Report of the Select Committee on Labour and Public Enterprises
on oversight visit to Sentech, Gauteng, dated 26 October
2004:

The Select Committee on Labour and Public Enterprises, having undertaken
an oversight visit to Sentech, Gauteng Province on 6 October 2004,
reports as follows:

A. TERMS OF REFERENCE
In order to encourage clustering of activities amongst relevant Committees,
the Select Committees on Economic and Foreign Affairs and on Labour and
Public Enterprises undertook a joint visit to the Gauteng Province from 4 to
7 October 2004. This report captures those issues that are relevant to the
Select Committee on Labour and Public Enterprises (the Committee).
The aim of the visit was to get an overview of Sentech and to conduct
oversight over the work done to facilitate development in the information
and communications technology (ICT) sector. In realising its objectives,
the Committee received presentations and visited different sites that form
part of the operations of Sentech.

B. LOGISTICALARRANGEMENTS
The delegation consisted of the following persons:
Ms N D Ntwanambi (Acting Chairperson) (ANC)
Mr D G Mkono (ANC)
Ms S E Mabe (ANC)
Mr J M Sibiya (ANC)
Ms M P Themba (ANC)
Ms J F Terblanche (DA)
Mrs S Chen (DA)
Mr K Sinclair (NNP)
Ms Phumza Mpoyiya (Committee Secretary)
Mr M Erasmus (Stand-in Committee Secretary).
Sentech assisted with developing the programme. It was slightly amended
as the Committee first visited the Sender Technology Park (STP) (Refer to
Annexure A).

C. FINDINGS
The Chairperson of Sentech, Mr Mncube, received the Committee and
remained with the delegation for the rest of the proceedings. He expressed
gratitude to the Committee. He mentioned that the technology used by
Sentech is in line with the telecommunications and broadcasting legislation.
He informed the Committee that Sentech played a pivotal role in
broadcasting the results of the 2010 Soccer Bid.

1. Presentation by the Sentech Limited
Mr Marumo made a presentation on behalf of Dr Makome-Matabane, the
Chief Executive Officer of Sentech, who could not be available due to other
commitments.

Included in the presentations were the following areas:
(a) A brief overview of the organisation and what it does
Sentech is a 100% state-owned communications company, established in
terms of the Sentech Act of 1996 (as amended). It is licensed in terms of the
Telecommunications Act in order to operate as a multimedia and carrier of
carriers. It is licensed in terms of the Independent Broadcasting Authority
Act as a signal distributor for television, public, commercial, and
community radio stations.

Sentech offers radio transmission and broadcasting to 7 television services,
18 public radio services, 12 commercial radio stations and 38 community
radio stations. In addition, the company provides vivid satellite multichannel
broadcast platform services. The services provided by Sentech are
free air-to-broadcasting services and encrypted free access broadcasting
services. These are done for 12 television channels, 25 radio channels and
20 business channels for closed user groups.

In 1998, D Little was commissioned by the Minister to determine whether
Sentech could perform beyond being a carrier of carriers. The report
findings reflected that Sentech could do more.

• Technical Skills Development
Most employees in the lower levels have entry-level skills. The company is
focusing on the re-education of its employees. The focus is on re-training in
order to keep them in line with the technology of the organisation. Sentech
recently signed an agreement with the ISSET-SETA, which would enable
45 learners to be sent on learnerships at the beginning of 2005.

• Sentech and Convergence
It is a fully converged communications company. It aims to assist in
ensuring that South Africa is ready for the digital future by using first-world
technology. The challenge, however, is to ensure that there is access to
relevant infrastructure in order to ensure that communication can proceed
well.

The Mywireless product was launched late last year and has proved to be
a success. However, the challenge is that for it to be effective across the
country, Sentech has go digital and place more services in strategic places.
The main challenge is that the transmission stations of Sentech are mostly
analogue.

(b) Presentation on Sentech products
• VSAT Services
Sentech launched the Vstar service, which provides high-speed connections
between customer premises through Sentech’s hub to the rest of the
world. This offers an opportunity for users and providers to connect
quickly. It is suitable for people in rural areas.

The system enables the user to talk back to a central hub through
communications technology. The Mywireless device has a number of
features, which are not hindered by space and time. It is not affected by
moving location. It is easy to use the facility that works immediately upon
connection.

• Gauteng Online
Sentech, in collaboration with the Gauteng Government, is involved in
bridging the digital divide by introducing computers in schools. The project
is still in the first phase and already Sentech has provided 1 100 schools
with Internet laboratories. Service providers are given an opportunity to
effect connections and Sentech will provide every learner with an email
address.

• Digitisation
This relates to the way programmes are being processed and transmitted to
users and service providers. Through the multi-channel system, the
broadcaster is licensed to operate the channel frequency assigned to the
network operator wave.

It is the efficient use of the frequency spectrum that allows for fast, good
sound quality. The costs of transmission are lower, and this could lead to
huge savings for broadcasters. Digitisation offers multiple language
channel capability, which in turn allows for cultural diversity. It also offers
improved services such as e-government, adult education and health
services.

2. Tour of Sender Technology Park at Radiokop
The Sender Technology Park (STP) was once located in a secluded area far
from communities. However, due to urban development, residential areas
now surround the STP. It forms the nerve of Sentech because it is where real
work takes place. The satellite dishes enable Sentech to collect information
from all over the world and disseminate the information to different
broadcasting centres. The STP also transmits voice messages internally and
internationally.

When the local government identified the location, it did not consider the
impact of radioactive materials, which could be hazardous to the
communities located close to the STP. The future challenge for Sentech is
to move these facilities to a secluded location again. It is estimated that this
will cost about R1.2 billion.

3. Visit to Sentech Tower
Mr Juan du Toit welcomed the Committee and led the tour into the Tower.
The Committee was informed about the brief history of the building and,
amongst others, the following issues were highlighted:

The tower structure was designed in 1961 and the first transmission in FM
occurred on 22 December 1961. In 1974 the first TV transmissions were
broadcast in colour. The construction is composed of 7 000 tons of
concrete. A total of 3 000 tons of reinforcing was required, which brought

the total mass of the tower to 7 820 tons. The rock formation is able to
withstand a huge amount of pressure and serves as part of the foundation.
The foundation is made up of a ring-like figure with a diameter of 26m (it
is 6m wide). The depth of the foundation is 2m. The tower structure was
built to withstand wind speeds of up to 186 km/h and gusts of up to 200
km/h. At these types of wind speeds the concrete structure can sway over by
20cm and the top steel structure will sway close to 70cm.

At the time of building the 247m tower, it was the highest freestanding
structure in Africa and the 10th highest structure in the world. In
comparison to the Sentech Tower that is 247m high, the Eiffel Tower is
320m tall and the Empire State Building is 420m tall.

It also has a conference facility situated 176m above ground level. The base
of the tower is situated 1 785m above sea level, whilst its top is 2 000m
above sea level. In case of a power failure, the station has a back-up of 1
Megawatt using two Volvo generators. Currently the tower offers broadcasting
for 18 FM programmes and 6 TV programmes.

The Committee was taken through the building and saw the latest and
older technologies that are used for transmission to different business and
community radio stations.

4. Report on visit to Clinix Hospital in Soweto
The shortage of doctors in many parts of the country contributes to people
being misdiagnosed and illnesses not being identified promptly. As way of
addressing this problem, Sentech in partnership with the Clinix Hospital in
Soweto is involved in a pilot project to save lives of people in the Eastern
Cape. The Eastern Cape Province has a shortage of radiologists and X-ray
images take long before results are received. Sentech connectivity between
the two hospitals allows for medical doctors in the Eastern Cape to refer
information to Soweto. The X-ray images are transmitted via VSAT to
Soweto. Radiologists make a diagnosis of the images and then send a report
to the hospital. Through telemedicine, the primary health care objectives
are realised.

5. Requests from Sentech
In order for digitisation to occur a national policy and migration policy
need to be developed. These are important to improve support for viewers
in respect of set-top boxes or decoders. Sentech would need R1.2 billion in
support from the government.

Sentech made a plea to the Committee to encourage provincial governments
for educational support in their endeavors to install technology for
educational support in schools.

D. Recommendations by Committee
The Committee was informed that women in Sentech occupy lower ranks
compared to their male counterparts. Sentech needs to further develop and
enhance its strategy to address gender and race challenges.

The Committee recommended that Sentech, through parliamentary constituency
offices, provide information to promote services related to
education, health and e-government business to popularise their availability
in other provinces.

E. Concluding Remarks
The Committee would like to extend its appreciation in the manner in
which it was received and hosted by Sentech.

Annexure A
OVERSIGHTVISIT BYTHE SELECT COMMITTEE ON LABOUR
AND PUBLIC ENTERPRISES ON 6 OCTOBER 2004
08:30 – Arrival of Members of Parliament at the Sentech Tower
09:00 – Welcome by Programme Director — Matime Nchabeleng
09:05 – Sentech’s challenges and Achievements—Dr Sebiletso Mokone-
Matabane, CEO
09:20 – Tour of Sentech Tower — Juan du Toit
10:20 – Leaving for STP (Sender Technology Park)
11:15 – Sentech’s Products — Pragasen Nagan
11:30 – Tour of Sentech’s Teleport — Maggie Ntuli, Vsat — Wiseman
12:00 – Leaving for Clinix Hospital
13:00 – Lunch at Wandies, Soweto
14:30 – Delegation leaving for Holiday Inn Hotel in Pretoria to refresh
18:00 – Dinner at Cynthia’s Restaurant, Brooklyn, Pretoria
19:30 – CEO’s Address to Select Committee
19:45 – Vote of Thanks by Acting Chairperson — gifts.