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2006/2007 South Africa Yearbook: 6

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2006/2007 South Africa Yearbook: 6 6 Communications Telecommunications Testing and piloting systems and applications are As the leader in information and communications growing businesses in South Africa, with the technology (ICT) development in Africa, South Africa diversity of the local market, first-world know-how is the 20th-largest consumer of information in business, and a developing-country environment technology (IT) products and services in the world. making it an ideal test laboratory for new With a network that is 99% digital and includes innovations. the latest in fixed-line, wireless and satellite communications, South Africa has the most Policy developed telecommunications network on the The Department of Communications’ mandate is to continent. create a favourable environment that ensures that South Africa's IT industry is characterised by South Africa has the capacity to advance its socio- technology leadership, particularly in the field of economic development goals and support the electronic banking services. South African renewal of Africa and the building of a better world. companies are world leaders in pre-payment, This mandate puts the department at the forefront of revenue management and fraud-prevention government initiatives to bridge the digital divide and systems, and in the manufacture of set-top boxes, provide universal access to ICT for all South Africans. which are all exported to the rest of the world. The department fulfils its mandate by developing Several international corporates, recognised as ICT policies and legislation that stimulate and leaders in the IT sector, operate subsidiaries from enhance the sustainable economic development of South Africa. the country’s first and second economies, and that South Africa's ICT and electronics sectors are positively affect the social well-being of all South expected to continue showing strong growth in the Africans. Through policy development, the future, due to key competitive advantages specific department also seeks to restructure state-owned to the country and the continent. enterprises (SOEs), introduce competition in the 131 sector and accelerate the penetration of services in • ICT Black Economic Empowerment (BEE) Charter underserviced communities. The department also • funding model for regional televisions strives to streamline the regulatory framework in its • research and development of ICT products and quest to achieve competitiveness in the sector. services The core functions of the department are to: • additional community radio stations • evaluate the economic, social and political effect • National Emergency Communications Framework of implementing relevant policies • active participation in the World Radio Communi- • exercise oversight of SOEs cation Conference • fulfil South Africa’s continental and international • National Space and Satellite Programme for responsibilities in the ICT field Communications The department’s strategic direction is based on • fulfilment of international obligations five key focus areas: • New Partnership for Africa’s Development (Nepad) • achieving higher rates of investment in the projects economy • International ICT Strategy and programmes. • increasing the competitiveness of the South The department oversees Telkom, the South African economy African Post Office (Sapo), Sentech, the South • broadening participation in the economy African Broadcasting Corporation (SABC), the • improving the State’s capacity to deliver National Electronic Media Institute of South Africa • contributing to creating a better world. (Nemisa), as well as the regulator, the Independent The department has identified the following Communications Authority of South Africa (Icasa). strategic objectives to achieve its mandate: The Electronic Communications Act, 2005 (Act 36 • Broadband Strategy of 2005), seeks to remove policies that hinder the • Digital Migration Strategy development of cross-sector applications, services • Universal Service and Access Policy and Strategy and businesses. The Act enables the sector to reflect • Department of Communications 2010 Strategy the integration of telecommunications with IT, • Stakeholder Management Policy Framework broadcasting and broadcasting-signal distribution. • E-Cadres Strategy It also empowers citizens by means of better • Spectrum Management Policy access to knowledge and information. The Tele- 132 communications Amendment Act, 2001 (Act 64 of Section 40 of the Telecommunications Amendment 2001), has enabled the department to liberalise the Act, 2001 requires that underserviced area licensees South African telecommunications market, increase provide telecommunications services, including competition, and, as a by-product, stimulate the voice-over Internet protocol, fixed mobile services sector to bring down the costs of communications and public pay telephones. Policies have also been and remove constraints to growth. implemented that, among other things, allow mobile The amendment also provided for the licensing operators to use any fixed lines that may be required of operators in underserviced areas with a for providing both voice and data transmission teledensity of less than 5%, the majority of which services. are in the Sustainable Rural Development Programme nodal points. It also contributed to an Digital Migration Policy Framework increase in ownership and involvement in the The Digital Migration Policy Framework facilitates telecommunications sector by women and the introduction of diverse digital services that historically disadvantaged groups, and provided for broadly integrate South Africa into the global a new public emergency telephone service and community. emergency number, 112. The department’s strategy is to manage trans- The final draft of the ICT Empowerment Charter formation from analogue to digital environments, was presented to the Minister of Communications, and to ensure that digital migration processes and Dr Ivy Matsepe-Casaburri, in May 2005, after two activities are negotiated and aligned with years of intensive consultation with the sector. Once multilateral institutions such as the International adopted and published as a code of good practice, it Telecommunication Union, the World Trade is set to guide all BEE activities in the broadcasting, Organisation and the African Union. electronics, IT and telecommunications industries. The department has allocated funding to the SABC and Sentech for a digital migration project Liberalisation that will open up broadcasting to more players, Following the signing of the Telecommunications especially small regional broadcasters. Amendment Act, 2001, the department was able to focus on policies that grow the economy; attract Independent Communications Authority foreign direct investment; increase competition, of South Africa encourage Broad-Based BEE; and develop and Icasa was formed in terms of the Icasa Act, 2000 sustain small, medium and micro enterprises (Act 13 of 2000), which brought together two separate (SMMEs). The department also aims to improve entities, the Independent Broadcasting Authority service delivery and expand the provision of (IBA) and the South African Telecommunications telecommunications services. The introduction of Regulatory Authority. Icasa is now the sole the underserviced area licences (USALs) addresses telecommunications regulator in the country, and has this need. been charged with creating and maintaining a The costs of communications will be brought competitive and socially responsive communications down by increased competition in the sector and industry. the removal of constraints to growth. Icasa develops regulations and policies, and issues licences to telecommunications broadcasting service-providers, enforces compliance with rules and regulations, protects consumers from unfair business practices and poor quality services, hears South Africans spent R514 million shopping and decides on disputes and complaints brought online in 2005, which was 20% more than in against licensees, and controls and manages the 2004, according to a report by technology frequency spectrum. researchers World Wide Worx. The report predicted a further 20% increase in Universal Services Agency (USA) 2006. The USA was launched in 1997 as a statutory body that facilitates universal access to services, and co- 133 ordinates initiatives towards this end by service- Information technology Communications providers such as Telkom, Vodacom, MTN and Cell C. State Information Technology Agency (Sita) The USA extends services to communities by Sita was established in 1999 to consolidate and co- working with community-based and non-governmental ordinate the State’s IT resources to achieve savings organisations to roll out ICT infrastructure to through scale, increase delivery capabilities and underserviced communities. enhance interoperability. Sita is committed to By mid-2006, the USA had delivered more than leveraging IT as a strategic resource for 100 telecentres countrywide and was rolling out government, managing the IT procurement and community digital hubs at the 21 identified delivery process to ensure that government gets developmental nodal points in the country. value for money, and using IT to support the In 2005, after the first phase of the licensing delivery of e-government services to all citizens. process, seven USALs were granted to private (See Chapter 12: Government system.) companies. The minister invited applications for the second phase for an additional 14 municipal arivia.kom districts. The successful applicants
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