Broadband Implementation

1. Broadband Implementation INTEGRATED PRESENTATION TO PARLIAMENTARY POTFOLIO COMMITTEE 15 MARCH 2016 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

2. Overview • Policy Context • Contextual Issues • Global Environment • Collaboration with other Stakeholders • Broadband Initiatives • Phase 1 • Telkom • Broadband Infraco • SITA • USAASA • NEMISA Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

3. Policy Context Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

4. Policy Framework ImplementationFramework • The National Development Plan Objectives • Outlines Government’s commitment to “accelerate progress, deepen democracy and build a more inclusive society” in order to eliminate poverty and reduce inequality in the country by 2030 • Information and Communication Technologies (ICTs) can assist in this transformation • Creation of a dynamic information society and knowledge economy • Minimise duplication of resources and infrastructure • South Africa Connect Policy Objectives • Broadband reaches the critical mass of South Africans • Broadband services are affordable • Avoid the duplication of infrastructure • Encourage competition • Universal average download speed of 100 Mbps by 2030 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

5. Contextual Issues • Supply side considerations • Broadband roll-out is very capital intensive and requires billions of Rands • Recovery of investments must be secured – long payback period • SA Geography challenges - population is dispersed • Uneconomical to roll-out in certain areas and requires cross-subsidisation, • Demand side considerations • Affordability of services and devices • Availability of local content • E-literacy and massification of e-skills • Availability of electricity • SA Broadband Market considerations • The current market structure is dominated by two mobile operators with 83% of the market share between them and one fixed operator with a market share of more than 90%. • Telkom has the largest infrastructure rollout in the country ( more than 147,000Km). • Broadband Infraco with about 13,000Km of fibre. The rest of the market includes niche players with smaller footprints. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

6. Global Environment • South Africa has dropped five places in the rankings from 70 to 75 • Although SA has improved, other countries have improved much faster than SA hence the drop Improvement in 2015 Environment Sub-index Impact Sub-index Decline in 2015 Usage Sub-index Readiness Sub-index Source: World Economic Forum (Global Information Technology Report) Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

7. Use of ICT drives economic competitiveness . . . Emerging and developing economies Developed economies 2015 Update: Broadband pushes SA up world rankings South Africa has climbed seven places in the latest World Economic Forum competitiveness ratings, and it's thanks to the country's information and communications technology sector. The country is placed 49th in the Global Competitiveness Report 2015-2016, up seven places and reversing a four-year downward trend “thanks largely to increased uptake of ICTs, especially higher Internet bandwidth”, the WEF report said. 1 Global Competitiveness Index, sourced from World Economic Forum Report, is based on 12 pillars including infrastructure, education, labour market, etc. The IDI , sourced from the ITU report: "Measuring the Information Society (2012)" is a composite index made up of 11 indicators covering ICT access, use and skills SOURCE: World Economic Forum; McKinsey Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

8. Leading countries are converging their Government services Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

9. Broadband enabling Policy Environment The Integrated ICT Policy White Paper will among others address the following policies which will enable broadband roll-out: Integrated Policy Framework • The broadband spectrum will expedite the attainment of broadband targets as outlined in SA Connect. National Spectrum Policy Wholesale Open Access Policy • To promote service competition and avoid unnecessary duplication of infrastructure. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Rapid Deployment Policy • To expedite the rollout of electronic communications infrastructure by licensees

10. Broadband Initiatives that are being Coordinated and Monitored • The Department will continue to coordinate and monitor various broadband projects nationally. DTPS, DST, SITA Gauteng, Western Cape • Gauteng and Western Cape broadband projects which are already underway Tshwane, Joburg. e-Thekwini, Cape Town e.t.c • Broadband projects in various district municipalities • ECNS /ECS licensees will be stimulated and enabled to further expand their broadband reach to underserved communities. (ECNS/ECS) Fixed & mobile operators Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

11. Implementation Approach • This first Phase focuses on provision of Broadband connectivity services in 8 districts: • The facilities that will be connected for Phase 1: • Health = 580 • Schools = 4444 • Government buildings = 572 • Police = 182 • Thusong = 18 • Rural = 7 • The project will deliver the connectivity services via available technologies in line with the SA Connect Policy objectives and targets. Phase 1 Roll-Out Phase 2 Roll-Out • The second Phase will focus on providing broadband connectivity services in the remaining 44 districts. The facilities that will be connected for Phase 2: • Health = 6983 • Schools = 21 619 • Government buildings = 2995 • Police = 952 • Thusong = 131 • Community Centre = 1149 • Business Case Submitted to Treasury outlining the funding requirements. The Department is awaiting Treasury response or allocation for the Phase 2 of SA Connect. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

12. Facilities In the 8 District Municipalities GertSibande, Mpumalanga ThaboMofutsanyane, FreeState Vhembe, Limpopo OR Tambo, Eastern Cape • Post Office – 33 • Rural – 2 • Government - 54 • Thusong – 3 • Post Office – 23 • Rural – 0 • Government - 47 • Thusong – 0 • Schools – 518 • Police – 37 • Health – 74 • Post Office – 31 • Rural – 2 • Government - 113 • Thusong – 9 • Schools – 482 • Police – 30 • Health – 74 • Post Office – 30 • Rural – 1 • Government - 101 • Thusong – 3 • Schools – 949 • Police – 20 • Health – 120 • Schools – 1204 • Police – 17 • Health – 133 Total = 807 Total = 751 Total = 1215 Total = 1448 Pixley KA Seme, Northern Cape UMgungundlovu, KZN UMzinyathi, KZN Dr. Kenneth Kaunda, North West • Post Office – 10 • Rural – 0 • Government - 61 • Thusong – 1 • Post Office – 14 • Rural – 1 • Government - 46 • Thusong – 0 • Schools – 220 • Police – 15 • Health – 38 • Post Office – 27 • Rural – 0 • Government - 28 • Thusong – 0 • Schools – 501 • Police – 25 • Health – 58 • Post Office – 34 • Rural – 1 • Government - 122 • Thusong – 2 • Schools – 474 • Police – 12 • Health – 45 • Schools – 96 • Police – 26 • Health – 38 Total = 341 Total = 784 Total = 610 Total = 225 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

13. Phase 1 Implementation Plan Quarterly Site Deployment (Cumulative) Draft site deployment schedule per district Draft site deployment schedule per type of institution Start of rollout depending on appointment of service provider Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

14. Gauteng Broadband Network Project Project Scope • Gauteng has a total of 5440 provincial facilities of which 400 facilities will be provided Broadband connectivity during the GBN roll-out. • The remaining facilities will be covered during the Phase 2 of SA Connect. GBN Project Scope GBN Project Progress Project Progress • 285 facilities connected. (combination of schools and government buildings.) • The total number of schools connected is 100 and 7 are already on the e-Learning portal. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

15. Western Cape Broadband Initiative WCBBi Project Scope Project Scope: • Western Cape has a total of 4022 facilities • Western Cape project will provide connectivity to 1964 facilities, leaving 2062 facilities without Broadband connectivity. • 2062 facilities will be covered during the Phase 2 of SA Connect. • SA Connect will provide connectivity to 51% of Government facilities in the Western Cape. Project Progress • 864facilities connected out of the 1964 planned. The project is 50% complete. WCBBi Project Progress Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

16. Wi-Fi Connectivity Initiatives Metros Wi-Fi Project • In the meeting of July 2015, Cabinet Lekgotla pronounced that DTPS should identify townships and cities centres where free public Wi-Fi would be rolled • R40 million was reprioritised to the WiFi Rollout project and funds were transferred to the following Metros. • City of Tshwane • Ekurhuleni • Nelson Mandela Bay • Mangaung • City of Cape Town • City of Johannesburg • eThekwini and Buffalo City not included in the initial Wi-Fi roll-out programme. • 80 Wi-Fi Sites have been integrated to date in 3 Metros Municipality Wi-Fi Projects • Dr Kenneth Kaunda Municipality launched their Wi-Fi connectivity project in the Tlokwe Municipality. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

17. Planned Sites in 6 Metros Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

18. Progress Against Key Milestones Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

19. Telkom as a Lead Entity • Telkom is designated as a lead agency with the responsibility to coordinate ICT SOCs in order to leverage and efficiently use the state’s assets and investments to expedite broadband roll-out in a cost effective manner. • In the meeting of July 2015, Cabinet Lekgotla affirmed its decision of February 2015 and gave the go-ahead to the Minister of Telecommunications and Postal Services to foster a partnership with Telkom. • Cabinet Lekgotla requested that the Department to determine value for money and legal framework for the e partnership. Value for Money includes policy, financial, technical and economic benefits. Cabinet has approved the partnership with the Lead Entity for broadband roll-out. Due process to facilitate the appointment is underway. • Engagements between the Department and stakeholders are currently underway to finalise the appointment of the Lead Agency. Progress on Lead Entity Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

20. Policy Benefits Strategic Decisions • Government has taken a decision to intervene in the roll out of broadband to accelerate the bridging of the digital divide. • Government will derive value from the Partnership on different policy fronts as outlined in South Africa Connect, i.e. • Universal broadband roll-out. • Expedited roll-out to meet the aggressive targets • Minimise duplication of Infrastructure • Facilitate competition and reduce barrier to entry to the market through Open Access • Rationalisation of state Owned Entities to streamline Government’s investment to minimise unnecessary duplication of investment and efforts. • Roll-out of a network platform that is robust, future proof, high Quality of Service (QoS), and scalable, leveraging available network infrastructure. Value Proposition Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

21. Agreed Coordination Framework across All spheres of government Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 21

22. Provincial Broadband Steering Committees PBSC Progress • The main purpose of the broadband steering committees is to coordinate and facilitate broadband implementation across all the role players in the province and to ensure that the benefits of Broadband are achieved in the provinces. • Identify synergies and opportunities with other infrastructure projects with a view to aligning them to the Broadband implementation plan. • Ensure alignment between both existing and planned infrastructure roll-out of public and private sector operators; • Line Departments have appointed official in the steering Committee • Different task teams have been established to assist the steering committee in facilitating the implementation of broadband. • Demand stimulation initiatives have been identified and task teams appointed to ensure successful implementation. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

23. Collaboration between DTPS and Other Spheres of Government National, Provincial & Local User Departments (eg. DBE, DoH, DHA, etc) to make provision for these requirements DTPS to coordinate the rollout of infrastructure and services • The role of the DTPS is to ensure that there is a rollout of ICT infrastructure to all government institutions including schools. • The DTPS will work with other line departments to ensure that there is uptake and usage of broadband services in the country, facilitating e-government, e-education & e-health etc. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

24. Broadband Initiatives by State Owned Enteties Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

25. SOC Players in the Market Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 25

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27. Summary of Planned Infrastructure Rollout per Province for 2015/2016 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

28. Extensive use of technologies that do not provide bandwidth upgrade flexibility and high performance… Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

29. Immediate implementation: increase access bandwidth, migrate to fibre Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

30. SITA’s cost reduction programme Cost Reduction Programme • Make it easier for Government to upgrade: review the cost drivers • The campaign will run from 1st November 2015 to 31st March 2016 • It is only for new services and upgrades to existing services • This campaign will be followed by the SITA Tariffs approval for 2016/2017 • We will work with access line providers to ensure that we met the installations targets in line with our improved service level promises Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

31. Future services requiremuch more flexibility and high performance…the need for fibre Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

32. e-Government Service Development Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

33. Integrated Broadband Projects Vhembe Broadband Project • USAASA aligned its projects with SA Connect. The Vhembe District Municipality: • 5 Towers upgraded and live. The towers will provide 10 Mb/s Broadband Access to the following facilities: • 17 Clinics • 1 school for persons with disabilities • 1 police station Chief Albert Luthuli • Chief Albert Luthuli in Mpumalanga: • 8 Towers constructed and live. The towers will provide 10 Mb/s Broadband Access to the following facilities: • 21 Clinics • 1 school Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

34. E-skills Initiatives… Empowering Communities E-skills Initiatives to empower Communities • As part of South Africa's broadband and ICT policy, in fulfilment of SA Connect, communities need to be made aware of the digital opportunities around broadband and ICT. At present, it is critical to become computer literate. • It is important to note that, there should be an emphasis on e-skilling programmes that focus on the basics of computer literacy and how to use a computer since ICT has become part of our everyday lives. • A large proportion of activities at the workplace currently requires e-skills. • The target group for this training is: • Youth within communities; • Health workers in communities (Community clinics); and • Personnel at schools in communities (Administrative staff). NB: training will start with the identified 8 Phase 1 sites The intention is to empower youth and communities with e-skills. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

35. Proposed programmes The components of e-skill that will form the basis of this training are: • An introduction to Microsoft Word • An introduction to Microsoft PowerPoint • An introduction to, and using Email and internet • An introduction to Email Netiquette and web 2.0 • Cyber Security Awareness Programme or Information Ethics Training in phases: • Phase 1: A basic introduction and digital awareness • Phase 2: Skills training that covers Unit Standards in End User Computing • Phase 3: A full End User Computing Qualification at NQF Level 3 Soft Skills Courses Implementation Approach Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

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