1. USA Corporate Plan and Budget for the Period 2006-2007
Presentation to the
Portfolio Committee on Communications
7 March 2006

2. Vision
To be the leading organization in the strive to promote universal service and universal access to Information and Communication Technology in South Africa

3. Mission
The mission of the Universal Service Agency is to efficiently and effectively:
Encourage, facilitate and offer guidance in respect of any scheme to provide universal access or universal service;
Foster the adoption and use of new methods of attaining universal access and universal service;
Stimulate public awareness of the benefits of ICT services;
Conduct research and surveys into and keep abreast of developments in the Republic and elsewhere on ICT; and
Provide the Minister and ICASA with recommendations in relation to policy on any matter relating to universal access and/or universal service.

4. Introduction Our Presentation Deals with the following:
Strategic Objectives.
The Focus Areas of the Agency in
The USA and USF Budgets for
The Challenges and Opportunities

5. Strategic Objectives
Strengthening the strategic and operational capacity of the Agency to manage the USF.
Application of USF for payment of subsidies.
Conducting research and advising the Minister on Universal Service and Access to ICT.
Promotion of Universal Service and Access.
Building ICT capacity in the under serviced areas.

6. Overview of Past 3 Years
Over the past 3 Years the Agency has deployed 135 Telecentres and 224 e-school Cyberlabs.

7. Focus Areas:
Deploy ICT access facilities in under-serviced areas
Building capacity in under-serviced areas for the optimal utilisation of ICT
Promoting the principle of universal service and access to all stakeholders in the ICT industry
Research to advise the Minister on universal service and access
Subsidies for USALS
Transitional Arrangements for Electronic Communication Act

8. Deploy ICT Access Facilities
Multi-purpose Community Centre Telecentres (MPCC)
Community Telecentre
E-School Cyberlabs
ICT Telecontainers (Telecentres and Cyberlabs)
Community Digital Hubs
Multimedia Upgrade
FY2005/6
(Actual)
FY2006/7
(Estimate)
FY2007/8
FY2008/9
MPCC 20 32 25
Community Telecentre 36 35 45
E-School Cyberlabs
146
208
376
Community Digital Hubs 3
Multimedia Upgrade
n/a 33 63 73

9. Subsidisation of Telecommunications Licensees
A subsidy paid directly to USALs for the establishment of telecommunications infrastructure payable in instalments of R5million over a three year period, totaling R15m.
FY2005/6
(Actual)
FY2006/7
(Estimate)
FY2007/8
FY2008/9
USAL 7 21 20

10. CAPACITY BUILDING E-readiness Training Programme Community e-Readiness
Teachers and students e-Readiness
ICT Learnerships for Technical Support
Collaboration with public and private sector stakeholders deploy ICT technical graduates in the rural telecentres and e-school cyberlabs
Developing Community websites in the under serviced areas.
Providing addresses to high school students and teachers in the rural nodes.

11. Promote Universal Service and Access
The Agency participates directly in the promotion of ICT by subsidising launches, conferences, media activities and publications to stimulate public awareness of the benefits of ICT services.

12. Research and Monitoring
Previous Year’s Research: Research to determine categories of the needy and on ICT penetration and utilisation was conducted during the 2005/6 financial year.
Alternative ICT Technologies: Research on alternative available ICT technologies to achieve the goal of universal service and access is ongoing in order to find and evaluate technologies that will be instrumental in attaining this end.
Broadcasting Service and Access: Research on the definition of universal service and access in terms of the broadcasting environment will be instrumental in implementing the Electronic Communication legislation in the Agency once the bill has been promulgated.
Monitoring and Evaluating: Monitoring and evaluating the subsidisation activities of the Agency is an ongoing project.

13. Alignment with National Government Programme of Action
National Government Focus Areas
USA Programmes
1. Increasing Competitiveness in the South African Economy
E-school cyberlabs
ICTs to contribute to achieving the objectives of increasing the number of maths and science graduates in schools.
Research on and Promotion of:
Universal Service and Access to ICT’s in SA
2. Achieving higher level of investment in the south African economy
Under Serviced Area Licensees subsidization
Telecommunications Licensees subsidization for connectivity
3. Broadening participation of historically disadvantaged people in the second economy
Community Digital Hubs
To support Cooperatives. What challenges do they have and how can ICT assist in overcoming them.
To support Youth Services through e-Cadres and community E-Readiness Programme
4. Capacity of the state to deliver on its mandates
Project Consolidate
MPCC Telecentres to introduce modern ICT ‘s in the development nodes

14. Required Budget for USF
Category
FY2006/7
R'000
FY2007/8
FY2008/9
New projects
41,565
124,007
197,932
Maintenance
31,068
40,525
66,539
Subsidise USALs
95,625
71,750
Total
168,258
236,282
336,221

15. Appropriated USF Budget
Category
FY2006/7
R'000
FY2007/8
FY2008/9
Appropriated Budget
31,164
32,722
34,581

16. Financial Resources
FY2002/3
R’000
FY2003/4
FY2004/5
FY2005/6
FY2006/7
Appropriated budget in terms of MTEF
23,679
24,745
26,230
29,247
31,164
Expenditure
2,346
29,800
57,873
92,493
169,214
Accumulated surplus
86,449
88,328
61,268
1,156 ?

17. Budget USA
FY 2005/6
(Actual)
R’000
FY2006/7
(Budget)
FY2007/8
FY2008/9
Universal Service Agency Operating Budget
17,379
19,166
20,078
21,174
Universal Service Agency Capital Budget
121
934
1,027
1,130
Total Appropriated Budget for USA
17,500
20,100
21,105
22,304
Percentage Increase
10%
15% 5% 6%
Universal Service Fund
92,493
169,214
236,287
336,226
60%
83%
40%
42%

18. Universal Service Agency
The budget does not meet all the Agency’s operational requirements, thus presenting a number of financial challenges:
The Agency’s assets have reached the end of their economic life.
The IT systems of the Agency are inadequate for supporting operations.
Accommodation does not complement its operations, because the location is not sufficiently accessible to stakeholders.
The Electronic Communication Legislation will require business processes reengineering of the Agency.
Approximately 80% of the Agency employees’ contracts will expire at the end of November 2006.
FY2003/4 (Audited)
R’000
FY2004/5 (Audited)
FY2005/6 (Estimated)
USA Expenditure
14,211
15,884
17,500
USF Expenditure
29,800
57,873
92,493
Efficiency
32%
22%
16%

19. USA Organisational Structure

20. Thank You http://www.usa.org.za/ sgulube@usa.org.za 011-877-6600
Website Address:
Phone: