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Thank you for the opportunity to give you a snap shot of the activities of the Ministry of Post, Telecommunication and Broadcasting. I will briefly outline the policy initiatives in the Ministry and a program of the legislation to be tabled before Parliament during the second session of 1996.

TELECOMMUNICATIONS RESTRUCTURING

Some extensive work has been done in the last few months on the restructuring of the telecommunications sector including the search for a Strategic Equity Partner for Telkom. We recently undertook an extensive world study tour of international telecommunications operators who had expressed an interest in partnering with Telkom. The study tour was underpinned by consultation with participants including the management and board of Telkom, four representative trade unions with members in Telkom; Mineworkers Union, Communications Workers Union (CWU), South African Telecommunications Association (SATA), Post and Telecommunications Association of South Africa (P&T), a representative of the National Assembly and Senate.

We visited eight major telecommunications operators including France Telekom, Deutsche Telkom, British Telecom, STET in Italy, KPN/Telia telecommunications operators in the Netherlands and Sweden, Bell Atlantic (US), South Western Bell (US). We also had an opportunity to visit Matav in Hungary and Telemex in Mexico both operators have had successful concluded equity partnerships.

The Ministry will shortly approach Cabinet to make a shortlist, which open the way for the shortlisted operators to present their first bid and start negotiations.

There is also some significant progress made in the National Framework Agreement Telecommunications Sector Task Team, which is charged with establishing consensus in the restructuring process. Negotiations are continuing.

The central goal of restructuring is to seek Capital, technology, management expertise and human resource development to enable us to meet our Reconstruction and Development Programme objectives by providing affordable telephone services to our people. Through the restructuring we will double the telephone network from 4 million line to 8 million lines over the next 5 years and provide rural telephony, thereby achieve our universal service obligations.

POSTAL POLICY PROCESS

The ministry is in the process of starting a postal policy review leading to a White Paper, in consultation with the National Postal Forum. The focus of new policy will address a financial strategy of the South African Post Office and also address issues such as additional services to be offered by the Post Office. Analyse competition and the extent to which we should liberalise.

SAPOS has been dogged by problems of inefficiency leading to delays in the deliverance of mail. Management at SAPOS have set a target for mail delivery of 90 percent for each of the services they render.

Speed Services Couriers 1 Day
Fastmail in towns and between major centres 2 Days
Ordinary mail in towns/cities 3 Days
Ordinary mail between metropolitan areas 4 Days
Ordinary mail between other destinations 5 Days

Five of the Post Office's six regions achieved the set targets of 90 percent at the end of June 1996. Three of the regions -- Western Cape, Eastern Cape, and Central Provinces (Free State, North West and Northern Cape), have maintained delivery standards in excess of 90 percent.

The drop to below 90 percent in KwaZulu-Natal at the beginning of the year was due to construction work on the existing mail centre in Durban. The position has now improved and the completion of the new Durmail mail centre (Durban) at the end of September 1996. will further contribute towards improved service levels.

There has been a dramatic improvement in the delivery in Gauteng from a low of 29 percent during August 1995 when Witspos mail centre was commissioned to 76 percent during March 1996. A setback was experienced during the quarter ending June on account of labour related issues.

The delivery standards are monitored by an independent external auditor on contract, Independent Service Quality Measurement (ISQM). The Post Office will soon start a quarterly publication of performance achievements.

BROADCASTING

1.1 INDEPENDENT BROADCASTING AUTHORITY

The IBA is currently conducting hearings on the licence application for the six SABC radio stations up for sale. These will be concluded in September making real our goal to open up the airwaves. There is also the licence applications for eight new commercial radio licences. We are expecting the publication of position paper on the licensing of a commercial television licence by the end of August. The licence should be granted by July 1997.

1.2 SABC

The process to transform the SABC into a National Public Broadcaster is on course as it will become clear later when I deal with the legislation we are piloting through Parliament during this session.

SENTECH BILL

The Bill sets the framework for the separation of the signal distribution company, Sentech from the South African Broadcasting Corporation and establishes Sentech as a public company with the state as the shareholder.

BROADCASTING AMENDMENT BILL

The Bill amends the Broadcasting Act of 1976, to provide for a reduction in the number of members of the Board of the South African Broadcasting Corporation to at least 15 and not more than 21. In terms of the Broadcasting Act of 1976, the Board of the SABC must consist of not less than 21 members and not more than 25 members. This requirement does not allow sufficient flexibility when members resign during the period of office and is also not in line with the composition of comparable boards of other South African institutions.

FORMER STATE BROADCASTING BILL

The Bill gives the legal framework for the incorporation of the broadcasting services of the former Republics of Transkei, Venda and Ciskei into the SABC and Sentech. The former TBVC states had all adopted their own legislation for the provision of broadcasting services in their territories. The Bophuthatswana Act of 1989 was assigned to the North-West Province in terms of section 235 (8) of the Constitution and was repealed by the legislature of the North West through the North West Broadcasting Act of 1995. The decision to incorporate the broadcasting services of former TBVC states either into the SABC and Sentech was taken at the National Colloquium on Public Service Broadcasting held in January 1995. We are in discussion with the North West government for the repeal of the North West Broadcasting Act to facilitate incorporation and hope that by the time the Bill is tabled the North West legislature will have completed its side of the process.

THE PUBLIC BROADCASTING SERVICES BILL

The will establish norms and standards with which the public broadcaster must comply. It also seeks to establish the independence of the public broadcasting services from government influence by prescribing the requirements for the appointment, qualifications and conduct of members of the governing boards of public broadcasting services. The main object of the Bill are to establish the independence of public broadcasting services with a view to ensuring impartiality and the expression of a diversity of opinion to serve the public interest.

TELECOMMUNICATIONS BILL

In July 1995 a Green Paper on telecommunications was published for public discussion. In November a national colloquium on telecommunications policy was held. A White Paper on telecommunications policy was published in March 1996. This

Bill gives the legal framework. The aim of the Bill is to establish an orderly regulatory environment for telecommunications and the development of telecommunications facilities and services. The Bill has among its goals the provision of universal affordable services, and the economic empowerment of historically disadvantaged South Africans. The Bill provides for the control and licensing of the use of radio frequencies. The Bill contemplates the amalgamation of the Telecommunications Regulatory Authority (SATRA) with the IBA.

Lastly, the process to transform the Department of Post, Telecommunications and Broadcasting into a policy centre in line with our stated goal of a three-tier separation of roles of Policy, Regulation and Operations is on track. The result of this restructuring is due for implementation early next year.

THANK YOU

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