Implementation of the National Broadband Plan: Digital Development Phase 1

1. Implementation of the National Broadband Plan: Digital Development Phase 1 South Africa Connect Presentation by: Kefilwe Madingoane Chief Director - Broadband Department of Telecommunications and Postal Services Republic of South Africa September 2014

2. Overview • The case for a National Broadband plan • South Africa Connect • Implementation challenges • Current Progress

3. The case for a National Broadband Plan • World Bank Report • 10% increase in broadband penetration 0.24 – 1.5% in GDP growth • Developing economies are on the upper range of the scale • United Nations Millennium Development Goals Report • MDG2: Achieve universal primary education e-Education • MDG4: Improve child mortality e-Health • MDG5: Improve maternal health e-Health • MDG6: Combat HIV/AIDS, Malaria and other disease e-Health • MDG7: Ensure environmental sustainability Broadband reduces carbon footprint • World Summit on Information society • well-developed information and communication network infrastructure can accelerate the social and economic progress of countries • WSIS accordingly defined and adopted ten targets addressing connectivity across different sectors. • Global Information Technology Report • SA has regressed with respect to development of ICT infrastructure • SA loosing its competitive vantage point when compared to global peers The NDP and the NGP both identify the knowledge economy as one of the drivers for job creation

4. Importance of Central Coordination • There are many broadband-related initiatives underway in SA but they are fragmented • Central planning framework will lead to effective planning without wasteful duplication of resources • A centralized strategy would define clearoutcomes; indicate objectives with immediate, medium term and long-term priorities • A centralized strategy allows for both top-down and bottom-up involving both public and private sectors • The centralized strategy should be comprehensive showing supply side and demand side interventions

5. South Africa Connect – Creating Opportunities and Ensuring Inclusion POLICY • Vision • Objectives • Principles • Definitions • Targets STRATEGY (to achieve policy objectives) • access - critical mass • affordable • improve use/diffusion • production/innovation PLAN Identification of high-level programmes/ activities to achieve strategic objectives (Ultimately roadmap of activities, timelines and budgets) VISION In line with the broader vision of the NDP, the 2020 Vision for broadband is that by 2020, 100% of South Africans will have access to broadband services at 2,5% or less of the population’s average monthly income.

6. South Africa Connect: Objectives • affordable, ubiquitous broadband to meet the diverse needs of public and private users, formal and informal business, and consumers and citizens • policy and regulatory conditions that enable investment by public and private sector players to reach South Africa's broadband ambition • efficient public sector delivery, including e-government services - national, provincial and municipal - have broadband connectivity ,extended to communities • public and private enterprise, formal and informal, able to fully exploit the efficiencies offered by broadband and its potential for innovation • a strong national skills base developed for the country to be a proficient and globally competitive knowledge economy • create environment for a vibrant creative and software industry producing content and applications relevant to meet the needs of the diverse users in the country

7. South Africa Connect: Targets Reviewed periodically and supplemented by pricing and quality of service targets as well as speed of installation and fault repair

8. South Africa Connect: Four-pronged strategy to bridge the gap • Supply side interventions – driving uptake and usage • Affordability of services and devises • Anchor tenancy by government • Alignment of regulatory framework • ICT skills development / e-literacy • Local content, applications, niche manufacturing stimulation • Supply side interventions – infrastructure development • Public / Private investment • Competition • Core / Access networks • Infrastructure sharing • Coordinated build programmes • Universal access - spectrum Digital readiness:Policy, regulation & institutional capacity Monitoring and Evaluation Targets Current state Digital Development:Public sector demand aggregation to address critical gaps Digital Opportunity:Skills & institutional capability, R&D, Innovation & entrepreneurship Content and Applications Road mapping Digital Future:National Broadband Network 10 year plan

9. South Africa Connect: Broadband Value-Chain Networks Services Devices Applications Content Strategy • Policy, legal & regulatory (institutional) framework • Coordinated and integrated action on network builds • Removal of administrative and regulatory bottlenecks • (rights of way) • Enforcement of wholesale access regulation • Rationalisation of state-owned companies • Appointment of Broadband Council • Connected Government • Aggregation of public sector demand • Infrastructure extensions • Health and education connectivity prioritised • National Broadband Network • Affordable, high speed broadband • Universal coverage through multiple delivery modes • Open access wholesale network • Fibre and terrestrial wireless and satellite • Public sector anchor tenant • Skills development • ICT curriculum/e-literacy • Skills to secure and create jobs to ensure equity and inclusion • Applications and local content development • Vibrant creative and software industry • R&D and innovation • Quality of life • National competitiveness

10. Understanding the gap • Coverage data not easy to source • Available information is outdated and unreliable

11. NHI Pilot Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

12. NHI Pilot: Schools in footprint Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

13. Police Stations and Government facilities Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

14. User Requirements • 8 NHI Pilot Districts Selected • URS developed for DBE, DoH and DRDLR. • URS involved only desktop analysis. Physical site verification still to be done. • Gap Analysis performed on each district and the biggest gap is in last mile connectivity. • Backbone network does not reach rural communities. • KPIs to measure for 2015/16 business case are:

15. Developing a comprehensive plan Policy approved 4 Dec 2013 2016 Target 50% of all schools, health & govt facilities connected Test Smart Procurement Implement a realistic scope Limited Planning Design a realistic scope Prepare a realistic budget for Year 1 1 Year realistic budget approved Implement Budget for Year 1 Smart Procure-ment Comprehensive Planning for all 4 pillars Comprehen- sive Design Comprehensive Implementation Prepare a comprehensive budget 3 Year Budget Approved Implement Budget for Year 2 Comprehensive Planning for all 4 pillars Comprehen- sive Design Comprehensive Implementation Smart Procure-ment Systematic approach to achieve targets Prepare a comprehensive budget 3 Year Budget Approved Implement Budget for Year 3 15

16. Managing Inter-dependencies The Digital Opportunity plan will show when training of users in clinics for a particular area will need to be done Digital Opportunity There are clear interdependencies between the various pillars Digital Development Technical Plan Business Case The Digital Development plan will show when a particular clinic will be connected NB!! NB!! Digital Future Digital Readiness

17. Stakeholder Environment • DTPS • Finance Government agencies

18. Stakeholder Engagements • Stakeholder engagement is the single most significant determinant of success • Stakeholders have different interests and hence it is difficult to reach agreement • Need a team that focuses on stakeholder engagement

19. Progress • Policy approved in December 2013 • An multi-stakeholder steering committee and task teams have been established to drive the implementation • A National broadband Advisory Council was appointed which includes stakeholders from government, labour, business and academia. • The Business Case was submitted as part of the 2014 MTEF budget bid submission • The development of detailed implementation plans for the four pillars of the strategy are currently underway.

20. THANK YOU