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:

1. A policy framework to facilitate universal access.
2. Develop an e-strategy framework.
3. Develop an ICT framework.
4. Develop and ICT competition framework.
5. Develop mechanisms to support local content.
6. Finalise the Convergence Bill.
7. Produce a migration policy framework for public broadcasting.
8. Facilitate the restructuring of SOEs (state-owned enterprises).
9. Oversee the delivery of Government-policy targets.
10. Facilitate the appointment of boards of directors of SOEs.
11. Analyse SOEs’ financial performance.
12. Undertake a benchmarking exercise on the financial performance of SOEs.
13. Evaluate the financial implications of universal obligations.
14. Analyse convergent technologies.
15. Analyse the viability of emergent technologies to enable universal access.
16. Develop a network model for the provision of educational services.
17. Provide affordable and high-quality access of regional broadcasting.
18. Ensure compatibility and interoperability of ICT standards.
19. Facilitate the development of strategic planning.
20. Ensure effective participation in intergovernmental activities.
21. Promote equity of designated groups in DoC.
22. Build mutually beneficial relations in the ICT sector.
23. Develop an effective SADC ICT substructure with a clear ICT programme.
24. Promote South African business on the Continent and internationally.
25. 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.
26. Budget management and financial control.
27. Provide a secretary service to the DTC.
28. 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 Framework Estimates

Table 2: MTEF per Economic Classification

Table 3: Transfer Payment Details

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.

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

1. Interest from the SABC: R1,8 million.
2. Licence fee paid by the Post Office: R25,4 million.
3. Recoveries of previous financial years’ expenditure: R0,6 million.
4. Short-term interest received from the current bank account: R22,5 million.

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

1. Interest received: R25,7 million.
2. Licence fee paid by the Post Office: R26,9 million.

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.
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.

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 Student Statistics

Table 2: Nemisa’s Medium-term expenditure allocation

Table 3: Nemisa’s Sources of Funding

Table 4: Nemisa’s 2003/04 expenditure

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

1. 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.
2. 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.
3. 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.
4. 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 have-nots.
5. Multi-purpose Community Centres (MPCCs) are vitally important links to communications technology, particularly in rural areas. Funding to MPCCs poses an ongoing challenge.
6. 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.
7. 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.

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:

1. Curb postal crime.
2. Improve its delivery performance.
3. Reach a financial break-even point in the near future.

1. 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).
2. An improvement of R205 million in operating profit.
3. A 6,3% revenue growth (R261 million).
4. A 1% cost increase.
5. An aggressive approach to managing costs and curtailing non-value adding expenditure.
6. The creative management of capital expenditure through partnerships.
7. A decrease in staff numbers of 1 042 due to voluntary packages.
8. An improvement of working capital.
9. A reduction of Post Office debtor days from 30 to 20.
10. Generating approximately R270 million cash from operations.
11. A year to March 2004 growth of R560 million in Postbank’s depositor’s book.
12. The introduction of the Thuso insurance product and new savings products.
13. A growth of 28% in new accounts (528 000).

1. Negative retained earnings of R1,4 billion as at March 2004.
2. The aforementioned is to be resolved by means of:

1. A reduction in post-retirement medical aid liability of R2,3 billion (provided R1,1 billion).
2. The Postbank recapitalisation of R750 million.
3. A review of property values.
4. Sustainable profitable performance.

1. 51 Post Offices have been installed with "new image" or upgraded.
2. SAP upgrade.
3. E-BDN.
4. Fixed-assets project.
5. Server consolidation.
6. Upgrade of the network.
7. Biometrics.
8. On-line private box renewals.
9. Financial switch.

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 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.

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.

1. The removal of this benefit for all newly-appointed or promoted employees since October 2002.
2. Capping the benefit for all employees on total package dispensation.
3. SAPO brought off the benefit for employees who opted for voluntary packages thus far.

1. SAPO invested approximately R138 million for reserve funding, which has grown to approximately R340 million.
2. 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.
3. For technical reasons, the aforementioned has not been implemented.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.

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.

1. Since ICASA operates in a highly litigious environment, it constantly deals with litigation.
2. 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.
3. Its legal department had a R3 000 000 budget in 2003/04 for external legal fees.
4. The lack of budget results in decisions having to be made not to oppose matters in court and to abide by court decisions.
5. Increased funding would enable ICASA’s legal department to defend its decisions more effectively.

1. Media liaison.
2. Stakeholder liaison (a stakeholders meeting is held annually).
3. The communications department exhibited at several exhibition sites in the 2003/04 financial year at a cost of R245 000.
4. Newspaper subscriptions at a cost of R117 000 are managed for council and staff by ICASA’s communications unit.
5. Staff functions are co-ordinated to commemorate events.

1. The communications unit intensified its outreach programmes.
2. It held road shows in the Eastern Cape, Northern Cape and Mpumalanga provinces.
3. Addresses are given at schools, public functions, clinics and municipal events, and radio programmes are conducted for public education.
4. Promotional material is procured for these events.
5. Educational officers conducted public awareness programmes.
6. A pamphlet – a guide to telecommunications – has been produced and distributed.
7. A memorandum of understanding was signed with telecommunications operators on dealing with consumer complaints.
8. 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.
9. Similar committees and consumer groups would be established given increased funding.

1. The council support unit supported ICASA processes.
2. 18 hearings were held in 2003/04 co-ordinated by the unit.
3. Books, publications and membership to professional organisations for councilors are procured by this unit.
4. Increased funding would facilitate more intensive workshops for councilors to keep them updated with legal and technological developments.

1. 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.
2. It hosts TRASA workshops and contributes to TRASA activities.
3. ICASA was appointed to chair RIARC at the last AGM.
4. Further involvement in international events would enable ICASA to conduct studies and attend training to strengthen its regulatory capabilities in line with international standards.
5. 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 –

1. Minimise litigation risks.
2. Procure a complaints management system.
3. Continue outreach and road shows.
4. Increased funding would enable ICASA to reach many more areas.
5. Enforce MoU on complaints handling.
6. More stakeholder meetings.
7. Implement local media monitoring.
8. Investigate the establishment of a call centre.

1. Finalised regulations i.r.o. COA/CAM for mobile operators and regulations i.r.o. PSTN-to-PSTN interconnection.
2. Reviewed carrier pre-selection regulations.
3. Developed guidelines for trial and launch of new services and the legality of wireless local area networks (WLANs).
4. 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:

1. A central-numbering database.
2. Number-portability regulations.
3. Reviewing the fixed-line tariff regime.
4. Telkom’s PSTS licence.
5. The short-code strategy.
6. The SNO licence.
7. Under-serviced area licencing.

1. Carried out most of the processes towards the licencing of under-serviced area licences.
2. Developed a comprehensive framework for the licencing and regulation of VANs and PTNs.
3. Developed a numbering plan that will encourage competition within the sector.
4. Began development of a short-code strategy for South Africa.
5. Started work on the amendment of Telkom’s licence in preparation for competition.
6. Updating and finalising terms and conditions for the SNO licence whilst amending the Telkom licence.
7. Developing a central numbering database as required in terms of the Act.
8. Undertook the licence amendment process for Sentech and for WBS.
9. Continuously clamping down on illegal providers of telecommunication services.

1. Second phase of under-serviced area licencing.
2. Finalisation and issuing of the SNO licence and Telkom’s PSTS licence.
3. Development and subsequent management of the central numbering database.
4. Finalisation of the short-code strategy.
5. Development of functional specification and order handling, Mobile Operators QoS Audit Performance Indicator regulations, and of Telkom/SNO service target audit performance indicator regulations.
6. Finalisation of number portability regulations.
7. Review of fix-line tariff regime.
8. Implement COA/CAM for mobile operators and for PSTS.
9. Undertake a formal market determination in the sector.

ICASA’s broadcasting objectives, a synopsis:

1. Review: Ownership and control broadcasting services and existing commercial sound broadcasting licences.
2. Position paper on local television leading to the licencing of SABC 4 and 5.
3. Discussion paper: Subscription broadcasting leading to possible licencing of satellite subscription broadcasting services.
4. Amendment: South African Content Regulation.
5. Position paper completed under year of review:

1. Sports Broadcasting Rights.
2. Low-power Broadcasting.
3. Published Code of Conduct for Broadcasters and technical amendments to the ICASA South African Television Content Regulation of 2002.

1. Policy projects:

1. Review of community radio policy and of signal distribution.
2. Ten-year review of broadcasting regulation in South Africa.
3. Review of advertising and sponsorship rules.
4. Programming requirements for the disabled and the elderly.

1. Election monitoring: ICASA monitored 44 502 items during the election period and reported a total data capture error ratio of 0,15%.

1. SABC licence renewal - ICASA renewed 18 sound broadcasting services and 3 television broadcasting services.
2. Commercial sound broadcasting service renewals – ICASA renewed the following six commercial radio services: YFM, Jacaranda FM, Kaya FM, P4 Cape Town and Classic FM.
3. Radio Oranje was granted amendments to its application.
4. ICASA approved the Nail transaction and completed the four-year community broadcasting licence process to all 9 provinces in South Africa.

1. Licencing of subscription broadcasting services.
2. Licencing of community services.
3. Licencing of low-power broadcasting.
4. Renewal of Orbicom Category 2 Signal Distribution.

1. Adequate funding will ensure quick responses to new technological advances.
2. Timeous delivery.
3. Ensure the retention of good personnel.
4. Hire the best consultants.

1. Publication of an annual terrestrial broadcasting frequency plan.
2. Issue frequency spectrum licences to radio communications operators: (4 800 new and 89 000 in total)
3. Review and migration of SABRE 1 and 2 to new integrated SAFTA.
4. Participated in and contributed to ITU conferences: WRC 2003, include WRC final acts n SAFTA, RRC planning conference for digital broadcasting.
5. Approximately 500 process equipment type approvals.

1. Enforce compliance with relative Act re. spectrum usage and stamping out illegal spectrum usage.
2. Upgrade measuring equipment to trace and address interference:
1. Install direction-finding systems: Johannesburg, Cape Town and Durban.
2. Install DF facilities in specialised monitoring vehicles.

3. Contribute to initial RFI measurements in support of SKA bid.
4. Project Spectra: implementing spectrum-management tools.

1. Project Spectra (focusing on improving management, workflow and radio frequency co-ordination and assignment processes).
2. Contribute to further RFI measurements in support of SKA bid.
3. Enforce compliance with relative Act re. Spectrum usage and stamping out illegal spectrum usage.
4. Conduct 800 MHz sharing studies.
5. Spectrum planning and co-ordination:
1. Preparing for ITU RRC on digital broadcasting.
2. TRASA spectrum planning; L band and digital broadcasting.

6. Spectrum licencing.
7. Monitoring and interference mitigation.

8. Contributing to further RFT measurements.
9. Implementing spectrum management tools.
10. Issuing Frequency Spectrum Licences to a total of 89 000 radio communications operators.
11. Participating in and contributing to ITU conferences.
12. Publication of an Annual Terrestrial Broadcasting Frequency Plan.

ICASA is of the opinion that adequate funding is imperative for an effective and independent regulatory agency as it will:

1. Allow ICASA to respond to the dynamic regulatory requirements of Government.
2. Enable ICASA to hire and retain the right people and minimise the risk of failure of economic regulation.
3. 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.
4. Eliminate obstructions that would prevent ICASA from rendering its decisions based on professional and technocratic expertise.

1. 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.
2. 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.
3. Digital Broadcasting: ICASA reported that it is not in a position to address this challenge without a clear broadcasting policy.
4. 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.
5. 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.
6. 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.
7. Price reduction: Although competition may have brought the price of communications down, there is currently no proof of that.
8. 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.
9. A SNO: ICASA recommended to the Government that the 51% stake in essence be kept by Government.
10. 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.

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.

1. Ensure the SABC promotes democracy, non-racism, nation-building and empowerment through innovative programming that is informative, entertaining and educative in all official languages.
2. Align the SABC with the broadcasting charter, the SABC’s objectives as set out in the Broadcasting Act and the editorial policies.
3. Create a financially sound corporation built on a sustainable business model within a specified timeframe that enables it to fulfil its mandate.
4. 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.
5. Ensure full statutory and regulatory compliance by all divisions of the broadcaster.
6. Ensure appropriate employment equity and black economic empowerment policies.
7. Create an SABC that enjoys the support and respect of its shareholder, viewers, listeners and other stakeholders.
8. Ensure compelling, professional and authoritative news and current affairs programming.
9. Ensure that the SABC puts into place innovative technology platforms and infrastucture that will enable it to deliver on its mandate.
10. 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.
11. Create a corporation that delivers interesting, educative and dynamic programming in all of South Africa’s official languages.
12. Sign off on policy documents in terms of the Broadcasting Act.

1. 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.
2. In terms of people, to attract, develop and retain the best creative and other talent.
3. In terms of technology, to put in place the appropriate technology infrastructure to deliver on the SABC’s objectives.
4. 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.
5. In terms of corporate reputation, to be the most admired media brand in South Africa.

1. Technology plan.
2. Regional television.
3. Education.
4. SABC Africa.

1. Providing broadcasting and non-broadcast technology solutions, services and infrastructure for its content divisions.
2. The division incorporates the following five business units: Air Time, Henley TV Facilities, Technical Liaison, Logistical Services, Engineering Services and Broadcast Information Technology.
3. The SABC reported an undercapitalisation of the aforementioned areas in recent years.
4. Key challenges include the migration to digital technologies.
5. 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.
6. 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.
7. The aforementioned resulted in a three-horizon prioritised investment:

1. Horizon 1: Tactical priority areas (the financial system, data warehousing and digital content production solutions.
2. 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.
3. Horizon 3: Technological areas of strategic importance to the SABC’s of ultimately moving to a completely digital technological infrastructure.

1. Content sales and scheduling system.
2. Digital news production system.
3. Finance and HR systems.
4. Consolidation of online content publishing.
5. Consumer-relationship management.
6. The shareholder was requested to provide R340 million to fund capex in support of achieving the technology plan goals and objectives.
7. The aforementioned strategy is continuously monitored by the board, and was requested to prepare a detailed funding plan before final approvals are obtained.

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:

1. Early childhood development.
2. Curriculum support.
3. Adult public education.

1. 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.
2. The aforementioned represents an increase of 20% over the same period of the previous year, with 94% of the programmes produced locally.
3. Original television programming was produced in African languages.
4. Dubbing of local programmes and foreign acquisitions into a number of African languages ensured output in all official languages.
5. Radio’s output remained constant at 150 000 minutes of educational programming in all official languages.
6. In order to achieve its future objectives, the SABC has requested support from the shareholder to the amount of R47 million.
7. 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.
8. 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.
9. 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.
10. The SABC plans to creatively look at PPP relationships, increasing funding from commercial sources and partnering with Government to secure the necessary funds.

1. Accessibility of radio and television broadcasting poses a particular challenge to the SABC.
2. 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.
3. 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.
4. 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.
5. 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.
6. Transformed technology base: An amount of approximately R1,2 billion is required by the corporation for its transformed technology base.

The USA’s core programmes include:

1. Telecentres.
2. E-schools cyberlabs.
3. Capacity-building.
4. Research and evaluation.
5. Infrastructure development and deployment.
6. The ICT awareness programme.

1. The deployment of 50 new e-school cyberlabs in the nodal points.
2. Addressing the connectivity and content of the existing 200 e-school cyberlabs.
3. Rolling out 35 telecentres in MPCCs.
4. Rehabilitating the existing telecentres with regard to content and services.
5. Researching the provision of universal service and universal access to ICT in South Africa.
6. Subsidising SMMEs and co-operatives.
7. Focusing on the 2004 Universal Access and Service National Conference.

The USA’s capacity-building initiatives include:

1. Establishment of the Telecentre Association of South Africa (TASA)
2. Skills and competency of employers.
3. Staff training.
4. Training of 100 managers and operators of telecentres in ICT and business management.

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

1. MPCCs. The Agency will work closely with the Government Communication and Information System (GCIS) in setting up telecentres and MPCCs.
2. If telecentres are put up, the USA advertises the services of such centres and acts as a facilitator and a catalyst.
3. 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.
4. The USA is currently faced with the financial sustainability of some telecentres.
5. 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.
6. 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.
7. The USA needs to liaise with South Africans on a grass-roots level in order to determine the impact of its ICT initiatives.
8. 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.
9. 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.

1. Customer growth and retention.
2. Operational efficiencies and innovation.
3. Development of the market place.

Employment equity:

1. Black employees: 56%.
2. Female employees: 27%.
3. Employees with disabilities: 1%.

Utilities liaison forums:

To address unnecessary and costly damages to the underground infrastructure.

Regulatory compliance:

1. Public Finance Management Act.
2. Employment Equity Act.
3. Electronic Communications and Transactions Act.
4. Telecommunications Act.
5. Spatial Data Infrastructure Act.
6. Regulation of Interception of Communications and the Provision of Communications Related Information Act.
7. Environmental legislation.
8. Municipal Property Rates Act.
9. Films and Publications Amendment Bill.
10. Convergence Draft Bill

1. The SNO has not yet been licenced.
2. Four under-serviced area licences were approved by the Minister.
3. Tariff regulations.
4. COA/CAM: accounts are to be presented in June 2004 on historic cost basis

1. Telcordia:

1. Telkom won review application.
2. Telcordia’s appeal was rejected.
3. Arbitration to recommence in South Africa, timing not yet known.

1. Least-cost routing:

1. Telkom lost case.
2. Filed appeal, awaiting court date.

1. Competition Commission:

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

1. Group BEE spend of approximately R5 billion in 2003/04; R24 billion spent since 1997, approximately 18% with black-owned SMMEs (Telkom only).
2. Telkom named ‘most empowered company in SA’ in the Financial Mail/Empowerdex survey of 200 listed companies.

1. On the strength of its triple bottom-line reporting, Telkom qualified for the Social Responsibility Index of the JSE Securities Exchange.
2. Telkom rated among the top two companies in SA in community upliftment – Sunday Times/Markinor Top Brand survey, 2003.
3. Telkom’s SHE management system awarded international certification: ISO14001 and OHASAS 18001.
4. R14,6 million invested in SHE during 2003/04, including:
1. Training for 14 300 employees.
2. Voluntary, confidential medical screening.
3. Integrated health profiling.
5. HIV/AIDS prevalence at 9,6%, compared to the SA average of 26,5%, according to an independent actuarial survey.
6. Response programme being strengthened through treatment programmes, support and care, peer education and voluntary counseling.

1. Telkom is the largest levy-payer in the ICT sector.
2. R390 million for people development in 2003/04, equating to 8,3 training days per employee.
3. Two learnerships implemented with Isett Seta for call centre and project management skills.

1. A key partner in industry centre-of-excellence research programme:
1. R175 million for research since 1997.
2. 350 post graduate students involved.
3. Telkom funding for 73 full-time research students.

1. Telkom boasts the country’s largest call centres and is stimulating fixed-line traffic through its 14 international call-centre customers.
2. SKA Project: Telkom supports South Africa’s bid to host the Square Kilometre Array telescope.

1. NEPAD initiative.
2. USALs.
3. ICT Charter.
4. 2010 Bid.

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

1. The review period is Telkom’s first as a listed company.
2. Headline earnings per share increased by 175% to R8,64.
3. Operating free cash flow increased from approximately R4 billion in 2003 to R9 billion during the review period.
4. Telkom’s group operating revenue increased by 8,8% to approximately R40,8 million.
5. Telkom’s cash from operating activities increased by 42% to approximately R13,9 million.

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%

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.
2. Regulation of access by Telkom to submarine cables is required since this is still unregulated.
3. 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.
4. 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.

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

To Sentech -

1. Digitisation is key.
2. Access is paramount.
3. The lifting of specific restrictions is required.

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

1. Digital relates to the way programmes are processed and transmitted.
2. Multiple channels – the broadcaster owns the channel, while the signal distributor owns the frequency.
3. Set-top box/decoder.

1. Efficient use of frequency spectrum (more broadcasters can be licenced).
2. Lower transmission costs (saving to broadcasters).
3. Industry growth through local receiver manufacturing (employment creation).
4. Multiple language channel capability (cultural diversity).
5. Ease of reception, simple installation and operation.
6. Portable and mobile compatible.
7. Enhanced service offerings such as e-government, adult education and health services.
8. Lower transmitter power operation per TV service.
9. No foreign control by satellite operators (dollar-based costs).
10. Regional TV a strong driver (roll-out coupled to additional services as well as increased number of broadcasters).
11. Universal service targets comparatively easier to achieve for public broadcaster.
12. Variety of programming and enhanced multimedia offering such as EPG, news, games, etc.
13. Delivery mechanism for distance education and e-Government.
14. Services can be encrypted – licence fee collection can be enhanced.
15. 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).
16. Interactive potential (growth of the industry, bridging the digital divide).

1. Since Johannesburg has an existing test site, DTT should first be made available in that city, together with 50% of non-metropolitan areas.
2. The remaining 50% of non-metropolitan areas.
3. South Africa’s metropoles.

1. 7 million set-top boxes to be acquired at a cost of R468 per box.
2. 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.
3. A national transmitter network at a total cost of R268 million.
4. Transmitters at a cost of R153 million.
5. Decoders/antennae at a cost of R2,27 billion.

A commitment from policy makers:

1. A national digitisation policy.
2. A migration policy (support for viewers in respect of set-top boxes)

1. Radio coverage everywhere in South Africa.
2. Not all stations are received everywhere, but every citizen can listen to the radio.

1. Always on access.
2. Three options (128, 256 or 512 kb/s).
3. No cap on data transfer.
4. Portable at no extra charge.
5. Self-installed – plug and play.
6. E-mail account included in monthly price.

1. Increased competitiveness (managed liberalisation still intact).
2. Reduced prices for communications customers (increased competitiveness of all industries).
3. Leveling the playing field.

What restrictions need to be lifted?

Carrier of carriers licence:

1. Sentech should be entitled to terminate international services to end-users.
2. Amend section 1 (definition of Carrier of Carriers Service).
3. Access to submarine cables.
4. USALs.

Restrictions to be lifted for multimedia:

1. Internationally, multimedia communications encompass all services, including voice.
2. Sentech’s network is voice capable – one cannot purchase equipment because it is voice restricted.
3. Customers will use multimedia network for voice – impossible to police.
4. Sentech should be entitled to carry voice.
5. Enable Sentech to carry voice services to the benefit of consumers by:

1. Amending the definition of multimedia services in section 1 of the Telecommunications Act.
2. Amending or deleting sections 32C(8), 36A(h)(vi).
3. Facilities to VANs.

1. Amend section 30A and 30B of the Act (to enable Sentech to access 1800 Mhz and 3G spectrum).
2. Amend sections 36A and 36B of the Act, which will enable Sentech to provide:

1. Circuits for voice-over IP.
2. Facilities required for private telecommunication networks.
3. Fixed links for mobiles and WBS.
4. Facilities for interconnection with USALs.
5. Facilities for VANs.
6. Facilities for fixed-mobile services in 1800Mhz band.

1. 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.
2. 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.
3. Corporations such as Sentech and Telkom could consider a partnership approach to retain the migration of skills to develop the local provincial economies.
4. 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.
5. 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.
6. 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.
7. 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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. Multi-purpose Community Centres and Public Information Terminals are integral parts of South Africa’s ICT roll-out and infrastructure.
7. Radio reception (with particular reference to our country’s language groups) and television reception is an ongoing challenge to South Africa’s communications sector.
8. 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 21^st-century broadcasting challenges. A clear broadcasting policy would assist this process.

[FRIDAY PRESENTATION DRAFT 2]