PRESENTATION TO THE PORTFOLIO COMMITTEE DEPARTMENT OF TELECOMMUNICATIONS

PRESENTATION TO THE PORTFOLIO COMMITTEE DEPARTMENT OF TELECOMMUNICATIONS AND POSTAL SERVICES FIRST QUARTER PERFORMANCE 2016/17 FINANCIAL YEAR 23 August 2016

INTRODUCTION The Department conducts monthly monitoring and reporting against the Operational Plans as well as quarterly monitoring, evaluation and reporting against the quarterly targets as committed to in the 2016/17 Annual Performance Plan. Presentation on the Department’s Performance for the period 01 April to 30 June 2016 focuses on: q Significant Achievements q Quarter 1 performance against each 2016/17 Target as identified in the 2016/17 Annual Performance Plan; q Status of progress per quarter 1 target (Achieved, Delayed or No/Minimal Progress) q Reasons for delays or no/minimal progress; q Measures to Improve Performance q Financial performance as at 30 June 2016 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 2

SIGNIFICANT ACHIEVEMENTS (1) q With regards to the development of the RSA position for WTSA, a draft RSA Position concept note was developed and consulted with the National Preparatory Working Group which was established, comprising of a number of ICT experts related to ICT standards. q Following the development of the draft National Integrated ICT Policy White Paper, the Department commenced with the process of the identification and prioritisation of legislative amendments. q In terms of SOC Rationalisation, an Assessment Report on the rationalisation of both BBI and SENTECH was developed. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 3

SIGNIFICANT ACHIEVEMENTS (2) q The Department has developed an ICT SMME Environmental Scoping Report towards the development of the ICT SMME Strategy, in line with ICT B-BBEE Sector Code q Despite initial delays, the Department is in the process of conducting a Climate and Culture survey aimed at improving the overall internal climate and broader organisational performance of the Department as a whole. q The Department has commenced with the review of the Organisational Structure. Together with the DPSA, a draft Service Delivery Model has been developed which will inform the development of an Organisational Structure that is fully aligned to the mandate of the DTPS. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 4

PROGRAMME 1: ADMINISTRATION FIRST QUARTER PERFORMANCE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 5

Administration (1) 2016/17 TARGET: Organisational structure revised and implemented in line with strategy Q 1 TARGET: Needs assessment conducted with branches Achieved q Needs assessments conducted with all relevant Branches within DTPS q Project Plan developed and presented to Top Management and DEC. q Organisational structure process tabled at DBC. Q 1 TARGET: Service Delivery Model aligned with the 2016/17 APP Delayed q Work Sessions held with nominated officials from all branches to discuss the Service Delivery Model. q Consultations held with relevant branches to discuss the research function as part of finalising inputs on the Service delivery model. q Branch meetings kick-started on the Service Delivery Model quality assured by DPSA. Reasons: q Unavailability of all branches resulted in the delay. Work in progress: q The draft Service Delivery Model has been developed and aligned to the 2016/17 APP Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 6

Administration (2) 2016/17 TARGET: Climate and culture survey conducted and Action Plan developed Q 1 TARGET: Climate and culture survey conducted Delayed q Project deliverable clarified with management and service level agreements signed with project plans. q Focus group sessions and individual interviews with all DDGs conducted. q Design Team/Change Agents appointed and design Team meeting held. q Meetings with project team held to analyse themes and dimensions outlined on the Terms of References. Reasons: q Project delayed by late signing of contract. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 7

Administration (3) 2016/17 TARGET: Core business processes identified, documented, optimized and mapped so as to enable process automation Q 1 TARGET: Business requirements and Terms of Reference developed Achieved q Business requirement and Terms of Reference developed using Business Impact Analysis Report. 2016/17 TARGET: Enterprise Document Management and workflow system designed and developed Q 1 TARGET: User requirements solicited and Terms of Reference developed Achieved q User requirements solicited and Terms of Reference developed using BIA report. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 8

PROGRAMME 2: INTERNATIONAL AFFAIRS FIRST QUARTER PERFORMANCE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 9

International Affairs (1) 2016/17 TARGET: RSA position for UPU developed towards regulations of ETOEs, promoting postal services as a driver for socio-economic inclusion Q 1 TARGET: RSA position paper for International Postal programme developed and submitted for approval Delayed q Document prepared on UPU CA and Po. C outcomes discussed at National Preparatory meeting with stakeholders. q Position paper developed. q Also discussed position for SADC Ministerial, and prepared position and report on outcomes. Reason: q The Position paper was not submitted for approval as planned. Work in progress: q The position paper was subsequently approved and will proceed to Cluster. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 10

International Affairs (2) 2016/17 TARGET: RSA position for WTSA developed to promote access to technology, manufacturing, conformance and interoperability for ICT SMME development Q 1 TARGET: Draft RSA position concept note developed and consulted with national and international stakeholders Achieved q Draft RSA Position concept note developed and consulted with National Preparatory Working Group which was established, comprising a number of ICT experts interested in ICT standards. q A briefing document was developed and presented to the NPWG for WTSA. Key issues were identified and Working Groupswere established. q Memo prepared for participation in Telecom World - 2016 WRC - presentation made to WRC National preparatory Working Group on priorities for South Africa for WRC 19. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 11

International Affairs (3) 2016/17 TARGET: RSA position for SADC ICT Ministerial meeting promoting access to affordable ICT infrastructure, services and regional integration Q 1 TARGET: RSA position paper for SADC ICT Ministerial meeting developed and internally approved Delayed q 1 st Stakeholder engagement meeting on SADC Programme (home and Away Roaming and Regional Broadband) was held on the 19 th of May 2016. q Department held two meetings with ICASA on Home and Away Roaming. q A Draft matrix on status and SA Position has been developed. Reason: RSA position paper for SADC ICT Ministerial meeting was developed and not internally approved Work in progress: The SA position and the matrix are still undergoing consultation 2016/17 TARGET: RSA position for BRICS developed focusing on skills development, R&D for innovation, and internet governance programmes Q 1 TARGET: Draft RSA POA for implementation of BRICS ICT Agenda, developed Achieved q Draft RSA POA outlining priority areas of cooperation was tabled and submitted to the Minister and BRICS IMC. q Developed a Briefing Memo for the BRICS IMC for the Minister. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 12

International Affairs (4) 2016/17 TARGET: Country Position for International Internet Public Policy developed Q 1 TARGET: Draft RSA position concept note on International Internet Public Policy developed and consultations with national and international Achieved q Concept document developed and Cabinet approval obtained for hosting of African IGF and SA position issues. q Further, Cabinet also approved for SA to operationalise Digital Object Architecture which is an alternative internet system. q Cabinet also endorsed SA’s application to be Multi-Primary Administrator for DOA. 2016/17 TARGET: 1 South African placement in an identified Global ICT Governance Institution to influence the system of global governance Q 1 TARGET: Placement of official approved internally Achieved q Memo submitted and approved on placement of official at Geneva mission to deal with ITU and UPU issues. q Letter sent to DIRCO with candidate and profile. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 13

International Affairs (5) 2016/17 TARGET: 1 seat in Global ICT Governance Institution maintained Q 1 TARGET: Draft Strategy for elections in Global ICT Governance Institution developed Achieved q Draft election Strategy developed. q Approved Cab Memo on SADC position wrt Postal sector elections, meeting held with Japan wrt request for support for elections. q Engagements held with DIRCO on international election priorities to include UPU Council of Administration. q In addition, Ministerial letter to DIRCO Minister for support on elections, and to UPU DG to declare candidature was prepared Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 14

PROGRAMME 3: POLICY, RESEARCH AND CAPACITY DEVELOPMENT FIRST QUARTER PERFORMANCE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 15

Policy, Research and Capacity Development (1) 2016/17 TARGET: Draft ICT Legislation developed Q 1 TARGET: Identification and prioritisation of legislative amendments commenced Achieved q Identification and prioritisation of legislative amendments commenced through the development of the ICT Policy Roadmap 2016/17 TARGET: Postal Services Amendment Bill developed Q 1 TARGET: Analysis report developed Achieved q Analysis report was developed as planed 2016/17 TARGET: South African Post Office Amendment Bill developed Q 1 TARGET: Analysis report developed Achieved q Analysis report was developed as planned 2016/17 TARGET: ICT SMME Strategy developed in line with ICT B-BBEE Sector Code Q 1 TARGET: Environmental scoping report produced on ICT SMME Strategy Achieved q The SMME Environmental Scoping Report has been developed. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 16

Policy, Research and Capacity Development (2) 2016/17 TARGET: 3 year e-Service programme developed Q 1 TARGET: e-Government inter-departmental committee established Delayed q The national e-strategy discussion paper was developed and consulted with relevant National Government departments. q e-Government strategy was also consulted with DPSA through a bilateral meeting. Reason: There was a need to align the stakeholder engagement and structure to that of the National e-Strategy development process. Work in progress: The e-Government inter-departmental committee is now aligned to that of the National e-Strategy stakeholder engagement process. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 17

Policy, Research and Capacity Development (3) 2016/17 TARGET: National e-Strategy developed Q 1 TARGET: Provincial consultation on National e-Strategy discussion paper conducted Delayed q The National e-Strategy Task Team has been re-instituted to deal with both the National e-Strategy and e-Government matters. q The 1 st National e-Strategy Task Team Meeting was convened on the 04 th May 2016. q The ICT Expert has been appointed to assist with the development of the National e. Strategy. q The National e-Strategy discussion document has been developed. q The e-Strategy Inter-Branch Task Team workshops were held. q A consultative meeting between the DTPS and DPSA took place on the 29 th of June 2016. Reason: Provincial consultation were not conducted as planned due to a change in work focus. Work in progress: The Provincial consultative process is scheduled to take place in July and August 2016. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 18

PROGRAMME 4: ICT ENTERPRISE DEVELOPMENT AND SOE OVERSIGHT FIRST QUARTER PERFORMANCE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 19

ICT Enterprise Development and SOE Oversight 2016/17 TARGET: SOC Rationalisation assessment conducted and consolidated report developed (BBI, SITA, SENTECH and SAPO) Q 1 TARGET: Assessment Report on rationalisation of 2 identified SOCs developed Achieved q Assessment on rationalisation of both BBI and SENTECH conducted. q Rationalisation reports developed 2016/17 TARGET: Performance and compliance of SOC against strategic plans and relevant prescripts monitored and evaluated Q 1 TARGET: Consolidated State of SOCs report for 2015/16 Quarter 4 developed and submitted Achieved q State of SOCs report for 2015/16 Quarter 4 was developed and submitted. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 20

PROGRAMME 5: ICT INFRASTRUCTURE SUPPORT FIRST QUARTER PERFORMANCE Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 21

ICT Infrastructure Support 2016/17 TARGET: Project manage the roll-out of the Broadband connectivity Implementation Plan Phase 1 towards connecting 2700 sites Q 1 TARGET: Broadband Connectivity Implementation Plan finalised No Progress Reason: No progress due to pending tender process finalisation. Work in progress: The Department through SITA went out on tender with a closing date of 08 August 2016 to appoint a service provider for broadband connectivity. Q 1 TARGET: Connectivity to 675 identified site’s project managed and monitored No Progress Reason: No progress due to pending tender process finalisation. Work in progress: The Department through SITA went out on tender with a closing date of 08 August 2016 to appoint a service provider for broadband connectivity. 2016/17 TARGET: National Radio Frequency Plan NRFP reviewed and updated taking into consideration the outcomes of WRC-15 & national policies Q 1 TARGET: WRC-15 Outcomes report developed and issued to ICASA Achieved The report on the outcome of the WRC-15 has been developed and approved for submission to ICASA Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 22

Measures to Improve Performance Over and above project specific challenges that are being addressed within the respective project teams, the Department has implemented various measures to ensure improvement in its overall performance: q Weekly Monitoring against Operational Plan Action Steps q Monthly Monitoring against Operational Plan deliverables q Performance Reporting as a standard agenda item on Management meetings q Climate and Culture Survey q Review of the Organisational Structure Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 23

FINANCIAL INFORMATION PERIOD: 01 APRIL TO 30 JUNE 2016 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 24

Appropriation 0 Administration, 193337 ICT International Affairs, 44710 Policy Researchand Capacity Dev, 95618 Infrastructure Suppport, 1191946 ICT Enterprise Develop and SOE Oversight, 891801 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 25

Appropriation Compensation of Budget per Economic Classification Payments for Capital employees , 213, 713, Assets, 4, 968, 0% 9% Goods and services , 494, 583, 20% Transfers & Subsidies, 1, 054, 148, 44% Payment for Financial Assets, 650, 000, 27% Included in goods and services is an amount of R 336 million earmarked for SA Connect, Which translates to operational goods and services of R 158. 6 million for the Department. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 26

Expenditure PROGRAMME BUDGET R'000 PROJECTED BUDGET TO % 30 JUNE 2016 R'000 EXPENDITURE R'000 VARIANCE R'000 AVAILABLE % TO YEAR SPENT END R'000 Administration 193 337 8% 48 407 52 126 (3 719) 141 211 27% ICT International Affairs 44 710 2% 5 119 4 071 1 048 40 639 9% 4% 23 660 17 797 5 863 77 821 19% 37% 717 236 658 420 58 816 233 381 74% 49% 171 098 6 865 164 233 1 185 081 0. 6% 100% 965 520 739 279 226 241 1 678 133 31% ICT Policy Research and 95 618 Capacity Dev ICT Enterprise Develop and SOE 891 801 Oversight ICT Infrastructure 1 191 946 Support Total 2 417 412 A global leader in the development and use of Information and Communication Technologies for socio-economic development Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 27

Expenditure per Economic Classification BUDGET R'000 EXPENDITURE R'000 AVAILABLE TO YEAR END R'000 2, 417, 412 1, 678, 133 1, 191, 946 1, 185, 081 891, 801 95, 618 44, 710 77, 821 193, 337 141, 211 52, 126 Administration 739, 279 658, 420 233, 381 4, 071 40, 639 ICT International Affairs 17, 797 Policy Researchand Capacity Dev 6, 865 ICT Enterprise Develop Infrastructure Suppport and SOE Oversight Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Total 28

Expenditure per Economic Classification Payments for Capital Assets, 2, 882, 0% Compensation of employees , 47, 949, 6% Transfers & Subsidies, 103, 0% Goods and services , 38, 343, 5% and rent on land , Interest -, 0% Payment for Financial Assets, 650, 002, 88% Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 29

Expenditure per Economic Classification Budget Expenditure Available Budget to year end 2, 417, 412 1, 678, 133 1, 054, 148 1, 054, 045 650, 000 650, 002 494, 583 213, 713 165, 764 47, 949 Compensation of employees 739, 279 456, 240 38, 343 103 4, 968 2, 882 2, 086 Goods and services Transfers & Subsidies Payments for Capital Assets (2) Payment for Financial Assets Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development Total 30

Transfers and Subsidies Appropriation Available to Year End Actual Transfer % Spent Foreign governments and international organisations 23 363 - - 0% National Electronic Media Institute of South Africa 77 200 - - 0% Universal Service and Access Agency of South Africa 69 045 - - 0% Universal Service and Access Fund 55 156 - - 0% South African Post Office: Broadcasting Digital Migration 240 000 - - 0% Universal Service and Access Fund: Broadcasting Digital Migration 589 384 - - 0% 1 054 148 - - 0% TOTALS Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 31

TRANSFERS AND SUBSIDIES 1, 054, 148 589, 384 240, 000 77, 200 23, 363 - - 69, 045 - - 55, 156 - - - - Foreign governments National Electronic Universal Service and South African Post Universal Service and international Media Institute of Access Agency of Access Fund Office: Broadcasting Access Fund: organisations South Africa Digital Migration Broadcasting Digital Migration Appropriation Actual Transfer - - TOTALS Variance Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 32

THANK YOU Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 33