of Communications (Vote 27) for the 2004/05 financial year and the estimates for

2005/06 and 2006/07 included in the Estimates of National Expenditure 2004,

and reports as follows:

A. The DoC (Department of Communications)

The vision of the department is to be a global leader in harnessing information

and communications technologies for socioeconomic development while its

mission is to enhance the wellbeing of peoples of South Africa, the African

Continent and the world through the creation of a sustainable and an enabling

information communications technology (ICT) environment. As part of its mission,

it endeavours to, through leveraging its world-class knowledge, skills and

experience, deliver on its social contracts to the people in a professional manner

reflective of its national value system and informed by Batho Pele ethos.

The DoC’s vision and mission are underpinned by the following key performance

areas:

__ A policy framework to facilitate universal access.

__ Develop an e-strategy framework.

__ Develop an ICT framework.

__ Develop and ICT competition framework.

__ Develop mechanisms to support local content.

__ Finalise the Convergence Bill.

__ Produce a migration policy framework for public broadcasting.

__ Facilitate the restructuring of SOEs (state-owned enterprises).

__ Oversee the delivery of Government-policy targets.

___ Facilitate the appointment of boards of directors of SOEs.

___ Analyse SOEs’ financial performance.

___ Undertake a benchmarking exercise on the financial performance of SOEs.

___ Evaluate the financial implications of universal obligations.

___ Analyse convergent technologies.

___ Analyse the viability of emergent technologies to enable universal access.

___ Develop a network model for the provision of educational services.

___ Provide affordable and high-quality access of regional broadcasting.

___ Ensure compatibility and interoperability of ICT standards.

___ Facilitate the development of strategic planning.

___ Ensure effective participation in intergovernmental activities.

___ Promote equity of designated groups in DoC.

___ Build mutually beneficial relations in the ICT sector.

___ Develop an effective SADC ICT substructure with a clear ICT programme.

___ Promote South African business on the Continent and internationally.

___ To assist the Minister in ensuring and maintaining effective, efficient and

transparent systems of financial and risk management, internal controls, and

a fair procurement and provision system.

___ Budget management and financial control.

___ Provide a secretary service to the DTC.

___ To ensure and maintain effective and appropriate steps to prevent

unauthorised, irregular, fruitless and wasteful expenditures and losses.

Table 1: The DoC’s Medium-term Expenditure F ramework Estimates

Administration 88 607 84 198 91 269 95 292 101 008

Telecommunications

Policy

146 796 144 062 134 649 142 670 151 230

Postal Services 1 090 186 1 088 027 356 490 372 199 394 531

Multi-media

Services

312 948 312 319 285 668 296 904 316 298

Auxiliary and

Associated Services

6 682 6 356 7 124 7 438 7 884

S AND COMMITTEE REPORTS NO 52—2004

Table 2: MTEF per Econom ic Classification

Current

payments

225 413 215 156 202 463 224 497 242 169

Transfers and

subsidies

1 403 702 1 403 701 647 224 662 384 699 007

Payments for

capital assets

16 105 16 105 25 513 27 622 29 775

Table 3: T ransfer Payment Details

USA 14 211 15 884 17 500 20 100

USF 24 745 26 230 29 400 31 164

Advanced

Institute for ICT

11 000 13 000 7 000 -

ISETT-seta - 2 350 2 800 3 300

Multi-purpose

Community

Centres

- 2 000 3 000 3 500

South African

Post Office

subsidy

1 050 000 300 000 300 000 318 000

SAPO: Pit - 8 480 10 000 10 800

SAPO: Extension

of Services

- 7 950 8 500 9 000

SABC: public

broadcaster

44 717 47 400 50 455 53 482

SABC: TBVC

states

40 000 - - -

SABC: Channel

Africa

26 288 27 865 29 616 31 393

Community

Radio Stations

9 000 9 540 10 255 10 870

Programme

Production

30 100 28 500 31 000 33 200

NEMISA 15 153 16 878 18 163 19 199

The 2004 Estimates of National Expenditure reports an uneven spending during

the past three financial years by the DoC, mainly as a result of the spending on

the Post Office subsidy. This subsidy was removed in 2000/01, but was

reintroduced in the 2001/02 and 2002/03 financial years.

The DoC budget appears to be in line with the Government’s expenditure

priorities. It should be interpreted against the backdrop of the extension of key

public services, particularly in the social sector and in infrastructure delivery. The

budget prioritises services that target the poor and vulnerable groups, while

advancing programmes that provide greater impetus for economic growth and

broad-based development.1

In 2002/03, the department’s revenue was R50,3 million, made up as follows:

In the current financial year, the department received R53,0 million, made up as

follows:

1. A Coherent Framework: The DoC must provide communications access

within a coherent framework, involving all sectors of society.

2. Frequency Sharing: National requirements on frequency sharing are to be

submitted by October 2004, followed by timeframes on migration.

3. ICT Application: ICTs are to be applied in the delivery of social services, viz.

in education, health, agricultural production, crime prevention, etc.

4. An Intersectoral Approach: An intersectoral approach is favoured to

migration initiatives since the DoC cannot be the only role-player in such

initiatives.

5. Migration of Broadcasting: Broadcasting must be migrated into the new

broadcasting arena, continentally and internationally.

6. Outreach across Government Departments: Various Government

Departments, such as Home Affairs, Minerals and Energy, Science and

Technology, and Trade and Industry, apply ICTs – the DoC, therefore, could

play an interactive role in such initiatives.

7. A Policy Framework: A policy framework for the public broadcaster is

currently required.

8. Public-private Partnerships: The private sector’s research capacity could be

harnessed and could involve the DoC as a strategic partner.

1 As quoted from the 2004 Budget Review, p. 120.

544 [Tuesday, 24 August 2004

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 52—2004

9. Research: Rapid progress in technology application necessitates applied

research in the fields of IT and ICT applications, with a strong focus on

convergence technologies.

10. Restrictions: Unnecessary restrictions on communications technology may

have to be removed.

11. Restructuring: The DoC envisages the restructuring of its economic cluster,

initiated by its parastatals. These will be implemented up to Cabinet level.

12. SMMEs should assist in lowering the cost of communications.

13. Universal Access: Since not all South Africans receive broadcasting, the

DoC must develop a policy framework for universal access.

B. Nemisa (National E lectronic Media Institute of South Africa)

Established in 1998 and funded through the DoC, Nemisa’s mandate is to

provide a bridge between academic training and work or employment, focusing

on traditional broadcasting such as radio and television production training.

Nemisa’s board of directors is appointed by the Minister of Communications, with

a staff complement of 26 (including management). Attracting students from all

over South Africa, Nemisa’s main focus is on administration.

It currently offers the following 3 tertiary qualifications: (a) the Radio Production

Diploma, which places the focus on introduction to radio, current affairs

programming for radio, research and programme development, post production

and packaging, writing for radio and a three-month internship; (b) the Television

Production Diploma focuses on writing for television, news gathering, processing

and presentation, camera and lighting, production and post productions, audio

and graphics, and a three-month internship, and (c) Creative Multimedia

(animation design and information design).

Table 1: Nemisa’s S tudent Statistics

2000 2001 2002 2004

Programme Enrolled Completed Enrolled Completed Enrolled Completed Enrolled Completed

Creative

Multimedia

- -

40 27 25

21 will

complete

June 2004

38 ?

Television

Production 17 17 22 20 - - 21 ?

Radio

Production 14 14 18 15 - - 15 ?

Tuesday, 24 August 2004] 545

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 52—2004

Table 2: Nemisa’s M edium-term expenditure a llocation

2003/04 R15 153 000

2004/05 R16 878 000

2005/06 R18 163 000

2006/07 R19 199 000

Table 3: Nemisa’s S ources o f Funding

84% Grants

8% Administrative Fees

6% Equipment/Facility Hire

2% Short Courses

Table 4: Nemisa’s 2003/04 expenditure

34% Staff-related Expenses

26% Operational Expenses

21% Lease rental

13% Student Costs

6% Licence Fees

Nemisa’s budget forms part of Programme 4, the Multi-media Service Policy, of

the DoC budget, which is made up of the Policy and Legal cluster, the Finance,

Budgeting and Shareholder cluster, the Community Services cluster, and the

New Services cluster. The budget allocated to these four clusters addresses the

formulation of policy and regulations with regard to convergence from an

analogue to a digital system, restructuring of the SABC, South African content

and local production, with a focus on funding for local content development, for

infrastructure roll-out, funding of the digitisation of infrastructure, and funding for

broadcasting services in South Africa’s 11 languages.

Nemisa’s sources of revenue for the 2004/05 financial year is as follows:

Grants R16,878 million.

Learnerships R500 000.

Other R2,6 million

546 [Tuesday, 24 August 2004

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 52—2004

__ Channel Africa: At present, Channel Africa receives all its funds from the

State. If Channel Africa’s position is to be sustained and strengthened, other

sources of funding should be explored.

__ Communications: Indications are that the creation of competition (for

instance a third cellular operator) either had a marginal impact on price

reduction, or no impact at all. Although competition in the communications

sector does not appear to have an immediate impact on the lowering of

prices, over a period of four to five years, the price of some communications

facilities may come down.

__ Convergence: The Convergence Bill will be tabled in national Parliament in

the third quarter of this year. Technology-specific legislation which could

hamper convergence may have to be removed. Drawn-out licencing

processes drain Nemisa’s resources.

__ Economy: In the process of managing progress in the ICT and the

communications sector (with particular reference to a Second National

Operator) cognisance must be taken of South Africa’s dual economy. The

State must play a role in serving all of its citizens; it must create

employment, bring down the price of communications, provide universal

access and close the digital divide which separate the haves from the havenots.

__ Multi-purpose Community Centres (MPCCs) are vitally important links to

communications technology, particularly in rural areas. Funding to MPCCs

poses an ongoing challenge.

__ Skills Shortage: Nemisa’s role in identifying skills shortages in key areas

such as research, development and training has to be done in partnership

with, amongst others, the Department of Education; the institute is not in a

position to address these shortages alone.

__ Students: Nemisa currently places approximately 60% of its students in the

media industry. Addressing the skills shortage in the media sector is of

paramount importance, with particular reference to progress to the level of

full employment of Nemisa’s students.

C. SAPO (South A frican P ost O ffice)

A synopsis of the Post Office’s operational environment:

SAPO’s mission includes connectivity through the distribution of information,

goods and financial services. Its short-term objectives are to:

__ Curb postal crime.

__ Improve its delivery performance.

__ Reach a financial break-even point in the near future.

Tuesday, 24 August 2004] 547

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 52—2004

SAPO’s reported key achievements

__ As of 31 March, its operating loss was reversed to an operating profit of

R35,5 million (with an initial target of R1,8 million).

__ An improvement of R205 million in operating profit.

__ A 6,3% revenue growth (R261 million).

__ A 1% cost increase.

__ An aggressive approach to managing costs and curtailing non-value adding

expenditure.

__ The creative management of capital expenditure through partnerships.

__ A decrease in staff numbers of 1 042 due to voluntary packages.

__ An improvement of working capital.

__ A reduction of Post Office debtor days from 30 to 20.

___ Generating approximately R270 million cash from operations.

___ A year to March 2004 growth of R560 million in Postbank’s depositor’s book.

___ The introduction of the Thuso insurance product and new savings products.

___ A growth of 28% in new accounts (528 000).

SAPO’s balance sheet improvements

__ Negative retained earnings of R1,4 billion as at March 2004.

__ The aforementioned is to be resolved by means of:

a. A reduction in post-retirement medical aid liability of R2,3 billion

(provided R1,1 billion).

b. The Postbank recapitalisation of R750 million.

c. A review of property values.

d. Sustainable profitable performance.

SAPO reported the following 2003/04 key projects

__ 51 Post Offices have been installed with "new image" or upgraded.

__ SAP upgrade.

__ E-BDN.

__ Fixed-assets project.

__ Server consolidation.

__ Upgrade of the network.

__ Biometrics.

__ On-line private box renewals.

__ Financial switch.

SAPO’s pensioner position

SAPO reported that pensioners who retired prior to 1994 enjoy lucrative PRMA

benefits, some contribute less than a third, whilst other make no contribution, and

a part of the benefits was provided by the previous Government, which resulted

in a huge liability for SAPO. An agreement was signed in 1994 for pensioners

548 [Tuesday, 24 August 2004

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 52—2004

who retired after this date – prior to the election of the democratic Government.

Approximately 1 500 pensioners are previous Government pensioners – those

who form part of this major liability.

SAPO’s financial liability

Currently, SAPO’s liability stands at approximately R2,3 billion, impacting

negatively on the net effect of the balance sheet, which escalates annually.

Current SAPO employees are obliged to contribute a third towards medical aid.

SAPO reported the following initiatives to reduce liability

__ The removal of this benefit for all newly-appointed or promoted employees

since October 2002.

__ Capping the benefit for all employees on total package dispensation.

__ SAPO brought off the benefit for employees who opted for voluntary

packages thus far.

SAPO reported the following contribution reserve

__ SAPO invested approximately R138 million for reserve funding, which has

grown to approximately R340 million.

__ As a commercial settlement, the board of trustees proposed to allocate

R250 million to the company, and the balance of R90 million to the fund.

__ For technical reasons, the aforementioned has not been implemented.

SAPO’s 2003/04 Financial overview

Operating income R4 352 474 000

Operating expenses R4 316 946 000

Operating profit R35 528 000

__ Public Information Terminals (PITs): Although PIT activities are important to

SAPO in providing information and Internet training, SAPO could not

determine the trend of usage.

__ Delivery: SAPO’s current delivery of 6,5 million letters a day should not be

seen as a limit; SAPO hopes that the volume of letters for delivery will grow.

__ Mail delivery in informal settlements: Some SAPO staff is currently trained

for mail delivery in such areas. The commercial banks share SAPO’s

concern that mail should be delivered to such areas, bearing in mind that the

majority of such areas do not have water and sanitation. SAPO works

together with the National Address Database, the metro cities, and the

provincial and local governments in order to deliver mail in informal

settlements.

__ SAPO’s pension liability relates to the life expectancy of its pensioners.

According to research done by SAPO, its pensioners generally have a life

expectancy of 20 years following their retirement, together with continued

membership of dependents.

__ Staff reduction: Since staff and transport costs present SAPO’s major items

of expenditure, it had to find acceptable ways to reduce its staff numbers. In

doing so, SAPO sticks to voluntary retrenchment.

__ Stamps: SAPO expressed the wish that South African stamps produced will

motivate people to collect stamps. Indications are that the philately industry

is growing rapidly. This view is supported by the 1998 White Paper on

Postal Policy, which encouraged SAPO to develop a strategy to expand the

collector’s market and to develop and improve philately services.2

__ Universal access is equally important to SAPO as to the other

communications role-players. The delivery of mail in some areas and the

non-delivery in other areas is changed to a non-discriminatory approach. For

that reason, the building of infrastructure in rural areas is equally important

to the maintenance of well-equipped centres in affluent urban areas.

D. ICASA (Independent Communications

Authority o f South Africa)

Established in July 2000, in terms of the ICASA Act, Act 13 of 2000, ICASA

regulates the telecommunications and the broadcasting sectors. The authority

derives its mandate from the Independent Broadcasting Act of 1993, the

Broadcasting Act of 1999 and the Telecommunications Authority Act of 1996.

Law

__ Since ICASA operates in a highly litigious environment, it constantly deals

with litigation.

__ In the 2003/04 financial year, ICASA faced 10 litigation matters, the majority

of which are instituted in the High Court and the Supreme Court of Appeal,

which required external legal counsel.

__ Its legal department had a R3 000 000 budget in 2003/04 for external legal

fees.

__ The lack of budget results in decisions having to be made not to oppose

matters in court and to abide by court decisions.

__ Increased funding would enable ICASA’s legal department to defend its

decisions more effectively.

2 Source: The White Paper on Postal Policy, 1998, published by the Department of

Communications.

Communications

__ Media liaison.

__ Stakeholder liaison (a stakeholders meeting is held annually).

__ The communications department exhibited at several exhibition sites in the

2003/04 financial year at a cost of R245 000.

__ Newspaper subscriptions at a cost of R117 000 are managed for council

and staff by ICASA’s communications unit.

__ Staff functions are co-ordinated to commemorate events.

Consumer protection

__ The communications unit intensified its outreach programmes.

__ It held road shows in the Eastern Cape, Northern Cape and Mpumalanga

provinces.

__ Addresses are given at schools, public functions, clinics and municipal

events, and radio programmes are conducted for public education.

__ Promotional material is procured for these events.

__ Educational officers conducted public awareness programmes.

__ A pamphlet – a guide to telecommunications – has been produced and

distributed.

__ A memorandum of understanding was signed with telecommunications

operators on dealing with consumer complaints.

__ A committee for the disabled to liaise with organisations representing the

disabled in order to keep abreast of the needs and problems encountered by

the disabled.

__ Similar committees and consumer groups would be established given

increased funding.

Council support

__ The council support unit supported ICASA processes.

__ 18 hearings were held in 2003/04 co-ordinated by the unit.

__ Books, publications and membership to professional organisations for

councilors are procured by this unit.

__ Increased funding would facilitate more intensive workshops for councilors

to keep them updated with legal and technological developments.

International relations

__ ICASA supports and subscribes to TRASA (the Telecommunications

Regulators of South Africa), the International Telecommunications Union

(ITU), the AUT, RIARC (Reseau de Partenaires des Medias Africains),

SABA (the South African Broadcasting Association) and participates in

international ministerial meetings.

__ It hosts TRASA workshops and contributes to TRASA activities.

__ ICASA was appointed to chair RIARC at the last AGM.

__ Further involvement in international events would enable ICASA to conduct

studies and attend training to strengthen its regulatory capabilities in line

with international standards.

__ Translations and interpretation costs are incurred with hosting delegations

and translation of documents, and ICASA hosts visits from other African

states.

ICASA’s key 2004/05 outcomes are to –

__ Minimise litigation risks.

__ Procure a complaints management system.

__ Continue outreach and road shows.

__ Increased funding would enable ICASA to reach many more areas.

__ Enforce MoU on complaints handling.

__ More stakeholder meetings.

__ Implement local media monitoring.

__ Investigate the establishment of a call centre.

ICASA’s telecommunications policy analysis

__ Finalised regulations i.r.o. COA/CAM for mobile operators and regulations

i.r.o. PSTN-to-PSTN interconnection.

__ Reviewed carrier pre-selection regulations.

__ Developed guidelines for trial and launch of new services and the legality of

wireless local area networks (WLANs).

__ Commenced with the development of number portability regulations which

will satisfy the needs of South African users.

ICASA’s Telecommunicatons outputs for 2004/05 include:

__ A central-numbering database.

__ Number-portability regulations.

__ Reviewing the fixed-line tariff regime.

__ Telkom’s PSTS licence.

__ The short-code strategy.

__ The SNO licence.

__ Under-serviced area licencing.

Telecommunications: licencing, enforcement and number administration, a

synopsis

__ Carried out most of the processes towards the licencing of under-serviced

area licences.

__ Developed a comprehensive framework for the licencing and regulation of

VANs and PTNs.

552 [Tuesday, 24 August 2004

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 52—2004

__ Developed a numbering plan that will encourage competition within the

sector.

__ Began development of a short-code strategy for South Africa.

__ Started work on the amendment of Telkom’s licence in preparation for

competition.

__ Updating and finalising terms and conditions for the SNO licence whilst

amending the Telkom licence.

__ Developing a central numbering database as required in terms of the Act.

__ Undertook the licence amendment process for Sentech and for WBS.

__ Continuously clamping down on illegal providers of telecommunication

services.

Key objectives and expected telecommunications outputs for 2004/05

__ Second phase of under-serviced area licencing.

__ Finalisation and issuing of the SNO licence and Telkom’s PSTS licence.

__ Development and subsequent management of the central numbering

database.

__ Finalisation of the short-code strategy.

__ Development of functional specification and order handling, Mobile

Operators QoS Audit Performance Indicator regulations, and of

Telkom/SNO service target audit performance indicator regulations.

__ Finalisation of number portability regulations.

__ Review of fix-line tariff regime.

__ Implement COA/CAM for mobile operators and for PSTS.

__ Undertake a formal market determination in the sector.

Telecommunications DFID assistance

Project Estimate

PSTN-to-PSTN interconnection R800 000-00

Review of Carrier Preselection regulations R275 000-00

Under-serviced area licencing process R495 000-00

Number portability R515 000-00

Numbering plan R255 000-00

Numbering database R616 000-00

Mobile COA/CAM R230 000-00

Total R3 186 000-00

ICASA’s broadcasting objectives, a synopsis:

__ Review: Ownership and control broadcasting services and existing

commercial sound broadcasting licences.

__ Position paper on local television leading to the licencing of SABC 4 and 5.

__ Discussion paper: Subscription broadcasting leading to possible licencing of

satellite subscription broadcasting services.

__ Amendment: South African Content Regulation.

__ Position paper completed under year of review:

a. Sports Broadcasting Rights.

b. Low-power Broadcasting.

c. Published Code of Conduct for Broadcasters and technical

amendments to the ICASA South African Television Content

Regulation of 2002.

Future Broadcasting Policy Project 2004/05

__ Policy projects:

a. Review of community radio policy and of signal distribution.

b. Ten-year review of broadcasting regulation in South Africa.

c. Review of advertising and sponsorship rules.

d. Programming requirements for the disabled and the elderly.

__ Election monitoring: ICASA monitored 44 502 items during the election

period and reported a total data capture error ratio of 0,15%.

Broadcasting: licencing

__ SABC licence renewal - ICASA renewed 18 sound broadcasting services

and 3 television broadcasting services.

__ Commercial sound broadcasting service renewals – ICASA renewed the

following six commercial radio services: YFM, Jacaranda FM, Kaya FM, P4

Cape Town and Classic FM.

__ Radio Oranje was granted amendments to its application.

__ ICASA approved the Nail transaction and completed the four-year

community broadcasting licence process to all 9 provinces in South Africa.

Broadcasting: Future Licencing Project 2004/05

__ Licencing of subscription broadcasting services.

__ Licencing of community services.

__ Licencing of low-power broadcasting.

__ Renewal of Orbicom Category 2 Signal Distribution.

Broadcasting: the positive impact of adequate funding

__ Adequate funding will ensure quick responses to new technological

advances.

__ Timeous delivery.

__ Ensure the retention of good personnel.

__ Hire the best consultants.

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ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 52—2004

Engineering and technology: frequency spectrum

__ Publication of an annual terrestrial broadcasting frequency plan.

__ Issue frequency spectrum licences to radio communications operators:

(4 800 new and 89 000 in total)

__ Review and migration of SABRE 1 and 2 to new integrated SAFTA.

__ Participated in and contributed to ITU conferences: WRC 2003, include

WRC final acts n SAFTA, RRC planning conference for digital broadcasting.

__ Approximately 500 process equipment type approvals.

Engineering and technology: regions and monitoring

__ Enforce compliance with relative Act re. spectrum usage and stamping out

illegal spectrum usage.

__ Upgrade measuring equipment to trace and address interference:

a. Install direction-finding systems: Johannesburg, Cape Town and

Durban.

b. Install DF facilities in specialised monitoring vehicles.

__ Contribute to initial RFI measurements in support of SKA bid.

__ Project Spectra: implementing spectrum-management tools.

Engineering and technology: Key 2004/05 outcomes

__ Project Spectra (focusing on improving management, workflow and radio

frequency co-ordination and assignment processes).

__ Contribute to further RFI measurements in support of SKA bid.

__ Enforce compliance with relative Act re. Spectrum usage and stamping out

illegal spectrum usage.

__ Conduct 800 MHz sharing studies.

__ Spectrum planning and co-ordination:

a. Preparing for ITU RRC on digital broadcasting.

b. TRASA spectrum planning; L band and digital broadcasting.

__ Spectrum licencing.

__ Monitoring and interference mitigation.

__ Contributing to further RFT measurements.

__ Implementing spectrum management tools.

___ Issuing Frequency Spectrum Licences to a total of 89 000 radio

communications operators.

___ Participating in and contributing to ITU conferences.

___ Publication of an Annual Terrestrial Broadcasting Frequency Plan.

Funding model

ICASA is of the opinion that adequate funding is imperative for an effective and

independent regulatory agency as it will:

__ Allow ICASA to respond to the dynamic regulatory requirements of

Government.

__ Enable ICASA to hire and retain the right people and minimise the risk of

failure of economic regulation.

__ Prevent regulatory capture and reliance on the industry for critical regulatory

data that can influence the regulator to make decision reflecting industry

interests, and not based on independent analysis or the public interest.

__ Eliminate obstructions that would prevent ICASA from rendering its

decisions based on professional and technocratic expertise.

ICASA’s staff turnover: 2003/04

Staff turnover 10,91%

% Resignations from management level 43,33%

Management staff turnover 24,07%

__ Community Radio: In terms of the Broadcasting Act of 1999, community

radio is currently reviewed to look at failures and successes by, amongst

others, senior international experts working with Telkom. The location of

most community radio stations in Cape Town suggests an uneven spread of

such stations.

__ Consumer protection offered by ICASA: In addition to a lot of work done

regarding road shows in educating the public in telecommunications,

broadcasting, licencing processes and improved service, ICASA studied

complaints by the public. The authority is now reconsidering its complains

procedure, with particular reference to less sophisticated users. ICASA

recently signed an agreement with Telkom regarding turn-around time and

related matters.

__ Digital Broadcasting: ICASA reported that it is not in a position to address

this challenge without a clear broadcasting policy.

__ Disability and captioning by the SABC is a matter which will be considered

by the SABC, having been tabled before by ICASA. In this regard, the

authority has published a draft code of practice, and in 2005 it will have a

public enquiry into access to programmes by people with disabilities.

__ Legal costs: The high cost of litigation is a cause of serious concern to

ICASA. In the nature of ICASA’s work, it is a common occurrence for

licencees to take the authority on review.

__ Price capturing: COA/CAM regulation could solve this problem and will

enable ICASA to investigate the cost structure of Telkom and the issue of

high tariffs.

__ Price reduction: Although competition may have brought the price of

communications down, there is currently no proof of that.

__ Rural areas: The current licences do not cover many rural areas in South

Africa. ICASA is in the process of considering a new licencing process and

strategies to address this challenge.

__ A SNO: ICASA recommended to the Government that the 51% stake in

essence be kept by Government.

___ A Youth Station for South Africa: ICASA decided not to licence any national

commercial youth radio station since the SABC is in the process of tabling

its own proposals on this matter.

E. The SABC (South A frican B roadcasting Corporation)

The SABC Board

The Board is currently in its sixth month of existence and has defined its path to

2008, which is shaped and informed by the SABC’s role and social

responsibilities in terms of the Broadcasting and IBA Acts and expounded upon

in its editorial policies. The challenge facing the new SABC Board is to

consolidate the gains accumulated over the past 10 years and to steer the SABC

along its development path to 2008.

The goals of the SABC Board, a synopsis

__ Ensure the SABC promotes democracy, non-racism, nation-building and

empowerment through innovative programming that is informative,

entertaining and educative in all official languages.

__ Align the SABC with the broadcasting charter, the SABC’s objectives as set

out in the Broadcasting Act and the editorial policies.

__ Create a financially sound corporation built on a sustainable business model

within a specified timeframe that enables it to fulfil its mandate.

__ Revitalise the Corporation, particularly the news department, by making it s

place of preferred employment and by attracting, retaining and nurturing the

best available talent in South Africa.

__ Ensure full statutory and regulatory compliance by all divisions of the

broadcaster.

__ Ensure appropriate employment equity and black economic empowerment

policies.

__ Create an SABC that enjoys the support and respect of its shareholder,

viewers, listeners and other stakeholders.

__ Ensure compelling, professional and authoritative news and current affairs

programming.

__ Ensure that the SABC puts into place innovative technology platforms and

infrastucture that will enable it to deliver on its mandate.

___ Conduct an evaluation and monitor the extent to which its activities are in

line with the provisions of the Broadcasting Act and its editorial policies.

___ Create a corporation that delivers interesting, educative and dynamic

programming in all of South Africa’s official languages.

___ Sign off on policy documents in terms of the Broadcasting Act.

The SABC’s broad corporate objectives

__ In terms of content, to deliver the best content to fulfil the SABC’s mandate

in the most cost-effective way to maximise audiences and revenues.

__ In terms of people, to attract, develop and retain the best creative and other

talent.

__ In terms of technology, to put in place the appropriate technology

infrastructure to deliver on the SABC’s objectives.

__ In terms of finance, to ensure effective and efficient utilization of resources,

a financially sustainable corporation, and to put into place world-class

systems and processes.

__ In terms of corporate reputation, to be the most admired media brand in

South Africa.

The SABC identified the following four big areas where shareholder funding

support is request in order to achieve the public broadcaster’s and national

objectives

__ Technology plan.

__ Regional television.

__ Education.

__ SABC Africa.

SABC: an overview of its technology division

__ Providing broadcasting and non-broadcast technology solutions, services

and infrastructure for its content divisions.

__ The division incorporates the following five business units: Air Time, Henley

TV Facilities, Technical Liaison, Logistical Services, Engineering Services

and Broadcast Information Technology.

__ The SABC reported an undercapitalisation of the aforementioned areas in

recent years.

__ Key challenges include the migration to digital technologies.

__ In the 2002/03 financial years, a comprehensive technology strategy was

formulated, the main focus of which was an assessment of the current state

of technology (within the SABC), defining the future business and broadcast

needs of the SABC in a digital era, and technology solutions.

__ In terms of the business IT strategy identified, interventions in the SABC’s

core business, content sales and scheduling, and supporting business

activities such as finance, client-facing business units – corporate and

regulatory.

__ The aforementioned resulted in a three-horizon prioritised investment:

a. Horizon 1: Tactical priority areas (the financial system, data

warehousing and digital content production solutions.

b. Horizon 2: Similar focus to the aforementioned, but over a the

longer term, viz. redesigning broadcast content workflows,

proceeding with middleware installation, scheduling systems and

ERP.

c. Horizon 3: Technological areas of strategic importance to the

SABC’s of ultimately moving to a completely digital technological

infrastructure.

Some 2004/05 financial year technology objectives

__ Content sales and scheduling system.

__ Digital news production system.

__ Finance and HR systems.

__ Consolidation of online content publishing.

__ Consumer-relationship management.

__ The shareholder was requested to provide R340 million to fund capex in

support of achieving the technology plan goals and objectives.

__ The aforementioned strategy is continuously monitored by the board, and

was requested to prepare a detailed funding plan before final approvals are

obtained.

The SABC’s education mandate

In terms of this mandate, the public service provided by the SABC must include

educational programming – curriculum-based as well as informal. Radio and

television programmes, therefore, were produced in the following genres:

__ Early childhood development.

__ Curriculum support.

__ Adult public education.

Radio and television production, a synopsis

__ During the period March 2003 to January 2004, over 119 000 minutes of

educational television programming was broadcasted in a variety of

timeslots across the SABC’s terrestrial channels.

__ The aforementioned represents an increase of 20% over the same period of

the previous year, with 94% of the programmes produced locally.

__ Original television programming was produced in African languages.

__ Dubbing of local programmes and foreign acquisitions into a number of

African languages ensured output in all official languages.

__ Radio’s output remained constant at 150 000 minutes of educational

programming in all official languages.

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__ In order to achieve its future objectives, the SABC has requested support

from the shareholder to the amount of R47 million.

__ The SABC merged its two pay channels, SABC Africa and Africa-2-Africa in

April 2003 – relaunching these as a single information and entertainment

channel on the DSTV platform.

__ SABC Africa aims to provide and project a positive and modern image of

Africa and in the process to assist in promoting the NEPAD ideals.

__ The SABC reported funding as its main challenge and that improved

delivery will be possible if there are integrated strategies and efforts within

and beyond the SABC.

___ The SABC plans to creatively look at PPP relationships, increasing funding

from commercial sources and partnering with Government to secure the

necessary funds.

__ Accessibility of radio and television broadcasting poses a particular

challenge to the SABC.

__ Advertising: Although advertising offers a viable source of income to the

SABC and advertising in English proves profitable, steps could be taken to

ensure that products are advertised in African languages as well.

__ Cultural sensitivity: In its broadcasting, the SABC should at all times display

cultural sensitivity. It is not clear whether the corporation has a policy in

place on this topic.

__ Disability and captioning: Although there has been an increase in subtitling

on television, the SABC reports that currently it does not have a policy in

place to address this matter.

__ Editorial policy: Generally speaking the SABC’s editorial policy makes

provision for all SABC editorial staff and requires from staff to fully

understand and implement the corporation’s editorial policy. The policy

places the emphasis on widening democracy and to be inclusive of all

cultures and realities in South Africa. The current board believes that its

editorial policy adheres to the principles of dignity of all South Africans in the

corporation’s programming. It would not like to be a mere organ for sectoral

interest and, consequently, would like to promote democracy, non-racialism

and nationalism in an entertaining fashion.

__ Transformed technology base: An amount of approximately R1,2 billion is

required by the corporation for its transformed technology base.

F. The USA (Un iversa l Service Agency)

The USA’s core programmes include:

__ Telecentres.

__ E-schools cyberlabs.

__ Capacity-building.

__ Research and evaluation.

__ Infrastructure development and deployment.

__ The ICT awareness programme.

The USA’s facilities

Province Telecentres MPCCs Cyberlabs Total

Northern Cape 3 1 11 15

Free State 6 1 10 17

Eastern Cape 8 4 18 30

Kwa-Zulu Natal 7 5 30 42

Limpopo 12 5 17 34

Mpumalanga 7 3 19 29

Gauteng 8 2 4 14

North West 7 2 14 23

Western Cape 2 0 6 8

The USA’s and the USF’s deliverables

__ The deployment of 50 new e-school cyberlabs in the nodal points.

__ Addressing the connectivity and content of the existing 200 e-school

cyberlabs.

__ Rolling out 35 telecentres in MPCCs.

__ Rehabilitating the existing telecentres with regard to content and services.

__ Researching the provision of universal service and universal access to ICT

in South Africa.

__ Subsidising SMMEs and co-operatives.

__ Focusing on the 2004 Universal Access and Service National Conference.

The USA’s capacity-building initiatives include:

__ Establishment of the Telecentre Association of South Africa (TASA)

__ Skills and competency of employers.

__ Staff training.

__ Training of 100 managers and operators of telecentres in ICT and business

management.

The USA presented the following budget for the current financial year:

Salaries and wages 9 452 465

Administrative expenditure 3 055 795

Inventory 26 100

Equipment 682 776

Land building 834 498

Professional and special services 1 916 466

Total 16 384 000

__ MPCCs. The Agency will work closely with the Government Communication

and Information System (GCIS) in setting up telecentres and MPCCs.

__ If telecentres are put up, the USA advertises the services of such centres

and acts as a facilitator and a catalyst.

__ While some telecentres are currently functioning independently, once they

have been taken over by the local communities, they offer Internet

connection 24 hours a day; other telecentres must, however, still be

subsidised.

__ The USA is currently faced with the financial sustainability of some

telecentres.

__ Many of the USA’s telecentre initiatives will be in partnership with Sentech

(providing V-techs in schools), with the assistance of ICASA. These will be

supported by the provision of computers by the USA.

__ The relative brief lifespan of computer equipment (particularly for the

provision of Internet connectivity) is of concern to the USA. While various

service providers have provided computers to schools, they never revisited

the upgrading of such equipment.

__ The USA needs to liaise with South Africans on a grass-roots level in order

to determine the impact of its ICT initiatives.

__ Currently, the USA does not have enough contact centres; members of

Parliament could assist in reaching-out initiatives in order to determine areas

of critical need.

__ The USA’s R1 million, budgeted for its mass awareness of ICTs, should

enable it to take the lead in working together with the cellular industry, the

Department of Education, local government structures, Telkom and the

portfolio committee in achieving universal access.

G. Telkom S .A. L td.

Telkom’s strategic focus

__ Customer growth and retention.

__ Operational efficiencies and innovation.

__ Development of the market place.

Economic growth and sustainability

Employment equity:

__ Black employees: 56%.

__ Female employees: 27%.

__ Employees with disabilities: 1%.

Utilities liaison forums:

To address unnecessary and costly damages to the underground infrastructure.

Regulatory compliance:

__ Public Finance Management Act.

__ Employment Equity Act.

__ Electronic Communications and Transactions Act.

__ Telecommunications Act.

__ Spatial Data Infrastructure Act.

__ Regulation of Interception of Communications and the Provision of

Communications Related Information Act.

__ Environmental legislation.

__ Municipal Property Rates Act.

__ Films and Publications Amendment Bill.

___ Convergence Draft Bill

Telkom managing its challenges

Telkom’s regulatory update

__ The SNO has not yet been licenced.

__ Four under-serviced area licences were approved by the Minister.

__ Tariff regulations.

__ COA/CAM: accounts are to be presented in June 2004 on historic cost basis

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Telkom’s legal update

__ Telcordia:

a. Telkom won review application.

b. Telcordia’s appeal was rejected.

c. Arbitration to recommence in South Africa, timing not yet known.

__ Least-cost routing:

a. Telkom lost case.

b. Filed appeal, awaiting court date.

__ Competition Commission:

a. Filed application to set aside Commission referral to Tribunal.

Broad-based Black Economic Empowerment, BEE

__ Group BEE spend of approximately R5 billion in 2003/04; R24 billion spent

since 1997, approximately 18% with black-owned SMMEs (Telkom only).

__ Telkom named ‘most empowered company in SA’ in the Financial

Mail/Empowerdex survey of 200 listed companies.

Social sustainability

__ On the strength of its triple bottom-line reporting, Telkom qualified for the

Social Responsibility Index of the JSE Securities Exchange.

__ Telkom rated among the top two companies in SA in community upliftment –

Sunday Times/Markinor Top Brand survey, 2003.

__ Telkom’s SHE management system awarded international certification:

ISO14001 and OHASAS 18001.

__ R14,6 million invested in SHE during 2003/04, including:

a. Training for 14 300 employees.

b. Voluntary, confidential medical screening.

c. Integrated health profiling.

__ HIV/AIDS prevalence at 9,6%, compared to the SA average of 26,5%,

according to an independent actuarial survey.

__ Response programme being strengthened through treatment programmes,

support and care, peer education and voluntary counseling.

Skills development

__ Telkom is the largest levy-payer in the ICT sector.

__ R390 million for people development in 2003/04, equating to 8,3 training

days per employee.

__ Two learnerships implemented with Isett Seta for call centre and project

management skills.

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Innovation

__ A key partner in industry centre-of-excellence research programme:

a. R175 million for research since 1997.

b. 350 post graduate students involved.

c. Telkom funding for 73 full-time research students.

Job creation

__ Telkom boasts the country’s largest call centres and is stimulating fixed-line

traffic through its 14 international call-centre customers.

__ SKA Project: Telkom supports South Africa’s bid to host the Square

Kilometre Array telescope.

Supporting Government initiatives

__ NEPAD initiative.

__ USALs.

__ ICT Charter.

__ 2010 Bid.

Telkom’s Data Product Adjustments

Telkom reported an average data product increase of 1%. These are broken

down into the following key data products:

Diginet increases by 5,3%

Diginet Plus decreases by 3%

Megaline increases by 4,8%

Megaline Plus no increase

ATM Express no increase

IPLC (cable) decreases by 9,3%

IPLC (satellite) decreases by 7,8%

VIP Dial/VIP Link increases by 5%

Frame Express no increase

Telkom’s annual results, a synopsis

__ The review period is Telkom’s first as a listed company.

__ Headline earnings per share increased by 175% to R8,64.

__ Operating free cash flow increased from approximately R4 billion in 2003 to

R9 billion during the review period.

__ Telkom’s group operating revenue increased by 8,8% to approximately

R40,8 million.

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__ Telkom’s cash from operating activities increased by 42% to approximately

R13,9 million.

Employment equity

With the implementation of affirmative action, Telkom recorded the following staff

complement (1 October 1993):

Black 46% (African 30%, Coloured 13%, Indian 3%).

Women 19% of Telkom’s total employees.

Telkom’s current staff complement:

Black (operational) 62%

Female (operational) 29%

Black (supervising) 41%

Female (supervising) 22%

Black (management) 35%

Disabled 1%

__ Profitability is the result of the following two elements: revenue and cost, and

the difference between revenue and cost. Telkom’s 4,6% profit increase was

the result of a successful drive and focus on improving its efficiency, paying

back debt, improving its management systems and a R34 billion investment

in its communications network. Telkom is subject to a price-control regime

by means of ICASA regulation. ICASA did start the process of reviewing

Telkom’s tariff regime, which is to be based on reasonable economic

considerations. Telkom’s profitability does not purely result from price

increases.

__ Regulation of access by Telkom to submarine cables is required since this is

still unregulated.

__ Telkom’s retrenchment rate: Telkom reports that it is involved in the

following three tiers of employment creation: (a) a creative plan focusing on

training and re-training, (b) investment through broad-based BEE, and (c)

making a contribution to the industry and the communications sector.

Telkom partly focuses on retraining its staff and assisting them in becoming

involved in related communications sectors. It reported that since 1997, R24

billion was spent on this, with an 18% investment in black-owned SMMEs.

__ Does the South African communications landscape offer sufficient room for

a SNO? Telkom reports that the answer to the aforementioned question is to

be found in the market place. When mobile communications were

introduced in 1994, initially half a million potential customers were targeted.

This figure has now grown to between 15 and 19 million. In this context,

Telkom forecasts a bright future for the SNO.

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H. Sentech

Sentech supports the position of the DoC as expressed during their presentation.

To Sentech -

__ Digitisation is key.

__ Access is paramount.

__ The lifting of specific restrictions is required.

Digitisation

Digital Terrestrial Television (DTT) is a key component of digitisation for South

Africa:

__ Digital relates to the way programmes are processed and transmitted.

__ Multiple channels – the broadcaster owns the channel, while the signal

distributor owns the frequency.

__ Set-top box/decoder.

The advantages of DTT

__ Efficient use of frequency spectrum (more broadcasters can be licenced).

__ Lower transmission costs (saving to broadcasters).

__ Industry growth through local receiver manufacturing (employment creation).

__ Multiple language channel capability (cultural diversity).

__ Ease of reception, simple installation and operation.

__ Portable and mobile compatible.

__ Enhanced service offerings such as e-government, adult education and

health services.

__ Lower transmitter power operation per TV service.

__ No foreign control by satellite operators (dollar-based costs).

___ Regional TV a strong driver (roll-out coupled to additional services as well

as increased number of broadcasters).

___ Universal service targets comparatively easier to achieve for public

broadcaster.

___ Variety of programming and enhanced multimedia offering such as EPG,

news, games, etc.

___ Delivery mechanism for distance education and e-Government.

___ Services can be encrypted – licence fee collection can be enhanced.

___ International equipment manufacturers transition to DTT (will affect future

analogue equipment and spares availability; Sentech’s current broadcasting

network is old, analogue and must be replaced).

___ Interactive potential (growth of the industry, bridging the digital divide).

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Sentech proposes the following three-phase roll-out of DTT to South Africa’s

approximately 9 million households of which approximately 7 million has

television

__ Since Johannesburg has an existing test site, DTT should first be made

available in that city, together with 50% of non-metropolitan areas.

__ The remaining 50% of non-metropolitan areas.

__ South Africa’s metropoles.

Sentech anticipates the cost structure of DTT roll-out and the cost of a regional

network to be as follows

__ 7 million set-top boxes to be acquired at a cost of R468 per box.

__ 7 million antennae at R100 per antenna (taking into consideration that

viewers may opt to use their existing antennae) – at a total cost of R3,98

billion.

__ A national transmitter network at a total cost of R268 million.

__ Transmitters at a cost of R153 million.

__ Decoders/antennae at a cost of R2,27 billion.

The following is required to make digitisation happen

A commitment from policy makers:

__ A national digitisation policy.

__ A migration policy (support for viewers in respect of set-top boxes)

Radio coverage

__ Radio coverage everywhere in South Africa.

__ Not all stations are received everywhere, but every citizen can listen to the

radio.

The MyWireless Service

__ Always on access.

__ Three options (128, 256 or 512 kb/s).

__ No cap on data transfer.

__ Portable at no extra charge.

__ Self-installed – plug and play.

__ E-mail account included in monthly price.

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ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 52—2004

Lifting restrictions

__ Increased competitiveness (managed liberalisation still intact).

__ Reduced prices for communications customers (increased competitiveness

of all industries).

__ Leveling the playing field.

What restrictions need to be lifted?

Carrier of carriers licence:

__ Sentech should be entitled to terminate international services to end-users.

__ Amend section 1 (definition of Carrier of Carriers Service).

__ Access to submarine cables.

__ USALs.

Restrictions to be lifted for multimedia:

__ Internationally, multimedia communications encompass all services,

including voice.

__ Sentech’s network is voice capable – one cannot purchase equipment

because it is voice restricted.

__ Customers will use multimedia network for voice – impossible to police.

__ Sentech should be entitled to carry voice.

__ Enable Sentech to carry voice services to the benefit of consumers by:

a. Amending the definition of multimedia services in section 1 of the

Telecommunications Act.

b. Amending or deleting sections 32C(8), 36A(h)(vi).

c. Facilities to VANs.

Other restrictions to be lifted

__ Amend section 30A and 30B of the Act (to enable Sentech to access 1800

Mhz and 3G spectrum).

__ Amend sections 36A and 36B of the Act, which will enable Sentech to

provide:

a. Circuits for voice-over IP.

b. Facilities required for private telecommunication networks.

c. Fixed links for mobiles and WBS.

d. Facilities for interconnection with USALs.

e. Facilities for VANs.

f. Facilities for fixed-mobile services in 1800Mhz band.

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__ Broadcasting: In many parts of our country there is either no sign or a weak

sign. It should be noted that while Sentech may be responsible for installing

transmitters in bad reception areas, ICASA must approve the licence

application for such installations, which places the emphasis on the need for

a policy framework regarding digitisation.

__ Digital and employment creation pose a particular challenge to Sentech. In

order to fulfil its mandate, Sentech needs to be able to tap its local skills

base. As part of Sentech’s social responsibility, training in all of South

Africa’s centres is to be prioritised, especially because of the migration of

skills between Cape Town, Durban and Johannesburg.

__ Corporations such as Sentech and Telkom could consider a partnership

approach to retain the migration of skills to develop the local provincial

economies.

__ The manufacturing of decoders in South Africa will be done jointly with a

Korean company, which represents significant progress in the local

manufacturing industry, together with much-needed expertise.

__ Provincial and local broadcasting challenges: Sentech is becoming

increasingly involved in provincial and local government broadcasting

challenges. It now talks to members of that tier of government about

programmes and its mandate on a local level.

__ Digitisation is fast becoming one of Sentech’s major challenges. Sentech

has been active in this field for some time. A task team advised the Minister.

Cabinet adopted its recommendations, which was followed by a further

analysis. Digital migration should be finalised by 2006, at an estimated cost

of R45 billion spread over a period of 20 years. Despite digitisation,

analogue and digital broadcasting have to co-exist until the whole of South

Africa becomes digital. In the meantime, both analogue and digital platforms

must be accommodated, which, at this point, doubles the cost during the

cross-over process. The cost implication is, therefore, that the price of

broadcasting is not lowered since broadcasters offer two services. The 20-

year period is seen as a process of gradual migration in order to allow

particularly the African continent to digitise. At the same time, a balance

must be struck between the needs of rural and urban areas. Clients in rural

areas cannot be left with analogue platforms only.

__ Outdated transmitters: Some of the SABC’s transmitters are becoming so

outdated that they can no longer be repaired since parts for those are not

available, which means that they have to be manufactured locally.

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A. South Africa’s current communications sector operates within the country’s first and

second economies. The cost of connecting all South Africans is increasingly

becoming the communications sector’s greatest challenge. All role-players in the

communications sector and industry must take cognisance, therefore, of providing

connectivity to middle-class, working class, and poor South Africans.

B. A SNO in South Africa could play a pivotal role in creating healthy and meaningful

competition in the communications sector, with particular emphasis on affordability.

C. Price-structuring in the telecommunications sector could assist in meeting the

Government’s mandate of providing affordable communications to all South Africans

and bridging the digital divide, not only within the borders of South Africa, but also

throughout the continent of Africa and the world.

D. The transformation of South Africa’s communications sector may result in the lifting

of unrealistic restrictions. This, in turn, may result in either legislative amendments or

removing restrictive legislation from the Statute Book.

E. The redrafting of South Africa’s Convergence Bill is a matter of urgency. It is

envisaged that this legislation will be presented to Cabinet in the last quarter of this

year and subsequently to the Ad-hoc Portfolio Committee on Communications.

F. Multi-purpose Community Centres and Public Information Terminals are

integral parts of South Africa’s ICT roll-out and infrastructure.

G. Radio reception (with particular reference to our country’s language groups) and

television reception is an ongoing challenge to South Africa’s communications

sector.

H. Digital broadcasting and universal access are becoming South Africa’s main

challenges in providing access to communications for all its citizens. Since South

Africa’s current broadcasting infrastructure is ageing, digitisation is seen as the only

solution to 21st-century broadcasting challenges. A clear broadcasting policy would

assist this process.

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