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1. INTRODUCTION

The purpose of this document is to provide additional information on the content of the Minister's Budget Vote speech.

2. TELECOMS

In the telecommunication sector our policies find concrete expression, in the main, in the programmes and projects implemented by Telkom and Sentech.

2.1 Telkom

2.1.1 Rollout of infrastructure

* Telkom's network is now 99.8% digitised
* Its network serves some 5 million customers including a major payphone and prepaid network.
* The expansion of the connected has 2,699 villages reaching an area 20,577 new priority customers
* It has installed 132,990 new payphones has been installed as at 31 March 2002 with the prepaid network connecting 707,881 customers up to 31 March 2002.

2.1.2 Service Improvement and Delivery

* Average installation time for commercial customers is 5 days, whereas it is 3 days for corporate customers.
* The average installation time during 2002 for residential customers was 8 days, and has improved 56% from 18 days the previous year.
* An average 99.8% of residential customers have their lines installed in 120 days and 95% in under 28 days.
* The repair rates shows that during 2002, 94% of residential faults were repaired in 48 hours, compared to 65% in 1998.
* It cleared 96% of business faults in 48 hours, exceeding the licence target of 86%.

* The business fault rates per 1 000 lines improved by 5% from 279 in 2001 to 265 in 2002.

2.1.3 Human Resources Development

* Over the past two years Telkom Foundation spent R40 million on educational, job creation and childcare projects.
* 2,455 annual scholarships were awarded to students at University level whereas 1,412 annual scholarships were awarded to students at Technikon level
* It Centre of Excellence has sponsored 35 students in postgraduate studies in 2001, of which 13 were non-AA students.

2.1.4 BEE

* In 2002, total BEE spending was 49% of procurement amounting to R4.6bn representing an increase from R598 million in 1998 to R2.7 billion in 2002.

2.2 Sentech

* It was granted two licences of Carrier of Carriers and multimedia in May 2002.
* Work on infrastructure projects has started beyond the South African borders in Ghana and Uganda.
* It is a co-sponsor of the ISSETT SETA bus with the expressed aim of introducing technology to people in the rural areas around the country.

3. BROADCASTING

3.1 Policy

* The Broadcasting Amendment Act came into effect early 2003.
* Implementation process will entail conversion of SABC into a public company, rollout of the regional television services, repeal of the North West Broadcasting Corporation Act.
* The Corporation will be required to apply to Icasa for the licensing of regional services that will broadcast in the South African languages that are presently marginalised in our broadcasting system.

3.2 SABC

* Progress made to wards achieving universal access indicates that 83% a year ago, SABC1 reach has expanded to cover 89% of the country;
* SABC2 footprint now extends to 91%, up from 85% last year; and SABC3, is at 77%.
* Editorial policies currently under discussion will be concluded this year
* Local content on all radio and TV services will be increased to meet Icasa's targets.
* Broadcasting licences for its radio and television services are due for amendment this year.

4. POSTAL SERVICES

4.1 The Postal Regulator

* The Regulator will be processing regulations on Postal Service and postal operators
* Gazetting of the monitoring tools and of a tariffs formula for the regulated sector
* It will also establish a Rollout Auditor.
* Key appointments to be made in improving efficiency include Rollout auditor, Independent monitor and Postal inspectors

4.2 South African Post Office (SAPO)

4.2.1 Rooting out Crime and Corruption

* Postbank is being restructured so that it could become a focused savings bank targeting the poor and rural areas.
* The expansion of addresses to historically under-serviced areas is continuing
* The Post Office delivers mail to 6,5 million addresses. Of these, 3,4 million are street addresses and 3 million are post boxes
* In 2002 zero tolerance towards crime has resulted in 277 being dismissed for postal crimes, 13 of whom were managers and 59 persons (including members of the public) were arrested for postal crime
* Currently 10 managers and 72 non-managerial employees are on suspension for postal crime.

4.2.2 Human Resources Development

* In collaboration with READ Educational Trust an educational tool has been developed. This project focuses on:

* The project has covered 900 schools with a total of 4 000 learning books having been distributed.

4.3 Rollout of Infrastructure

* Thirty-one (31) Multi Purpose Community Centres. (MPCCs) have been launched thus far.
* Five Citizen Post Offices (CPOs) have been launch as part of 25 outlets earmarked for opening across the country.
* 100 Public Internet Terminals (PiTs) were established country wide in the financial year 2001/2002 with the mobile PiT also being launched.

4.4 BEE

* The percentage of business given to BEE companies has increase from 6.8 per cent to 37.8 per cent, representing just over R182 million.
* When the current CEO took over, there were 14 whites and 2 blacks in the Executive Committee, currently there are 14 Blacks and two whites, four of whom are women.

4.5. Human Resources Development

* The Post Office introduced a bursary scheme for full-time study targeting needy students to study in the faculties of IT, Finance, Engineering, Law and Medicine.

5. SPACE AND SATELLITE PROJECT

* In 2002 DoC produced a detailed audit and analysis of available satellite capacity and a business model to facilitate entry by South Africa into the Satellite Communications market.
* The Department will submit to the cabinet the findings and recommendations of the report.
* DoC will continue to participate in international fora such as the International Telecommunications Union, International Telecommunications Satellite Organisation, the International Mobile Satellite Organisation and the UN Committee on Peaceful Uses of Outer Space.
* This year we will embark on a campaign to encourage and solicit the active involvement of ICT operators and other players in satellite applications and other space related activities.

6. SKILLS DEVELOPMENT INSTITUTION

6.1. ISSA

* DoC is involved in the development of much needed ICT skills through advanced training provided at the Institute for Satellite and Software Applications (ISSA) and National Electronic Media Institute of SA (NEMISA).
* In 2002, ISSA produced 20 PDE graduates, 7 of whom have enrolled for the 2-year Masters degree, 18 students graduated with Masters degrees in Engineering Science.

* In 2003, 15 students have enrolled for the PDE programme.
* Fourteen students have enrolled for an honours degree in Software Engineering in this academic year.

6.2. NEMISA

* 50 learners are studying towards a qualification in Radio and Television Broadcasting.
* 30 learners after completion of the course will be specialising in animation, information design and advertising.

Notable milestones worth noting include the following:
* Accreditation of our Multimedia Programme in January 2003
* Launch of the NEMISA internal Radio Service that will serve to provide a platform for student work.
* Focus for 2003 will be on Studies at Masters Level (Radio, Television and Multimedia) and Positioning of the Institute in relation to the African continent

7. INTERNATIONAL RELATIONS

* South Africa as a chair of the Ministerial Oversight Committee, has a responsibility of addressing ICT's challenges in Africa.

7.1 International Events

* In June 2003 South Africa's to participate in the World Radio Communication Conferences (WRC) due to take place in Geneva-Switzerland.
* South African ICT stakeholders will be attending the ITU TELECOM 2003 to be held in Switzerland from 12-18 October
* South African ICT stakeholders will be attending the World Summit on Information Society (WSIS) due to take place in Geneva-Switzerland from 10-12 December 2003.

Issued by Ministry of Communications

29 May 2003