Speaker of the National Assembly;
Chairperson of the NCOP;
Deputy Chairperson of the NCOP;
Deputy Speaker of the National Assembly;
President JG Zuma;
Deputy President Cyril Ramaphosa;
Honourable Members of Parliament;
Honourable Members of the NCOP;
Ladies and gentlemen
It is a privilege and an honour for me to participate during the 2015 State of the Nation Address debate delivered by His Excellency, President Jacob Zuma on 12 February 2015, in this very house.
Madam Speaker,
Please allow me to express our highest consideration for your office and once more emphasise our respect and confidence in your inspiring leadership.
Madam Speaker,
You are one of the tried and tested cadres in the history of this country. As you continue to stand tall, we look up to you, especially when we remember how you used your leadership skills during CODESA. You united women across all political, class, rural, religious and human rights social formations, and ensured that gender equality and women’s right to participation were respected during the country’s high level negotiations.
Threats of violence before the start of this annual historical day and the actual aggression seen while the head of state was on stage, created a feeling of a possible imminent danger.
Hon Malema’s intention to disrupt the SoNA received the widest coverage by most media houses and radio stations. The so-called defenders of the constitution did not see that as the threat to the constitution, yet an intervention which was meant to create an environment conducive to stability, was construed and portrayed as a violation. Inconsistencies in defence of any cause lack integrity and become a form of posturing.
Madam Speaker,
Calls for “bring back the signal”, made us to reflect about our challenges of inequity, poverty, unemployment and access. They have a long history and they are deep and that is a reality of the majority of our people in this country, who live in some of our poorest districts that include Dr Kenneth Kaunda in North West, Gert Sibande in Mpumalanga, O.R. Tambo in the Eastern Cape, Pixley ka Seme in the Northern Cape, Thabo Mofutsanyane in the Free State, Umgungundlovu and Umzinyathi in KwaZulu-Natal, and Vhembe in Limpopo. They have never received the signal and these are our real heroes and the defenders of the constitution as they remain in defence of our struggles in abject poverty.
Madame Speaker,
The Apartheid government denied our people access to information, education and knowledge instead they used state apparatus to spread propaganda through the State Broadcaster and the Post office was used as a conduit for letter bombing against our comrades who were in exile. In this regard, our memories go to the Anti-Apartheid activist, Ruth First who was killed on the 17th of August 1982 by a letter bomb in Maputo, where she was exiled. Similarly, Bheki Mlangeni was also killed through a letter bomb sent by Eugene De Kock, who used his name and home address as the “sender” of the parcel to Lusaka in February 1991. When the parcel was returned back to sender, it killed him instantly, in his mother’s house in Soweto. Reflecting on the 60 years of the Freedom Charter, one turns to reflect on the situation on the ground at the time when selfless volunteers gathered together to chant the vision for the freedoms we enjoy today.
President Zuma has in his State of Nation Address declared 2015 as the year of the “Freedom Charter and Unity in Action to Advance Economic Freedom”. As we celebrate the 60th anniversary of the Freedom Charter, the Information and Communications Technology sector has a critical role to play in the manifestations of the commitments declared in the Freedom Charter.
The Freedom Charter Declares that – “All Shall Enjoy Equal Human Rights”
The Freedom Charter was crafted to counteract Apartheid legislated racism, the system which was declared by the United Nation as the crime against humanity. Those who seek to defend white privileges must appreciate that Apartheid and its segregation policy committed acts of criminality against the majority of our black people, hence this house cannot be for any other use except to be a battle ground for reparative measures.
Our Constitution also states that: “South Africa belongs to all who live in it, united in our diversity”. This parliament as an important institution for upholding the Constitution, should dedicate itself to “build a united and democratic South Africa, able to take its rightful place as a sovereign state in the family of nations”
Madam Speaker,
The Department of Telecommunication and Postal Services is responsible for developing policy and regulatory functions which facilitate the deployment of infrastructure and postal services. Telecommunication services include the exchange of information over long distances through voice calling, short messaging or video services. The department plays a governance oversight over Universal Service and Access Agency, (USAASA) Ikamva e-Skills Institute, Sentech, South African Post Office (SAPO), State Information Technology Agency (SITA), Broadband Infraco, Postbank and Za Domain Name Authourity (ZaDNA).
The ANC government is proud to have implemented policies that ensured that freedom of expression and access to information and communication services is affirmed. Since the licensing of Vodacom and MTN in 1993, these companies have become giants in the African telecommunications market. Further to their success, the South African public benefit through high-tech modern technology accessing a range of information and communication technology services, achieved through consistent policy and regulatory interventions.
For example, one of the companies, Vodacom accounts for more than 31.3 million subscribers a growth in numbers from over 26 million subscribers in 2010. The market cap of Vodacom is currently seating at R200 billion. This is a good story to tell, moving South Africa forward. Ugogo, uSilambanezigwili at Msinga can now regularly communicate with her loved ones in Cape Town or anywhere in the continent, managing the family affairs under any circumstances at affordable call rates. This is a good story to tell, moving South Africa forward.
Before 1994 we only had one fixed line operator (Telkom) and today we can proudly boast of four (4) mobile network operators. South Africa has moved from two (2) Mobile Network Operators to four (4) licensed operators by 2012, namely, Vodacom; MTN; Cell C; Telkom Mobile covering more than 99% of the population. Telkom and Neotel have moved to modernise their networks from copper base to fibre deploying Long Term Evolution technologies.
Our mandate as the ANC government is the transformation of the economy for inclusive growth. At the heart of our aim for radical economic transformation is the need for coordinated interventions to ensure inclusive economic growth.
Madame Speaker,
Let me remind you of some statistics regarding where we are to date in our pursuit for universal access to ICT services for all.
Internet Access has increased with over 40.9% of the population enjoying access to internet. (Stats SA General Household Survey 2014). This number is estimated by other sources to be high at around 48% in 2014.
Connectivity to schools continues to be in the current administration. Over 22 percent of schools of the total 24619 schools have now been connected for teaching and learning. The Department of Telecommunications and Postal Services collaborate in partnership with other companies such as Vodacom, MTN, Cell C and Telkom to drive connectivity to schools as part of e-Rate policy implementation.
Madam Speaker,
National Development Plan (NDP)
The NDP identifies telecommunications infrastructure as the core infrastructure in the economy that must provide the enabling technology for the inclusive economic growth.
The NDP guides us to develop a Cohesive ICT Strategy and Plan including aspects such as national e-Strategy.
Furthermore, the NDP requires us to focus on the following:
Reviewing the market structure and analysing the benefits and costs of duplicating versus sharing infrastructure, given that the radio spectrum on which mobile networks depend is limited.
Establishment of a common carrier network, possibly by structurally separating Telkom’s backbone operations from its retail services.
At least applying open-access policies to encourage sharing of certain elements of the backbone fibre network, without discouraging private long-term investment.
Targeted public investment, possibly through public-private partnerships.
Madam Speaker,
The Telecommunications market in particular is engaged in self initiated market consolidation, wherein several mergers and acquisition transactions are underway and have been filed with the competition commission. We continue to monitor these activities and their possible implications on the consumers and our socio-economic development goals.
Integrated Information and Communications Technology Policy
Our government is implementing one ICT Policy and legislation despite the separation of the department of telecommunications and postal services and the Department of Communications. The benefit of the President’s decision to create two departments has also been to focus on strategic implementation of core infrastructure for telecommunication services and rationalized relevant State Owned Companies SAPO, State Information Technology Agency, Telkom, Broadband Infraco, and Universal Service and Access Agency, (USAASA) under the Department of Telecommunications and Postal Services to fast-track the deployment of infrastructure as mandated by the National Development Plan.
Our two departments are working together and they should continue to do so, to share experience and expertise, and we as Ministries are also engaging on a regular basis.
We have undertaken the ICT Policy Review process which will culminate in the adoption of a White Paper Policy on Information and Communications Technology.
The aim of the ICT Policy Review amongst others is:
- improve the existing legislation relating to electronic communications services;
- address the funding, governance and institutional frameworks of our regulatory and implementation bodies to avoid duplication of resources and expertise;
We are cognisant of the technology convergence delivering services such as television content, voice calls and audio through broadband infrastructure. We hope to conclude the White Paper Policy by March 2015. We call on our State Owned Companies to coordinate and collaborate with government and the private sector through smart partnership to implement our common ICT Policies and legislations.
The National e-Strategy development recommended by the NDP has been commenced with. The Strategy will be a reflection of various sectors and their e-services potential, their role and benefit in innovation and diffusion technology for online services in those sectors. It involves a multi-faceted collaboration and government departments working together. A draft Strategy has been produced. It is our expectation that relevant departments should see themselves in the Strategy document, informed about their technology needs particularly on technology adoption in sectors such as education, health, science, agriculture, and home affairs, etc.
In this manner, we will prioritise e-government implementation where in:
- National e-government strategy framework and plan for all tiers of government will be developed and implemented.
- Prioritisation of frontline government departments that deliver services to the public, for automated services.
Madam Speaker,
Broadband Policy – South Africa Connect
The President has directed through his announcement in the SoNA 2015 that a dedicated focus during the Phase 1 of the broadband roll-out will be in eight (8) districts municipalities I have already mentioned.
The Broadband Policy – South Africa Connect, strategy and plan was adopted by Cabinet in 2013. We are concerned about the low levels of broadband penetration which stands at only 17 percent by 2014. In terms of Broadband Policy, we aim to reach 100 percent broadband adoption by 2020 at a speed averaging 10 Megabits per second (Mbps) for government institutions, and 80 percent of schools, health facilities at 100Mbps and for citizens at a speed of 5Mbps.
These targets are set in order to move our country forward. Clearly, delivering broadband infrastructure requires not only investment by the private sector and the government, but also policy and strategy coordination of various state institutions.
We firmly support the development of free-WiFi areas in cities, towns and rural areas. We applaud the City of Tswane which has recently launched its free-WiFi services in the city.
Madam Speaker,
Cabinet Decision on Broadband regarding Telkom
Cabinet has taken a firm decision to designate Telkom as the lead agency for broadband deployment at national, provincial and local levels. The ICT Industry has during the Market Sounding Study on broadband led by the then Department of Communications and National Treasury called for Telkom to play this lead role on broadband following on the successes in countries such as Malaysia, Singapore and New Zealand. This will lead to a formation of a national broadband company to build an Open Access Network and connect all South Africans in the country.
This decision is important in our transformation agenda in that the Broadband Network built by Telkom will be open for use by all industry players referred to as Open Access Network. It will also entrench economic inclusive growth by ensuring economic empowerment of the previously disadvantaged individuals.
The Open Access Network shall:
- ensure a scalable coordinated rapid broadband network operated on non-discriminatory, open access principles
- it will bridge inequality due to rural and township reach
- promote infrastructure base competition for optimal utilisation of scarce resources.
We continue to develop policy and regulatory regime that promote competition, efficient use of frequency spectrum, and ensure infrastructure sharing.
Madam Speaker,
Crowding Investment in the Sector
The deployment of the broadband technologies and networks is expected to rapidly increase investment in the telecommunications market.
The telecommunications revenues grew from a mere R2 billion before democracy, to approximately R179 billion in 2011 and this is expected to increase to R187 billion by 2016.
We have already seen significant investment in infrastructure over the past three to four years estimated at an average of R14 billion year-on-year. Investment in the development of broadband and other telecommunication investments will primarily come from private sector and government and in order cases working in public private partnership economic initiatives.
The regulator (ICASA) has an important role to play in facilitating investment in the sector through regulations that ensure a fair and predictable regulatory and business environment. The private sector will also be allocated spectrum for broadband to enable the provision of 4th Generation network services and to address network capacity constraints, and to also promote competition. ICASA is expected to align its priorities with our developmental goals.
Madam Speaker,
Reducing Cost of Communication
The ANC Manifesto committed to reduce the cost of communication to give back to the pocket of the public on their income spent. Telecommunication termination costs have come down steadily from an average R1.25 in 2010 to about R0. 20c this year accounting for about 99.3 percent reduction in voice call prices. Retail prices have fallen from an average R3 per minute to about R0.79c accounting for reduction in voice call price of R2.21c accounting for over 135 percent reduction in price.
We certainly believe that the ICASA regulation on voice Call Termination Rates released in September 2014 will result in further cost reduction and heighten competition in the market. This is another good story to tell.
Madam Speaker,
Broadcast Digital Migration
As you know, the implementation of the broadcasting signal distribution has achieved 86 percent roll-out by Sentech, the State Owned signal distribution company. A lot of work has been done to prepare the country for the eminent digital broadcasting technology. The Department of Communication and some of the State-Owned Companies are working hard on this matter so as to ensure that we join the world in the switch-on of digital signal by this year. Manufacturing of set-top-boxes locally with the participation of our black businesses remains our priority.
Madam Speaker,
South African Post Office
In 1998, the democratic government passed a White Paper Policy on Postal Services which created the reversed and the unreserved market in the postal services sector. The South African Post Office mandate is anchored on the policy of providing universal postal service to all South Africans. This has resulted in SAPO building over 2400 postal outlets over the years.
As you are all aware, recently the South African Post Office suffered a long and protracted (destructive) strike which impacted on the revenues and trading standing of SAPO with an estimated revenue loss of R358 million largely attributed to the strike action.
Several steps have been taken to ensure stability at SAPO amongst these is the appointment of an Intervention Team and the Administrator for the SAPO. This team is expected to table a Strategic Turn-Around Plan by April 2015.
SAPO is implementing stringent measures to ensure that the business return to normality including resolving all labour issues at the entity. The current interventions include reduction of costs and unlocking value in targeted areas of the business, such as logistics, strategic sourcing, and cost optimization, revenue upliftment amongst other things.
Following the decision of Cabinet, a process is underway to designate 30% of government postal services business to SAPO which will be finalized by National Treasury.
Madam Speaker,
Postbank Corporatisation
The process to corporatise the Postbank is at an advanced stage. The Postbank as a cash deposit taking institution is in a healthy financial position with no risks to its viability. The Postbank has over R1.4 Billion of funds held by the South African Reserve Bank for its capitalisation. The process of screening potential board members for the Post Board has been finalized for consideration by the Registrar of Banks, and that will enable the appointment of the Board by the Minister of Telecommunications and Postal Services as soon as possible.
We are confident that the Postbank will meet all the requirements of the Banks Act for the purposes of obtaining a banking licence. A Postbank Oversight Committee which is looking into the readiness for the Postbank establishment has been established, with the participation of officials from the National Treasury, Department of Telecommunications and Postal Services, and the SAPO.
Madam Speaker,
ICT Skills Development
The IKAMVA e-Skills Institute has developed good relationships with universities in the country where a number of applications factory and co-laps has been initiated, these are Walter Sisulu University, University of Cape Town and the University of Limpopo and others. We call on the private sector to partner with us to develop skilling programmes for technology teaching and learning for post-matric and secondary education schooling. Our plan is to explore the use of the existing curriculum for ICT teaching and learning, partnering with Further Education and Training Colleges to achieve high pool of ICT skills in the country, not only for business but also for employability in the sector.
We will seek to partner with DTI through Industrial Action Plan to design incentives to support skills and manufacturing capacity, particularly in the electronics field. The future has endless opportunities; we want our future generation to grow up playing with computers and I pads instead of sticks.
Our partnership with the Department of Science and Technology will focus on exploiting the opportunity brought by the Square Kilometer Array, and the innovation system, and will also support specialization in ICT field to build our innovation capacity.
Madam Speaker,
Allow me to remind this house and the citizens that on 7 May 2014, the ANC contested the national elections and won with a clear majority to govern this country with over 62.15% in votes. The ANC is not co-governing with the opposition parties, but it is in charge of the state machinery.
I thank you.
