Communications

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Public entities and agencies reporting to the Minister of Communications

The following public entities and agencies report to the Minister of Communications. These include the following companies in which government has a major shareholding: Icasa, Sapo, Sentech, the SABC, the National Electronic Media Institute of South Africa (Nemisa), Usaasa, .za Domain Name Authority and Telkom South Africa Ltd.

Independent Communications Authority of South Africa

Icasa is responsible for regulating the telecommunications and broadcasting industries to ensure affordable services of a high quality for all So5uth Africans.

Icasa also issues licences to telecommunications and broadcasting service-providers, enforces compliance with rules and regulations, protects consumers from unfair business practices and poor-quality services, decides on disputes and complaints brought against licensees, and controls and manages the frequency spectrum. In terms of Section 2(bA) of the Icasa Amendment Act, (Act 3 of 2006), Icasa now also regulates postal matters.

In complying with the ECA, 2005, Icasa has had to issue new regulations on commercial, public, community and subscription television and radio to guide licensing.

The Icasa Amendment Act, 2006 requires the authority to do research on all matters relating to broadcasting and communications in order to perform its functions.

Over the Medium Term Expenditure Framework (MTEF) period, Icasa will focus on licensing new players in the telecommunications and broadcasting industry, including local access telecoms operators and community sound broadcasters in nodal areas, and the conversion of 70% of existing licences into new ECA, 2005-compliant licences by March 2008.

Universal Services and Access Agency of South Africa

Usaasa operates under the regulatory and policy framework enshrined in the Telecommunications Act, 1996, as amended in 2001, and the ministerial policy directions issued in the same year.

These mandate Usaasa to promote, facilitate and monitor the achievement of universal service and access in underserviced areas. In addition, the agency is required to:

• manage the Universal Service and Access Fund and use it to implement the mandates as stipulated in the Act
• survey and evaluate the impact of the various initiatives undertaken by all stakeholders, and the extent to which universal service and access has been achieved
• create an enabling environment by stimulating public awareness of the benefits of ICT services and building capacity to access these services
• encourage, facilitate and offer guidance in respect of any scheme to provide universal access or universal service
• make the necessary interventions to enable underserviced communities to access ICT services
• conduct research into and keep abreast of developments in telecommunications services and IT.

The subsidies to USALs contribute to the development of much-needed telecommunications infrastructure and business activity in the most marginalised parts of South Africa.

By mid-2007, seven USALs were receiving subsidies of R15 million each over three years, payable in annual instalments of R5 million.

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Presidential National Commission on Information Society and Development (PNC on ISAD)

In an effort to establish a more systematic and consistent approach across different traditionally disparate areas of policy-making and implementation, the Presidential National Commission on ISAD was formed in 2001.

The commission comprises government, industry and civil-society leaders. During its deliberations, important recommendations are made regarding the need for planning and foresight, co-ordination and integration, and evaluation and impact assessment in the building of the information society. The ISAD Plan and the institutional mechanisms followed from these recommendations.

A corresponding body is the Presidential International Advisory Council on ISAD.

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Internet

South Africa's online audience has grown 121% over the past two years, as high broadband prices have slowly started to decrease. According to Internet market research company Nielsen// NetRatings, this type of growth has been seen across all markets as the Internet has taken hold and started moving away from being a niche activity, to become a mainstream form of media and an integral part of modern life.

In May 2007, some 3,9 million active unique browsers were registered in South Africa, representing a 121% increase on the number in May 2005. Page impressions grew by 129%, from 91 million in May 2005 to 207 million in May 2007.

In 2005, the monthly rental on a 512 kilobit/ second fixed-line broadband Asymmetric Digital Subscriber Line cost about R600 per month. By May 2007, the line-rental price had dropped to R362 per month.

Men comprise the majority of Internet users, at 54% (2,15 million people) of the Internet population.

In age terms, the most dominant group is 25- to 34-year-olds. At 1,42 million users, this group accounts for 36% of the online population. This is closely followed by 35- to 49-year-olds who account for a further 35% (1,37 million people) of the Internet population in South Africa.

The majority of the Internet population speaks English and the vast majority of online content is English.

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Telkom

Telkom has operated as a commercial company since October 1991 and has become the largest provider of communications services in Africa, based on operating revenue and assets. The Telkom Group comprises the fixed-line company Telkom and a 50% shareholding in mobile telecommunications operator Vodacom. It was listed on the JSE Limited and the New York Stock Exchange in March 2003.

Telkom’s listing created meaningful value for BEE shareholders. Over 100 000 South African retail investors subscribed during Telkom’s initial public offering, specifically targeted at historically disadvantaged individuals. In its first year as a listed company, the estimated value created for retail shareholders amounted to some R560 million.

In 2006/07, the Telkom Group posted strong financial results. It declared a higher ordinary annual dividend of 600 cents (c) per share and a special dividend of 500 c per share in June 2007. The group’s operating revenue increased by 8,4% to R51,619 million.

The fixed-line business remains the major contributor to the group, with this segment contributing 63% (versus 37% from the mobile sector) towards operating revenue, 68% (versus 32% from mobile) towards operating profit, and 72% (versus mobile 28%) towards profit attributable to equity holders after intersegmental eliminations.

Telkom has until 1 November 2011 to unbundle the local loop that links the national telecommunications network to individual homes and businesses.

Telkom Foundation

The Telkom Foundation, founded in 1998, enables Telkom to play an active role in South Africa’s socio-economic development.

It focuses on:

• education and training
• empowering women, children and people with disabilities
• ICT planning and infrastructure roll-out.

Economic empowerment

Telkom demonstrated its commitment to delivering meaningful and real BEE to the majority of South Africa’s people, by spending R8,8 billion on empowered or significantly empowered suppliers for the year ended 31 May 2007.

Training and development

Telkom spent R425,9 million on training and developing its employees for the year ended 31 March 2007.

Centres of excellence (CoEs)

This is a collaborative programme between Telkom, the telecommunications industry and the Department of Trade and Industry to promote postgraduate research in ICT and allied social sciences. It also provides facilities that encourage young scientists and engineers to pursue their interests in South Africa.

Launched in 1997, the programme improves local telecommunications and IT skills, yielding substantial benefits for the academic institutions involved. It has helped Telkom and its local technology partners to solve technical problems and cut costs.

Telkom’s corporate partners are also reaping rewards, as the work undertaken at the CoEs is relevant to their areas of business.

By May 2007, there were 16 CoEs at tertiary institutions around the country.

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Mobile communications

Over the years, South Africa has witnessed tremendous growth in the cellular phone industry. South Africa has four operators, namely Vodacom, MTN, Cell C and Virgin Mobile.

In July 2007, Telkom estimated the Sim card penetration of the cellular industry in South Africa at an estimated 89% of the population.

Cell C (Pty) Limited is wholly owned by 3C Telecommunications (Pty) Limited, which in turn is 60% owned by Oger; Telecom South Africa, a division of Saudi Oger; and 40% by CellSAF. It also brought in Verizon Communications, the biggest cellular operator in the United States of America (USA), as its operating partner.

In 2007, Cell C had six active roaming agreements in Namibia, Mozambique, Spain, the Ivory Coast, Mauritius and Swaziland, and had entered into roaming agreements with an additional 49 international operators.

Vodacom is a Pan-African cellular communications company, providing services to more than 28,2 million customers across its networks operating in South Africa, Tanzania, the Democratic Republic of Congo (DRC), Lesotho and Mozambique. Vodacom’s shareholders are Telkom (50%) and the Vodafone Group (50%).

In February 2007, Vodacom deployed more than 90 000 community-service telephones to South Africa’s underserviced areas. Vodacom’s community phone services have become invaluable sources of entrepreneurial activity for hundreds of community phone-shop operators.

Since its launch in 1994, the Community Phone Shop concept has expanded into that of communication centres in which budding entrepreneurs, job seekers and schoolchildren access essential business communication services, such as faxes, e-mails and the Internet, daily.

Vodacom has retained its leadership in a highly competitive South African communications market, with an estimated market share of 57%.

Vodacom increased its total customer base by 7,5% to 32,4 million in the quarter to June 2007. The company’s revenue in its financial first quarter rose 18,6%, while its total customers increased by 28,4% from the same period a year before.

MTN International offers cellular network access and associated services through its subsidiaries and joint ventures in Nigeria, Cameroon, Uganda, Rwanda and Swaziland.

MTN has also recorded a very substantial growth in subscribers across all its operations, achieving a 22% growth in its subscriber base, which translates to a 36% market share.

Virgin Mobile launched in South Africa in June 2006 as a joint venture between Virgin Management and Cell C.

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Liberalisation

The creation of an enabling policy and regulatory environment is important for increasing competition in the ICT sector, and reducing the cost of communications.

Following the signing of the Telecommunications Amendment Act, 2001 (Act 64 of 2001), the department has focused on policies that grow the economy, attract foreign direct investment, increase competition, encourage Broad-Based BEE, and develop and sustain small, medium and micro-enterprises.

The department also aims to improve service delivery and expand the provision of telecommunications services. The introduction of the USALs addresses this need.

The cost of communications will be brought down by increased competition in the sector and the removal of constraints to growth.

Section 40 of the Telecommunications Amendment Act, 2001 requires that USALs provide telecommunications services, including voice-over Internet protocol, fixed mobile services and public pay telephones. Policies have also been implemented to, among other things, allow mobile operators to use fixed lines to provide both voice-and data-transmission services.

The postal sector

Policy and legislation

The cornerstone of national policy for the postal sector is the provision of a universal service at an affordable price and an acceptable standard of service for all citizens. To ensure this, a universal service obligation (USO) has been placed on the South African Post Office (Sapo). To offset the cost of providing a basic service in low-density, rural or unviable areas, it has also been common practice to confer exclusive rights and privileges, i.e. a monopoly, on the provision of the basic letter service.

A USO is an obligation to provide specified services to the whole community, even though these services may not be commercially viable in their own right. The universal postal service implies that all citizens have equal access to a basic letter service:

• that is reasonably accessible to all people
• at a single uniform rate of postage
• at the lowest price consistent with meeting all its obligations, financial and otherwise
• to places outside the country
• at a standard of performance that reasonably meets the needs of the population.

According to the Postal Services Act, 1998 (Act 124 of 1998), Sapo enjoys certain exclusive rights and privileges, including a monopoly on letter mail up to 1 kg.

In addition, Sapo is obliged to operate under a 25-year licence, with explicit universal service targets, and other terms and conditions. The monopoly and compliance with the terms and conditions of the licence will be reviewed and monitored.

South African Post Office

The first post office in South Africa was opened in the Castle in Cape Town in 1792. Today, Sapo delivers almost six million letters per day to 10 million addresses in South Africa. It has 2 550 outlets covering the length and breadth of the country.

The principal function of the Post Office is to provide postal services inside and outside South Africa. As a preferred partner to government, Sapo pays out pension payments on behalf of the Department of Social Development.

Motor-vehicle licences can be paid at selected post offices, and the Post Office collects payments on behalf of more than 100 companies. These accounts can be paid at any post office outlet.

Postage stamps

Postage stamps are traditionally associated with the Post Office. Annually, the Post Office prints more than 384 million of these tiny works of art.

Business centres

The Post Office has established 25 business centres that provide a dedicated, specially designed one-stop shop inside existing post offices, in most rural areas.

They provide a bureau service with facilities such as photocopying, faxing and Internet access. South Africans who live in rural areas can now make new technology part of their everyday lives.

Internet facilities

Many isolated villages are already enjoying the benefits of the electronic age. The Post Office and Department of Communication have installed public Internet terminals at almost 700 post offices. Most of them are in settlements without Internet cafés or other access to the Internet.

Specialised products

Securemail

Securemail provides a swift and safe delivery method for high-security items such as shares and credit cards.

It handles more than 2,5 million credit cards a year, has significantly reduced credit-card theft and has won an award from the International Association of Financial Crime Investigators for its performance.

Parcelplus

Parcelplus is the most economical way to send a parcel. Available at any post office outlet, parcels can be delivered to all post office counters countrywide. Parcels are delivered within two to five days.

Insurance is available and the cash-on-delivery option provides for money to be collected for the contents of the parcel on behalf of mail-order businesses. All parcels can be tracked.

Postbank

Postbank services are available at more than 2 000 post office outlets countrywide and at all Saswitchenabled automated teller machines of other financial institutions. The focus of Postbank is on the many South Africans who do not have access to other banking services.

Postbank is an option for pensioners whose pension money is paid out by the Post Office. Their pensions can be paid into a Postbank account where it can earn interest and be withdrawn at a convenient time.

Service options range from Flexicard, with a required minimum balance of only R10, to Smart Save, which offers interest rates that rise as the balance in the account rises, to Maxi Save, which offers very competitive interest rates.

Postbank has consistently been the leading provider of Mzansi accounts since their introduction in 2004.

A bank account for social pensioners

In the North West, social-grant beneficiaries can open a Postbank account within minutes. They receive a smartcard with a chip containing, in coded form, their photos, fingerprints and signatures.

When a social pension is paid into such an account, the receiver no longer has to queue on pay-out day.

All Postbank accounts function as debit cards and all post offices offer Postbank services.

Courier Freight Group (CFG)

CFG is a subsidiary of the Post Office, made up of the following companies:

• Speed Services Couriers
  Speed Services Couriers provides the most extensive domestic overnight express courier network in southern Africa and has SABS ISO 9002 certification. Options range from the most cost-effective counter-to-counter delivery to door-to-door delivery. Same-day delivery is also available. An international service is available to over 200 international destinations. All items are tracked to their destinations. Insurance and liability cover as well as proof of delivery are available.
• XPS Courier Services
  XPS reaches 3 200 destinations daily with parcel tracking at every stage. Options include:
  • collection and delivery of abnormal or incompatible consignments on the same day
  • a drop-box service for clients in main centres
  • after-hours service with delivery by 8 am
  • optional coverage against loss
  • proof of delivery.
• PX Courier Services
  PX focuses on loads of up to three tons between larger centres in southern Africa. It provides courier services for bigger loads in tailor-made containers to destinations in South Africa and cross-border countries. The mini-container can carry loads of 1 400 kg to 3 000 kg. Options include containers for goods of a hazardous nature and insulated containers to distribute frozen goods. PX also offers priority delivery.
• Document Exchange (Docex)
  Docex moves mail between Docex members and other relevant points. To become a Docex member, an organisation has to pay an entry fee and annual subscription. This enables free mail movement for the entire year. Docex concentrates on the legal and medical professions as well as the travel industry.

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International and regional co-operation

South Africa is a member of the Universal Postal Union (UPU). The country participates in technical-assistance programmes within the UPU, and uses its international accounting facility.

It also participates in other international bodies such as the Pan-African Postal Union, Council of Commonwealth Postal Administrations, and the Southern African Transport and Communications Commission.

South Africa, through the Department of Communications, is a signatory to international treaties, conventions and agreements.

It co-operates and works in partnership with other postal administrations, through either bilateral or multilateral agreements relating to letters, parcels and financial postal services.

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The media

Media freedom

According to the Bill of Rights, as contained in the Constitution of the Republic of South Africa, 1996, everyone has the right to freedom of expression, which includes:

• freedom of the press and other media
• freedom to receive or impart information or ideas
• freedom of artistic creativity
• academic freedom and freedom of scientific research.

Several laws, policies and organisations act to protect and promote press freedom in South Africa.

In 2007, South Africa was ranked as the 59th most free country in terms of press freedom in the world, sharing that position with Nauru, and beating Italy (61st) and Brazil (90th).

Regarding press freedom in sub-Saharan Africa, South Africa ranked fourth, with only Mali, Ghana and Mauritius enjoying more press freedom.

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Broadcasting

South Africa has an extremely diverse broadcast media sector catering for the unique demands of the local market.

Policy and legislation

The convergence of technologies has led the Department of Communications to pass the ECA, 2005, followed by the Icasa Amendment Act, 2006 to regulate and control all broadcasting and telecommunications activities in the country. The new acts will:

• contribute to democracy, nation-building, the provision of education and the strengthening of the moral fibre of society
• encourage ownership and control of broadcasting services by people from historically disadvantaged communities
• ensure fair competition in the sector
• provide for a three-tier system of public, commercial and community broadcasting services
• establish a strong and committed public broadcaster to service the needs of all South Africans.

The Broadcasting Act, 1999 (Act 4 of 1999), defined the objectives of the South African broadcasting system, the structure of the SABC at the time and the role of the various sectors in meeting those objectives.

It also guaranteed the independence of the SABC as a public broadcaster. Within the present Act, the SABC is being corporatised and restructured to better fulfil its mandate of meeting its audience’s needs as well as those of the developmental state.

These include broadcasting accurate and credible news and current affairs programmes; South African content programming in languages reflecting the country’s cultural diversity; educational programming to advance lifelong learning; and programming targeted at children, women and people with disabilities.

The Act deals with the restructuring of the SABC to fit into the changing broadcasting environment. It requires that the SABC Board establishes two management boards to focus on public and commercial services. Under the new dispensation, the public broadcasting wing will execute and meet its public-service mandate free from commercial interests. The commercial wing will be allowed to generate profit to be self-sustainable.

In terms of the new Broadcasting Digital Migration Strategy, the SABC has been awarded five channels to allow for specialised services dedicated to the development needs of the country, in the areas of education, youth, health and enterprise development.

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Broadcasting role-players

Radio

The first radio broadcasts in South Africa took place under the auspices of a broadcasting committee of South African Railways. The first experimental broadcast was undertaken in Johannesburg on 18 December 1923 by the Western Electric Company. During 1924, the Associated Scientific and Technical Association of South Africa began regular broadcasts in Johannesburg.

The Cape Peninsula Publicity Broadcasting Association began a similar service, and the Durban Municipality followed suit with its own regular broadcasts.

The first radio station, JB Calling, went on air in July 1924. By 1926, all radio transmission and reception was placed under the control of the Postmaster-General, under the Radio Act, 1926 (Act 20 of 1926).

Following the contribution made by Sir John Reith, then Director-General of the British Broadcasting Corporation (BBC), the SABC was established on 1 August 1936.

The SABC is the country’s public broadcaster. It introduced its own national news service on 17 July 1950, with daily news bulletins on the English service, the Afrikaans service and Springbok Radio. Radio Zulu, Radio Xhosa and Radio Sesotho were established on 1 June 1960.

In 2007, the SABC’s national radio network comprised 15 public broadcast-service radio stations, and three commercial radio stations, broadcasting in 11 languages, as well as an external radio service in four languages that reached an average daily adult audience of 19 million.

SABC News provides news and current affairs services to both SABC radio and television. For its domestic coverage, SABC News has 13 editorial offices, while world news is provided by strategically placed news bureaus, foreign correspondents and international news agencies.

Copy supplied to radio news amounts to almost a million words a day, and is compiled around the clock into a weekly total of 1 568 bulletins and 190 current affairs programmes.

Programmes are produced weekly in 11 languages on the SABC’s radio services. There is a public broadcasting-service radio station for each language group.

Channel Africa broadcasts live on three platforms: shortwave, satellite and the Internet. Its broadcasts are in Chinyanja, Silozi, Kiswahili, English, French and Portuguese. The shortwave broadcast covers south, east, central and west Africa.

The satellite broadcast covers the sub-Saharan region, although it can be picked up as far as London in the United Kingdom. The Internet broadcast is accessible from anywhere in the world.

Commercial radio stations

Icasa has granted licences to the following private radio stations:

• Radio Algoa (ex-SABC)
• Classic FM (greenfield)
• Kaya FM (greenfield)
• YFM (greenfield)
• Highveld Stereo (ex-SABC)
• Radio 702
• Radio Jacaranda (ex-SABC)
• Radio Oranje (ex-SABC)
• East Coast Radio (ex-SABC)
• P4 (greenfield)
• Cape Talk MW (greenfield)
• Radio KFM (ex-SABC).

Stations such as Radio Jacaranda, Highveld Stereo, Radio Oranje, Radio Algoa and East Coast Radio were initially SABC stations, but were sold to private owners to diversify radio ownership in South Africa as part of the transformation of the public broadcaster.

Satellite Communications Network

The Satellite Communications Network makes it possible for grassroots communities, through their community radio stations, to access parliamentary proceedings, general news, and government information and services.

The Department of Communications is responsible for rolling out infrastructure to these radio stations. Initially, 30 radio stations were linked up to the network. The network will, on completion, link some 90 stations.

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Television

SABC

A one-channel television service was introduced on 5 January 1976.

Today, the SABC’s national television network comprises three full-spectrum free-to-air channels and one satellite pay-TV channel aimed at audiences in Africa.

Combined, the free-to-air sound broadcasting stations reach a daily adult audience of almost 20 million people via the terrestrial signal distribution network and a satellite signal. South Africa has more than four million licensed television households.

Between 50% and 60% of all programmes transmitted are produced in South Africa. Locally produced television programmes are augmented by programmes purchased abroad, and by coproductions undertaken with other television programming organisations. Television news is fed by SABC news teams reporting from all parts of the country, using modern portable electronic cameras and line-feed equipment via more than 220 television transmitters. Ad hoc satellite feeds are arranged from wherever news events occur. News bulletins are broadcast in all 11 official languages.

The SABC’s terrestrial television channels devote between 18% and 20% of their airtime during prime time to news and news-related programmes.

In April 2007, the SABC announced that it planned to set up a bureau in Harare by April 2008, to improve its coverage of events in Zimbabwe.

The SABC already has offices in several other African countries, including Nigeria, the DRC, Senegal and Kenya.

In July 2007, the SABC launched SABC News International, a 24-hour news channel aimed at providing in-depth coverage of African stories. The channel will be structured in a similar way to other international news-providers, such as the BBC.

M-Net

M-Net, South Africa’s first private subscription television service, was launched in 1986. Today, M-Net broadcasts its array of general entertainment and niche channels to more than 50 countries across Africa and the adjacent Indian Ocean islands.

M-Net’s television channels are delivered to subscribers through analogue terrestrial and digital satellite distribution.

The main M-Net channel, which is available as a terrestrial and satellite service, offers movies, sport, children’s programmes, international and local series, and local reality shows.

The second terrestrial channel, CSN (Community Services Network), offers sport and programming aimed at a variety of South African communities. M-Net is also well represented on the DStv bouquet of satellite TV channels.

Development of the local film and TV industries is a priority for M-Net, and is supported by various projects such as EDiT, which gives final-year film and television students the opportunity to produce programmes for broadcast on M-Net. At the end of March 2007, 20 years of M-Net “open time” came to an end.

Satellite broadcasting

MultiChoice Africa (MCA) was formed in 1995 to manage the subscriber services of its sister company, M-Net. It became the first African company on the continent to offer digital satellite broadcasting.

Operations include subscriber-management services and digital satellite television platforms broadcasting more than 50 television and 40 audio channels, 24 hours a day.

MCA is owned by the MIH Group, which is listed on the JSE, the Nasdaq in New York, and AEX in Amsterdam.

By mid-2007, there were more than 1,2 million DStv subscribers in South Africa, compared with some 190 000 M-Net decoders.

Free-to-air television

Launched in 1998, e.tv is South Africa's first private free-to-air television channel, which broadcasts a full-spectrum programming service to 78% of South Africa's population. The station is owned by BEE group, Hosken Consolidated Investments Limited, and Venfin Limited, and employs some 500 people countrywide. E.tv has offices in Johannesburg, Cape Town, Durban, Port Elizabeth and Bloemfontein. Some 74% of e.tv’s employees are black, 45% are women and 5% are people with disabilities.

As a free-to-air channel, e.tv's only source of income is advertising revenue. The station’s most popular programmes are wrestling, news, movies and South African drama, with South African content comprising 45% of e.tv’s daily programming. E.tv broadcasts 4,5 hours of prime-time South African drama each week.

E.tv is South Africa's second-biggest television channel (All Media Products Survey March to September 2005 combined with January to June 2006) with a viewership of 10 665 000. The audience profile is 54,1% male and 45,9% female, and appeals to viewers across all race, income and age groups.

E.tv was the first channel in South Africa to secure the rights to the Union of European Football Association’s Champions League Football.

Signal distribution

Sentech Limited was established in terms of the Sentech Act, 1996 (Act 63 of 1996), as a common carrier to provide broadcasting signal distribution for broadcasting licensees. Over the medium term, Sentech will focus on the digitisation of its signal infrastructure and the roll-out of the ICT infrastructure required for the 2010 World Cup.

The Sentech product line is split into five product portfolios:

• signal distribution (regulated and unregulated)
• Very Small Aperture Terminal (VSAT)
• broadband wireless (MyWireless and Biznet)
• international voice
• value-adding networks.

Signal-distribution revenue is derived from both regulated and unregulated broadcast services. In the regulated market, there is very little room for growth, owing to the limited number of frequencies available. The announcement by Icasa to license new radio stations is expected to have a positive impact on the industry.

In March 2007, government approved the establishment of a new state-owned company that will provide long-distance connectivity to the country's telecommunications market on a cost basis. The new company, Infraco, will not be a fully fledged telecommunications company itself, but will act as a provider of broadband capacity through fibre-optic cables to other operators in the country.

Infraco will bring together fibre-optic cable networks, originally built by state companies Eskom and Transnet. The move forms part of South Africa's attempts to bring down the cost of telecommunications and Internet connectivity in the country.

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Print

Technical handling of the print media in South Africa rates among the best in the world. This is one reason why newspapers, and especially magazines, have held their own in a volatile information era, identified by the vast development of various new forms of media-delivery platforms via the Internet through modern communications technology. This must be viewed against the general trend in the rest of the developed world that saw dropping circulations and the cutting back on costs or closing down of newspapers.

The roots of the print media in South Africa can be traced back to the 19th century, when the first issue of a government newspaper, the Cape Town Gazette, African Advertiser/Kaapsche Stads Courant en Afrikaansche Berigter, was published in 1800.

The first independent publication, The South African Commercial Advertiser, was published in 1824 by Thomas Pringle and John Fairbairn. It was banned 18 months later and reappeared only after various representations had been made to the authorities in London.

Official circulation figures issued by the Audit Bureau of Circulations (ABC) show that print media circulation grew from 19 million in 2000 to 26 million in 2005, indicating that South Africa’s print media industry is flourishing.

The country’s vibrant economy, the introduction of regional tabloid newspapers in recent years and a glut of new magazine titles have helped feed the popularity of newspapers and magazines in Africa’s largest economy.

High consumer spending has coincided with strong circulations in specific newspaper genres, particularly tabloids and free-sheets. The adoption of more efficient delivery and distribution systems has boosted the growth of tabloids, community newspapers and free-sheets, in particular.

Despite intense competition among both newspapers and magazines, circulation figures for July to December 2006 showed readership growth across almost all consumer segments. However, this hike in the market did not prevent the closure of three newspapers over the past few years.

The challenges facing newspapers and magazines have remained much the same in the past decade: improving the quality of journalism in increasingly younger newsrooms, and the threat posed to circulation and market share by the electronic media.

Most South African newspapers and magazines are organised into several major publishing houses: Media 24 (part of Naspers, the largest media group in Africa), the Irish-based Independent News & Media (Pty) Limited group, Caxton Publishers & Printers Limited, and Johnnic Communications and Associated Magazines.

Other important media players include M & G Media Limited; the Natal Witness Printing & Publishing Company (Pty) Limited; Primedia Publishing Limited; Ramsay, Son and Parker (Pty) Limited; and Kagiso Media.

The issue of BEE is being addressed by all companies, some of which have progressed further than others. Larger listed companies have tended to make faster progress with BEE than smaller ones.

Globally competitive IT systems, especially among the large media houses, have helped improve the overall technical quality of print media, and have also positively affected distribution and circulation reach.

Newspapers

Most South African newspapers are based on the British model. Management and editorial departments are controlled separately.

The size of the country – 1 400 km separate the main centres of Cape Town and Johannesburg – still precludes national dailies in the true sense of the word.

In the past few years, three newspapers, Nova, ThisDay and Die Wêreld, failed to break into the higher-income consumer segment. This has been ascribed to overtrading in this segment. Observers have also suggested that many higher-income readers are now turning to the Internet for news.

Advertising spend on newspaper advertising remained slightly higher than the spend on TV, as was the case the year before. The dramatic success of populist tabloids and the wide distribution of community newspapers and free-sheets have been largely responsible for the recent success of newspapers.

The tabloid market is thriving, while circulation trends in dailies and weeklies remain largely static. By the end of 2006, urban dailies were selling an average of 1 605 million copies a day, which was slightly higher than the 1 501 million a day in 2004. The most dramatic growth in circulation is still the tabloid Daily Sun. Circulation figures of the country’s oldest Sunday newspapers, Sunday Times and Rapport, have remained average, with the Sunday Sun and City Press growing incrementally.

Sunday papers such as Sunday Times, City Press, Rapport, Sunday World and Sunday Tribune have wide national distribution, because electronic printing presses have enabled the simultaneous publication of these newspapers in several cities.

By mid-2007, there were 22 dailies and nine Sunday papers in South Africa. In 2006, four of the daily newspapers had circulations of over 100 000 and accounted for almost 50% of the total circulation in this category.

They were Beeld (104 932), Daily Sun (467 681), Sowetan (133 195) and The Star (168 776) (ABC July to September 2006). The total circulation for these four grew by 3,3%, while the rest of the category only grew by 0,8%.

Almost 150 regional or country newspapers, most of which are weekly tabloids, serve particular towns or districts in the country by covering local affairs and carrying local advertising.

Most are published in English or Afrikaans, with many of them bilingual. The most popular publication day is Thursday, followed by Tuesday, and the bigger publications appear twice weekly.

Newspapers appearing only in certain neighbourhoods are also an important part of the newspaper scene and number in the hundreds. They are known as knock-and-drops, free-sheets or freebies, as they are distributed free of charge.

They have a guaranteed readership, with advertising being their only source of income. More than 4,5 million newspapers in this sector are distributed weekly. Press groups such as Media24, and especially CTP/Caxton, are major players in this field.

Since 1996, local newspapers, freebies and corporate newspapers have ventured into reporting in indigenous languages. In Durban, Independent Newspapers started the isiZulu newspaper Isolezwe, which is another success story. Since becoming a daily, the newspaper’s circulation grew from 88 456 in 2005 to 96 485 at the end of 2006.

With 11 official languages, it can be expected that more home-language publications will emerge. Separate newspapers for different cultural groups are still preferred, with English being the popular language of choice. Johnnic Communications, the co-publisher of Business Day, started publishing the Sunday Times as a daily (The Times) in 2007.

The lucrative Afrikaans advertising market has led to the launch of another Sunday national, Sondag, published from May 2007 by Media24 in competition with their other Sunday publication, Rapport.

The establishment of the Media Development and Diversity Agency (MDDA) has stimulated the growth of new community titles, focusing on specific communities in areas where community media have not been established.

The community newspaper industry sector has seen the launch of a number of new titles, with the daily and weekend market remaining static.

More national newspapers are expanding their reach through regional editions, targeting specific communities.

Free newspapers have seen a 38% increase in their total circulation, as opposed to the 3% for its sold equivalent.

Tabloid newspapers have seen an increase in their circulation and readership, mainly attributed to the success of the Daily Sun, with 3 679 million readers and an audited circulation of 494 875 copies per day.

A number of national newspapers have expanded their reach into regional editions, contributing to the growth within this sector.

Soccer Laduma, South Africa’s popular soccer newspaper, saw a significant increase in circulation, up from 280 933 in 2005 to 303 461 in 2006.

Mail & Guardian, known for top investigative journalism stories, witnessed a similar growth from 41 723 in 2005 to 48 292 in 2006. Ilanga saw a decline from 108 858 in 2005 to 100 906 in 2006.

Die Son, an Afrikaans Cape Town-based tabloid, witnessed a major decline in circulation from 172 612 in 2005 to 76 830 in 2006.

Weekend newspapers

In 2006/07, 71% of the larger-than-average weekend newspapers showed growth or were static.

Twenty-nine percent declined, with 54% of the smaller-than-average titles remaining static or showing a slight growth.

In total, weekend newspapers saw a 2% increase in total circulation.

Sunday Times remained South Africa’s most read and sold weekly Sunday newspaper, with a circulation of 504 475 in 2006. This was down from 509 160 for the same quarter in 2005.

Rapport, the Afrikaans Sunday newspaper, remained in second position, witnessing a decline from 304 535 in 2005 to 300 338 in 2006.

Sunday Sun, Sunday World and City Press witnessed significant increases. Sunday Sun increased from 188 369 to 200 315, Sunday World from 155 997 to 184 772, and City Press from 175 125 to 183 101 in 2006.

Saturday-edition newspapers saw a similar trend, with the Saturday Star increasing its circulation from 136 557 to 137 196 in 2006.

Die Burger (Saturday-edition) witnessed a slight decline from 112 260 in 2005 to 103 862 in 2006.

Community newspapers

Community newspapers showed a 7% increase in total circulation, despite fierce competition and the fragmentation of this market.

Paid-for and free community newspapers saw either a significant increase or remained static within this market.

Free community newspapers remain the most popular medium, with 171 million copies distributed annually, or on average four million copies per week.

Daily and weekly newspapers

Name	Publisher	Contact information	Fre-quency	Lang-uage	Total circulation (Oct - Dec 2006)
Beeld (daily) www.beeld.com	Media 24	PO Box 333, Auckland Park 2006 T 011 713 9000 F 011 713 9960 E-mail	MD, M-F	A	99 162
Beeld (Saturday)	Media 24	PO Box 333, Auckland Park 2006	W, Sat	A	84 305
Burger, Die (daily)	Media 24	PO Box 692, Cape Town 8000	MD, M-F	A	91 216
Burger, Die (Saturday) www.dieburger.com	Media 24	PO Box 692, Cape Town 8000 T. 021 406 2121 F. 021 406 3211 E-mail	W, Sat	A	103 862
Business Day www.businessday.co.za	BDFM Publishers (Pty) Ltd	PO Box 1742, Saxonwold 2132 T 011 280 3000 F 011 280 5505 E-mail	MD, M-F	E	41 914
Cape Argus, The www.capeargus.co.za	Independent Newspapers Cape Ltd	PO Box 56, Cape Town 8000 T 021 488 4911 F 021 488 4173 E-mail	AD, M-F	E	73 414
Cape Times www.iol.co.za	Independent Newspapers Cape Ltd	PO Box 56, Cape Town 8000 T 021488-4911 F 021488-4173 E-mail	MD, M-F	E	49 647
Citizen, The (daily) www.citizen.co.za	Caxton Publishers & Printers Ltd	PO Box 43069, Industria 2042 T 011248 6000 F 011248 6222 E-mail	MD, M-F	E	71 432
Citizen, The (Saturday) www.citizen.co.za	Caxton Publishers & Printers Ltd	PO Box 43069, Industria 2042	W, Sat	E	52 217
City Press www.citypress.co.za	RCP Media Bpk	PO Box 3413, Johannesburg 2000 T 011713-9001 F 011713-9966 E-mail	W, Sun	E	183 101
Daily Dispatch www.dispatch.co.za	Dispatch Media (Pty) Ltd	PO Box 131, East London 5200 T 043702 2000 F 043743 5155	AD, M-F	E	31 666
Daily News www.dailynews.co.za	Independent Newspapers KZN	PO Box 47397, Greyville 4023 T 031308-2911 F 031308-2111 E-mail	AD, M-F	E	50 229
Daily Sun	Media 24	PO Box 333, Auckland Park 2006 T 011877 6000 F 011877 6046	MD, M-F	E	494 875
Diamond Fields Advertiser	Independent Newspapers Gauteng Ltd	PO Box 610, Kimberley 8300 T 053832-6261 F 053832-8902 E-mail	MD, M-F	E	9 364
Herald, The www.theherald.co.za	Johnnic Pub.Eastern Cape	PO Box 1117, Port Elizabeth 6000 Eastern Cape T 041504-7911 F 041585-4966 E-mail	MD, M-F	E	26 860
Ilanga www.ilanganews.co.za	Mandla Matla Publishing Co (Pty) Ltd	PO Box 2159, Durban 4000 T 031337-4000 F 031337-9785 E-mail	BW, Th, Mo	Z	100 906
Isolezwe	Independent Newspapers KZN	PO Box 47549, Greyville 4023 T 031308 2878 F 031308 2885	MD, M-F	Z	96 485
Independent on Saturday, The www.iol.co.za	Independent Newspapers KZN	PO Box 47397, Greyville 4023 T 031308-2943 F 031308-2111 E-mail	W, Sat	E	59 905
Mail and Guardian www.mg.co.za	M&G Media (Pty) Ltd	PO Box 91667, Aucklandpark 2006 T 011250-7300 F 011250-7502 E-mail	W, Fr	E	48 292
Mercury, The www.themecury.co.za	Independent Newspapers KZN	PO Box 47397, Greyville 4023 T 031308-2911 F 031308-2333 E-mail	MD, M-F	E	40 683
Post	Independent Newspapers KZN	PO Box 47397, Greyville 4023 T 031308-2529 F 031 308-2555 E-mail	W,Wed	E	47 151
Pretoria News www.pretorianews.co.za	Independent Newspapers Gauteng Ltd	PO Box 439, Pretoria 0001 T 012300-2000 F 012328-7166 E-mail	AD, M-F	E	29 776
Pretoria News (Saturday)	Independent Newspapers Gauteng Ltd	PO Box 439, Pretoria 0001 T 012300-2000 F 012328-7166	W, Sat	E	19 761
Rapport www.rapport.co.za	RCP Media	PO Box 333, Auckland Park 2006 T 011713-9002 F 011713-9977 E-mail	W, Sun	A	300 338
Saturday Dispatch	Dispatch Media (Pty) Ltd	PO Box 131, East London 5200 T 043702-2000 F 043743-2968	W, Sat	E	24 431
Saturday Star, The	Independent Newspapers Gauteng Ltd	PO Box 1014, Johannesburg 2000 T 011633-2792 F 011633-2794 E-mail	W, Sat	E	137 196
Soccer- Laduma www.soccerladuma.co.za	CT Media Proprietor	PO Box 787, Sea Point 8060 T 021439-8080 F 021439 7434	W, Thu	E	303 461
Son, Die www.dieson.co.za	Media 24	PO Box 692, Cape Town 8000 T 021406-2075 F 021 406-3221	W, Fri	A	72 049
Southern Cross, The www.scross.co.za	Catholic Newspapers & Pub Co Ltd	PO Box 2372, Cape Town 8000 T 021465-5007 F 021465-3850	W, Sun	E	11 171
Sowetan www.sowetan.co.za	New Africa Publications (NAP) Ltd	PO Box 6663, Johannesburg 2000 T 011471-4000 F 011474-8834 E-mail	MD, M-F	E	134 818
Sunday World www.sundayworld.co.za	NAP Ltd	PO Box 6663, Johannesburg 2000 T 011471-4200 F 011471-4163 E-mail	W, Sun	E	155 997
Star, The www.iol.co.za	Independent Newspapers Gauteng Ltd	PO Box 1014, Johannesburg 2000 T 011633-9111 F 011836-6186 E-mail	MD, M-F	E	163 332
Sunday Independent, The www.iol.co.za	Independent Newspapers Gauteng, Ltd	PO Box 1014, Johannesburg 2000 T 011633-9111 F 011834-7520 E-mail	W, Sun	E	42 617
Sunday Sun	RCP Media Ltd	PO Box 3413, Johannesburg 2000 T 011713-9001 F 011713-9731	W, Sun	E	200 315
Sunday Times www.sundaytimes.co.za	Johnnic Pub.	PO Box 1742, Saxonwold 2132 T 011280-3000 F 011280-5150 E-mail	W, Sun	E	504 475
Sunday Tribune	Independent Newspapers KZN	PO Box 47549, Greyville 4023 T 031308-2911 F 031308-2662 E-mail	W, Sun	E	113 681
Volksblad, Die www.volksblad.com	Media24	PO Box 267, Bloemfontein 9300 T 051404-7600 F 051447-7034 E-mail	MD, M-F	A	28 476
Volksblad, Die (Saturday)	Media24	PO Box 267, Bloemfontein 9300 T 051404-7600 F 051430-7034	W, Sat	A	23 877
Weekend Argus	Independent Newspapers Cape Ltd	PO Box 56, Cape Town 8000 T 021488-4528 F 021488-4229	W, Sat & Sun	E	104 013
Weekend Post	Johnnic Pub. Eastern Cape	PO Box 1121, Port Elizabeth 6000 T 041504-7911 F 041585-3947	Sat	E	28 788
Witness www.witness.co.za	Natal Witness Pr & Pub Co (Pty) Ltd	PO Box 362, Pietermaritzburg 3200 T 033355-1111 F 033355-1122 E-mail	MD,M-S	E	23 089
Weekend Witness	Natal Witness Pr & Pub Co	PO Box 362, Pietermaritzburg 3200 T 033355-1377 F 033355-1377 E-mail	W, Sat	E	29 521

The abbreviations used are the following: MD (morning daily), AD (afternoon daily), BW (biweekly), M-F (Monday to Friday), Mo (Monday), Tu (Tuesday), W (Wednesday), Th (Thursday), Fri (Friday), Sat (Saturday), Sun (Sunday), A (Afrikaans), E (English), Z (Zulu), n/a (not available)

Magazine circulation and readership

The magazine industry in South Africa is a fiercely competitive environment in which new titles appear all the time, despite the worldwide competition from electronic and interactive media. Considering the proliferation of titles on the shelves in supermarkets and bookstores, it seems that many readers are still attracted to print.

The trend to target certain niche markets with specialised publications is popular in the magazine industry and has led this section to grow by 40% more titles over the last 10 years. However, there is evidence to suggest that the overall reading population in South Africa is shrinking, which is a concern for the industry.

A positive development has been the segmentation of the market into niched publications that provide opportunities for advertisers to reach their target audiences. Another new thriving trend is twinned titles, i.e. titles produced in two languages.

All magazines did better in 2006 because of new titles, with free magazines increasing by 6%, customer magazines by 8% and consumer magazines by 9%, as compared with 2005.

Because of rising printing and paper costs, prices have increased accordingly and magazines have had to offer readers better value for their money to retain their loyalty.

Weeklies Huisgenoot and You are the two biggest money-making magazines in South Africa. Among the monthlies, women’s magazines are still the most widely distributed, despite declining sales. Sarie, Rooi Rose, Cosmopolitan, True Love, Move and Idees/Ideas are all in the top-10.

Top 20 magazines based on net sales, July to December 2006

1. Huisgenoot

2. You

3. TV Plus

4. Ideas/Idees

5. Sarie

6. Weg/Go

7. Cosmopolitan

8. People

9. Rooi Rose

10. True Love

11. Woman and Home

12. Move

13. Car

14. FHM

15. Finesse

16. Men’s Health

17. Tuis/Home

18. Bona

19. SA Garden & Home

20. Fairlady

Women’s magazines

In the women’s magazine sector, publications have had to market themselves aggressively to survive.

Overall, there was a decline in circulation in this sector, although certain publications showed growth.

For instance, Cosmopolitan increased from 125 427 to 126 317 in the period March 2006 to March 2007. Glamour’s circulation decreased from 101 877 to 87 011 over the same period, while Elle’s figures decreased from 39 012 to 35 489.

Essentials decreased from 61 931 to 43 805, and Fair Lady decreased from 84 631 to 80 950. Femina dropped from 50 941 to 40 564, and Marie Claire increased slightly from 45 916 to 47 482, while True Love decreased from 122 600 to 106 441. Oprah’s circulation declined from 75 396 to 62 953.

In the Afrikaans market, a similar trend was apparent. Rooi Rose decreased from 123 550 to 108 146, and the weekly Vroue Keur from 96 887 to 84 848. Sarie remains a leader in the sector, but its figures also decreased slightly from 131 968 to 123 396.

There were three new entrants in this category, namely Me!, Real Simple and True Love Babe.

General interest titles

This category showed quite a number of new magazines, namely African Pilot, LIG, mense, NAG, SA Computer Magazine, Tribute, Garden Route Living, Sunshine Coast Living, Wishlist, Taalgenoot and Village Life.

Even though the circulation of Bona decreased from 93 818 to 85 390, it is still one of the top-20 selling magazines. Reader’s Digest decreased from 75 889 to 66 267. Catslife and Rolling Inspiration also decreased slightly.

People’ and TV Plus’ circulation also decreased, but still remained in the top-20.

Animaltalk, Heat and HQ’s circulation figures increased. Top Billing increased quite significantly from 28 284 to 38 518.

Farmer’s Weekly, Landbouweekblad, Noseweek, The Big Issue, Dog Directory and Hype remained stable. Although Insig remained stable, the last issue of the magazine appeared in June 2007.

Sales of the two top-selling weeklies, You and