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Chairperson
Honourable Minister
Colleagues in the Executives
Members of the Portfolio Committee
Honourable Members of Parliament
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Ladies and gentlemen

Introduction

In our Budget speech delivered to the House last year we reminded ourselves that “The future is a matter of choice and not one of chance”. We also re-affirmed that the Department of Communications (DoC) is imbued with a vision that Information and Communication Technologies (ICTs) have a strategic and important role to play, both as an enabler of growth in the economy and as a development trampoline to leverage our people out of poverty.

In pursuance of this mission the DoC’s strategic thrust is best summarised by its commitment to becoming a “Global Leader in harnessing ICTs for socio-economic development”

In keeping with this commitment you would have heard from the Honourable Minister’s speech to the house the department’s strategy has been to develop Policies and Legislation that are aimed at:

* liberalising the Telecommunication Sector
* stimulating Growth in the Economy
* attracting Foreign Direct Investment
* reducing the Cost of Telecommunications and Increasing the Competitiveness in the Sector by dismantling the conditions of Monopoly
* facilitating Small Medium Micro Enterprises (SMMEs) and Black Economic Empowerment Economy (BEE)
* facilitating Universal access and bridging the Digital divide, between the first and second economies in our country

Fundamental to our approach on these matters is our understanding that the information economy has become an ever more central part of and will play an ever more increasing role in South Africa’s National Economic Development.

Communication Networks provide the infrastructure of the National Economy and will constitute the basis and a major driving force for the higher growth rate of the economy as envisaged in the Accelerated and Shared Growth Initiative for South Africa (AsgiSA) process under the leadership of the Deputy President.

ICTs must therefore occupy a strategic importance in the growth and economic life of the nation and in our strategy to reduce poverty and halve unemployment by the year 2014. The focus of our work in the last two years has been to prepare the legislative framework for an era of convergence and to make the necessary programme initiatives to set in motion appropriate policy for broadband development, digital migration and other initiatives so as to ensure that the country has the necessary and appropriate infrastructure to take us into the exciting ubiquitous and digital world of the future.

Electronic Communications Act

One of the most outstanding achievements accomplished in the last year of our work has been the promulgation of the Electronic Communications Act (ECA). As members will all know that this Act has been signed by the President and Gazetted. All that remains is for a date to be determined as to when the Act will come into operation and take its effect in law.

As we today celebrate Africa Day we also take pride in recording that we are the first country in Africa to promulgate a Convergence Law in ICT, thereby demonstrating by our practice that we indeed lead the continent on matters of ICT.

Independent Communication Association of South Africa (Icasa) Amendment Bill

We are also happy to report that following our deliberations over the last few days in the Communications Portfolio Committee we have now concluded the modifications of the Icasa Amendment Bill which was sent back to Parliament by the President.

This Bill, now in its modified form has been reworked to address the constitutional reservations. It is now ready for submission to Parliament for processing and resubmission to the President for assent and signature into law.

A development in technology always runs ahead of developments in legislation

The statement that development in technology always runs ahead of developments in legislation remain true for this day, South Africa is already starting to get a peep into the exciting digitally networked future of a convergence era as we witness the advent of specialised devices which hitherto have not been present in our markets.

Last year it sounded like science fiction when we informed the House that sometime in the future you may be able to, by remote operation from your cell phone device, answer your doorbell at home.

Just only a few days ago, the South African company, Multichoice in collaboration with Sentech and the South African Broadcasting Corporation (SABC) announced the test piloting of new cell phones through which you will now be able to receive broadcasting of normal television channels and the news on your cell phone.

I am not just talking about 3G, video streaming but active live Television (TV) broadcasting.

Also making its test appearance in South Africa, for the first time are new broadband television sets which will allow you to send to another TV subscriber what is called a “video-mail” just as in an e-Mail. Your TV set will be able to record your message and send a video clip message to your friend via the TV set to his/her TV set.

Such are the emerging innovations in technology that will drive the further growth and development of the ICT sector in South Africa into a new future.

The real truth of the matter is that there is a revolution taking place, right here in the world and before our very eyes, and it is arriving without very much fanfare.

This combination of open global markets and innovative technologies lie at the base of this revolution.

In preparing ourselves, our country and our people to remain at the forefront of these developments and to catch the next wave of advancement in technologies in ICTs, four projects, in the coming years will remain central to our programme of action.

These are:

1. Task Team to undertake a strategic analysis of the South African ICT Industry
2. Development of a Broadband Policy and Infrastructure Plan
3. Implementation of a Programme for Digital Migration
4. ICT preparations for the World Cup 2010 Soccer Games

Allow me to elaborate on these in more detail:

1. Task Team to undertake a Strategic Analysis of the South African ICT Industry:

This is a joint initiative of the ICT Ministry of India and the Ministry of Communications of South Africa. A joint task team of experts from both countries will undertake a strategic analysis of the ICT industry in South Africa and propose a development plan for the sector. A crucial element of the plan will focus on human resource development and training and the growth of indigenous technologies that will also stimulate manufacturing, software development and research and development in ICTs.

Arising from this synergistic partnership between India and South Africa the analysis will outline a possible niche role for the South African ICT industry in the Global ICT market and its responsibility in relation to supporting ICT developments on the African continent.

The task team will draw participants from government, industry and academia. This project was proposed and accepted by both governments during a mission to India last November.

2. Development of broadband policy and infrastructure in South Africa:

Most advanced economies in the 21st century are information and knowledge driven. Value creation depends on the ability to efficiently and effectively manage raw data in order to transform it into valuable knowledge and then to profitably exploit this knowledge. This is where Broadband fulfils a role as a key enabler in the knowledge or digitally networked economy. Many governments and economic bodies estimate the long term benefits of broadband to be in the billions of Rand and whole percentage points of Gross Domestic Product (GDP) growth.

It is not fanciful to suggest that the macro-economic importance of broadband in the 21st century is comparable to electricity in the 20th century and rail in the 19th century and its long term role as a critical element of any advanced economy’s’ national infrastructure.

In this regard Minister has alluded to the need for increased investment in broadband infrastructure, creating affordable access to broadband and increasing the penetration rate of personal computers (PCs). The development of a national fibre optic infrastructure and the creation of fibre optic infrastructure capability in our major cities is an essential element to our broadband development plan, together with the New Partnership for Africa’s Development (NEPAD) EASSY Cable project which is coming on stream.

The generation of available bandwidth at affordable costs is critical to the industry’s future growth.

The use of wireless technologies and the roll out of Sentech’s Wireless Broadband project will go a long way to leapfrogging developments in the rural areas and in the second economy.

In this respect the establishment of a Broadband Advisory Council to advise government on a policy for Broadband and a strategy and implementation plan will significantly advance our programme.

3. Programme for digital migration:

Minister has referred to Sentech’s responsibility to digitise the country’s broadcasting signal distribution network and the establishment of the Digital Migration Working Group whose report will provide a digital migration strategy.

4. ICT preparations for the World Cup 2010 soccer games:

That day when we won the bid to host the 2010 Soccer Games, 15 May 2004, will remain one of the greatest moments in our young and free nation’s history. On this day we were all one for the future of our country.

In this same way the actual moment of hosting the 2010 Games will likewise constitute a great opportunity to build a high point of social cohesion in our emerging nation.

Our ability to be technologically and ICT ready to host the 2010 Games is absolutely crucial to our successful hosting of the 2010 Soccer Games. Central to this is our ability to deliver on the Ministerial guarantees on ICT made to Federation International Football Association (FIFA).

Working through the Technical Coordinating Committee under the leadership of the Inter-Ministerial Committee for the 2010 Games the Department of Communication (DoC) and representatives of the ICT industry will participate in a joint working team to ensure that we make the necessary ICT preparations for the hosting of the Games.

In this regard I am pleased to announce the establishment of this Sector Wide Coordinating Committee for the ICT industry for the 2010 Games. The Chairperson of which will be Mr Victor Moche.

DoC as part of a broader government wide initiative is advancing plans to ensure that the country is 2010 ready for the Games. At the same time strategies and plans are under way to ensure that associated economic opportunities will emerge from the 2010 event and that the games will be truly an African event.

The infrastructure comprised of the International Broadcasting Centre and the host city broadcasting centres will provide a 2010 Games legacy that will be put to good use by the ICT industry following the closure of the games.

As a country we are determined to be 2010 ready and to meet the ICT conditions of guarantee given to FIFA to host the most amazing moment in Africa’s history for the 21st century.

Conclusion

In conclusion, Mr Chairperson, let me say we indeed appreciate the commitment and support given to our work by the members of the Portfolio Committee and for the contribution made by its previous chairperson Mr Lekgoro, who is now a MEC in the Gauteng Legislature.

Also to the Deputy Director Generals (DDG’s) who left us during the course of the year namely; Pakamile Pongwana, Joe Mjwara and Phumelele Ntombela-Nzimande we value your contribution and your continued commitment to the sector.

To the Minister for her support, the Director General and her staff and to the members of my own office under the very capable leadership of Mr Raymond Reddy - your support is very much valued.

Mr Chairman, as we marshal our resources, both our financial and human to execute the projects identified we are certain that we will not let our people down.

We will reinforce the confidence that the masses of our people have in our Government’s ability to ensure that our people truly enter an age of hope, thereby confirming that:

“Today is better that yesterday and indeed tomorrow will be better than today”

I thank you and commend the Budget presented by the Minister.

Issued by: Department of Communications
25 May 2006