Do C Budget Presentation to Portfolio Committee on

Do. C Budget Presentation to Portfolio Committee on Communications Ms. P Ntombela-Nzimande Acting Director General Department of Communications 4 June 2004

INTRODUCTION • Opening and Welcome • Strategic plan of Do. C derived from - Electorate mandate Cabinet Lekgotla Legislative mandates i, e relevant Acts State of Nations address Minister’s Strategic overview • Do. C Strategic planning session from 24 – 27 May & 1 June 2004

ROLE • To develop ICT policies and legislation that stimulate and enhance the sustainable economic development of the South African 1 st and 2 nd economy and positively impact on the social well being of all our people. • To evaluate the economic social and political implementation impact, outcomes and processes of the said policies. • To exercise oversight on SOEs • To fulfill South Africa’s continental and international responsibilities in the ICT field.

VISION New Old • Improve the lives of • To be a global leader in harnessing information the ordinary South and communications Africans whilst technologies for sociocontributing to economic development. economic growth. Make South Africa a knowledge based society and help create an information economy.

MISSION New Old • To enhance the well being of • To enable ordinary peoples of South Africa, the people to have access African Continent and the to traditional media and world through the creation of a sustainable and an enabling the convenience of information communications information technology environment. We shall through leveraging our world class knowledge, skills, and experience deliver on our social contracts to the people in a professional manner reflective of our national value system informed by Batho Pole ethos

MANDATE National Strategic Intent Do. C Mandate Constitution • Democracy • Equality • Freedom • Prosperity • Peace and Security • Freedom of Expression • Freedom of Association National Objective derived from • Poverty Alleviation • Regulatory • Economic Growth Framework • SMME Dev. • Job creation • Enabling infrastructure roll out • Affordable access to ICT service -SONA -Minister -Cabinet Lekgotla • Fair Administration • Policy, Universal Access & Service Key Deliverable • Develop ICT laws and Policies • Strategic direction for roll out of universal services • Evaluation & Monitoring through Shareholder Compacts • SNO • Local Government • ICT applications Target • SA Community • Executive • Legislators • World Community

MANDATE National Objective derived from -SONA -Minister -Cabinet Legotla National Strategic Intent • Poverty Alleviation • Economic Growth • Job creation Do. C Mandate/ (Do. C to enable or facilitate) • Creation of a world class ICT Sector • Economic Growth • Job Creation • Infrastructure development 2 nd ECONOMY • Bridge Digital Divide • Skills dev Key Deliverable • SNO • Local Government • ICT applications Target • Community • Executive • Legislators • World Community

MANDATE National Objective derived from -SONA -Minister -Cabinet Legotla National Strategic Intent Do. C Mandate/ 2 nd ECONOMY • Skills dev. • ICT awareness • Growing the ICT sector • Developing sustainable jobs • National Infrastructure development • SOE’s delivery strategies Key Deliverable Target • Community • Executive • Legislators • World Community

MANDATE National Strategic Intent Do. C Mandate Key Deliverable Target • Telecoms Acts • Public Interest • Regulations • Market Structure • Universal Access & Service • Empowerment • Growth & Stability • Market Liberalization • Sustainable Economic Growth • Policy Dev. • Regulation • Infrastructure R/O • Affordability • Empowerment • USAL’s • Edunet • E-rate • ICT Strategy • SNO • Community • Executive • Legislators • World Community • Broadcasting • Public Interest • Regulations • Market Structure • Universal Access & Service • Empowerment • Growth & Stability • Ownership • Inclusivity • Nation Building • Language and Content • Community Sector • Infrastructure R/O • Moral regeneration • Sports of National interest • Information, Language and Entertainment • PBS • CBS • Regional Broadcasting • Regulation of licenses • Social Cohesion • Moral Regeneration • Stimulating Production of local content • Community • Executive • Legislators • World Community

MANDATE • Postal • E-Commerce National Strategic Intent Do. C Mandate Key Deliverable Target • Access and affordability • Access to financial services sector • Delivery of Social Services • Nation Building • Redressing social imbalances • Information and Communications • Market Structure • Regulations • Economic Growth • Improved service delivery • Oversight of SOE’s • Develop laws and polices • Infrastructure Rollout • Community • Executive • Legislators • World Community • Facilitate egovernment • Secure etransaction • Stimulate economic growth • Growth of 2 nd economy • Establish enabling e-environment • Establish eenvironment framework • Research and development • Security protocol • Legal and technical certainty • Regulated ecommerce • Established • e-government environment • Portfolio Organisations • SMME’s • Designated Groups • Regional Reach • Community • Executive • Legislators • World Community • Portfolio Organisations • SMME’s

MANDATE Convergence National Strategic Intent • Redefine Market Structure • Reduce cost of doing business • Economic growth • Encourage Entrepreneurship • Innovation and competition Do. C Mandate Key Deliverable Target • Appropriate policy for cost reduction • SMMEs promotion • Governmental Consensus • Convert blue print into Act. • Implementation plan for government • New regulations • Community • Executive • Legislators • World Community • Portfolio Organisations • SMME’s

MANDATE Convergence National Strategic Intent Do. C Mandate Key Deliverable Target • Redefine Market Structure • Reduce cost of doing business • Economic growth • Encourage Entrepreneurship • Innovation and competition • Appropriate policy for cost reduction • SMMEs promotion • Governmental Consensus • Convert blue print into Act. • Implementation plan for government • New regulations • Community • Executive • Legislators • World Community • Portfolio Organisation s • SMMEs

DOC KPA’S

KEY PERFOMANCE AREAS POLICY UNIT Strategic Objective key Indicator Policy framework 2 facilitate universal access • Approved universal access & service framework Develop e-strategy framework • Cluster consultation • Stakeholder consultation • Policy document • Cabinet process Develop ICT competition framework • Consult competition • Cluster consultation • Market competition analysis • Stakeholder consultation Develop ICT competition framework • Formulate policy directives • Review appropriateness of policy • Parliamentary process

KEY PERFOMANCE AREAS POLICY UNIT Strategic Objective key Indicator Develop mechanisms to support local content • Approved policy framework Finalize Convergence Bill • Convergence Act Migration policy to introduce new • Approved digital migration policy framework digital services Develop policy framework for Public Broadcasting • Approved public broadcasting framework

KEY PERFOMANCE AREAS SHAREHOLDER MANAGEMENT UNIT Strategic Objective key Indicator Facilitate restructuring of SOE’s • Approve restructuring • Completion of Due Diligence • Manage Cabinet process • Facilitate approval of restructuring plans • Monitor implementation of restructuring plans Oversee delivery of Government policy targets • Approved Shareholder Compacts Oversee delivery of Government policy targets (continued) • Approved Shareholder Compacts (Continued) Facilitate appointment of Boards of Directors of SOE’s • Full representative board compliment

SHAREHOLDER MANAGEMENT KEY PERFOMANCE AREAS Strategic Objective key Indicator Analysis of SOEs Financial Performance • Availability of latest up to date database and financial reports Undertake benchmarking exercise on financial performance of SOE’s • Baseline / Industry norms Evaluate financial implications of Universal Obligations • Optimal financing model Analysis of convergent technologies • Analysis Report; Analyse viability of emergent technologies to enable universal access • Feasibility study • Service delivery Models • Demonstrable applications.

KEY PERFOMANCE AREAS RESEARCH AND INOVATIVE APPLICATIONS Strategic Objective key Indicator To develop network model for provision of educational services • Actual network model Affordable and high quality • Analysis Report access of regional broadcasting Ensuring compatibility and • Implementation of standards interoperability of ICT standards

KEY PERFOMANCE AREAS STRATEGY Strategic Objective key Indicator Facilitate development of Strategic planning • Integrated strategic plan Ensure effective participation in intergovernmental activities • Coordinate intergovernmental activities Promote equity of designated groups in Do. C • Increment in employment and procurement from designated groups Build Mutually beneficial relations in the ICT sector • Approved MOU’s • Effective functioning of NEPAD ICT task force Develop an effective SADC IICT sub-structure with a clear ICT programme • Created ICT sub-structure Promotion of SA business in the Continent and the world • Established strategic alliance partners

KEY PERFOMANCE AREAS STRATEGY Strategic Objective key Indicator Provide support service to Minister in performing her functions • Timeous and relevant briefing to Minister · To ensure and maintain effective, efficient & transparent systems of: • - financial and risk management, • - internal controls, • - Procurement & Provision system which is fair • Approved policies, procedures, delegations and systems • PFMA review report • Signed off compliance reports

KEY PERFORMANCE AREAS FINANCE AND RISK MANAGEMENT Strategic Objective key Indicator Budget Management & Financial Reporting • Approved Budget • Appropriate expenditure management • Signed off compliance reports Timeous provision of relevant information Provision of Secretary Service to the DTC • Approved Tender Administrative Procedures To ensure and maintain effective and appropriate steps to prevent unauthorised, irregular, fruitless and wasteful expenditures and losses • Unqualified audit reports • PFMA review reports • Signed off compliance reports

CRITICAL SUCCESS FACTORS • Resource allocation particularly population of structure • Finalization Migration to new structure • Transformation and Change management process • HR retention and career pathing strategies

MEDIUM TERM EXPENDITURE ESTIMATE Programme 1 Administration 2 Telecommunications Policy 3 Postal Services Adjusted appropriation 2003/04 88 607 2006/07 95 292 101 008 144 062 134 649 142 670 151 230 1 090 186 1 088 027 356 490 372 199 394 531 146 796 312 948 5 Auxiliary and Associated Services 6 682 1 645 219 84 198 2004/05 MTEF 2005/06 91 269 4 Multi-Media Services Policy TOTAL Revised estimate 2003/04 312 319 285 668 6 356 7 124 1 634 962 875 200 296 904 316 298 7 438 7 884 914 503 970 951

MTEF PER ECONOMIC CLASSIFICATION Economic Classification Current payments Adjusted appropriation 2003/04 Revised estimate 2003/04 2004/05 MTEF 2005/06 2006/07 225 413 215 156 202 463 224 497 242 169 Transfers and subsidies 1 403 701 647 224 662 384 699 007 Payments for capital assets 16 105 25 513 27 622 29 775 1 645 219 1 634 962 875 200 914 503 970 951 TOTAL R 750 million was allocated under transfers to the Post Bank for the 2003/04 financial year. The 112 Emergency call centre has been allocated R 20 million under capital assets whereas it was part of the transfers in the previous financial year.

DETAILS OF TRANSFER PAYMENTS Transfer to Adjusted appropriation 2003/04 2004/05 MTEF 2005/06 2006/07 USA 14 211 15 884 17 500 20 100 USF 24 745 26 230 29 400 31 164 Advanced Institute for ICT 11 000 13 000 7 000 - ISETT-seta - 2 350 2 800 3 300 Multi-Purpose Community Centres - 2 000 3 500 South African Post Office subsidy 1 050 000 300 000 318 000 SAPO: PIT - 8 480 10 000 10 800 SAPO: Extension of services - 7 950 8 500 9 000

DETAILS OF TRANSFER PAYMENTS Transfer to Adjusted appropriation 2003/04 MTEF 2005/06 2004/05 2006/07 SABC: Public Broadcaster 44 717 47 400 50 455 53 482 SABC: TBVC States 40 000 - - - SABC: Channel Africa 26 288 27 865 29 616 31 393 Community Radio Stations 9 000 9 540 10 255 10 870 Programme Production 30 100 28 500 31 000 33 200 NEMISA 15 153 16 878 18 163 19 199