PRESENTATION TO PARLIAMENT PORTFOLIO COMMITTEE ON COMMUNICATIONS

1. PRESENTATION TO PARLIAMENT PORTFOLIO COMMITTEE ON COMMUNICATIONS PRESENTATION BY THE DEPARTMENT OF COMMUNICATIONS 04 OCTOBER 2004

2. PURPOSE... • Empowering members of the Portfolio Committee and informing them of: • Policies • Legislation • Programmes and • Other relevant issues in the Domain of the Department • Give members of the Portfolio Committee an overall understanding of the Department’s: • operational, • Political, and • Legislative side

3. INTRODUCTION • This presentation first and foremost seeks to provide an overview of the ICT sector policy, legislative and regulatory environment since the dawn of a new democratic dispensation in South Africa. • It highlights key priority projects and programmes championed by the Department of Communications since 1994.

4. POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK OF THE ICT SECTOR • The framework is informed not only by the country’s core Constitutional imperatives but also to a large extent by key Government priorities enshrined in numerous Government programmes such as the Reconstruction and Development Programme as well as a myriad Cabinet resolutions adopted in the past Decade of Democracy. • Policy, legislative and regulatory frameworks as will be outlined in this report is basically how South African society deals with its ICT needs and aspiration in an institutionalized and regularized manner.

5. POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK OF THE ICT SECTOR • This framework includes: • Policy documents, Legislation and Regulations. • Policy capacity and competencies within government departments. • Regulatory bodies capacity such as Independent Communications Authority (ICASA) including other Statutory Bodies i.e. the Competition Commission, the Human Rights Commission etc.

6. POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK OF THE ICT SECTOR • Implementing bodies such as South African Broadcasting Corporation (SABC), SENTECH, National Electronic Media Institution of South Africa (NEMISA), South African Post Office (SAPO), Institution for Software and Satellite Applications (ISSA), Mobile operators (Vodacom, MTN & Cell C), Universal Service Agency (USA), Telkom, and Second National Operator (SNO).

7. POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK OF THE ICT SECTOR • Media Statutory Bodies that operate in media, Broadcasting Monitoring Complaints Commission (BMCC), Broadcasting Complaints Commission of South Africa (BCCSA), Film and Publications Board, National Film and Video Foundation (NFVF), Media Development and Diversity Agency (MDDA), PANSLAB, Provincial Film Commission etc.

8. POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK OF THE ICT SECTOR • Civic Society Structures that are concerned with societal impact of media, i.e. National Association of Broadcasters (NAB), National Community Radio Forum (NCRF), Christian Broadcasters Association (CBA), Independent Forum for Religious Broadcasters (IFRB), South African Communications Forum (SACF), National Postal Forum (NPF), Women ICT (WICT), Children’s Broadcasting Foundation for Africa, Labour Organisations and all other relevant industry stakeholders.

9. EXISTING ICT POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK • Since the democratic dispensation, South Africa has produced the following policy, legislative and regulatory programmes pertinent to the ICT sector: • BROADCASTING • Independent Broadcasting Authority Act No 4 of 1993 • Triple Inquiry Report • Department of Communications Rationalization Act No 10 of 1998 • Former States Broadcasting Re-organization Act No 91 of 1996

10. EXISTING ICT POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK • Broadcasting Act No 4 of 1999 • Broadcasting Amendment Act of 2002 • Broadcasting Regulations • Sentech Act No 63 of 1996 • Sentech Amendment Act No 44 of 1999 • National Film and Video Foundation Act No. 73 of 1997 • Films and Publications Act No 34 of 1999 • Independent Communications Authority of South Africa Act No 13 of 2000

11. EXISTING ICT POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK • Media Development & Diversity Agency Act No 14 of 2002 • Community Multimedia Services Policy • Digital Migration Strategy • Content and Language Development Strategy

12. EXISTING ICT POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK • TELECOMMUNICATIONS • Telecommunications Act, No.103 1996 • Telecommunications Amendment Act No 64 of 2001 • Telecommunications Amendment Act No 12 of 1997 • Electronic Communications & Transactions Act No 25 of 2002 • Electronic Communications Security (Pty) Ltd Act No 68 of 2002

13. EXISTING ICT POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK • ….TELECOMMUNICATIONS… • Regulation of Communications and Provision of Communications Related Information Act No 70 of 2002 • Telecommunications Regulations • Convergence Bill of 2003 • E-Strategy • BEE Strategy

14. EXISTING ICT POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK • POSTAL … • Former States Posts and Telecommunication Act No 5 of 1993 • Postal Services Act No. 124 of 1998 • Postal Services Amendment Act No. 33 of 2001 • Postal Services Regulations

15. EXISTING ICT POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK • OTHER ICT LAWS • State Information Technology Agency No 88 of 1998 • State Information Technology Agency Amendment Act No 38 of 2002 • Promotion of Access to Information Act No 54 of 2002 • Restructuring of State Owned Enterprises

16. POLICY AND LEGISLATIVE CONSTRAINTS IN THE SECTOR • The ten years hindsight into democracy and reconstruction and development of the country indicates the following about the ICT policy environment: • Too technology dependent as opposed to service orientation • Structural and functional fragmentation and lack of coherence • Limitedly informed by possible future scenarios characterized by convergence

17. POLICY AND LEGISLATIVE CONSTRAINTS IN THE SECTOR • Limited policy performance monitoring and evaluation to establish societal impact leading to a crisis of service delivery • Limited capacity to implement by portfolio organizations and other relevant implementing agencies • Though interventionist and successful in dismantling the apartheid superstructure, the framework is sometimes viewed as conflicting with key commercial imperatives of the sector.

18. CHALLENGES FOR THE SECTOR • Black Economic Empowerment (BEE) - Expertise exist but funding is difficult to manage. • Market structure review. • Conflicts of government as policymaker and shareholder • Regulatory skills development - Constrained to attract skilled personnel within the requirements of the legislative framework governing the regulator

19. CHALLENGES FOR THE SECTOR • Increased utilisation of e-mail and electronic communications within the postal sector to engender significant growth in the postal market. • Creation of alternative revenue generating structures and innovative funding models. • Universal service delivery and affordable access - Conflicts in many instances over commercial imperatives. • Digital divide - How to systematically accelerate and facilitate its inevitable demise

20. CHALLENGES FOR THE SECTOR • Globalisation - cost effective and domestically relevant participation. • Skills development & HR capacity - Funding limitation • Restructuring of the Department to ensure that it achieves its business objectives. • Implementation of the ICT Sector Summit Agreement • Implementation of ISRDP, URP and broader MPCC initiative of government.

21. CHALLENGES FOR THE SECTOR • Formulation of deliberate strategies to harness ICT’s for socio-economic development. • Leveraging ICTs for the development and preservation of indigenous knowledge management and educational systems

22. FUTURE FOCUS AREAS FOR THE SECTOR • Presidential National Commission on Information Society and Development (PNC-ISAD) • Convergence Law • Divestiture Strategy • Digital migration strategy • Content and language development strategy • Adoption of E-strategy • African Advanced Institute for Information and Communications (AIICT)

23. FUTURE FOCUS AREAS FOR THE SECTOR • An integrated framework for training and development with respect to AIICT, ISSA and NEMISA • Implementation of AIICT business plan in 2004. • Promotion of universal service using mobile applications. • Monitoring and evaluation mechanisms • Shareholder/Corporate Governance Issues • Corporitisation of Postbank • Establishment of PPP models

24. FUTURE FOCUS AREAS FOR THE SECTOR • Strengthening and consolidation of Inter-governmental relations • Implementation of NEPAD objectives • Restructuring the activities and organisational structure of the Department.

25. THE DEPARTMENT OF COMMUNICATION’S HIGH PRIORITY PROJECT LIST • Restructuring of the Department of Communications • Restructuring of State Owned Assets • Convergence Bill • Divestiture Strategy • Broadcasting Content and Language Development • Digital Migration Strategy • E-Strategy for South Africa • Infrastructure Development strategy

26. THE DEPARTMENT OF COMMUNICATION’S HIGH PRIORITY PROJECT LIST • Expanded Public Works Programme • Community Development Workers Programme (Letter from DPSA) • Human Resource Development: NEMISA, ISSA AND AIICT • International Affairs/NEPAD • Knowledge Management and Development • Gender, Youth and Black Economic Development • Development of ICT SMMEs • ICT BEE CHARTER

27. THE DEPARTMENT OF COMMUNICATION’S HIGH PRIORITY PROJECT LIST • ISRDP/URP • Shareholder Management • Revamp of internal management systems (CRM) • Revamp of Departmental Communication and Information Technology Services • Ten Year Celebration Strategy • Broadband Policy

28. DEPARTMENT OF COMMUNICATION’S WORK IN PROGRESS • EXISTING BROADCASTING SECTOR PRIORITY PROJECTS • Regional Language Television Services • Digital migration strategy • Corporitization of Channel Africa • Content and Language development strategy • Integrated disability policy • Funding models for the Public Broadcasting Service, ICASA, NEMISA, ISSA and AIICT • Shareholder Management Issues

29. DEPARTMENT OF COMMUNICATION’S WORK IN PROGRESS • FUTURE FOCUS • Development, promotion and distribution of South African local content to foreign markets • Development of BEE strategies to empowerment SMMEs in previously disadvantaged communities. • Children’s broadcasting policy

30. DEPARTMENT OF COMMUNICATION’S WORK IN PROGRESS • POSTAL BUSINESS UNIT PRIORITY PROJECTS • Transformation of SAPO • Corporitisation of the Postbank • Implement recommendations of the Kroll Report

31. DEPARTMENT OF COMMUNICATION’S WORK IN PROGRESS • FUTURE FOCUS • Rationalise/reconcile postal policies and legislation in line with national and international trends • Finalise regulations and licensing regime for the postal sector • Finalise framework to separate Postal Regulator from DoC • Legislative framework for the Postbank • Roll-out of the National Address System (providing addresses to the un-addressed) • Position SAPO to deliver on social projects for government.

32. DEPARTMENT OF COMMUNICATION’S WORK IN PROGRESS • TELECOMMUNICATIONS BUSINESS UNIT PRIORITY PROJECTS • Divestiture Strategy • Convergence Bill • SNO/Market Study • ECT Act • 1800 Spectrum • Broadband Policy • Outstanding issues in terms of the Telecommunications Act

33. DEPARTMENT OF COMMUNICATION’S WORK IN PROGRESS • FUTURE FOCUS • Divestiture • Implementing the ECT ACT • Universal services/access • HR Development • Convergence Issues • Managed liberalization– SNO/TNO/ provision of telecommunications services by other operators

34. OTHER RELEVANT ISSUES IN THE DOMAIN OF THE DEPARTMENT • South African Government has taken a deliberate and strategic decision to be an active participants in the Information Society, digital convergence and all other related ICT developments. • South Africa, has made its stance known on the information society and digital converging media environment in various documents, ranging from the Triple Inquiry Report, Broadcasting Policy, Telecommunications Policy, Postal Policy and Electronic Communications and Transactions Policy

35. OTHER RELEVANT ISSUES IN THE DOMAIN OF THE DEPARTMENT • Through the Ministry of Communications, which has the responsibility for ICT policy in South Africa, South African government participates and chairs the African ICT Ministerial Meetings, bilateral and multilateral ICT co-operations and discussions with various developing countries. • Through the Nepad e-strategies and other ICT initiatives, South Africa promotes and stages various activities for diffusing ICTs and tackle the development of human resources around ICTs. • South Africa is a member, and shares its experience for promoting development using ICT with those of other countries, of the United Nations ICT Task Force and the Dot Force that was launched by the G8 initiative at the Okinawa Summit.

36. OTHER RELEVANT ISSUES IN THE DOMAIN OF THE DEPARTMENT • President of South Africa, together with other Heads of States, agreed to a framework of 8 goals, 18 targets and 48 indicators to measure progress towards the United Nation’s Millennium Development Goals, which was adopted by a consensus of experts from the United Nations Secretariat and IMF, OECD and the World Bank. • South Africa also agreed with the World Summit on the Information Society envisaged in the Declaration of Principles: Building the Information Society: a global challenge in the new Millennium; and its Plan of Action, which has concrete action lines to advance the achievement of the internationally-agreed development goals, including those in the Millennium Declaration, the Monterrey Consensus and the Johannesburg Declaration and Plan of Implementation, by promoting the use of ICT-based products, networks, services and applications, and to help countries overcome the digital divide.

37. OPERATIONAL... • In preparation for its execution of Government’s mandate the Department of Communications has undergone a major re-engineering exercise and has come out with a strategic implementation plan that has: • redefined its mandate, • revamped its structures, • and re-organized its working processes identifying its key performance areas and outputs in a determined push to guarantee accelerated delivery for this sector.

38. OPERATIONAL... • The above took its lead from various strategic directives as contained in the President’s State of the Nation address, the Cabinet Lekgotla and the overwhelming electoral mandate given, to redefine the mandate of the DOC as: “To create a favorable ICT environment that ensures that South Africa has the capacity to advance its socio economic development goals, to support the renewal of Africa and to create a better world.”

39. OPERATIONAL... • We have revised the vision and mission statements of the DoC as follows: VISION: A Global Leader in harnessing Information and Communication Technologies for Socio-Economic Development.

40. OPERATIONAL... MISSION • To enhance the well being of the peoples of South Africa, The African continent and the world through the creation of sustainable and enabling information and communications technology environment. • We shall through leveraging our world class knowledge, skills and experience, deliver on our social contract to the people in a professional manner reflective of our national value system informed by the Batho Pele ethos.

41. OPERATIONAL... • In addition, we committed ourselves to a values framework that embraces the principles of: • Respect and fairness, • Honesty and trust, • Discipline and loyalty • Accountability and transparency • Integrity and excellence

42. OPERATIONAL... • In our redefined Vision and Mission statements impose on us the responsibility to grasp the importance and role played by ICT’s in the world given the context of the globalization. • Our focus, therefore, will be on ICT Strategies to stimulate economic growth and the role ICT’s can play in supporting poverty alleviation. • The challenge we therefore have to accept is to define a policy and implementation framework that bears all of this in mind.

43. OPERATIONAL... • In this respect the DOC has accepted its responsibility to have its eyes focused on ways it could through policy and implementation: • stimulate growth, • create jobs, and • facilitate development and social progress in both the first and second economies

44. OPERATIONAL... • Our strategic thrusts in our programme therefore relate to: • Transforming and Democratizing the sector • Creating appropriate conditions for the managed liberalization of the sector • Ensuring universality and affordability of ICT services to the people. • Ensuring access to updated and latest technological innovations in the sector and the modernizing and expansion of the ICT infrastructure in the country

45. POLITICAL… • The following propositions are fundamental to our implementation programme: • Fostering and Broadening Economic Growth in the sector • Stimulating Economic Competition: Managed Liberalization • Widening Access: Closing the Digital Divide • Convergence: Gearing for the New Wave • Digitization and Digital Migration: Modernisation of the Communications Infrastructure

46. POLITICAL… 6.Democratization, Transformation and Reconstruction • Provision of Basic Services and Widening Service Options: Delivering a possibility of Choice • Broadcasting Services: Facilitating the Emergence of a New Nation • Many Cultures but One Nation: We are one • Social Cohesion: Elements of a Winning Nation

47. POLITICAL… • Indigenous Cultural Expression: Putting the New Nation on a Firm Foundation • Media Transformation and Diversity (Advertising and Marketing) • Reconstruction of Social Perspectives • Reconstruction of International Perspectives: Mobilizing International • Reservoir of Support • Reconstruction and Transformation of the Postal Services: Development of a People’s Based Service Network

48. POLITICAL… • Driving Down the Costs of Services and Doing Business in South Africa • Value Engineering: Enhancing Shareholder Equity Value • Empowerment: Broadening the Base of Economic Participation • Leading an African Vision amongst the Global Best

49. POLITICAL… • The following principles will guide the Department in our approach to implementation of the programme: • Sustaining Mass Participation and Contact • Guaranteeing Service Delivery and Efficiency • Exercising Political Oversight and Accountability to the People • Spreading Risk: Reducing the Burden on the Fiscus: PPP Financing modeling • Listening to the Plurality of Voices in our Society

50. POLITICAL… 6. Facilitating a Collaborative Partnership with Stakeholders • State Owned Enterprises (SOE’s) • Industry Players • Community and People Participation • Civil Society Formations 7. Creating Greater Consensus: Implementing a Vision of a Caring and Sharing society