DoC LEADERSHIP TEAM

1. PRESENTATION TO THE SELECT COMMITTEE ON LABOUR AND PUBLIC ENTERPRISES DEPARTMENT OF COMMUNICATIONS 2010/2011 ANNUAL REPORT19 October 2011 A global leader in the development and use of Information and Communication Technologies for socio-economic development

2. DoC LEADERSHIP TEAM A global leader in the development and use of Information and Communication Technologies for socio-economic development

3. FOCUS OF PRESENTATION • As requested, the presentation seeks to address the following questions raised by the Select Committee on Labour and Public Enterprises: • What were key aspects of the DOC’s strategic/business plan for 2010/11, and in particular what were its key targets? •  How has the DOC performed in terms of the plan and in particular the key targets? Where you did not achieve these targets, why was this the case? • (the above will be addressed through the presentation of a spreadsheet ) •  How was the budget allocated for the 2010/11 financial year used? •  What are key aspects of the strategic plan for this financial year and the mid-term? (Flagship Programmes) •  What are some of the key challenges facing the DOC and how are these being addressed? •  Apart from exercising effective oversight, how can the Select Committee be of assistance to the DOC? A global leader in the development and use of Information and Communication Technologies for socio-economic development

4. CONTEXT • Governance structures were not fully functional to enable decision-making on key projects • Prolonged procurement approval procedures impacting on project implementation • Cancellation of existing tendering processes led to non-spending • Delays in transfers to the entities due to DTT standards (R180m for STBs and R199m for Sentech Digitization) and a 2010 saving of R150m for Telkom • R117 m due to the termination of 112 Emergency Call Centre. Non-functional internal structures to facilitate approval of projects • Displacement of staff from branches thereby resulting in low staff morale and performance. 4 A global leader in the development and use of Information and Communication Technologies for socio-economic development

5. SUMMARY OF KEY ACHIEVEMENTS • A spreadsheet has been prepared highlighting the following information against each of the 2010/11 targets: • Achievements • Status (achieved, partially achieved, not achieved) • Reasons for variance where applicable • Current status where applicable • The above information covers the following 6 Programmes within the DoC: • Programme 1: Governance & Administration • Programme 2: ICT International Affairs & Trade • Programme 3: ICT Policy Development • Programme 4: ICT Enterprise Development • Programme 5: ICT Infrastructure Development • Programme 6: Presidential National Commission on ISAD 5 A global leader in the development and use of Information and Communication Technologies for socio-economic development

6. Budget vs Actual Performance for the 2010/11 Financial Year 6 A global leader in the development and use of Information and Communication Technologies for socio-economic development

7. STATEMENT OF FINANCIAL PERFORMANCE 7 A global leader in the development and use of Information and Communication Technologies for socio-economic development

8. STATEMENT OF FINANCIAL PERFORMANCE 8 A global leader in the development and use of Information and Communication Technologies for socio-economic development

9. STATEMENT OF FINANCIAL PERFORMANCE 9 A global leader in the development and use of Information and Communication Technologies for socio-economic development

10. APPROPRIATION STATEMENT 10 A global leader in the development and use of Information and Communication Technologies for socio-economic development

11. APPROPRIATION STATEMENT APPROPRIATION STATEMENT 11

12. SUMMARY OF ECONOMIC CLASSIFICATION 12 A global leader in the development and use of Information and Communication Technologies for socio-economic development

13. DETAILS OF TRANSFER PAYMENTS 13 A global leader in the development and use of Information and Communication Technologies for socio-economic development

14. DETAILS OF TRANSFER PAYMENTS 14 A global leader in the development and use of Information and Communication Technologies for socio-economic development

15. KEY ASPECTS OF THE STRATEGIC PLAN FOR THIS FINANCIAL YEAR 15 A global leader in the development and use of Information and Communication Technologies for socio-economic development

16. DOC FLAGSHIP PROGRAMMES (1) The following have been identified as Flagship Programmes: Digital Terrestrial Television (DTT) – Seeks to migrate South Africa from an analogue to a digital broadcasting platform through the preferred DVB-T2 standard. Job Creation - to establish an ICT Industry Wide Working Group on job creation whose purpose will be to facilitate the identification of priority areas for job creation. ICT Rural Development- ICT Rural Development Strategy will be implemented through various key projects as ICTs is seen as an effective enabler to rural development. A global leader in the development and use of Information and Communication Technologies for socio-economic development

17. DOC FLAGSHIP PROGRAMMES (2) • 4. Broadband - to improve broadband penetration through the implementation of an integrated Broadband Plan that will facilitate capital investment, innovation and rural access. Plans for connecting schools, health and government centres will not only improve service delivery, but also improve the uptake and usage of broadband by government and individuals. • Postbank - Post Bank Bill was signed into an Act late last year. Work will begin to fast-track the roll-out of the Post Bank centres or outlets throughout the country. • E-Skills - through the e-Skills Institute, massify the e-skilling of our nation for a rightful place in the Information Society and Knowledge-based Economy, ensuring (i) that citizens improve their quality of life through the use of ICTs, and (ii) that employment ready students are “delivered”. A global leader in the development and use of Information and Communication Technologies for socio-economic development

18. FLAGSHIP PROGRAMMES: DIGITAL TERRESTRIAL TELEVISION (DTT) (1) • Benefits: • Efficient use of the frequency spectrum – scarce public resource • More channels therefore more diverse content to the public • Better picture & sound quality • Potential for special interactive services (sub-titling, e-government delivery) • Approved DTT roll-out plan in place focusing on the following key areas: • Digitial Migration policy amendments have been gazetted for public comment. • The PMO structure has already been approved and recruitment is underway • The Joint Spectrum Advisory Group (JSAG) has been established. • Engagements with ICASA regarding community TV is ongoing • The network coverage needed for the launch is 70% and Sentech committed that by April 2012 it will reach the 74% network coverage. A global leader in the development and use of Information and Communication Technologies for socio-economic development

19. FLAGSHIP PROGRAMMES: DIGITAL TERRESTRIAL TELEVISION (DTT) (2) • Approved DTT roll-out plan in place focusing on the following key areas: • The SABC has developed Channel line-ups (including health and educations channels) and the business plans setting out three funding scenarios were submitted to DoC for MTEFOpex for funding. Full revised DTT business plan incorporating new channel line-ups is close to completion. • Digital Migration Public Awareness and social marketing strategy has been developed for implementation. • The Scheme for Ownership Support (SOS) has been developed for Cabinet approval • Subsidy management will be done through USAASA who have already developed the means test and the qualifying criteria. As part of the management of the subsidy, engagements have started with retailers and the South African Post Office. A global leader in the development and use of Information and Communication Technologies for socio-economic development

20. FLAGSHIP PROGRAMMES: DIGITAL TERRESTRIAL TELEVISION (DTT) (3) • Approved DTT roll-out plan in place focusing on the following key areas: • The Set Top Box (STB) Manufacturing Strategy has been developed for Cabinet approval. • The final STB Standard is projected to be ready by the end of November in consultation with SABS • DoC has developed the Request for Proposals (RFPs) for the appointment of Manufactures for the subsidised STBs. The RFP for the subsidised STBs requires that the standard be finalised by SABS as well as the SOS and STB manufacturing strategy. • The Department is on track to meet the December 2013 SADC deadline A global leader in the development and use of Information and Communication Technologies for socio-economic development

21. FLAGSHIP PROGRAMMES: JOB CREATION (1) Job Creation • The DoC has identified the following critical programmes which could facilitate the creation of jobs over the medium to long term period: A global leader in the development and use of Information and Communication Technologies for socio-economic development

22. FLAGSHIP PROGRAMMES: JOB CREATION (2) Job Creation • Institutional Mechanisms • The Department has established several important platforms in which the issue of Job creation was discussed, amongst others, the ISAD Multi-stakeholder Forum, the Top 30 ICT Companies as well as the ICT Industry Forum. A global leader in the development and use of Information and Communication Technologies for socio-economic development

23. FLAGSHIP PROGRAMMES: ICT RURAL DEVELOPMENT (1) • In “taking technology to the people”, the Department is in the process of finalising the ICT Rural Development Strategy as ICTs is seen as an effective enabler to rural development. • 160 rural wards are targeted within the MTSF of which 2 (Muyexe and Msinga) are progressing well with regards to DoC led ICT interventions. • Department of Rural Development and Land Reform (DRDLR) have identified 36 additional rural areas in need of urgent ICT interventions where DoC & DRDLR will partner to roll-out out relevant ICT interventions. • The 36 additional rural areas cut across all 9 Provinces. A global leader in the development and use of Information and Communication Technologies for socio-economic development

24. FLAGSHIP PROGRAMMES: ICT RURAL DEVELOPMENT (2) • Project plans for each Province have been drafted and will roll-out effective from 01 November 2011. • There is a need to have extensive consultative process with relevant stakeholders within Provinces and Municipalities. • The following ICT services are envisaged to be needed by the prioritised areas: • Connecting schools and health and government facilities • Rolling-out Low Power transmitters for TV and radio coverage • Digital Hubs and Telecentres • Post Offices • Skill capacity A global leader in the development and use of Information and Communication Technologies for socio-economic development

25. FLAGSHIP PROGRAMMES: BROADBAND (1) • 100% Broadband access by 2020 • Data Analysis & Broadband Mapping • Obtain a clear picture of what currently exists through infrastructure broadband mapping exercise per Province and District. • Develop existing coverage maps in terms of fixed-line and wireless penetration, and to identify the gaps in terms of coverage per Province. • Determine the fibre required to cover identified gaps per Province, per district and per Municipality. • Expand on fixed and wireless infrastructure through relevant operators/service providers A global leader in the development and use of Information and Communication Technologies for socio-economic development

26. FLAGSHIP PROGRAMMES: BROADBAND (2) • Progress • National Broadband Policy approved • Commenced with the Kwazulu-Natal Province as a pilot, and have started implementing phase 1 with cooperation from Sentech and Infraco. Mapping exercise is already complete. • The DoC has also established the Broadband Inter-Governmental Committee to align the Provincial and Municipal initiatives. BBICC is operational and Provinces have already commenced to identify the PoPs for Phase 1. • Collaborative efforts underway between the DoC and ICASA to finalise the Local Loop Unbundling framework and spectrum licensing for Broadband • Commenced with an e-connectivity initiative to connect schools and clinics. To date, the first 1650 schools have already been identified to be connected with broadband, and a total of 1154 adjacent health centres will also be connected. A global leader in the development and use of Information and Communication Technologies for socio-economic development

27. FLAGSHIP PROGRAMMES:POSTBANK (1) • Aim: to provide a wider range of affordable, relevant and accessible financial services for the unbanked • Postbank Act was promulgated in December 2010, the President has since signed the notice for commencement on 22 July 2011. • DoC finalizing the development of Lending, Borrowing and Investment policies of the Postbank as required by section 26(2) of the Act. Policies will be tabled in Parliament before the end of the financial year. • Call for nominations for suitable people to serve in the Board of the Postbank has been issued on the 2nd October 2011. A global leader in the development and use of Information and Communication Technologies for socio-economic development

28. FLAGSHIP PROGRAMMES: POSTBANK (2) • The Post Office Board had completed the determination of the structure of the Company and the conditions of service, remuneration and service benefits of the personnel of the Company. • Project Oversight Committee to be chaired by the Minister has been established. • The Postbank is on track to launch its application for a banking licence. A global leader in the development and use of Information and Communication Technologies for socio-economic development

29. FLAGSHIP PROGRAMMES: E-SKILLS (1) • The e-Skills Institute (e-SI) serves as a national catalyst to deliver e-skills for the Information Society and Knowledge-based Economy • Within a developmental context it will play a leading advocacy role in orchestrating the various existing and new initiatives around e-skills across business, government, education, civil society including labour and global development partners with specific focus on: • ICT Industry, • Creative Industry; • Enabling innovation that responds to the developmental needs of the country through the establishment of provincial application factories; • Working collaboratively to leverage existing capacity and resources; • Ensuring that the e-skills qualifications needed in the 21st century are designed in such a way that they make students employable; • Customize qualifications so that they are relevant to employment. A global leader in the development and use of Information and Communication Technologies for socio-economic development

30. FLAGSHIP PROGRAMMES: E-SKILLS (2) • The e-SI works through its multi-stakeholder collaborative network architecture to fast-track e-skilling South Africans for equitable prosperity and global competitiveness. • eSI Partners: UNDP, UNCTAD, UNESCO, Tech de Monterrey, RIM, Department of Higher Education, Telkom, SALGA, University of Pretoria, Walter Sisulu University, Vaal University of Technology, Durban University of Technology and the University of the Western Cape are but a few to mention. • Given the very serious mismatch between our current training and education offerings and the market demand, the e-SI is gearing itself to impact aggressively against the national strategic priorities of the country. A global leader in the development and use of Information and Communication Technologies for socio-economic development

31. FLAGSHIP PROGRAMMES: E-SKILLS (3) • The e-Skills Institute is in the process of establishing provincial e-Skills Knowledge Production and Coordination hubs across the country to: • Facilitate coordination options for training and education; • Coordinate and deliver relevant research & evaluation; • Coordinate better alignment of multi-stakeholder e-skills projects to the MTSF in provinces; • Assist in amplifying the impact and sustainability of relevant private sector, donor country, government and civil society including Labour, NGO’s etc) based activities; and • Act as knowledge hubs to inform other government programmes and stakeholder groups. • The Department is in the process of incubating the e-SI for a period of two years with the intent of it becoming a fully-fledged institution in 2013. A global leader in the development and use of Information and Communication Technologies for socio-economic development

32. CHALLENGES HINDERING PROGRESS AND CORRECTIVE MEASURES CHALLENGES: Prolonged internal approvals due to lack of fully functional Governance Structures in the first two months of the reporting period Over ambitious planning conducted on the assumption of vacancies being filled Delays due to prolonged engagement with external stakeholders on certain projects CORRECTIVE MEASURES Various Governance Structures have been approved, established and are fully functional which has substantially improved the turn-around times for decision-making and approvals. The Department has established a Quarterly Organisational Performance Assessment Board that met on 15 July which focused on the interrogation of organisational performance and implementing immediate actions to address targets that are either delayed or where there is no progress. Process of filling vacancies has commenced PNC is undergoing a repositioning exercise - Information Society and Development Branch A global leader in the development and use of Information and Communication Technologies for socio-economic development

33. HOW CAN THE SELECT COMMITTEE BE OF ASSISTANCE TO THE DOC? Oversight function Awareness raising with regards to ICT issues within the various constituencies Communicating with the Department the ICT related challenges or needs of the various constituencies A global leader in the development and use of Information and Communication Technologies for socio-economic development

34. THANK YOU A global leader in the development and use of Information and Communication Technologies for socio-economic development