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As we prepared for this Budget Vote, we asked ourselves the question what had we done to push back the frontiers of poverty and to expand access to a better life. What have we done and what are we doing now to ensure that the tide turns more decisively in the direction of social and economic progress. What are we going to do to ensure that the masses of our people are guaranteed a more secure and people-centred future?

It is a question I think that all of government is dealing with, more intensely that before, as we prepare to trace and capture the first ten years of democracy in this country.

We have taken a hard look at our track record especially in the last year; and we have come to the conclusion that it is true that the tide has turned, that our policies are indeed making a difference on the ground and that we are contributing to building a better life for all. We believe that there are clear deliverables and that we need to build on this to realise the goal of sustained development.

Our challenge is to see that our people fully reap the benefits of our policies and the new technologies.

Moreover, we are convinced that the global slump in telecomms is receding and that South Africa has not been as affected as other countries by the fall of dotcoms. The result is that many people are showing interest in coming to South Africa to establish businesses in software and advertising. This is also a sign of the vast growth potential of these industries

At the Budget Vote this afternoon, I intend making the following announcements:

SNO Process

* On 31 March 2003, I issued an Expression of Interest Invitation in the Government Gazette for prospective clients to apply for a 51% stake in the SNO to provide service in terms of the Act. Upon the closing date of 30 April, four applications were received.
* The SNO Committee then considered all applications and all four were short-listed and recommended to me for one-on-one negotiations. We issued a notice in the Gazette announcing the commencement of competitive negotiations and disclosed the identity of the bidders.
* The process of the SNO Committee negotiating best offers from the bidders has just come to an end and they have given me their recommendations for consideration and evaluations for the 51% stake in the SNO.
* The licence should be issued in the third quarter of this year and the new player should be in operation soon thereafter.

Under serviced licence areas
* The licences for the under-serviced areas are now provided for in law.
* The ITA was issued on the 19 September 2002 for the first phase of the licences inviting applications for these licences in the provinces of Limpopo, Eastern Cape, Free State, KwaZulu-Natal and North West.
* These applications are for two District Councils in each Province and therefore the total number of licences to be issued in this phase is 10.
* The closing date for applications was extended to the 30 June 2003.
* We believe that once these licences are issued, there will an upliftment of these communities through the growth of SMMEs and the creation of new jobs in the sector.

1800 spectrum

* The economic benefits of 1800 MHz and GHz spectrum will be considerable, especially if operators are encouraged to continue to improve access to affordable communications.
* The Telecommunications Act provides for 1800 MHz (as well as 2.4 GHz) to be issued to MTN, Cell C, Vodacom, Telkom, the SNO and Under Serviced Area Operators who are allowed to use the spectrum in the delivery of telecommunications services.
* A key element is the determination of access fees and universal service obligations for the allocations of the 1800 spectrum and Third Generation (2,4 GHz) radio frequency spectrum to mobile operators.
* The final determination was done in close co-operation with stakeholders, especially the operators, and to ensure that the objects of the Act are met.
* I would like to announce that each operator will pay R100 000 per annum for each frequency pair used plus a R5 million annual radio frequency spectrum licence fee prescribed by Icasa as well as 5% of net operating income.
* In addition to this, universal service obligations set per operator and per annum for the 15-year duration of the licences include the following:
- Supply of 250 000 free phones and/on numbers to any public emergency service over a period of 5 years which I will speak more about later.
- Internet and phone links including computers in schools
- Public pay phones in accessible places in rural areas and multi purpose community centres
- Issuing of 2,4 GHz spectrum in exchange for equity in mobile cellular operator entities for black economic empowerment. These have been proposed by operators.
- 4 million free Sim cards over 5 years to be issued to economically disadvantaged South Africans. These will add to the 12 million existing SIM card users, which means that 4 million more disadvantaged South Africans will have access to the economic life-line of the country.
- In line with our co-ordinated working method, these obligations are to be delivered on the basis of a framework decided upon by an interdepartmental team composed of DOC, SAPO, Department of Social Welfare, Health, Education, National Treasury and SAPS and operators.

Revolutionising the South African Post Office

* In the postal sector the emphasis will now be placed on new business development to account for the erosion of traditional business as a result of new technologies. We will be in a position to make this shift as more Post Offices are now connected.
* There is to be a focus on PITs in rural areas.
* While 100 Public Information Terminals (PITs) were rolled out across the country on a pilot basis, an analysis of the project indicated a need for redesigning the original PIT model.
* This new design has been completed and as a result in this financial year 600 PITs will be rolled out across the country.
* There will be provision of financial services infrastructure, including an emphasis on promoting a culture of savings among youth.
* The Post Office has also developed a secure and integrated solution using the latest biometric and encryption technology for registration of beneficiaries of social services. This will allow for other Government services to be enabled rapidly.

E-learning and the Digital Partnership

* In this year, the new Digital Partnership South Africa has come into existence.
* This was established by the Prince of Wales International Business Leaders Forum and through this initiative we will acquire used computers from multinational organisations, get them refurbished in this country and deployed in schools countrywide.
* This year, we will receive 67 000 computers and together with the Department of Education, we are establishing a roll-out plan, thus eliminating the need to buy new computers for the public sector.
* This refurbishment factory is being manned by 15 women at ISSA.

National Summit on Broadcasting

* The Department of Communications will be holding a National Summit on Broadcasting in this year.
* This will bring together policy makers, regulators, operators, broadcast content producers and civil society to look into the state of South African broadcasting.
* The focus areas of discussion will include the issue of content development and provision as well as addressing the issues of language delivery in broadcasting.

The Convergence Colloquium

* Technological advances have resulted in the merging of technologies throughout the world.
* Consequently, we are embarking on a process to develop a policy framework to facilitate the convergence of technologies in the ICT environment.
* Already a feasibility study has been conducted.
* Now a National Colloquium will be convened in early July 2003 with stakeholders and interest groups to share ideas and experiences that will inform policy options.

Implementation of the ECT Act

* The Electronic Communications and Transaction (ECT) Act is now written into the law of this country
* An Implementation Committee comprising members of my Department, NameSpace ZA and other interested people has been formed.

These are some of the highlights of the Budget Vote Speech. We will expand further on these matters and make additional announcements in the speech about the work of our portfolio organisations and our initiatives this afternoon.

I am confident that through these collective efforts we are leading the processes whereby ICTs can make a real difference in our people's lives.

Enquiries: For further details contact Jerry Matjadladi at 082 889 3381

Issued by Ministry of Communications

29 May 2003