Department of Communications post-budget vote briefing

The Minister and Deputy Minister of Communications yesterday delivered the department’s budget vote in Parliament, Cape Town.

The occasion served as an opportunity for the Ministry to outline the department’s programme of action in line with the key priorities set by the President in his State of the Nation Address.

The President emphasised that the fight against poverty remains the cornerstone of government policies. The question that we have to answer as a department is, how do information and communications technologies (ICTs) assist as a tool to support national imperatives as outlined by the President?

Our vision is to establish South Africa as a leader in information communication technologies.

The policy choices we made as a country with regard to broadcasting digital migration will ensure that the process is not only about modernising technology, but that it also addresses key socio-economic, developmental and infrastructure challenges facing us.

While we recognise the complexity of the digital migration process, significant progress has been made to meet on 1 November 2011 analogue switch-off date.

In line with government’s decision to support poor TV-owning households, we are finalising the details regarding the implementation of the scheme for-ownership-support for set top boxes for submission to Cabinet soon.

During the past fifteen years, the ICT sector contributed close to seven percent to the gross domestic product of the country which is a significant contribution, given the size of the sector.

The policy choices we made as a country have enabled the development of a robust, vibrant and competitive ICT sector that has seen the emergence of strong mobile technology companies, the roll out of wireless broadband service offerings, and an increased diversity in ownership.

To consolidate on these gains, the country needs to constantly review its policy and regulatory environment to assess whether it appropriately supports the future growth of the sector.

We will therefore develop an integrated national ICT policy framework, which will be ready by the end of the financial year.

This policy framework will seek to promote the convergence of technologies and to stimulate the growth of the economy in line with the objectives of the national industrial policy.

It will furthermore encourage e-commerce activities and expand ICT infrastructure, linking rural and urban communities as well as uplift the poor.

The department also aims to finalise a national broadband policy by March 2010. The policy will provide a holistic, coordinated national approach to the provision of affordable, reliable and secure broadband infrastructure and services.

This, we believe, is in line with the President’s call to contribute to the development of rural areas in our country.

In particular we will ensure that remote rural communities and under-serviced areas are an integral part of the planning from the start and not as an afterthought.

In 2008 the department commissioned an independent benchmark study to look at the cost, quality, access and usage of telecommunication services with comparative countries such as Malaysia, India, Chile, Brazil and South Korea. The study confirmed that our telecommunication prices are still high compared with those countries.

To responce to this, the department will develop a programme of action aimed at reducing the cost, improving quality, availability and usage of ICTs.

In addition, the Ministry will be appointing an independent panel of experts, whose recommendations will assist us to design appropriate interventions to address the cost to communicate effectively.

The enhancement of cyber-security and protection of critical information infrastructure is essential to our country’s economic and social well-being and the maintenance of national security. A national cyber-security policy will be finalised by the end of the year. This initiative is our contribution towards combating crime in our country another government priority.

Sentech remains a national strategic asset. We wish to congratulate them on their achievements in signal distribution and the excellent work done with regard to the ICT guarantees for the 2010 FIFA World Cup. Sentech was able to deliver timeously to the 2010 Organising Committee for the Confederations Cup, despite very trying circumstances.

The Department of Communications will accelerate the corporatisation of the Post Bank to provide a wider range of affordable financial services for the unbanked, particularly the marginalised and the poor. In this regard the Post Bank Bill will be tabled before Parliament by the end of this year. The Bill aims to provide for the establishment of a stand-alone public company to be known as the South African Post Bank.

We have taken a detailed look at the challenges facing the public broadcaster, which include governance, management capacity and financial management challenges.

The department believes that a new vision and mandate is required for public broadcasting services in line with South Africa’s developmental agenda, and the governance of the South African Broadcasting Corporation (SABC) needs to be strengthened.

The department will therefore amend the Broadcasting Act, in consultation with all relevant stakeholders and rename it the Public Services Broadcasting Act.

The amendment will bring the charter in line with international best practice, and ensure that the public broadcaster is best suited to our young democracy. The amendment will also introduce an appropriate funding model for the public broadcaster.

We have set up a task team comprising the Department of Communications, National Treasury and business turn-around strategists, with a view to effecting the successful functioning of the public broadcaster. This task team will also look at Sentech’s strategic thrust going forward and advise us accordingly.

For more information contact:
Tiyani Rikhotso
Cell: 083 800 9936

Issued by: Department of Communications
24 June 2009

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