Padayachie, Budget Vote Speech 2006/07
Chairperson
Honourable Minister
Colleagues in the Executives
Members of the Portfolio Committee
Honourable Members of Parliament
Distinguished guests
Ladies and gentlemen
Introduction
In our Budget speech delivered to the House last year we reminded ourselves
that �The future is a matter of choice and not one of chance�. We also
re-affirmed that the Department of Communications (DoC) is imbued with a vision
that Information and Communication Technologies (ICTs) have a strategic and
important role to play, both as an enabler of growth in the economy and as a
development trampoline to leverage our people out of poverty.
In pursuance of this mission the DoC�s strategic thrust is best summarised
by its commitment to becoming a �Global Leader in harnessing ICTs for
socio-economic development�
In keeping with this commitment you would have heard from the Honourable
Minister�s speech to the house the department�s strategy has been to develop
Policies and Legislation that are aimed at:
* liberalising the Telecommunication Sector
* stimulating Growth in the Economy
* attracting Foreign Direct Investment
* reducing the Cost of Telecommunications and Increasing the Competitiveness in
the Sector by dismantling the conditions of Monopoly
* facilitating Small Medium Micro Enterprises (SMMEs) and Black Economic
Empowerment Economy (BEE)
* facilitating Universal access and bridging the Digital divide, between the
first and second economies in our country
Fundamental to our approach on these matters is our understanding that the
information economy has become an ever more central part of and will play an
ever more increasing role in South Africa�s National Economic Development.
Communication Networks provide the infrastructure of the National Economy
and will constitute the basis and a major driving force for the higher growth
rate of the economy as envisaged in the Accelerated and Shared Growth
Initiative for South Africa (AsgiSA) process under the leadership of the Deputy
President.
ICTs must therefore occupy a strategic importance in the growth and economic
life of the nation and in our strategy to reduce poverty and halve unemployment
by the year 2014. The focus of our work in the last two years has been to
prepare the legislative framework for an era of convergence and to make the
necessary programme initiatives to set in motion appropriate policy for
broadband development, digital migration and other initiatives so as to ensure
that the country has the necessary and appropriate infrastructure to take us
into the exciting ubiquitous and digital world of the future.
Electronic Communications Act
One of the most outstanding achievements accomplished in the last year of
our work has been the promulgation of the Electronic Communications Act (ECA).
As members will all know that this Act has been signed by the President and
Gazetted. All that remains is for a date to be determined as to when the Act
will come into operation and take its effect in law.
As we today celebrate Africa Day we also take pride in recording that we are
the first country in Africa to promulgate a Convergence Law in ICT, thereby
demonstrating by our practice that we indeed lead the continent on matters of
ICT.
Independent Communication Association of South Africa (Icasa) Amendment
Bill
We are also happy to report that following our deliberations over the last
few days in the Communications Portfolio Committee we have now concluded the
modifications of the Icasa Amendment Bill which was sent back to Parliament by
the President.
This Bill, now in its modified form has been reworked to address the
constitutional reservations. It is now ready for submission to Parliament for
processing and resubmission to the President for assent and signature into
law.
A development in technology always runs ahead of developments in
legislation
The statement that development in technology always runs ahead of
developments in legislation remain true for this day, South Africa is already
starting to get a peep into the exciting digitally networked future of a
convergence era as we witness the advent of specialised devices which hitherto
have not been present in our markets.
Last year it sounded like science fiction when we informed the House that
sometime in the future you may be able to, by remote operation from your cell
phone device, answer your doorbell at home.
Just only a few days ago, the South African company, Multichoice in
collaboration with Sentech and the South African Broadcasting Corporation
(SABC) announced the test piloting of new cell phones through which you will
now be able to receive broadcasting of normal television channels and the news
on your cell phone.
I am not just talking about 3G, video streaming but active live Television
(TV) broadcasting.
Also making its test appearance in South Africa, for the first time are new
broadband television sets which will allow you to send to another TV subscriber
what is called a �video-mail� just as in an e-Mail. Your TV set will be able to
record your message and send a video clip message to your friend via the TV set
to his/her TV set.
Such are the emerging innovations in technology that will drive the further
growth and development of the ICT sector in South Africa into a new future.
The real truth of the matter is that there is a revolution taking place,
right here in the world and before our very eyes, and it is arriving without
very much fanfare.
This combination of open global markets and innovative technologies lie at
the base of this revolution.
In preparing ourselves, our country and our people to remain at the
forefront of these developments and to catch the next wave of advancement in
technologies in ICTs, four projects, in the coming years will remain central to
our programme of action.
These are:
1. Task Team to undertake a strategic analysis of the South African ICT
Industry
2. Development of a Broadband Policy and Infrastructure Plan
3. Implementation of a Programme for Digital Migration
4. ICT preparations for the World Cup 2010 Soccer Games
Allow me to elaborate on these in more detail:
1. Task Team to undertake a Strategic Analysis of the South African ICT
Industry:
This is a joint initiative of the ICT Ministry of India and the Ministry of
Communications of South Africa. A joint task team of experts from both
countries will undertake a strategic analysis of the ICT industry in South
Africa and propose a development plan for the sector. A crucial element of the
plan will focus on human resource development and training and the growth of
indigenous technologies that will also stimulate manufacturing, software
development and research and development in ICTs.
Arising from this synergistic partnership between India and South Africa the
analysis will outline a possible niche role for the South African ICT industry
in the Global ICT market and its responsibility in relation to supporting ICT
developments on the African continent.
The task team will draw participants from government, industry and academia.
This project was proposed and accepted by both governments during a mission to
India last November.
2. Development of broadband policy and infrastructure in South Africa:
Most advanced economies in the 21st century are information and knowledge
driven. Value creation depends on the ability to efficiently and effectively
manage raw data in order to transform it into valuable knowledge and then to
profitably exploit this knowledge. This is where Broadband fulfils a role as a
key enabler in the knowledge or digitally networked economy. Many governments
and economic bodies estimate the long term benefits of broadband to be in the
billions of Rand and whole percentage points of Gross Domestic Product (GDP)
growth.
It is not fanciful to suggest that the macro-economic importance of
broadband in the 21st century is comparable to electricity in the 20th century
and rail in the 19th century and its long term role as a critical element of
any advanced economy�s� national infrastructure.
In this regard Minister has alluded to the need for increased investment in
broadband infrastructure, creating affordable access to broadband and
increasing the penetration rate of personal computers (PCs). The development of
a national fibre optic infrastructure and the creation of fibre optic
infrastructure capability in our major cities is an essential element to our
broadband development plan, together with the New Partnership for Africa�s
Development (NEPAD) EASSY Cable project which is coming on stream.
The generation of available bandwidth at affordable costs is critical to the
industry�s future growth.
The use of wireless technologies and the roll out of Sentech�s Wireless
Broadband project will go a long way to leapfrogging developments in the rural
areas and in the second economy.
In this respect the establishment of a Broadband Advisory Council to advise
government on a policy for Broadband and a strategy and implementation plan
will significantly advance our programme.
3. Programme for digital migration:
Minister has referred to Sentech�s responsibility to digitise the country�s
broadcasting signal distribution network and the establishment of the Digital
Migration Working Group whose report will provide a digital migration
strategy.
4. ICT preparations for the World Cup 2010 soccer games:
That day when we won the bid to host the 2010 Soccer Games, 15 May 2004,
will remain one of the greatest moments in our young and free nation�s history.
On this day we were all one for the future of our country.
In this same way the actual moment of hosting the 2010 Games will likewise
constitute a great opportunity to build a high point of social cohesion in our
emerging nation.
Our ability to be technologically and ICT ready to host the 2010 Games is
absolutely crucial to our successful hosting of the 2010 Soccer Games. Central
to this is our ability to deliver on the Ministerial guarantees on ICT made to
Federation International Football Association (FIFA).
Working through the Technical Coordinating Committee under the leadership of
the Inter-Ministerial Committee for the 2010 Games the Department of
Communication (DoC) and representatives of the ICT industry will participate in
a joint working team to ensure that we make the necessary ICT preparations for
the hosting of the Games.
In this regard I am pleased to announce the establishment of this Sector
Wide Coordinating Committee for the ICT industry for the 2010 Games. The
Chairperson of which will be Mr Victor Moche.
DoC as part of a broader government wide initiative is advancing plans to
ensure that the country is 2010 ready for the Games. At the same time
strategies and plans are under way to ensure that associated economic
opportunities will emerge from the 2010 event and that the games will be truly
an African event.
The infrastructure comprised of the International Broadcasting Centre and
the host city broadcasting centres will provide a 2010 Games legacy that will
be put to good use by the ICT industry following the closure of the games.
As a country we are determined to be 2010 ready and to meet the ICT
conditions of guarantee given to FIFA to host the most amazing moment in
Africa�s history for the 21st century.
Conclusion
In conclusion, Mr Chairperson, let me say we indeed appreciate the
commitment and support given to our work by the members of the Portfolio
Committee and for the contribution made by its previous chairperson Mr Lekgoro,
who is now a MEC in the Gauteng Legislature.
Also to the Deputy Director Generals (DDG�s) who left us during the course
of the year namely; Pakamile Pongwana, Joe Mjwara and Phumelele
Ntombela-Nzimande we value your contribution and your continued commitment to
the sector.
To the Minister for her support, the Director General and her staff and to
the members of my own office under the very capable leadership of Mr Raymond
Reddy - your support is very much valued.
Mr Chairman, as we marshal our resources, both our financial and human to
execute the projects identified we are certain that we will not let our people
down.
We will reinforce the confidence that the masses of our people have in our
Government�s ability to ensure that our people truly enter an age of hope,
thereby confirming that:
�Today is better that yesterday and indeed tomorrow will be better than
today�
I thank you and commend the Budget presented by the Minister.
Issued by: Department of Communications
25 May 2006
