/09 Presentation to the Portfolio Committee: Communications18 March 2008Parliament

  2. Outline • Introduction • The Board • Executive Management • The Agency within the ICT Framework • Universal service and access evolution • ITU criteria on universal service and access • Legislative evolution • Legacy Projects • Support to Legacy Projects: Rehabilitation to School Cyberlabs • Legacy Projects: Rehabilitation of Telecentres • Current Projects: • Training, PUSANO • Financial Review: USAF and USAASA • Strategy Plan and Priorities for 2008/09: • Turnaround Strategy • Focus Areas • USAF Budget – MTEF 2008/11 • USAASA – MTEF 2008/11 • Challenges and concluding remarks

  3. USAASA Board

  4. Mr. James Theledi: Chief Executive Officer Dr. Sharon Horton Head: Corporate Affairs Mr. Winile Lamani Head: USAF Projects Mr. Keith Keys Chief Financial Officer Vacant Head: Research & Strategy Vacant Head: Human Resources Mr. Phineas Moleele Head: Legal & Regulatory USAASA Executive Management

  5. The Agency Within the ICT FrameworkJames Theledi

  6. Universal Service and Access Evolution 1934 1907 • USA establishes the Universal Service Administrative Company (USAC) to administer and manage the USF. • USAC collects more than $7.5 Billion from Telecoms Operators Annually • Other countries follow the example of USA and implement their own universal service strategies: • Chile: Telecommunications Development Fund • India: Universal Service Obligations Fund • England: Universal Service Obligations Theodore Vail: AT&T President Communications Act 1934 (USA) • Preamble: “To make available to all the people of the United States, a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges.” • “One System, One Policy, Universal Service”

  7. ITU Criteria on Universal Service & Access General principles • Availability: National coverage of ICT services • Accessibility: Users treated alike, non-discrimination i.t.o. price, service quality irrespective of locations, race etc. • Affordability: Voice and data services should be priced so that most users can afford Criteria • Definitions - Develop appropriate definitions of Universal Service and Access • Information - Collect relevant information • Targets - Establish targets preferably in licence conditions • Affordability - Ensure affordability • Funding mechanism - Establishment of Universal Service Fund • Technology - Cheaper access technology • Monitoring - Monitoring (and enforce) progress and targets

  8. ICT market growth vs Universal Service & Access • Government recognised the positive impact of improved ICT rollout on economic growth and well being of society • Access gaps are left while market concentrates on high end customers • Industry will not bring about higher levels of penetration of ICT services at affordable costs • Market structure dominated by fixed line incumbent and cellular operators • Costs to communicate remain high i.e. prepaid offerings • USAASA exists to close the gaps the market has failed to address • USAASA to utilise the USAF to facilitate the closure of access gaps • USAASA is needed to do evaluation and monitoring of access gaps

  9. Legislative Evolution in South Africa Future 2005 2001 1996 Electronic Communications Act (Act 36 of 2005) Telecoms Amendment Act (Act 64 of 2001) Telecoms Act (Act 103 of 1996) • The Agency (USA) established under Chapter VII • The Fund (USF) established under Chapter VIII • Exclusivity period granted to Telkom • Amendments of Sections 58, 61, 65, 66 and 67 • Insertion of Section 67A • Provision for USALs • Renaming of the Agency (USAASA) and the Fund (USAF) • Extended mandate

  10. 90% 80% 81% 76% 70% 69% Cellphone 69% 63% 60% 60% 55% 50% 40% 30% 18% 23% Land line 20% 13% 19% 13% PC 10% 12% 6% 2% 0% Less than 500 - 39 999 40 000 - 249 250 000+ Average 500/ Rural 999 Source: AMPS 2006 Variance between Rural and Metro ICT penetration Community size From BMI T

  11. Cellphone- 2003 Cellphone-2006 Huge increase in cellular access Land line- 2003 Land line-2006 Reduction in fixed line access PC- 2003 PC-2006 Minimal increase in PCs in the home 100% Average 90% 80% 69% 70% 68% 60% +37% +27% 50% 46% 42% 31% 40% +30% 30% 26% - 3% 23% 20% 16% 13% +2% 11% 10% 3% 0% UP to 600 to 1000 to 1600 to 3000 to 5000 to 8000 to 14000+ Grand R/m 599 999 1599 2999 4999 7999 13999 Total Communications penetration by Income Group Source: BMI T

  12. Legacy Projects

  13. Support to Legacy Projects • Rehabilitation Programme • School Cyberlabs • Challenges • No mechanism for monitoring and evaluating real impact: usage of Cyberlabs by learners • Lack of coordination with other parties providing similar facilities i.e. Department of Education, Khanya, Gauteng Online, CSI

  14. Support to Legacy Projects • Rehabilitation Programme • Community Access Centres; 30 • Total of 30 Telecentres were rehabilitated • Digital Hubs – 1 Cradock Digital Hub • Challenges • No mechanism of monitoring and evaluating real impact: usage of Access Centres by the community • Lack of coordination with other parties providing similar facilities i.e. Operators, CSI

  15. Current Projects Training • Microsoft Training: • Assessors and Moderators (Unlimited Potential Curriculum Programme) – Telecentre Managers • Train the Trainer Programme: 30 Telecentre managers • Digital Literacy: Free Online Training • Training Partnerships • INK Hub Training: (100 students trained on ICDL - Women and Youth in Business -60, Community radio personnel – 20 and Local civil society organisation – 20) • Fort Hare University: (15 Telecentre managers trained on basic computer skills) • DoE, DoC and Isett Seta FET Skills Training

  16. Current Projects Group Photo: USALS – 21/02/2008

  17. PUSANO Process • Ministerial Policy Directives on PUSANO • Working group between USAASA, DoC & ICASA to accelerate PUSANO process • ICASA process of licensing • Continuous meetings with USALs • Funding requests attended according to individual merits

  18. Financial Review

  19. Financial Review: USAF Budget Treasury is correct i.t.o. USAASA capacity to spend in the past - this demonstrates USAASA is spending guided by a strategy to work with partnerships to address the gaps

  20. 2007/2008 USAF Expenditure Schools Connectivity and Rehabilitation: R30,607m Community Access Centres Connectivity and Rehabilitation R13,339m USALS Subsidies R11,624m Training R ,868m Research R ,563m Project Costs and Audit Fees R 1,116m

  21. Financial Review: USAASA Budget

  22. Strategy Plan and Priorities for 2008/09

  23. Turnaround Strategy • Support the Government Business Unusual theme • Economic Cluster • ISAD Cluster Apex Project • Strategic goals & objectives: • From implementer to facilitator, advisor and monitor • Elevate the role of the Agency and its impact • Support processes of DoC and ICASA • Cooperation through partnerships • MOU’s and Public Private Partnerships • Forum of contributors • Manage the USAF • Collect contributions from operators • Define access and subsidy rules

  24. Focus Areas • Fund Manual • Standard Operating Procedures • Fund manual – 31 October 2008 • Competitive bidding process (reverse-auction) • Project Sustainability Plan • Business plan • Skills development plan • Subsidy Focus • Internet Connectivity to Community Access Centers • Libraries, Telecentres, Digital Hubs, Kiosks • Infrastructure • Training • Capacity building initiatives • Research • Definitions on Universal Service and Universal Access • Universal Service Obligations • GIS Web Mapping

  25. Funding – USAF & USAASA2008-2011

  26. USAF Planned Budget MTEF 2008/11

  27. USAF Planned Budget MTEF 2008/11

  28. USAASA Planned Budget MTEF 2008/11

  29. Concluding Remarks

  30. Challenges • USAASA should be empowered to deliver on requirements placed on it by ECA • Engaging with DoC & Treasury on expanding resources • USAASA and USAF Budget allocation • Ongoing engagement with DoC & Treasury to unlock existing funds • Control of USAF - Collection & Account • Development of standard terms and procedures manual • Addressing method of collection with ICASA and contributors • Contributions to USAF – Basis, manner & purpose of contributions • Addressing through public consultations and Fund Manual • Monitoring and evaluation to measure impact and progress • Increasing research and monitoring capacity • Fragmented approach to ICT infrastructure service provisioning • Encourage partnerships

  31. Conclusion • Turnaround strategy • Provision of definitions on under serviced areas, needy persons • Review of Universal Service Obligations • Fund Manual • Partnership and collaboration

More Related