1. DEPARTMENT OF COMMUNICATIONS DRAFT PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONS ON ALIGNMENT OF PRIORITIES BETWEEN THE DoC AND ITS ENTITIES 02 August 2011 A global leader in the development and use of Information and Communication Technologies for socio-economic development

2. 2 DoC Team Rosey SekeseDirector-General Gift ButheleziDDG: ICT International Affairs & Trade Sam VilakaziADDG: Finance & ICT Enterprise Development Norman MunzheleleADDG: ICT Policy Development Themba PhiriADDG: Presidential National Commission Harold WessoACEO: e-Skills Institute Farhad OsmanCD: Strategic Planning & Monitoring Linden PetzerCD: Radio & Satellite

3. 3 Introduction  PCC requested that the Department present an integrated plan which includes interventions being led by the DoC and those being led by the relevant Entities  The DoC held an alignment workshop so as to integrate interventions being led by both the DoC and those by the Entities  The presentation covers specific areas of collaborations which are:  Broadband  Digital Terrestrial Television  Local Digital Content Development  Spectrum  Hubs / Access Centres  E-Skills  In respect of the above areas, the presentation covers, key elements, deliverables, relevant stakeholders, current status, timelines and funding.

4. Elements of BBDeliverablesRole PlayersStatusTimelinesFunding Policy and regulatory Costing model for Broadband services ICASA and DoCTerms of reference being drafted, with consultant to be appointed by September 2011 March 2012Funding for this project to be sourced from the MTEF allocation of R100m allocated for BB in 2011/12 FY Facilities Sharing and Local Loop Unbundling ICASADiscussion document released for public comment in Governmnet Gazette No. 34282 of 22 June 2011 Nov 2011R179,822 allocated Broadband Mapping ICASADevelopment of indicators to be collected to measure geographic access, as well as ongoing engagement with licensees regarding sharing of geographic information system information October 2011R 471,000 allocated Licensing of Spectrum for Broadband application ICASADraft policy direction to be signed off by the Minister March 2012n/a Broadband (1)

5. Elements of BBDeliverablesRole PlayersStatusTimelinesFunding Rural Connectivity USAASA definitions USAASA/ICASADefinitions drafted and list of under- serviced areas compiled. Draft regulations to be released for public comment. Final Regulations by March 2012 R 55,000 allocated Regulations on Universal Access Service Obligations USAASA/ICASAConsultation with under-serviced area representatives to take place in August 2011 Final Regulations by March 2012 R 65,000 allocated Alignment of USAASA’s existing rural initiatives Alignment with the Comprehensive Rural Development Programme USAASAPilots underway: uMsinga, Greater Tzaneen Potential projects: Sisonke, Emalahleni, Greater Giyani March 2012 Total funding required for Greater Tzaneen R25 Million Available R9 million from USAASA R5 million from Greater Tzaneen Shortfall R11 million Broadband (2)

6. Elements of BBDeliverablesRole PlayersStatusTimelinesFunding Institutional arrangements Establishment of a Broadband Intergovernmental Committee DoC (coordination) Provinces Municipalities (Dept of Public Enterprises, Dept of Science and technology, Dept of Basic Education, Dept of Health and Dept of Public Service and Administration) Established in terms of the Broadband Policy by DoC in Nov 2010 to coordinate intergovernmental Broadband efforts Consists of 8 focus groups The Committee met 4 times Major achievement is the Provincial and Municipal alignment CompletedKZN and Limpopo BB projects already commenced as Provincial pilot projects Financial Implications National Treasury current allocated R450 million for Broadband over MTEF R100 million allocated for Broadband in 2011/2012 financial year The R500 million allocated to Sentech is for broadband. National Integrated Broadband Plan (fibre & wireless) SOEs (USAASA, Sentech, Infraco) DoC DPE Established to align BB initiatives (backhaul, provincial backbone and access) August 2011Sentech, Infraco and USAASA, have agreed on a collaborative framework for BB initiatives. The framework provides for acceleration of the KZN pilot which is within funding provisions of all entities. Broadband (3)

7. Elements of DTT DeliverablesRole Players StatusTimelinesFunding Policy and regulatory Review and amendment of BDM Policy DoC The Amendments to the Policy completed and ready for Tabling in Cabinet August 2011n/a Review of digital migration regulations ICASA Regulations are currently under review March 2012R44,750 allocated Scheme of Ownership Support Strategy DoC The draft SOS Rollout Framework developed and expected to be approved by Cabinet August 2011. n/a Set Top Box Manufacturing Strategy DoC The draft STB manufacturing strategy finalised and expected to be approved by Cabinet August 2011 n/a Review of Content Regulations ICASAAll broadcasting service regulations are currently under review March 2012R 1,541,085 allocated Identification of needy households and development of means test for subsidies USAASADraft Means Test developed and to be forwarded to Minister. Needy household identification under development End October 2011R17 m Establishment of STB distribution channel USAASA SAPO Engagement with relevant retailers and SAP is at an advances stage September 2011n/a SABS standards specifications SABSTC74 Committee met and standards being finalised August 2011n/a On 5 & 6 May a DTT roll-out workshop was held involving all relevant stakeholders where a detailed implementation plan was developed which will be presented to the PCC on 19 September hence only key elements of the detailed plan are listed below. Digital Terrestrial Television

8. Elements of DTT DeliverablesRole PlayersStatusTimelinesFunding Transmission Infrastructure Rollout 74% population coverage SentechDVB-T – 60% at 31 March 2011 DVB-T2 target is 60% by December 2012 target is 74% DVB- T2 coverage by December 2012 March 20122011/12 allocation: R355 m (incl. roll-overs from previous FY’s) Budget Needed for 2011/12: R366 m Shortfall: R 11 m 84% population coverage Sentech-March 20132012/12 allocation: R167 m Budget need: R363 m Shortfall: R196 m 96% population coverage Sentech-March 20142013/14 allocation: R176,1 m Budget need: R263 m Shortfall: R87 m Digital Terrestrial Television (1)

9. Elements of LDCD DeliverablesRole Players StatusTimelinesFunding Local and Digital Content strategy and implem- entation plan SABC to apply and host channels prioritising education and health in the context of digital migration SABCChannel line-up plans (including health and education channels) prepared and business plan setting out 3 funding scenarios presented to DoC for MTEF opex funding on 23 June. Full revised DTT business plan incorporating new channel line-up is close to completion (by early August) A reduced portfolio of channels will be ready for April 2012, which will be increased in September 2012 Required funding: R217.5m 2012/13, R741.8m 2013/14 and R879.2m 2014/15 NEMISA to provide relevant skills training NEMISAThe contract with the shareholder to be finalised. Community Radio Capacity Building training will commence in August 2011 End July 2011Require funding from DoC (Policy Branch) ICASA to prescribe content regulations and license the above channels ICASAChannel authorisation of digital channels will take place under existing local content regulations. April 2012 (licensees are to apply for channel authorisation when digital broadcasting actually occurs) n/a DAC, DBE & DoH to provide key priorities for content generation DoC, DAC, DBE and DOH The task team is in placeMarch 2012n/a Local Content Development Strategy is due for Cabinet approval following consultations with various station. The Content Task Team has been established comprising, DOC, SABC, Nemisa, MDDA,DBE, DoH, Sentech Local and Digital Content Development

10. Elements of Spectrum DeliverablesRole PlayersStatusTimelinesFunding Spectrum audit Spectrum Audit jointly by DoC and ICASA (Phase 1 500 MHz – 1000 GHz) Phase 2: 9kHz -500 MHz) DoC Tender process underway March 2012 March 2013 R7 Million R10 Million Spectrum management Identification of spectrum for Broadband applications DoCDraft policy direction to be signed off by the Minister March 2012R4,873,730 m Licensing of Digital Dividend ICASADraft policy direction to be signed off by the Minister March 2012Included in above funding Re-farming of broadcasting spectrum after analogue TV switch off. ICASAWork has not commenced (dependent on analogue switch off) March 2015Included in above funding Spectrum (1)

11. Elements of Spectrum DeliverablesRole PlayersStatusTimelinesFunding Spectrum licensing methods Methods of licensing Spectrum including spectrum auction are under consideration ICASADraft policy direction to be signed off by the Minister March 2012Included in above funding Spectrum (2)

12. Elements of hubs DeliverablesRole PlayersStatusTimelinesFunding Nine Provincial hubs established by USAASA Coordinate the work of access centres (telecentres, cyberlabs) in provinces USAASADesign phaseDependant on availability of funds Funding required from 2012 MTEF Establish- ment of two ICT incubation hubs to facilitate SMME development in under- served provinces Provision of business development services and access to infrastructure to SMMEs in the ICT sector DOC/USAASADraft business plan developed March 2012R14 Million Hubs / Access (1)

13. Elements of hubs DeliverablesRole PlayersStatusTimelinesFunding Establish- ment of knowledge production hubs in four provinces Conduct research to inform e-skills curriculum development DoC5 hubs established (western Cape, Gauteng, Eastern Cape, Limpopo) March 2012R34 Million Establish- ment of 9 content research and training hubs for community radio Develop programs for community radio DoCWork still in conceptual phase March 2012Funding to be sourced from 2012 MTEF A team has been established to reconceptualize and integrate all effort in terms of hubs/access centres as part contribution to rural development Hubs / Access (2)

14. Elements of e-Skills DeliverablesResponsibilityStatusTimelinesFunding National e-Skills Initiative: (Knowledge Production and Innovation) Signed Memoranda of Understanding (MOUs) with SOEs to increase the optimization of ICT infrastructure for effective service delivery, business development, socio-economic upliftment and research and monitoring for a Knowledge- based Economy. e-Skills Institute and SOEs Discussions being held. Work-in-Progress through SOE forums March 2012n/a Established national and provincial e-skills interventions to support impact against MTSF and MDGs, WSIS through a national coordinated organization such as the e-Skills Institute (i.e. knowledge production and innovation) e-Skills Institute and SOEs (NEMISA, TELKOM, USAASA) Establishment of provincial e-skills knowledge production and coordination hubs. Environmental scans currently being conducted by the provincial e-Skills hubs. Establishment of three application factories March 2012 Funding required: R8m Funding required: R6m Build an ICT infrastructure to support 21st Century Knowledge Economy (i.e. central, provincial hubs) - aggregation, coordination, demand and supply. DoC – USAASA, TELKOM, SENTECH Involvement in provincial pilot projects in the Western Cape, Eastern Cape. March 2013Funding required: R10m Develop a research base for new e-skills development for creative industries i.e. digital content production and application development e-SI / NEMISAFunding to be obtained before TOR can commence March 2012Funding required: R5m E-Skills

15. 15 Conclusion  The plan as presented highlights strategic areas of collaboration between the DOC and it Entities.  Going forward, concerted efforts will be made to ensure synergy towards service delivery spearheaded by the DoC.  Cross cutting task teams have been established per programme so as to ensure integrated planning and delivery.  DoC will ensure that such collaboration with its Entities is institutionalised by not only ongoing engagements with Entities but through introducing integrated design and development of plans and budgets.