South Africa's Strategic Plan for ICT Socio-economic Development (2015-2019)

1. PRESENTATION TO THE SELECT COMMITTEE ON TELECOMMUNICATIONS AND POSTAL SERVICES STRATEGIC PLAN (2015 – 2019)AND ANNUAL PERFORMANCE PLAN (2015/16) 13 MAY 2015 A global leader in the development and use of Information and Communication Technologies for socio-economic development Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

2. Overview of the Presentation: • Strategic Priorities for 2015/16 • Financial information for 2015/16 • Annexure A: Alignment of DTPS Priorities with MTSF, NDP & 2015 SoNA • Annexure B: Strategic alignment of priorities between DTPS and its SOCs Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

3. 2015/16 Strategic Priorities • Based on alignment with the NDP, the MTSF, the SoNA and in line with available resources, the following have been identified within the APP as strategic high-impact priorities: • Broadband: Radio Frequency Spectrum and Cybersecurity • Cost to Communicate • ICT Policy Review • National e-Strategy • Postal Sector: SAPO Turn-Around-Plan, Postbank Corporatisationand Programme of Action for the Postal Sector • Subsequent slides detail the above-mentioned strategic priorities coupled with an analysis of the environment. However the complete schedule of Strategic Goals, Objectives and 2015/16 Targets are found in the 2015-2019 Strategic Plan and the 2015/16 APP. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

4. Broadband (1) • The uptake of broadband has been slow and there has been no strategic usage of broadband to solve pressing societal problems. • Estimated Broadband penetration stands at 17%, and Internet penetration stands at 48% in 2014. • The current market structure is inefficient, costly, duplicates infrastructure in urban areas and cannot roll-out ICT infrastructure and services to reach all South Africans in line with the long term vision of a connected society. • There is a slow prioritisation and therefore slow migration to e-government services. • Paper based systems that are not citizen friendly hamper service delivery. • There is no shifting of resources to modernise government service delivery. • With all the limitations of state resources, we have State Entities with duplicate mandates, competing in the same space and aggravating the above problems. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

5. Broadband (2) • Following the approval of SA Connect and the development of Broadband implementation plans as well as securing of funding for Phase 1 of Digital Development, going forward in the 2015/16 FY, the Department will: • Implement the Digital Development strategy focused on: • Providing connectivity to 1296 identified government institutions inclusive of schools and health centres (Phase 1) • Developing the Phase 2 implementation plan and securing required funding • Developing of the SA Internet Strategy • Operationalising the Virtual Cybersecurity Hub Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

6. Broadband (3) • Phase 1 Broadband roll-out: • Connecting schools, clinics, police stations and other government facilities in 8 District Municipalities in 7 Provinces where NHI pilot is being piloted by the Department of Health (excludes Gauteng & Western Cape that have their own rollout plans) • Phase 1 District Municipalities: • Dr Kenneth Kaunda (NW) • GertSibande (MP) • O.R. Tambo (EC) • Pixleyka Seme (NC) • Thabo Mofutsanyane (FS) • Umgungundlovu(KZN) • Umzinyathi(KZN) • Vhembe (LP) Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

7. Broadband (4) • Implement the Digital Readiness Strategy focused on: • Developing the Rapid Deployment Policy aimed at removal of administrative bottlenecks for approval of rights of way for Broadband Infrastructure roll-out. • Implement the Digital Future strategy focused on: • Developing the Roadmap for the establishment of a wholesale open access network inclusive of ICT SOC Rationalisationin order to extract efficiencies across SOCs in delivering broadband for Government. • Developing Policy direction on spectrum for broadband • Reviewing of the National Radio Frequency Spectrum Policy Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

8. Broadband (5) • Implement the Digital Opportunities Strategy focused on: • Developing and implementing ICT Capacity building programmes focused on supporting community development, health and education sectors. • Implementing the Information Ethics Programme in identified sites as per the Digital Development programme prioritising schools and health centres: • Eastern Cape, Free State & Mpumalanga (Quarter 1) • Limpopo, North West & Northern Cape (Quarter 2) • KwaZulu-Natal (Quarter 3) • Eastern Cape (Quarter 4) • Mainstreaming of Gender Equity, Children’s Empowerment and Protection, Youth Development and Disability programmes within the priority Programmes. • Developing the Digital Entrepreneurship Programme to enhance ICT adoption and usage by SMMEs • Finalising the National e-Strategy towards promoting e-Government and building and Inclusive Information Society. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

9. Cost to Communicate • South Africa’s high cost to communicate affects all sectors of society and remains a concern that must be addressed through policy and regulatory instruments. The National Development Plan (NDP) confirmed that the price of services and equipment remains a significant barrier to expanding mobile phone and fixed-line use, with limited network competition further increasing costs. • The NDP requires the develop a seamless information infrastructure providing access to a wide range of converged services at a cost and quality at least equal to South Africa's main peers and competitors. • The Department will continue to implement interventions within the Cost to Communicate Programme of Action which are aimed at: • Facilitating investment in ICT infrastructure; • Promoting Affordability of ICT services to consumers; • Facilitating market competition in the electronic communications market; • Promoting access to ICT infrastructure and enabling the Broadband Policy (South Africa Connect) Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

10. Cost to Communicate • In the 2015/16 FY, the Department will implement the following interventions within the Cost to Communicate Programme of Action: • Development of the Policy Direction on National Roaming to facilitate access to infrastructure, improve competition in the market and reduce roaming costs. • Development of draft Local Loop Strategy having due regards to ICASA’s Regulatory Impact Assessment outcomes. The focus is on all technologies. • Development of the Policy Direction on data costs aimed at reducing data costs following the broadband value chain analysis. • Development and implementation of a Monitoring and evaluation framework to assess implementation and impact of interventions to reduce the cost to communicate such as the effect of the reduction of wholesale termination rates on retail prices and on the on-net/off-net price differential. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

11. ICT Policy Review • This vision in the National Development Plan (NDP) adopted by Government in 2012 is in many ways the foundation of the ICT Policy Review Process undertaken by Government. The NDP stated that a “new policy framework will be needed to realise the vision of a fully connected society”. • The Policy Review does not happen in isolation from other policy developments such as the National Broadband Policy adopted in 2013. The ICT Policy Review will reinforce and extend the objectives set in the broadband plan. The policy process also recognises that the environment is changing rapidly and that policy interventions need to be continuously assessed against the objectives set. It is thus being developed with a 2030 vision but with specific focus on the next five years. • Following the Cabinet approval of the National Integrated ICT Policy Green Paper extensive consultation was undertaken to inform the development of the Discussion Paper. The Discussion Paper highlights a range of policy options and possible policy approaches which then led to the development of the ICT Policy Recommendations Report which was submitted to Minister. • In the 2015/16 FY, the Department will utilise the ICT Policy recommendations report to inform the finalisation and subsequent gazetting of the White Paper on National Integrated ICT Policy. This will be followed by the development of the Legislative Programme of the Department going forward. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

12. E-Strategy • Though ICTs have the potential to facilitate South Africa’s economic development and contribute to job creation and poverty alleviation, ICT uptake & usage by government, citizens and businesses is relatively low in comparison with South Africa’s peers/comparator countries • The National e-Strategy is therefore focused at providing forward looking strategic direction for the implementation of the ICT Vision for South Africa. The National e-Strategy will serve as a basis to set a national agenda on ICT in line with the National Development Plan Vision 2030. • The e-strategy would also promote e-Government by ensuring that there is provision of infrastructure for universal access to services, as well as address uptake and usage of ICTs by all, including rural and under-served areas. • The NDP stipulates that as a country we have to develop a comprehensive and integrated e-strategy that reflects the cross-cutting nature of ICTS. Focus will also be on the development and implementation of an Internet Strategy aimed at increasing uptake, usage, access and awareness of the Internet. • Following the finalisation of the National e-Strategy Framework, in the 2015/16 FY, the Department will finalise and obtain Cabinet approval of the National e-Strategy. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

13. Postal Sector • The adaptation and modernisation of postal services is crucial to ensure their continued relevance and value, such that the existing postal infrastructure is leveraged to provide an expanded range of goods and services to South Africans. • Despite the declining trend in letter volumes, the postal services sector is an important component of the economic sector in South Africa, contributing approximately 3,16% to GDP. • The Post Office is therefore an important national strategic asset, and its turnaround and sustainability is important to SA’s broad long term developmental goals. Furthermore, due to the Post Office infrastructure it has a far greater depth of reach to the citizenry than any other entity. • Following the development of the South African Post Office Turn-around Plan, in the 2015/16 financial year, focus will be on: • Supporting, coordinating, monitoring and evaluating the implementation of the SAPO Turn-around Plan. • Informing, facilitating, monitoring and evaluating the deployment of SAPO’s infrastructure in terms of Post Offices and Points of Presence (PoPs). • Developing and obtaining approval of the National Address System Policy Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

14. Postal Bank • The Postbank has a critical role in the financial service environment of South Africa, especially as its concerns the economically marginalised citizens, and those who are not in reach of the banking sector. • Within this broader theme of universal service and access, the Postbank will lead the expansion of access to banking services to the majority of citizens, mainly in rural South Africa. • The Postbank has a formidable customer base to launch new transactional services including lending facilities thus providing much needed financial services especially to the currently unbanked. • In the 2015/16 FY, the Department will focus on facilitating and coordinating the corporatisation of Postbank with specific reference to: • Licencing of the Postbank • Appointment of Postbank Board members • Establishment of the Postbank Holding Company • Incorporation of the Postbank Company Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

15. FINANCIAL INFORMATION2015/16 FINANCIAL YEAR Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

16. Allocation per Programme NB: The budget for SABC, ICASA and operational budget has been transferred over from the DTPS (old DoC) to the new DoC due to the transfer of functions Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

17. Economic Classification Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

18. Transfers and membership fees Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

19. ANNEXURE A:Alignment of DTPS Priorities with MTSF, NDP and 2015 SoNA Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

20. Strategic Alignment (1) NDP & MTSF • The APP takes into consideration the short to medium-term focus areas stemming from the NDP, the MTSF and the SoNA. Therefore specific interventions have been prioritised for the 2015/16 financial year taking into consideration available resources and identified risks. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

21. Strategic Alignment (2) NDP & MTSF Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

22. Strategic Alignment (3) NDP & MTSF Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

23. Strategic Alignment (4) 2015 State of the Nation Address Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

24. ANNEXURE B:Strategic alignment of priorities between DTPS and its SOCs Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

25. Strategic Alignment with SOCs • In an effort to ensure integrated and aligned planning, SOCs were involved in the Department’s planning process, while relevant DTPS officials from core Branches participated in the strategic planning workshops of each SOC. • A joint planning workshop was held on 11 February 2015 to ensure alignment and synergy in terms of SOC priorities with those of the Department, based on the respective mandates of each SOC. • Although, in the due course, each SOC will present their respective plans to the Portfolio Committee in detail, the Department will just highlight key priorities of • each SOC in the following slides. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

26. PRIORITIES OF THE SOC OVERSIGHT UNIT • The SOC Oversight Branch has identified the following critical issues to improve its oversight function • The need to review the mandates and the funding models of SOCs under the auspices of the DTPS • Development of an Oversight model for State Owned Companies under the DTPS • Development and approval of the ICT SMME Programme model • Facilitate the full operationalisation and licensing of the Postbank with a full Board complement • Monitoring and evaluation of implementation of the SAPO Turn around Plan • Monitoring financial sustainability of Broadband Infraco • Monitoring the implementation of the Corporate/Strategic Plans of all the SOCs under the auspices of the DTPS • Facilitate the legal establishment of the iNeSi • Monitoring the implementation of Shareholder Compacts. • Facilitate the rationalisation of State Owned Enterprises Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

27. 2015/16 Priorities Finalise and implement the Strategic Turnaround Plan (STP) Detailed Corporate Plan & key priorities developed and implemented based on STP Broadcasting Digital Migration Alignment of SAPO’s Distribution Plan with final approved BDM Policy and Qualification Criteria Conclusion of SLAs Distribution of the digital Set-Top Boxes Broadband access through the Post Office branch network. Position SAPO’s retail outlets to form the Hub for broadband access Partner with Telkom to create SAPO hot-spots/ICT HUB within the SAPO retail outlets. Postbank Corporatisation Process Banking license application process Obtain authorisation to establish the Bank Compliance with the regulatory and legislative framework Approved Memorandum of incorporation Capacitate Postbank (Core banking IT systems, corporate structure etc) SAPO Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

28. 2015/16 Priorities Infrastructure Roll-Out DTT Network Expansion: Complete 4 Greenfield sites Connectivity: install 300 terminals FM: Connect 33 Community Radio Broadcasters FM : Install 31 transmitters for SABC expansion Digital Media: Connect 1 new customer on Hybrid Broadcasting Platform Organisational Performance Redesign the Organisational Structure Financial Sustainability of the Company Generate Net Profit Before Tax of R195.7 million Receive a clean audit Sentech Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

29. Broadband Infraco • 2015/16 Priorities • Strengthening Capex management • Broadband Infraco has embarked on developing the institutional structure in order to minimize the current funding challenges through focusing on effective Capex management. • New Product Development for additional revenue stream focused at: • A Competitive Open-Access, carrier-neutral, connectivity enabler, that offers higher than industry service level performance and diverse route coverage. Thus allowing its customers to leverage from productivity gains acquired from using the Broadband Infraco platform which discourages self-provisioning and/or using the service platform of competitors. • SA Connect: • Broadband Infraco has extensive pre-existing infrastructure that can be of vital importance in the implementation of SA Connect connectivity projects. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

30. SITA • 2015/16 Priorities • Value added (IT) Procurement • Comprehensive procurement improvement strategy implemented to: • Improve procurement efficiencies and turnaround times • lower IT cost for government • E-Government • Drive modernisation of the public sector • Improve government business processes • Enhance access to government services by the citizens • Data Security • Safeguard and protect government information Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

31. USAASA • 2015/16 Priorities • Subsidise 5 million needy households with Set-Top-Boxes (Scheme for STB Ownership Support). • Provide 2 Municipalities in under-serviced areas with Internet (Albert Luthuli local municipality and Vhembe local municipality.) • Connect 3 schools of People with Disabilities in under-serviced areas with internet Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

32. 2015/16 Priorities Build (through campaigns, public awareness & partnerships) a substantive formalised multi-stakeholder collaborative network involving Government, Business, State Owned Companies, civil society, organised labour that will contribute to the massification of e-skills delivery at all levels. Leverage existing ICT education and training expertise, infrastructure and courses so as to: Produce 3 customised /targeted courses; Transform 18 existing ICT centres into smart community knowledge centres and provide access to online courses; Train of 400 ICT practitioners; 1250 e- literacy learners & 625 sector users. Promote continuous research in a cross disciplinary manner through the funding of two post graduate researches, conducting a national environmental scan to access research gaps and overlaps and host a research colloquium. Implement a monitoring framework to aggregate the uptake of technology within society. NEMISA 32 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

33. THANK YOU Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development