DoC Vision, Mission & Mandate

PRESENTATION TO THE

SELECT COMMITTEE

ON LABOUR AND PUBLIC ENTERPRISE

on

DEPARTMENT OF COMMUNICATIONS

STRATEGIC PLAN (2013 – 2018)

AND

ANNUAL PERFORMANCE PLAN (2013/14)

24 April 2013

A global leader in the development and use of Information and Communication Technologies for socio-economic development

2

DoC Vision, Mission & Mandate DoC Vision, Mission & Mandate


South Africa as a global leader in

the development and use of Information and

Communication Technologies for socio-economic development

To create a vibrant ICT Sector that ensures that all South Africans have access to affordable and accessible ICT services in order

to advance socio-economic development goals, support the African Agenda and contribute to building a better world

Visio

n

Mis

sionBuilding an inclusive information society through

a sustainable world class information and communication technologies environment

Man

date


Brief Overview of 2012/13 Performance (1)


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2012/13 Project Key Achievements Legislative Programme

ICT Policy Review

The National ICT Policy Colloquium was held on 19th and 20th April 2012.

Draft colloquium report was produced.

Literature review of ICT policies was conducted.

ICT Policy Review Panel members were appointed by the Minister.

Lending, Borrowing and Investment policies

Consultations were concluded with National Treasury and policies were submitted to Cabinet.

Concurrence from Ministry of Finance was obtained

Post bank Borrowing, Lending and Investment Policies were approved by Cabinet and it was submitted to the speaker of Parliament.

EC Amendment Bill introduced to Parliament

Draft EC Amendment Bill concluded and public consultations concluded.

Draft RIA report finalised

EC Amendment Bill submitted to Minister for tabling in Cabinet for approval

ICASA Amendment Bill introduced to Parliament

ICASA Amendment Bill was drafted consultation with ICASA was concluded

First draft RIA report was developed on first draft ICASA Bill




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2012/13 Project Key Achievements Broadcasting Digital Migration

The local digital content strategy has been finalised.

The RFI for local STB Manufacturing was issued and the panel for the considerations of nominations has been set up however the court case brought against the department regarding the management of the STB control mechanism was a fetter even to the finalisation of the bidding process for the manufactures. Furthermore, funding is challenge which DoC is working on.

The qualifying criteria for the scheme for ownership support for poor TV owning households has been gazetted for public comments.

With regards to BDM Awareness, the service provider has been appointed and the Print and Broadcast adverts have commenced in December 2012.

Sentech has rolled out 80% of the TV signal distribution network and the satellite distribution system is 100% ready for signal distribution to the SKA area of the N/Cape and other “hard to reach areas”.

SABS has completed the Set Top Box testing laboratory.

SAPO has signed an MOU and SLA agreement with the DoC to distribute the Set Top Boxes throughout SA.

E-Skills Institute has completed a standardised training programme for Installers of DTT systems in SA.




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2012/13 Project Key Achievements Broadband Broadband study conducted and a report on baseline data on broadband

coverage, penetration, speed, and cost developed

National Broadband Policy amended and draft broadband strategy developed.

Draft Broadband implementation plan developed as part of SIP 15

Broadband marketing study was done with National Treasury to inform the development of the Funding model.

3 Options developed for Broadband funding

With regards to Schools connectivity, 54% of identified schools connected (WAN installation) and implementation is being monitored

Community Radio Stations

40 rural based stations were ring-fenced and arranged according to all official languages and taken on a guided/mentorship training through NEMISA on script development for documentary and drama.

This project is part of promoting the African languages on one hand while building a content inventory for stations on the other.

All District Municipalities have at least one (1) Community radio station. These stations are supported through the Departments Community Broadcasting support programme.




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2012/13 Project Key Achievements Community Radio Stations (continued…)

Impact assessment report of Community Radio support programme developed

Terms of References to appoint a service provider to roll out infrastructure to community radio stations were developed.

National Community radio governance Indaba and training was conducted.

Draft Community Broadcasting Support Policy was developed

Draft Community TV Implementation Framework was developed.

New signal distribution subsidy scheme was developed, approved and implemented.

Tender to appoint a service provider to rollout broadcasting equipment was issued

Second phase of programme production with NEMISA was implemented.

The support programme has been implemented, training took place in Limpopo

Draft Community Broadcasting Support Policy was developed ICT Rural Development

Desktop report completed.

Benchmarking report completed.

Baseline study for ICT Status in provinces completed and data collection report completed

Business plans for 61 Rural sites developed




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2012/13 Project Key Achievements E-Skills The e-Skills Institute through its leadership position has created an

environment for e-skills collaboration across business, government, education, civil society, organized labour and international development agencies.

It has further taken its architecture to a Provincial level.

Its model was endorsed by the ITU at their recent Global ICT Forum on Human Capital Development hosted in October 2012 and was recommended to other 55 nation states for adoption.

Undertaken a collaborative review of its National e-Skills Plan of Action (NeSPA 2010) and developed NeSPA 2013 to guide its efforts over the next two years and align them with the NDP - Vision 2030.

The biggest success is that the Minister has signed off on the Integrated Entity (eSI, ISSA and NEMISA) which is now well positioned in the country to harness existing resources and develop new approaches to the coordination of appropriate capacity development using its multi -stakeholder platform to contribute to the massification of e-skills delivery at all levels. The target is to increase the levels of e-astuteness of 10m South Africans over the next five years and thus build an informed consumer base for new ICT enabled service delivery processes of government, business, education and civil society.




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2012/13 Project Key Achievements International Programme

In terms of participation at the AU CIT, SA was elected to the Steering Committee for the period 2012 - 2014. The outcomes of the AU CITMC – 4 included among key issues:

o Resolutions on the operation of the DotAfrica project

o Endorsement of the text of the draft AU Convention on Cyber Security which formed part of the Oliver Tambo Declaration

South Africa was appointed to Chair key Committees in both the CA and POC and as a member of the UPU Bureau.

ICT SMME Development

The e-Commerce Platform as a marketing tool has benefited SMMEs in Limpopo and Eastern Cape provinces. The SMMEs were able to populate their business offerings, thus expanding their market reach in a highly competitive global market. SMMEs from other provinces are prioritized for the 2013/14 financial year.

Moreover, through the Department's partnership with the Centre for Small Business Development at the University of Johannesburg, a workshop to build capacity on the use and benefits of ICTs was conducted during the 2012/13 financial year. Over 236, entrepreneurs have benefited from the programme since 2011, mostly from townships around the Gauteng province.




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2012/13 Project Key Achievements SOE Oversight • Monitoring of SOE compliance with legislative requirements was undertaken.

• A project to review the Articles of Association of SOEs was undertaken and drafting of Memorandum of Incorporation for SABC, SAPO, Sentech, Nemisa and USAASA commenced with.

• Service provider appointed to undertake Independent Review of Corporate Governance Practices within SOEs.

• Submission of and alignment of Corporate/Strategic Plans undertaken.

• Quarterly monitoring of SOEs undertaken and all quarterly reports review and feedback given to SOEs to rectify areas of challenge. A

• Annual Reports and Annual Financial Statements reviewed and processes of holding AGMs and tabling of Annual Reports facilitated.

However it must be noted that failure of SOEs to comply with deadlines for submission of documents as well as failure to achieve certain tarrgets set in Corporate/Strategic Plans is proving to be a challenge.

A much more detailed report in term of achievements and challenges as well as financial performance, will be presented to the Committee during the presentation of the 2012/13 Annual Report.

BUDGET vs EXPENDITURE

AS AT 31 MARCH 2013


11A global leader in the development and use of Information and Communication Technologies for socio-economic development

BUDGET vs EXPENDITURE (1)BUDGET vs EXPENDITURE (1)

PROGRAMMEAdjusted

Allocation for 2012/13

Expenditure as 31 March 2013

% spent as at 31 March 2013

R’000 R’000 %

1. Administration 197, 009 192, 860 97.9%

2. ICT InternationalAffairs

41, 046 44,186 107.6%

3. ICT Policy Development 90, 292 95, 411 105.6%

4. ICT Enterprise Development 1, 213, 855 1, 214, 165 100%

5. ICT Infrastructure Development

- 112 Emergency Call Centre

76, 870 65, 847 85.7%

1, 029

6. Presidential National Commission35, 952 37, 917 105.5%

GRAND TOTAL 1, 655, 024 1, 651, 415 99.8%


BUDGET vs EXPENDITURE (1) BUDGET vs EXPENDITURE (1)

ECONOMIC CLASSIFICATIONAdjusted



% spent as at 31 March

2013

R’000 R’000 %

1. Currents Payments 421,036 415,939 98.8%

4. Transfers and subsidies 1, 229, 097 1, 229, 818 100%

5. Other transfers 0 879 -

6. Payments of Capital Assets 4, 891 4,859 99.3%

GRAND TOTAL 1, 655, 024 1, 651, 415 99.8%


TransfersTransfers

Entity nameAdjusted



% spent as at 31 March 2013

R’000R’000 %

USAASA 59, 801 59, 801 100%

USAF-Set Top Boxes subsidy

43, 977 43, 977 100%

230 000 230 000 100%

ICASA 405, 797 405, 797 100%

SABC: Public Broadcaster 154, 152 154, 152 100%

Channel Africa 43, 292 43, 292 100%

Sentech: Digitization 165, 834 165, 834 100%

NEMISA 34, 116 34, 116 100%

SA PO 51, 965 51, 965 100%

SABC: Programme Production 10, 000 10, 000 100%

SABC: Community Radio Stations 8, 381 8, 000 95%

.za Domain Name Authority 1, 500 1, 500 100%

Transfers to international organizations for membership fees

16,161 21, 383 100%

Nepad 3, 885 - 0%

Skills Development Levy 236 - 0%

TOTAL 1, 229, 097 1, 229, 818 100%

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2013-2018 Strategic Plan &

2013/14 Annual Performance Plan

2013-2018 Strategic Plan &

2013/14 Annual Performance Plan


Strategic Alignment:

• Planning took into consideration, amongst others, the internal and external

environment, ICT Sector analysis, Minister’s Performance Agreements &

related Delivery Agreements, Government Outcomes as well as resource

considerations and risk assessment.

• Specific emphasis was given to priorities stemming from the National

Development plans , and the SIP-15.

• State Owned Companies (SOCs) were involved in the planning from the

inception so as to ensure alignment and integration of priorities.


Planning Process (1)Planning Process (1)

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• Plans aligned to the Framework for Strategic Plans and Annual Performance Plans developed by National Treasury as prescribed for Government Departments

• Planning was facilitated by members of the Technical Assistance Unit of National Treasury so as to ensure technical correctness in terms of:

o Measurability of targets (quantifiable where possible)

o Performance indicators (aligned to objectives)

o Time frames (2013/14 Targets unpacked into measurable quarterly targets)

• 1st and 2nd drafts of the Strategic Plan and APP were submitted to National Treasury and DPME for consideration and feedback.

• The draft Strategic Plan and APP was audited by the AG and feedback was discussed and affected where applicable.

• DoC will submit quarterly performance reports against its APP to the Executive Authority, National Treasury and DPME

• DoC would like to take this opportunity to acknowledge the contribution of the PCC, Minister and Deputy Minister in the development of the Plans. Their advice and strategic direction was very beneficial to the planning process.


Planning Process (2)Planning Process (2)

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At the initial planning phase, the Department undertook an ICT Sector analysis

so as to inform the strategic plan. Such an analysis revealed amongst others the

following key ICT trends in SA:

• Increasing ICT adoption by SMMEs,

• Declining fixed-line subscriptions because of fixed to mobile substitution, particularly in the voice communications segment,

• Increasing investment into virtualisation and cloud computing,

• Growing market for business process outsourcing (BPO) services,

• Increasing telecoms crossovers, notably m-commerce,

• The broadband segment grew fastest in the four years to the end of 2011 and is set to continue in that trajectory over the next five years, albeit it at a lower rate of growth.


ICT Sector Analysis (1)ICT Sector Analysis (1)

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Key ICT trends in SA continued:

• The mobile segment will continue to grow over the next five years, despite a relatively high penetration rate which is estimated at 128,8%,

• The fixed-line sector will continue to underperform because of a combination of underinvestment in fixed network infrastructure and increasing fixed to mobile substitution,

• South African spending on IT services still depends heavily on government programmes and, despite a climate of relative fiscal austerity, the government will remain the largest spender onIT services, followed by financial services and telecoms.



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Key ICT trends in SA continued:

• It is projected that per capita consumer electronics spending will grow at a 11% CAGR to reach US$248 by 2016, from US$174 in 2012. Drivers will include increased broadband and mobile subscriber penetration, faster digital TV migration and falling prices of notebooks and flat screen TV sets as well as government digital divide programmes.

• In South Africa, the relatively low penetration of existing and emerging ICT products and services means there is significant growth potential in the sector. We expect this, along with a favourable macroeconomic outlook and progressive regulatory environment, to attract investments into the ICT sector and drive growth as well as job creation.



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•The market is segmented into 4 sub-sectors: telecommunications, Broadcasting, Postal and e-Commerce.•The ICT market for the period between 2010 and 2012 accounted for an estimated 7% of GDP – (report BMI -2012). •South Africa’s markets are very similar to other concentrated markets such as New Zealand, which has a mobile duopoly, which is dominated by Telmex Sincumbent with greater than 50% market share.•South Africa has two fixed operators and four Mobile Operators. The South African market for mobile value added services (VAS) continues to grow. •Other services continue to grow in popularity including mobile TV, mobile banking and location based services.

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Market Analysis (1)Market Analysis (1)

• It was estimated that South Africa had just over 7 million internet users at the end of 2011.

• This is equivalent to more than 14% of the population, which means that, during the year, the internet users base expanded by around 17%.

• Forecast 2012/13, South Africa will have more than 8.25 million regular internet users, equivalent to over 16% of the population

• In 2013, we will licence spectrum for broadband in 2.6 Ghz and 700 to 800 Mhz of Radio Frequency Spectrum to bolster access to broadband and to facilitate competition through new licensees into the market. This will generate more investment in the sector

• SABC revenue started to grow between 2009/10 and 2010/11, due to an increase in advertising revenues which increased by 19% year-on-year.

• In 2009 Top TV became the first subscription competitor to DSTV but has only managed to secure a miniscule share of the market.

• By 2010 2,639,341 subscribers were on Digital Satellite TV (DSTV), 95% of this number subscribe to the premium service, with only 123,686 subscribers remaining on the analogue service.

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• IT is the growing subsectors of the ICT Market in South Africa, supported by the e-commerce legislation, the ECT Act 2005. Online services are also growing with the licensing of domain names by ZA Domain Name Authority providing easy access to online registration.

• The South African IT market revenue grew 2.5% from R60.36 billion in 2008 to reach R61.85 billion in 2009, (BMI-TechKnowledge ). The company expects the IT market to grow by 2.5% to R63.41 billion in 2010, and at a compound annual growth rate (CAGR) of 6.3% to reach R83.97 billion in 2014.

• The Postal Market, offers huge opportunities in business and banking services. The plans to establish a Postbank as the bank of choice for the unbanked will get these majority of people on the banking network by 2014.

• The South African Post Office Group posted strong financial results for the financial year ending March 2011, achieving a 3% increase in revenue to 5,8 billion.

• SAPO turn-over for 2012 accounts to R6 billion with courier service at R1.8 billion.

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Through extensive engagement and to ensure strategic alignment, the following have been identified as DoC priorities:

Top 5 Strategic Priorities

1.Broadband

2.Broadcasting Digital Migration

3.E-Skills

4.Postbank

5.ICT Policy Review

Other Key Priorities

6. Public and Community Broadcasting

7.ICT Research

8.Radio Frequency Spectrum

9.Cyber Security

The above priorities will be further elaborated on in subsequent slides.


PrioritisationPrioritisation

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Stemming from the analysis as mentioned in the previous slides, with specific reference to the NDP, the following have been identified as the 5 high impact priorities of the DoC. This streamlining will ensure a focused approach given the Departments limited resources.


Top 5 Strategic Priorities (1)Top 5 Strategic Priorities (1)

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A detailed analysis has been conducted in terms of the current challenges/gaps within these strategic priorities so as to ensure that the Department addresses such areas through the implementation of specific interventions

Broadband•Based on the 2012 Broadband study commissioned by DoC - there is clearly lack of adequate broadband infrastructure, low broadband penetration per user, high cost of broadband access and limited competition. •Broadband policy focus aims to achieve 100% Broadband access and population coverage by 2020 as adopted by the NDP•Existing broadband backbone and access infrastructure focuses on the metropolitan areas, and the cost is unaffordable to the vast majority of the people.

In order to address market failures an the current status of Broadband in South Africa, the DoC will focus on finalising the Broadband Policy and Strategy to facilitate the deployment of Broadband backbone and access infrastructure especially in rural and underserved areas, with specific focus on public facilities.

A global leader in the development and use of Inf:ormation and Communication Technologies for socio-economic development


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Broadcasting Digital Migration (BDM)•Spectrum availability constraints the growth of the Broadcasting Sector.•The current analogue technology means that there is limited space for growth in the Broadcasting Sector. •This resulted in a decision by the ITU to migrate from analogue to digital broadcasting so as to achieve digital inclusion through a multiplicity of channels.

The Department does acknowledge current challenges affecting specific facets of the BDM value chain which it is addressing. However, over the short to medium term, priority will be given to, amongst others, expanding national DTT and satellite coverage, allocations of subsidised STBs, STB installer training as well as provision of technical user-support.



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ICT Policy Review

Why:Accelerate ICT market convergence particularly in the infrastructure and ICT services to develop laws that take into account latest technology developments, Digital BroadcastingModernising ICT Infrastructure and encourage foreign and local investment in the country.Increasing accessibility to ICT services particularly in all rural and semi rural areas;Employment creation, and ICT Skills production for the knowledge economyResearch and Development, and manufacturing of electronicsEnsure affordability, increase uptake and usage of ICT services.To address market structure challenges including competition, redress – Black Economic Empowerment, Universal access(100%) to broadband services by 2020 thereby meeting the NDP targets on social inclusion.Addressing the regulatory imbalance where it has been observed, i.e. Funding and capacity in regulation making.

Over the short to medium term, the Department will finalise the ICT Policy review report which will feed into the development of the draft Green Paper. The Green Paper will be followed by a White Paper on National Integrated ICT Policy which will inform the drafting of the National ICT Bill.

Postbank

The Postbank plays a crucial role in providing financial services to targeted segments of our population, particularly rural and under-serviced communities. The Department in the short to medium term will prioritise the implementation of the Postbank Act with specific focus on, amongst others, incorporating the Postbank Company into a separate legal entity and processing the application for a banking license.



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ICT Policy Review continued

Over the short to medium term, the Department will finalise the ICT Policy review report which will feed into the development of the draft Green Paper. The Green Paper will be followed by a White Paper on National Integrated ICT Policy which will inform the drafting of the National ICT Bill.



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Postbank

Why•Bringing banking services to the unbanked section of the population•Create a bank that makes it possible for the lower income segment of population to access affordable banking services.•Through modern banking facilities that are accessible throughout the country, the Postbank will encourage the culture of saving amongst citizens.•Ensuring lending to rural and lower income markets •Building a bank of first choice, by rendering transactional services and lending facilities through, amongst others the use of existing infrastructure of the SA Post Office

The Postbank plays a crucial role in providing financial services to targeted segments of our population, particularly rural and under-serviced communities. The Department in the short to medium term will prioritise the implementation of the Postbank Act with specific focus on, amongst others, incorporating the Postbank Company into a separate legal entity and processing the application for a banking license.



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E-Skills

South Africa has dropped from 47th to 72nd in the global e-readiness index in the last five years (2007 to 2012) simply because it does not have a coordinated approach to addressing the reality of the rapidly escalating impact of mobile ICT on every facet of South Africa’s current and future socio-economic position. Upgrading the overall skills at all layers of society and increasing efforts to build affordable infrastructure for all would allow the country to increase its ICT readiness and uptake and, in turn, spread its impacts across society (WEF, 2012). No government can sustain socio-economic equity, prosperity and social participation without a proactive approach to skilling itself (Government, Business, Education, Civil Society and organised labour) to being responsively engaged in an ICT enabled environment.

In order to address the current e-Skills gaps in the country, in the short term, the Department will prioritise the establishment of a Single Integrated Entity for e-Skills through the collaboration of the e-Skills Institute, NEMISA and ISSA. Over the short to medium term, this newly established Single Integrated Entity for e-Skills will focus on development of the National e-Skills Development Plan and will implement a range of e-Skills initiatives aimed at increasing the e-Skills capacity across Government, business, educations, civil society and organised labour.



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Public and Community Broadcasting

In terms of Public Broadcasting, over the short to medium term, the Department will focus on completing the Public Broadcasting Policy review towards the development of a Position Paper which will inform the Public Broadcasting (SABC) Bill and Act.

With regards to Community Broadcasting, the Department intends in the short term to finalise the Community Broadcasting Support Strategy and commence with immediate implementation after approval.

ICT Research

Programme 3 of the Department, Policy Research and Capacity Building, will have a specific research focus which will entail the development and implementation of a focused Research Programme aimed at supporting priority policies. Attention will be given to WSIS thematic areas aligned to Government priorities, publishing of revised e-Barometer indicators as well as ITU-D guidelines on Green ICT’s.


Other Key Priorities (1)Other Key Priorities (1)

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Radio Frequency Spectrum

The Department’s immediate focus will largely be on reviewing the current Radio Frequency Plan, in consultation with ICASA, taking into account the decisions of WRC-12 and the outcomes of the recent spectrum audit. Specific emphasis will be given to the spectrum requirements for security services.

Focus will also be given to issuing Policy Directions on the exploitation of the Digital Dividend to support ICT infrastructure and services.

Cybersecurity

Following the approval of the Cybersecurity Policy Framework, immediate focus will be on the establishment of the Cybersecurity Hub in support of a secure broadband infrastructure. The Department will also work towards the development of a Virtual Cybersecurity Hub.


Other Key Priorities (2)Other Key Priorities (2)

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Strategic Risks (1)Strategic Risks (1)

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The Department has identified several cross-cutting operational risks for which it has also identified relevant mitigating strategies. However the table below provides a summary of only the Strategic Project Specific Risks and the identified mitigating measures:

Project/programme specific risksProject/ Programme RISK MITIGATION STRATEGYDigital migration

Delay in meeting national and international timelines on Broadcasting Digital Migration

Prioritise the filling of DTT Project Management Office positions.

Review and update the National integrated Broadcasting Digital Migration Plan.


Strategic Risks (2)Strategic Risks (2)

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Project/programme specific risksProject/ Programme RISK MITIGATION STRATEGYIntegrated ICT Policy Review

Possibility of delays in finalising the ICT Policy-Review within committed timelines.

Prioritize the allocation or recruitment of officials on the ICT Policy Review project

Broadband Inability to achieve 100% Broadband penetration by 2020.

Fast track the process to review the National Broadband Policy.

Develop an Integrated National Broadband implementation plan.

Source additional funding to strengthen implementation oversight and resourcing of additional skilled resources for the broadband project office.

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Overview of the Plan (1)Overview of the Plan (1)

The 2012-2017 Strategic Plan & APP comprises of 5 Strategic Goals supported by 12 Strategic Objectives and 34 Targets for 2012/13.

The 2013-2018 Strategic Plan & APP comprises of 5 Strategic Goals supported by 11 Strategic Objectives and 28 Targets for 2013/14 spread across its 5 Programmes.

The reduction in targets were largely due to consolidation and streamlining of targets through focus planning as well as reviewing of targets through re-prioritisation.

The Annual Performance Plan further unpacks Year 1 (2013/14) into quarterly targets which can be found in the detailed plan.


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Overview of the Plan (2)Overview of the Plan (2)

New Budget Programme Structure

Through engagements with National Treasury, the Department has a new Budget Programme Structure which has also informed the development of the Annual Performance Plan.

The new Budget Programme Structure dictates that the Department will be made up of the following 5 Programmes:

• Programme 1: Administration• Programme 2: International Affairs• Programme 3: Policy, Research and Capacity Development• Programme 4: Broadcasting and Communications Regulation and Support• Programme 5: ICT Infrastructure Support

Further details on these Programmes and related Sub-programmes are provided in the Annual Performance Plan.


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STRATEGIC GOALS, OBJECTIVES AND

2013/14 TARGETS

STRATEGIC GOALS, OBJECTIVES AND

2013/14 TARGETS


STRATEGIC OBJECTIVE:

1.1Inclusive economic

growth through the development

and implementation of ICT policies

and legislations

STRATEGIC GOAL 1Enable the maximisation of investment in the ICT sector and create new

competitive business opportunities for the growth of the ICT industry for socio-economic development


DoC 2013/14 TARGETS

ICT Policy Review Report developed and Green Paper on National Integrated ICT Policy publishedPostbank Bill promulgated and Postbank CorporatisedSAPO SOC Ltd Amendment Bill submitted to Cabinet and tabled in ParliamentElectronic Communications Amendment Bill tabled in ParliamentICASA Amendment Bill tabled in ParliamentPublic Broadcasting Policy Review completed and Position paper developed and consultedCommunity Broadcasting Support Strategy approved and implementation commencede-Strategy Framework , including vision 2020, developed in line with ECT and NDP


2.1

Increased Broadband

coverage and affordable access to

government services for all households by

2020

STRATEGIC GOAL 2Ensure that ICT infrastructure is accessible, robust, reliable, affordable and secure

to meet the needs of the country and its people


DoC 2013/14 TARGETS

Broadband policy, Broadband strategy and Broadband implementation plan approvedRelevant broadband initiatives of identified stakeholders facilitated, coordinated and monitoredCybersecurity Hub established in support of a secure broadband infrastructure, as per NCPF


2.2

Efficient management and usage of the National

Radio Frequency Spectrum




DoC 2013/14 TARGETS

Updating of current Radio Frequency Plan facilitated taking into account the decisions of WRC-12 and the outcomes of the spectrum auditPolicy Direction issued on exploitation of Digital Dividend to support ICT infrastructure and services


2.3

Migration from analogue to

digital television by 2016 to

ensure national digital coverage




DoC 2013/14 TARGETS

Public Awareness programmes implemented to reach 75% population88% national DTT coverage achieved1.5-million subsidized STBs allocated to subsidy scheme recipients (funding available for only 300 000 STBs)Free State and Limpopo analogue transmitter networks switched –off through a phased approachInstaller training provided to installers in identified Provinces in line with phased switch-off approachNational Call centre established and operationalised to provide technical user support


3.1

e-Skills capacity in

South Africa for

employability in the knowledge

economy

STRATEGIC GOAL 3Accelerate the socio-economic development of South Africans and facilitate the

building of an inclusive Information Society through partnerships with business, civil society and 3 spheres of Government


DoC 2013/14 TARGETS

e-Skills development plan for a single institution fore-Skills developed


3.2

Growth and development of SMME’s to improve their sustainability through the use of ICTs

STRATEGIC GOAL 3Accelerate the socio-economic development of South Africans and facilitate the building of an inclusive Information Society through partnerships with business,

civil society and 3 spheres of Government


DoC 2013/14 TARGETS

Implementation of ICT SMME Programmes facilitated focusing on e-Commerce, export readiness and the BDM value chain


3.3

ICT research and development

to improve evidence based policy making for economic growth

and global competitiveness

STRATEGIC GOAL 3Accelerate the socio-economic development of South Africans and facilitate the

building of an inclusive information Society through partnerships with business and civil society and 3 spheres of Government


DoC 2013/14 TARGETS

Research Programme developed and implemented focused on supporting priority policies


4.1

Efficient and effective

oversight to SOCs and

ICASA

STRATEGIC GOAL 4Improve Departmental performance and enhance the role of ICT SOEs as the

delivery arms of Government


DoC 2013/14 TARGETS

Submissions of entities facilitated, reviews and assessments of all mandatory legislative reports and plans undertaken and recommendations to the Executive Authority made within 30 days of receipt


4.2

Enhanced departmental performance

through improved

institutional processes

and mechanisms

STRATEGIC GOAL 4Improve Departmental performance and enhance the role of ICT SOEs as the

delivery arms of Government


DoC 2013/14 TARGETS

Organizational change and transformation interventions implemented and monitored to promote organisational excellence


5.1

South Africa’s active participation

in bilateral and other African International

Forums to advance the SA ICT Agenda

STRATEGIC GOAL 5Contribute to the global ICT Agenda prioritising South Africa’s development


DoC 2013/14 TARGETS

Africa ICT Infrastructure Programmes developed, facilitated and implemented within relevant ForumsRSA ICT position further advanced through increasing SA’s influence in ICT Multilateral Forums, facilitating strategic multilateral partnerships, contributing to international agreements and coordinating the implementation of decisions of major summits Relations with South-South countries further strengthened to promote the national ICT Agenda


5.2

Explore and exploit trade

and investment

opportunities for the ICT sector in

South Africa

STRATEGIC GOAL 5

Contribute to the global ICT Agenda prioritising Africa’s development


DoC 2012/13 TARGETS

Trade and investment opportunities identified and exploited for the ICT sector and additional programmes developed and implemented.

Core Competencies:• Comprehensive Skills Audit has been concluded.• Through the Skills Audit, skills gaps have been identified and action

plans will be implemented from April 2013 to address gaps such as spectrum engineers, broadband, cybersecurity specialists broadcasting, postal, finance and ICT Research specialists.

HR initiatives:Implementing the HR Plan and Strategy which focuses on the following amongst others:

• Offering of Bursaries to DoC employees• Implementing policy guidelines on recruitment such as scarce skills

dispensation • Implementing a Works Place Skills Plan flowing from the Skills Audit• Implementing retention strategies• Implementing succession planning strategies (career-pathing, multi-

skilling, mentoring, internal promotions)


Human ResourcesHuman Resources

49

Monitoring Industry Performance for Policy Impact DOC regularly conduct studies to determine access to services and to

determine policy or failure. The law also provides for ICASA to make policy recommendations to the Minister.

Other tools used by the Department are the following: - Monthly and Quarterly market reports (Internal) - Broadband Study – 2012 - Telecommunications Benchmark study - 2008 - e-Readiness Report – (eBarometer Report) - 2011 - National Growth Path Employment reports (Internal) - Financial Model for Public Service Broadcasting – Nov 2011 - Sustainability Model for Community Television - Jan 2012 - Impact study for the Community Radio Support Programme - 2011

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Monitoring and Evaluation (1)Monitoring and Evaluation (1)


Monitoring and Evaluation (2)Monitoring and Evaluation (2)

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Internal Monitoring and Evaluation

• The Department has places further emphasis on its performance monitoring process through the development of Operational Plans which further unpacks the quarterly targets into action steps and deliverables within the quarter. This ensures a pro-active approach to the monitoring and evaluation process thus ensuring adherence to set targets and immediate mitigation of challenges affecting performance.

• The Organisational Performance Assessment Board is fully functional

• Over and above the Executive Authority, Quarterly Performance reports are developed submitted to National Treasury and the DPME.

• Evidence related to reported achievements are collated on a quarterly basis and made available o the AG as and when required.

• The Department, in the 2013/134FY, is implementing an electronic organisational performance management system. Reports and dashboards generated from this system can also be made available to the PCC, if required.

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FINANCIAL INFORMATIONFINANCIAL INFORMATION



PROGRAMME 2009/10 % Spent

2010/11 % Spent

2011/12 % Spent

Administration 163 200 99.0% 145 615 95.5% 156 192 92.9%

ICT International Affairs and Trade

44 600 90.5% 35 223 78.9% 41 612 99.5%

ICT Policy Development 70 112 75.4% 89 712 81.4% 81 124 92.1%

ICT Enterprise Development

1 923 635 94.2% 1 083 604 67.0% 1 403 801 100%

ICT Infrastructure Development

74 787 82.9% 44 843 24.9% 67 884 26.2%

Presidential National Commission

25 578 81.7% 27 480 80.7% 41 341 99.3%

Total 2 301 912 93.2% 1 426 477 66.7% 1 791 954 89.5%

Expenditure Patterns (1)Expenditure Patterns (1)


PROGRAMME 2009/10 % Spent

2010/11 % Spent

2011/12 % Spent

Current Payments 432 108 94.1% 321 752 64.1% 379 712 64.5%

Transfers and Subsidies 1 859 612 93.0% 1 102 325 67.5% 1 410 121 100%

Payments of Capital Assets

10 192 80.3% 2 400 58.3% 2 598 61%

Total 2 301 912 93.2% 1 426 477 66.7% 1 791 954 89.5%

Expenditure Patterns (2)Expenditure Patterns (2)


PROGRAMME 2013/14 2014/15 2015/16

Administration 216 066 208 299 217 087

International Affairs 33 271 36 817 39 046

Policy, Research and Capacity Development

84 398 98 029 101 603

Broadcasting and Communications Regulations and Support

1 129 298 1 129 746 1 176 509

ICT Infrastructure Support 580 884 125 536 582 295

Total 2 043 917 1 598 427 1 592 540

Funding over the 2013 MTEF (1)



Entity/ProjectAmount

requestedFunds

allocated

Shortfall

ICASA 406 111 132 000 274 111

SABC 7 326 318 138 000 7 188 318

Sentech 308 000 0 308 000

USAASA/USAF 2 695 382 0 2 695 382

SAPOSAPO 5 068 0015 068 001 00 5 068 0015 068 001

NEMISANEMISA 55 65255 652 00 55 65255 652

E-SkillsE-Skills 884 136884 136 00 884 136884 136

ICT Rural ConnectivityICT Rural Connectivity 3 020 0003 020 000 00 3 020 0003 020 000

Community Broadcasting Support Community Broadcasting Support ProgrammeProgramme

131 000131 000 00 131 000131 000



Key Challenges facing DoC & Mitigating Measures

Key Challenges facing DoC & Mitigating Measures


Key Challenges :

1. Human resource/skills capacity constraints

2. Optimal functioning of the SOCs as the delivery arms of government

3. Budgetary constraints affecting certain projects

Mitigating measures:

1. Recruitment in key position has commenced and critical posts have been filled. Filling of other critical posts are being prioritised

2. A dedicated SOC Oversight Branch headed by a DDG has been established. Integrated planning is being conducted with SOCs

3. DoC is engaging with National Treasury on budgetary challenges and will also explore other sources of funding

Awareness raising with regards to ICT issues within the various constituencies

Communicating with the Department the ICT related challenges or needs of the various constituencies

Communicating with constituencies the positive impact of ICTs through its uptake and usage

58

Assistance required from Select Committee

Assistance required from Select Committee


THANK YOU


SUPPORTING INFORMATION


61

BROADBAND internet subcribers (2009e –2016f)

62

Continued…

Documents

DoC Vision, Mission & Mandate