1. DoC Budget Presentationto
Portfolio Committee on Communications
Dr. A.A Ngcaba
DG Communications
22 October 2002

2. Outline Introduction 2001/02 Review Policy priorities
Strategic alignment to national objectives
MTEF Budget
Challenges
Closure

3. 2001/02 Review Achievements Outline Introduction 2001/02 Review
Policy priorities
Strategic alignment to national objectives
MTEF Budget
Challenges
Closure

4. 2001/02 Review Achievements Policy and legislation
Telecommunications amendment Act – Dec 2001
E-Bill
Cabinet approved that:
- SABC be governed by charter to be monitored by regulator
- SABC be restructured into a PBC and CBC
- SABC become a limited liability company owned 100% by Government
Establishment of a Postal Regulator

5. 2001/02 Review (continued) Service delivery Developing programming for
- women
- people living with disabilities
- people living with HIV/AIDS
100 PIT’s rolled out
7 citizen’s post offices officially launched
9 community radio production hubs launched
Appointment of mystery shopper – to monitor adherence to standards by SAPO

6. 2001/02 Review (Continued) Others Human Resources development
Establishment of Digital and production advisory body
Initiating and coordinating a national KM debate
Promoting awareness of KM in all government tiers
Human Resources development
51 % employees women (40% ex PDI)
26 woman graduates in networking engineering
13 woman graduates in masters in software engineering
14 graduates in Masters in engineering

7. Policy priorities Outline Introduction 2001/02 Review
2002/03 Budget process
Policy priorities
Strategic alignment to national objectives
MTEF Budget
Challenges
Closure

8. Policy Priorities Telecommunications Broadcasting
Policy developments have budgetary implications
Policy Priorities
Telecommunications
Electronic commerce and transactions Bill
Broadcasting
Broadcasting amendment Act

9. E-Bill
Predictable legal and regulatory environment pre-requisite for e-commerce
Connectivity and access to internet infrastructure and services
Secure financial environment - cryptography
E-Awareness across economy
Digital skills or e-literacy
Support for SMME’s
National E-Strategy
Domain naming Authority

10. Amendment to Broadcasting Act
Restructuring of SABC - PBS and CBS
Progam content development
Repositioning Channel Africa
Corporitisation BOP
ICASA – regulatory framework for developing local content
ICASA – regulatory framework for licensing pay television services

11. Amendment to Postal Services Act
Positioning SAPO as a bank of choice for the unbankable
Universal service access
Rollout of postal infrastructure
Restructure Post Bank
Citizens Post Offices – affordable access to digital services

12. Strategic alignment to National objectives
Outline
Introduction
2001/02 Review
Policy priorities
Strategic alignment to national objectives
MTEF Budget
Challenges
Closure

13. Strategic alignment to National (Objectives)
Contributing to economic growth and foreign direct investments
SMME, BEE, Gender and empowerment of people living with disabilities
Universal Service and access
Infrastructure rollout
Research and development
Human resources dev.
Contributions to
- Social sector and service delivery
- Contributing to ISDRS
- ISDP & Urban renewal

14. Economic Growth & Foreing Direct investments
Repositioning Sentech – launching of International Gateway
Telkom listing on JSE – 8 – 14 billion raising capital
SNO – Investment of $200 million per year for five years
Restructuring Post Bank – infrastructure to service rural communities
Regional broadcasting services
E-Bill – projected increase in business conducted over the internet
B2B estimate at R3,2 billion in 1999 to R207 billion in 2005.
B2C estimate at 2,6 billion in 1999 to 34 billion in 2005

15. SMME’S, BEE’S (including gender and people living with disabilities)
ICT Business incubations project
Strategy for DOC & Portfolio organizations
Under-serviced area licenses
Licensing of regional broadcasting services
SNO – 19% earmarked for BEE
Restructuring Post Bank – community based savings schemes

16. Universal Service and Access
Regionalisation of SABC – increase coverage and extend services to regions
Establishing policies on programming content
Channel Africa/BOP restructuring
SAPO increase in retail outlets
Post bank – banking services to the poor
Telecoms infrastructure – to areas where tele-density is less than 5%
Roll out of address

17. Infrastructure roll out
Space applications systems
Increase in postal retail outlets
Licenses for SNO
Regional broadcasting services
Telecoms infrastructure – license obligations of Cell C
Licensing of 8 operators to provide telecoms services in under-serviced areas
Licensing of Sentech for the International Gateway
Analogue to digital broadcasting
ICT university – capital requirements

18. Research and Development
Space applications systems
Software development at ISSA in SA languages – Tsonga, Venda, Ndebele etc,.
Next generations systems
Object orientated systems
Embedded systems
Proprietary systems
Websites development – Mbambatha rebellion, June 16, Sharpville 21, etc.

19. Human Resource Development
Establishment ICT University
Develop e-learning centre for research and content development - DOE
Establish edunet – e-learning to upgrade teachers
Learnership programmes with ISETT SETA – incubators and ISSA R90 million over 3 years
Skills development – multi media broadcasting at NEMISA

20. Social sector and service delivery
Moral renewal: Content development and programme production – fostering community responsibility for fighting crime
Moral renewal: Internet – policies aimed at addressing pronography, child abuse, etc on internet
Moral regeneration summit: SABC and community radio participation
Broadcasting educational content on SABC
Telecentres, rollout of broadcasting services, e-learning centre, MPCC’s, etc

21. Justice crime prevention & Security Sector
112 Emergency center
Interception and monitoring bill – justice
E-Bill (cyber inspectors)
Strategy to combat crime esp, drug trafficking

22. ISDP AND URBAN RENEWAL PLAN
Roll out of ICT infrastructure in nodal points
Development of digital educational content
Extending addresses to under serviced areas

23. MTEF BUDGET Outline Introduction 2001/02 Review 2002/03 Budget process
Policy priorities
Strategic alignment to national objectives
MTEF Budget
Challenges
Closure

24. 4. Funding requirements 2002/03 2003/04 2004/05 Options Total
Baseline allocations
443,220 m
464,736 m
492,620 m
740,472 m
996,231 m
1 013,156 m
1 183,692 m
1 460,967 m
1 505,776

25. Funding per program Program 2001/02 R’ m 2002/03 Administration 63,296
63,708
Telecoms Policy
135,844
117,190
Postal Services
645,362
344,502
Broadcasting
299,055
292,959
Auxiliary Services
5,753
5,092
TOTAL
1 149, 310
823, 451

26. Transfer Payments Transfers 2002/03 R’ m 2003/04 R’ m 2004/05 R’ m
Infrastructure
(MPCC’s, PITs )
10,000
10,480
Training
(SETA, UOS)
10,050
2,104
2,350
Emergency Call Centres
20,000

27. Transfer cont’ Transfers 2002/03 R’ m 2003/04 R’ m 2004/05 R’ m USA
10,711
11,211
11,884
USF
23,679
24,745
26,230
SAPOS
300,000
Broadcasting
(Program content Children, youth, aids, women, disability)
29,000
31,500
33,390

28. Transfers cont’ 2002/03 R, m 2003/04 R, m 2004/05 R’ m SABC – PBS
42,930
44,717
47,400
SABC – TBVC -
Channel Africa
26,450
26,288
27,865
Community Radio
8,500
9,000
9,540

29. Transfers cont 2002/03 2003/04 2004/05 ICASA 111,190 116,376 123,359
NEMISA
13,203
13,753
14,578
Sentech
54,000 -

30. BUDGET SHORTFALL DESCRIPTION REQUIRED APPROVED VARIANCE E-business
30,669
10,000
(20,669)
ICASA
52,647
(42,647)
Broadcasting
120,000 -
(120,000)
Other
18,186
(18,186)
TOTAL
221,502
20,000
(201,502)

31. Challenges Outline Introduction 2001/02 Review 2002/03 Budget process
Policy priorities
Strategic alignment to national objectives
MTEF Budget
Challenges
Closure

32. Challenges Limited financial resources
Splitting assets of SAPO- post bank and post office
Issues to be resolved
Repositioning
- Rightsizing
- IT outsourcing
- Pricing
- Relocating
- Streamline operations
- Sale of business
Limited skills

33. Thank you