Communications

SOUTH AFRICA YEARBOOK 2013/14

The vision of the Department of Communica- Communications tions (DoC) of building a South Africa in which all South Africans have access to information and communications technology (ICT) skills is essential to the goal of building a prosperous nation. In May 2013, a combined new institution, bringing together the Institute for Satellite and Software applications, the former eSkills Insti- tute and the National Electronic Media Institute of South Africa (Nemisa) as one body was launched. Over the short to medium term, the Single Integrated Entity for e-Skills will focus on the development of the National e-Skills Plan and will implement a range of e-skills initiatives aimed at increasing the e-skills capacity across government, business, education, civil society and organised labour. The department is fully focused on consolidat- ing the transformation of the ICT sector, while extending ICT services to all South Africans. The National ICT Forum will be launched in early 2014. It is estimated that the ICT industry in South Africa contributes close to 7% to the national gross domestic product (GDP). The department’s mandate is to create a favourable ICT environment, ensuring that South Africa has the capacity to advance its socio-economic development goals and support development in Africa. This mandate puts the department at the forefront of government initiatives to bridge the digital divide and provide universal access to ICTs for all South Africans. South Africa’s ICT industry is ranked 20th in the world, accounting for 0,5% of worldwide ICT revenue. The department has prioritised three ﬂ agship programmes that are at the core of building a digital information and knowledge society. These include accelerating the building of a modern digital infrastructure, as well as policy reforms that will position the country for an advanced knowledge economy in 2030. These programmes entail: • developing a national integrated ICT policy • rolling out a national broadband network • implementing the digital broadcasting migration policy. The DoC held a workshop during the last week of October 2013 and presented the draft Spec- trum Policy for more input from industry. The department also held its ﬁ rst National Pre- paratory Working Group meeting in September 2013, in anticipation of the World Radio Confer- ence (WRC) to be held in November 2015.

2013COMMUNICATIONS_NEW.indd 81 2014/10/29 4:44 PM The working group’s main task is to advise For dual illumination and R6 million for ICT government on how it should approach the infrastructure for the 2014 Orange African agenda items, which could have far-reaching Nations Championship. implications for the future of telecommunica- The SABC’s spending focus over the medium tions. term was on rebuilding the corporation’s fi nancial position, adopting good governance and Legislation realigning the organisation’s operating model The legislative framework for the work of the with the requirements of digital broadcasting. DoC is contained mainly in the: The latter explains why operational expendi- • Broadcasting Act, 1999 (Act 4 of 1999) ture related to digital terrestrial television is • Electronic Communications and Transactions projected to increase to R2,4 billion by 2015/16. Act, 2002 (Act 25 of 2002) Other public entities’ and agencies’ budget • Electronic Communications Act, 2005 (Act 36 allocations for 2013/14 were: of 2005) • Icasa – R390,7 million • Independent Communications Authority of • Nemisa – R 35,8 million South Africa (Icasa) Act, 2000 (Act 13 of 2000) • The Universal Service and Access Agency of • Sentech Act, 1996 (Act 63 of 1996) South Africa (Usaasa) – R60,1 million • Postal Services Act, 1998 (Act 124 of 1998) • The Universal Service and Access Fund • South African Post Offi ce (Sapo) Ltd. Act, (Usaf) – R285 million. 2011 (Act 22 of 2011) • South African Postbank Limited Act, 2010 (Act 9 of 2010). Policy and strategies The department’s Strategic Plan prioritises the ICT The department is also guided by the: Policy Review, broadband and digital migration. • Constitution of the Republic of South Africa, In line with the National Development Plan 1996 (NDP), the department will overhaul existing • Public Service Act, 1994 (Act 103 of 1994), as policies. It planned to deliver the White Paper on amended ICT Policy in 2014. In April 2013, the department • Public Finance Management Act (PFMA), launched the ICT Policy Framing Paper. 1999 (Act 1 of 1999), as amended. In 2013, the department made progress with In the course of 2013, the department introduced the Broadband Policy, Strategy and Plan, which four legislative amendments, namely the Icasa were submitted to Cabinet by December 2013. Amendment Bill, which deals with the defi nition The policy and its associated strategy and of broadband, empowers Icasa to enforce com- plan have been collectively dubbed, "South pliance, and monitor radio frequency spectrum Africa Connect”. resources, and postal regulation; the Electronic They outline a number of activities to improve Communications Amendment Bill, which seeks broadband in South Africa such as: to enhance competition and private investment • giving every South African access to a broad- in the sector and ensure that there is effective band connection at a cost of 2,5% or less of regulation where market failure is apparent; the the average monthly income Sapo Amendment Bill; and the The Postbank • revising how it defi nes the speed of broad- Bill, to align it to the Banks Act. band, opting to use targets that are reviewed The Protection of Personal Information Act, annually rather than a fi xed speed 2013 (Act 4 of 2013) (Popi) was signed into law • supplementing these targets by specifying in November 2013. It comes at a time when mar- quality of service standards, download and keting has just started with customer profi ling, upload speeds, latency, waiting time for instal- behavioural advertising, big data and multiple lation and fault clearance. marketing channels. The initial target is to offer 90% of South Africans a minimum speed of fi ve megabits per second Funding and expenditure (Mbps) by 2020. However, 50% of the population In 2013, the department transferred 76% of its should also have access to 100Mbps broadband budget to state-owned companies (SOCs) in its by 2020, according to these targets. portfolio. Additional funding of R283 million was made In October 2013, government joined the country’s media available to Sentech in 2013/14, R171 million industry in commemorating Media Freedom Day, which of which was for the roll-out of digital terrestrial resulted in legislative guarantees of press freedom and edito- television (DTT) infrastructure in time for the rial independence. The media industry has played a crucial commercial launch of digital terrestrial televi- role in transforming South Africa into a democratic State, and sion, R106 million. is currently at the forefront in shaping the public discourse.

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Role players South African Broadcasting The South African Post Offi ce Corporation Sapo was established as a government busi- The SABC is listed as a schedule 2 public entity ness enterprise to provide postal and related ,in terms of the PFMA of 1999. Its mandate is services to the public. set out in its charter and in the Broadcasting Act It was granted an exclusive mandate to con- of 1999, which requires it to provide radio and duct postal services in the country by the Postal television broadcasting services to South Africa. Services Act of 1998. The corporation’s strategic goals over the This Act provides for the regulation of postal medium term are to: services and the operational functions of the • ensure access of its services to all citizens postal company, including universal service throughout the country obligations and the fi nancial services activities • inform, educate, entertain and provide ser- of Postbank. vices in all offi cial languages In the 12 months to March 2013, the Sapo • refl ect both the unity and diverse cultural and opened 50 new post offi ces. multilingual nature of South Africa, and all of Most of these are in rural areas such as its cultures and regions, to audiences Kayedwa in Bushbuckridge in Mpumalanga, • provide programming for children, women, Nywarha in Idutywa in the Eastern Cape, Emoyeni youth and people with disabilities, and broad- in Dannhauser in KwaZulu-Natal, Spoegsrivier in cast national, developmental and minority Kammiesberg in the Northern Cape, Vahlavi in sports the Greater Giyani region in Limpopo and Ruit- • develop talent and showcase South African ersbos in Mossel Bay in the Western Cape. content These new postal branches have been com- • provide independent news of a high standard plemented by rolling out mobile branches to • ensure the fi nancial sustainability of the ensure that many more South Africans have corporation through the cost-effective use of access to these essential services. budgets and resources Post offi ces have become important service- • implement the digital content strategy delivery centres, offering South Africans a • conclude the government guarantee deliver- convenient place to accept and deliver cash-on- able delivery items, which is a very important service • complete the digital migration and multichan- in rural communities where some people shop nel offering. from catalogues. Revenue is generated mainly from television In addition, more than a million South Africans licences, advertising and sponsorships, and walk through the doors of post offi ces near where allocations from the department. they live to access their social grants. Revenue was expected to increase to R7,2 Post offi ces also offer services that include billion over the medium term, due to an increase enabling South Africans to renew their vehicle in advertising revenue, in line with the new mul- registration, and pay their municipal accounts tichannel environment created by the expected and television licences. roll-out of DTT. In 2012/13 the Sapo allocated 1,2 million Over the past four years, the SABC has addresses, mainly to those in rural areas. installed 104 low-power transmitters, reaching The Sapo licensed a digital mail offering, 1,5 million more people. RiposteTrEx, from Escher Group in December Of these transmitters, 18 were rolled out in 2013. the 2012/13 fi nancial year. By May 2013, the Through the platform, the Sapo will be able SABC reached 94% of South Africans. to provide e-registered mail services to the country’s more than 51 million citizens, delivered Sentech directly to digital devices. Sentech Limited is a state-owned enterprise, The platform’s services allow for e-registered established in terms of the Sentech Act of 1996 mail to be sent parallel to physical registered and is listed as a schedule 3B public entity in mail ("hybrid" mail), as well as for digital transac- terms of the PFMA of 1999. Its mandate is to tions and payments to take place. provide broadcasting signal distribution for RiposteTrEx will allow South African users broadcasting licensees. including, citizens, government, business and The entity’s strategic goals over the medium SMEs to send e-registered and confi dential mail term were to: to secure digital mailboxes, or as registered • align its strategic roadmap with shareholder hybrid letters. programmes to enable the development of open access government participation in the

2013COMMUNICATIONS_NEW.indd 83 2014/10/29 4:44 PM communications industry through infrastruc- tions services, electronic communications net- ture-based investment work services and broadcasting services. • continue working to support and realise gov- The agency is responsible for managing the ernment’s ICT vision and goals, including inno- Usaf. vation in broadcasting and media services, The Usaf receives contributions from licensed and content management and distribution telecommunications providers and broadcast- • create solutions that enhance the customer ers, which are used to fulfi l universal access experience and are in line with government’s obligations in underserviced areas. mandate of access to communication services The agency plays a key role in facilitating the for all citizens achievement of 100% ICT penetration by 2020. • repackage social responsibility interventions Over the medium term, Usaf expects to and create community social investment ICT deploy 600 cyberlabs to under serviced areas by programmes that improve lives, create value 2014/15. and are sustainable. Sentech derives commercial revenue from ter- .za Domain Name Authority (ZADNA) restrial television services, terrestrial FM and AM The ZADNA celebrated 10 years since its radio services, satellite linking, facility rentals establishment in 2003. A legal framework to and the sale of satellite decoders. support the establishment of the ZA Central The entity also receives transfers from the Registry – which is intended to uplift the opera- department for DTT and to provide for the dual tional standards in .ZA – is being fi nalised. illumination period. The ZA Central Registry, through ZADNA’s The spending focus over the medium term guidance and the African Union (AU) Com- was on investing in capital assets to expand the mission, has made signifi cant progress in its network to new sites in areas that were previ- application for the right to establish and operate ously not covered and preparing for the launch an Africa Internet namespace for the benefi t of of the commercial DTT. Africa. ZADNA has also ensured that Cape Town, National Electronic Media Institute of Durban and Johannesburg are not left behind South Africa in the Internet revolution, which will bring Nemisa is a non-profi t institute of education about new website addresses such as hotels. formed as part of a government initiative in 1998, capetown, tourism.durban and business.johan- in response to the White Paper on Broadcasting nesburg. Policy. The institute’s main purpose is to train previously disadvantaged individuals, particu- Independent Communications larly women, to equip them with the necessary Authority of South Africa skills to play signifi cant roles in the constantly; Icasa is the regulator for the South African com- changing broadcasting environment. munications, broadcasting and postal services The institute offers hands-on training in elec- sector. Its mandate is spelt out in the Electronic tronic media, namely national certifi cates in Communications Act of 2005, for the licensing Radio Production L5; 2D and 3D Animation L5 and regulation of electronic communications and Further Education and Training (FET) Level and broadcasting services, and in the Postal 4 in Film and Television Production and Design Services Act of 1998, for the regulation of the Foundation. postal sector. The Media Information and Communication Enabling legislation also empowers Icasa to Technologies Sector and Training Authority Seta monitor licensees’ compliance with licence terms accredit all courses. and conditions, develop regulations for the three By October 2013, Nemisa produced 13 docu- sectors, plan and manage the radio frequency mentaries, each 48 minutes long, as part of the spectrum, and protect consumers of these ser- National Digital Repository Project in partnership vices. with the then DoC. Icasa’s functions include: Nemisa alumni constituted 60% of the crew, • licensing broadcasters, signal distributors and thereby contributing to industry development providers of telecommunications and postal and job creation. services • making regulations Universal Service and Access Agency • imposing licence conditions of South Africa • planning, assigning, controlling, enforcing and Usaasa’s sole mandate is to promote universal managing the frequency spectrum service and access to electronic communica- • ensuring international and regional cooperation

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• ensuring the effi cient allocation of numbers Programmes and initiatives • ensuring interoperability of networks Broadband infrastructure development • receiving and resolving complaints. Broadband is an essential digital resource for In June 2013, Icasa released details of its Cost accessing basic services, products, commerce to Communicate Programme, which seeks and job creation. It has the potential to create job to review regulations that affect the cost of opportunities and open new markets that will allow communications in South Africa, such as the businesses, particularly small, medium and micro- call termination regulations and the local loop enterprises (SMMEs), to grow. unbundling framework. Given the strategic importance of broadband, The goals of the programme are to: the department, together with the ICT industry, has • stimulate public debate about the cost to com- committed to delivering 100% broadband penetra- municate in South Africa tion and creating a million jobs by 2020. • establish regulatory needs to address con- The department is aware of the inter-connect- cerns regarding the cost to communicate in edness of broadband and the licensing of radio South Africa frequency spectrum, which is a scarce natural • stimulate and enhance competition in the tel- resource. ecommunications sector. The Broadband Strategy and Implementation The programme started on 14 June 2013 with Plan, outlining fi bre connectivity across the country a request for information, and was followed to district level, was fi nalised by late 2013. by a series of consultations, which led to the release of draft regulations for public comment Broadband Infraco in December 2013. Broadband Infraco sells high-capacity long-dis- Icasa was expected to publish the fi nal regula- tance transmission services to licensed fi xed and tions by April 2014. mobile network operators, internet service providers and other value-added network service provid- South African Accreditation Authority ers. It has a 13 600-km network of long-distance The South African Accreditation Authority is fi bre and fi ve open-access points of presence in responsible for the accreditation of authentica- key metropolitan areas – with an additional seven tion and certifi cation products and services used open-access points of presence expected over the in support of electronic signatures. It is also con- next few years. cerned with monitoring the activities of authenti- To enhance South Africa’s international con- cation and certifi cation service providers whose nectivity and the speed of broadband, Broadband products or services have been accredited. Infraco has co-invested with the private sector in the deployment of the West African Cable System Presidential National Commission (WACS). (PNC) on Information Society and The WACS is the fi fth submarine cable system Development (ISAD) linking South Africa to the world. Broadband Infra- The PNC on ISAD advises the President on mat- co’s investment in the WACS entitled it to 11,4% of ters related to the development of an inclusive the system’s total capacity, which would help South information society; and facilitates the coordi- Africa meet its target of providing broadband con- nated development of an inclusive information nectivity to all who need it by 2020. society, and the achievement of the country’s The cable system has 15 established terminal information society vision. stations en route, and will reduce the cost to con- The commission comprises leaders in govern- nect Africa’s west coast with the high-speed global ment, industry and civil society. A corresponding telecommunications network for years to come. body is the Presidential International Advisory Sentech and Broadband Infraco have also com- Council on ISAD. menced with the broadband plan for the KwaZulu- Natal province pilot project. Site surveys in three A study commissioned by Informa Telecoms & Media in July districts are complete. 2013, found that smartphone users in South Africa spend on average US$31 (R321) per month on their mobile phone Broadcasting digital migration bills. According to the Sub-Saharan Africa Mobile Economy The digital broadcasting network reaches more 2013 Report by the Groupe Speciale Mobile Association, South Africa’s average revenue per subscriber is recorded than 80% of the population. at US$25,4 (R264) – above the global average of US$25 The DoC fi nalised the subsidy plan for poor (R260) and a Sub-Saharan Africa average of US$13,6 households complying with the qualifying crite- (R141). ria and is ready to implement the Set-Top Box (STB) Manufacturing Strategy, which requires

2013COMMUNICATIONS_NEW.indd 85 2014/10/29 4:44 PM 30% local content as part of the plan to develop The software giant will partner with the South the electronic industry. African Government’s job creation fund to Icasa has fi nalised the broadcasting regula- train the youths and place them in permanent tions. In June 2013, the department launched employment. The company will act as a link the STB compliance lab, in partnership with the between universities and IT companies that Department of Trade and Industry and the South it will approach to determine needed skills. African Bureau of Standards. The department For the 3 000 jobs it is targeting, Microsoft is decided to review the policy on the STB control investing R146 million as part of its US$75 mil- system as one way of fast-tracking the roll-out of lion pan-African initiative. DTT to make this system non-mandatory. In addition to the DTT transmission network Internet roll-out target of 84% population coverage via In June 2013, Akamai Technologies released terrestrial transmitters by December 2013, Sen- its Fourth Quarter, 2012 State of the Internet tech was expected to launch a Direct-to-Home Report, showing that South Africa has achieved satellite broadcasting service. This service will good improvements in terms of average Internet provide TV and radio coverage to the Square access speeds. Based on data gathered from Kilometre Array (SKA) and all other areas where the Akamai Intelligent Platform, the report pro- there is no DTT signal. vides insight into key global statistics, including connection speeds, attack traffi c, and network Rural Development Strategy connectivity and availability. ICTs play a signifi cant role in speeding up the South Africa’s average Internet connection integration of services for the development of speed in the fourth quarter of 2012 was 2 132 rural areas and ensuring that rural communities, kbps – up from 1 515 kbps the previous year. including those in remote areas, are not left out South Africa’s average peak Internet connec- of the knowledge economy. tion speed in the fourth quarter of 2012 was 7 The main goal of the department’s Rural 143 kbps – up from 5 250 kbps the previous year. Development Strategy is, therefore, to address According to a new report by global manage- the vacuum in rural ICT and empower rural comment consulting fi rm McKinsey & Company enti- munities by promoting sustainable job creation tled: Lions go digital: The Internet’s transformative and eradicating poverty in rural areas. The strat- potential in Africa, South Africa’s iGDP – which egy includes programmes that will encourage measures the Internet’s contribution to overall civil society to promote the use of ICT services GDP – is at 1,4%, putting it fourth in Africa. and provide the necessary infrastructure. McKinsey said it developed the concept of iGDP to measure the Internet’s contribution to Job creation the overall economy as a share of total GDP by In line with government’s New Growth Path adding up all the activities linked to the creation (NGP), the department, together with the ICT and use of Internet networks and services in four sector, aims to facilitate the creation of over major categories: private consumption, public 150 000 direct and indirect jobs by 2020. expenditure, private investment and trade bal- An industry-wide committee will be estab- ance. For Africa, the group assessed 14 coun- lished to identify opportunities, using a collective tries that together account for 90% of Africa’s database to ensure effective monitoring and GDP and found signifi cant variation among evaluation. them. Jobs will be created across various subsectors This suggests that there are major untapped of the industry through: opportunities to harness the power of the Inter- • providing broadband infrastructure net to drive growth and development. In dollar • establishing content hubs for radio and televi- terms, the consulting fi rm estimates that Africa’s sion iGDP currently totals some US$18 billion. • animation According to McKinsey, private consumption • e-co-operatives of Internet-related services and equipment, • using ICTs in FET colleges including smartphones, accounts for two-thirds • tailor-made solutions for SMMEs of this total. Public expenditure on the Internet, • digital broadcasting and distributing STBs including digitisation of education and health • rolling out PostBank. services, contributes only $2 billion. In June 2013, Microsoft launched a campaign e-Commerce will open up a new shopping aimed at helping 3 000 graduates fi nd informa- experience for Africa’s growing middle class. tion technology (IT) jobs in South Africa, where By 2025, it could account for 10% of retail one in four workers is offi cially unemployed. sales in the continent’s largest economies,

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which will translate into some US$75 billion in Cybercrime and cybersecurity annual revenue. South Africa ranks highly on The National Cybersecurity Policy Framework Internet affordability in Africa, according to the focuses on building the institutional framework fi rst annual Affordability Report, compiled by the and capacity necessary for mitigating any Alliance for Affordable Internet (A4AI). threats to the ICT environment. South Africa is In the report, A4AI indexes 46 emerging and one of the few countries in Africa with such a developing countries across the world in terms policy document. of communication infrastructure and Internet Cybercrime has become an inevitable reality access and affordability (equally weighted). Out that confronts all online communities across of the 46 countries, South Africa is ranked as the the world. Identity fraud, stalking, online child 12th most affordable country for Internet access pornography and terrorism have become daily – third in Africa. occurrences that threaten communities’ ability to enjoy the benefi ts of new technologies. Broadband access Expanding access to the Internet must be The DoC developed the National Broadband accompanied by strong measures to ensure Policy as part of its move to transform the basic trust and security to the public as the users. country’s ICT policies to fast-track South Africa’s This requires collaboration between depart- broadband backbone and access infrastructure, ments, civil society and business to build insti- particularly within rural and underserved areas, tutional mechanisms to investigate cybercrimes and meet the country’s vision of broadband for and anticipate threats. all by 2020. The Cybersecurity Hub, pooling public and In November 2013, the Minister of Com- private sector threat information is responsible munications introduced the revised broadband for processing and disseminating information to policy, which deals with the complete value relevant stakeholders in the industry and civil chain of broadband roll-out, including attracting society. related investment in broadband infrastructure; All computer users have a role in securing enterprise development; local end-user equip- cyberspace and ensuring that the digital environment manufacturing; research and development; ment is secure and used reasonably to profi t the and reducing the cost of broadband roll-out by socio-economic well-being of the nation. creating a single point of entry for regulatory approvals. Mobile communications The department was expected to fi nalise, by South Africa has one of the largest telecom- March 2014, the long-awaited spectrum policy, munications markets on the continent: it has fi ve which would enable Icasa to license the much mobile operators, namely Cell C, MTN, Voda- sought-after 2.6 GHz and 800 MHz band spec- com, Telkom Mobile and virtual network operator trum, which would, in turn, increase network Virgin Mobile. capacity, improve coverage and promote com- Mobile phones are the dominant technology petition. for voice and data communication among base of pyramid (BoP) users and for informal busi- Social media nesses. People in this group access the Internet The emergence of social media as a social and mostly via their mobile phones and smartphones business communication tool in the last few have taken over functions that used to be per- years, has been dramatic. formed by computers. In South Africa, a country where fi rst and Users are also fi nding innovative ways to bypass third-world conditions are often separated by expensive cellphone SMS rates by using Face- just a few kilometres, social media has levelled book Zero or other instant message services the playing fi eld and created a platform that is such as WhatsApp. affordable for everyone, easy to use and highly Although half of the 50 million people in South effective as a communication tool. Africa live below the poverty line, more than 75% The top social media sites in South Africa (by among those in low-income groups who are 15 number of users) in 2013 include: years or older own a mobile phone. • Facebook: 9,6 million users – ranked third Mobile ownership at the BoP – households • Mxit: 7,4 million users – mobi-site not ranked with an income of less than R432 per month, • Twitter: 5,5 million users – ranked 13th per household member – is relatively high, • YouTube: 4,7 million users – ranked fourth compared to other African countries. This is • LinkedIn: 2,7 million users – ranked fi fth according to research commissioned by infoDev, • Pinterest: 930 000 users-ranked 14th a global partnership programme within the World • Google Plus: 460 000 users. Bank Group, about the use of mobile phones among BoP users.

2013COMMUNICATIONS_NEW.indd 87 2014/10/29 4:44 PM Some of 98,5% low-income groups who own Specialised Sapo products include: mobile phones in South Africa, have a prepaid • Securemail SIM card, but there is a small percentage (1,5%) • Speed Services Couriers of BoP mobile owners who have post-paid con- • Parcelplus tracts. • insurance and cash-on-delivery The Research, however, that even though • Postbank three-quarters of people in the BoP group own • a courier freight group made up of XPS and mobile phones, the usage of data applications PX is fairly low. The one exception here is the MXit • Docex. social networking platform and there is growing use of other social media, notably Facebook Philatelic Services Zero. The lowering of the Mobile Termination Sapo’s Philatelic Services is responsible for pro- Rates from R1,25 a minute in 2010 to R0,40 from ducing South Africa’s postage stamps and other March 2013 represents a signifi cant milestone in stamp-related products. reducing the cost of communicating. Sapo prints more than 380 million postage stamps a year. They not only reach every corner Telkom of South Africa, but also the rest of the world. Telkom is Africa’s largest integrated commu- Although stamps are produced mainly to serve nications company, providing integrated com- as prepayment for postage, their beauty and munications solutions to a range of customers. historical signifi cance have inspired people to The company operates in nine countries across collect them since the fi rst postage stamps were Africa; however, its core market is South Africa, produced in England in 1840. contributing 98,9% in revenue. Over the years, many of them have become It is listed on the Johannesburg Stock Ex- valuable collector’s items. For example, the change Ltd and majority-owned by the DoC. Tel- fi rst triangular postage stamp was issued on kom was the country’s only fi xed-line operator 1 September 1853 in the Cape of Good Hope, until 2006, when the country’s second fi xed-line which was a British colony at the time. The operator, Neotel, began its operations. triangular-shaped stamp, which became known The organisational structure comprises three as the Cape Triangular, was the fi rst stamp to be major business units: Telkom South Africa, issued in Africa and has become a sought-after Telkom International and Telkom Data Centre collector’s item worldwide. Operations. Stamp issues are divided into two main categories: Postal sector • Defi nitive stamps are issued every fi ve to The cornerstone of national policy for the postal seven years and comprise a set of designs in sector is the provision of a universal service at a full range of face values to provide for the an affordable price and an acceptable standard country’s postal needs. They usually refl ect a for all citizens. To ensure this, a universal service particular theme. obligation has been placed on Sapo. • Commemorative stamps are issued according To offset the cost of providing a basic service to an annual commemorative stamp-issuing in low-density, rural or unviable areas, it has also programme. Between 12 and 15 commemora- been common practice to confer exclusive rights tive issues are produced per year. They often and privileges, i.e. a monopoly on the provision commemorate signifi cant historical events or of the basic letter service. people, or coincide with important days. Mail Business has 26 mail-sorting centres for domestic mail and parcels, and three interna- Postbank tional sorting centres for international mail and The Postbank Limited allows Sapo to prioritise parcels. Between these centres, some six mil- the banking needs of the unbanked majority, lion mail items are handled daily and 50 tons of thus facilitating their inclusion into the economic parcels are processed a year. mainstream. The Postbank Limited Act of 2010 Mail is transported to and from these sorting established the Postbank division of Sapo as a centres domestically to 7 188 delivery offi ces separate legal entity, with the principal aim of (delivery depot centres, lobby boxes and 2 443 expanding the existing range of banking ser- post offi ce branches). vices to, among others: In 2013/14, Sapo committed to building 20 • improve access to affordable services, includ- new branches and 25 retail postal agencies and ing loans, especially in rural and lower-income deploying fi ve mobile post offi ces to serve rural communities and remote locations. • promote a culture of saving.

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In doing so, the Postbank will use the existing As a communication medium, radio has very Sapo infrastructure, but it is not bound by the Act few barriers to access. SABC Radio has more to do so exclusively. than 25 million listeners weekly in South Africa. The fact that radio cuts across boundaries PostNet of illiteracy strengthens the importance of the PostNet is South Africa’s largest privately owned medium to the consumer and the advertiser. counter network in the document and parcel The SABC’s national radio network comprises industry, trading across more than 250 owner- 18 radio stations, of which 15 are dedicated spe- managed retail stores. cifi cally to public-service broadcasting. It serves in excess of 55 000 walk-in custom- These include 11 full-spectrum stations, one in ers per day, countrywide. each of the offi cial languages of South Africa; a There are fi ve product types within PostNet, cultural service for the Indian community broad- namely courier, copy and print, digital, stationery casting in English; a regional community station and mailboxes. broadcasting in isiXhosa and English; and a community station broadcasting in the !Xu and The media Khwe languages of the Khoisan people of the South Africa is fortunate to have vibrant and Northern Cape. independent media. The SABC has three stations in its commercial According to the Bill of Rights, as contained portfolio. These are 5FM, Metro FM and Good in the Constitution, everyone has the right to Hope FM. Channel Africa broadcasts live on freedom of expression, which includes: three platforms: shortwave, satellite and the • freedom of the press and other media Internet. Its broadcasts are in Chinyanja, Silozi, • freedom to receive or impart information or Kiswahili, English, French and Portuguese. ideas • freedom of artistic creativity Commercial radio stations • academic freedom and freedom of scientifi c Commercial radio stations in South Africa research. include: Several laws, policies and organisations act to • Algoa FM protect and promote press freedom in South • Classic FM Africa. • Kaya FM • YFM Media Development and Diversity • 94.7 Highveld Stereo Agency (MDDA) • 702 Talk Radio The MDDA is a statutory development agency for • Metro FM promoting and ensuring media development and • 5FM diversity, established as a partnership between • Good Hope FM the South African government and major print • Jacaranda 94.2 and broadcasting companies to assist in, among • OFM others, developing community and small com- • East Coast Radio mercial media in South Africa. It was estab- • 567 Cape Talk lished in terms of the MDDA Act, 2002 (Act 14 • Radio 2000 of 2002). • Radio KFM The agency functions independently from and • Power 98.7. at arm’s length of its funders, and political-party Stations such as Jacaranda 94.2, Highveld Ste- and commercial interests. This arrangement reo, Radio Oranje, Radio Algoa and East Coast enables government, the media industry and Radio were initially SABC stations, but were sold donors to work together to address the legacy to private owners to diversify radio ownership in of imbalances in media access. South Africa as part of the transformation of the public broadcaster. Radio Many of South Africa’s radio stations are also Radio is a great communications medium and available online. still enjoys the broadest reach of any media category in South Africa. The diversity of stations, Community radio formats, voices and offerings ensures that most Community broadcasting remains an important of the public’s needs are catered for. project for the DoC. In the midst of redefi ning the It also fulfi ls a vital need for information and country’s broadcasting landscape, 2013 marked entertainment, with relatively low costs to the the 20th anniversary of community broadcasting. distributors and the listeners.

2013COMMUNICATIONS_NEW.indd 89 2014/10/29 4:44 PM Television The new channels include a pan-African chan- The SABC’s television network comprises three nel (eAfrica+), a movie channel (eMovies+), a television channels – all free-to-air. South African local content channel (eKasi+) and a children’s television is broadcast in all 11 offi cial languages channel (eToonz+). and in Sign Language. Print Community television Technical handling of the print media in South In 2007, Soweto TV was the fi rst community Africa rates among the best in the world. This television station to obtain a seven-year broad- is one reason why newspapers and magazines casting licence from Icasa. have held their own in a volatile information era, Since then, fi ve more seven-year cha racterised by the vast development of vari- licences have been issued to fi ve stations ous new forms of media-delivery platforms via operating in Soweto, Cape Town, Tshwane, the Internet. Empangeni and Nelson Mandela Bay. The issuing Most South African newspapers and maga- of new community television licences is on zines are organised into several major pub- hold until the migration from analogue to digital lishing houses: Media24 (part of Naspers, the broadcasting is complete. largest media group in Africa), the Irish-based Independent News & Media (Pty) Ltd group, Free-to-air television Caxton Publishers & Printers Ltd and Avusa Ltd. e.tv is South Africa’s fi rst private free-to-air Other important media players include M&G television channel, launched in 1998. It is the Media Ltd; the Natal Witness Printing & Publish- largest English-medium channel in the country ing Company (Pty) Ltd; Primedia Publishing Ltd; and the second largest overall. e.tv also has a Ramsay, Son and Parker (Pty) Ltd; and Kagiso pan-African presence through e.tv Africa, which Media. is distributed on the DStv Africa bouquet and by In November 2013, RamsayMedia, one of local affi liates in African countries. South Africa’s top publishers of such titles as The independent broadcaster announced in Getaway, Car and Popular Mechanics was September 2013 that it would launch four new reported to have confi rmed it would be selling channels on Platco Digital’s OpenView HD its remaining 70% stake to Caxton for an undis- Platform, in October 2013. Platco is e-tv’s sister closed amount. company, which was set to launch as a free-to- air satellite TV broadcaster, in October 2013. Newspapers It aims to be the fi rst multi channel platform in According to the Audit Bureau of Circulations South Africa to offer high defi nition (HD) chan- (ABC) 2013 Second Quarter Report, total news- nels without charging a subscription fee. papers declined slightly, compared to the previous quarter. The weekday daily newspapers Satellite broadcasting declined by 0,7% in 2013; Sunday circulation MultiChoice started as the subscriber manage- was down by 1,4%. ment arm of M-Net. It is the leading multichannel Motorsport World and Auto Week showed the digital satellite television operator across the largest growth in weekly newspapers. Of the African continent. MultiChoice provides its DStv weekend newspapers, Isolezwe ngoMgqibelo services to different market segments. The DStv showed the largest growth. bouquets cater for different lifestyles and pock- Local newspapers, Stellalander, Klerksdorp ets, from entry level to premium. Rekord, Polokwane Observer and the Her- Top-TV offers fi ve bouquet options, arranged manus Times showed the largest growth of all in seven package options. local newspapers. e.sat tv supplies television, mobile and online Of the free newspapers, Alex Pioneer, Three- news to various channels in South Africa, across waterkloof Gazette, Zululand Eyethu and the the African continent and in the United Kingdom Precinct Community News were the titles that (UK), under the brand name eNews Channel showed the largest growth. Africa (eNCA). Growing out of the success of eNews Prime Time, eNCA is South Africa’s fi rst Magazines and most watched independent 24-hour televi- The ABC 2013 Second Quarter Report showed sion news channel on the DStv Platform (Chan- that overall consumer-magazine circulation nel 403). declined by 13%. Kuier Combo (Annual), The In October 2013, e.tv launched its multichan- Expatriate SA (Annual), SA Career Focus (six nel offering on the direct-to-home satellite plat- -monthly) and HQ Pony, showed the largest form, OpenView HD. growth.

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Business-to-business magazines that showed panel. The Offi ce of the Press Ombudsman was the largest growth were To Build (Annual), Busi- set up by the PMSA, Sanef, the Media Workers’ ness Brief (six-monthly), Vee-plaas, African Association of South Africa and the South Afri- Mines Handbook (Annual) and the South African can Union of Journalists. Business Annual. The Freedom of Expression Institute was TAXtalk, Foschini Balanced Life, on Route and established in 1994 to protect and foster the Foschini Soccer Club were the custom maga- rights to freedom of expression and access to zines that showed the largest growth. information, and to oppose censorship. The Freedom of Commercial Speech Trust Online media protects freedom of speech. It is backed by the The August 2013 Digital Media and Market- marketing communication industry and sup- ing Association (DMMA)/Effective Measure ported by organised business and consumer website statistics revealed that South Africa organisations. The trust focuses on transparent produced 23 183 796 unique browsers register- negotiations with legislators. ing 633 589 222 page views. The Forum of Community Journalists is an Unique browsers from mobile devices independent body that represents, promotes accessed 11 559 199 sites registering 250 566 538 and serves the interests of all community-news- page views. paper journalists in southern Africa. The decision to become an independent body followed the Media organisations and role players restructuring of the Community Press Associa- Print Media South Africa (PMSA), established in tion into the AIP. 1996, administers individual bodies, namely the The Broadcasting Complaints Commission of Newspaper Association of South Africa (the old- South Africa is an independent self-regulatory est communication organisation in South Africa, body that serves as a voluntary watchdog, to established in 1882), the Magazine Publishers’ adjudicate complaints from the public about pro- Association of South Africa and the Association grammes fl ighted by members who subscribe to of Independent Publishers (AIP). its code of conduct. Members include the SABC, The purpose of the PMSA is to represent, M-Net, Radio 702 and the Trinity Broadcasting promote, interact with and intervene in all mat- Network. However, the commission does not ters concerning the collective industry and of deal with X-rated material, the broadcast of common interest. It represents more than 700 which is prohibited under criminal law. newspaper and magazine titles in South Africa. The Broadcasting Monitoring Complaints The PMSA is a member of a number of inter- Committee (BMCC) was established under sec- national bodies, such as the World Association tions 21 and 22 of the Independent Broadcasting of Newspapers and the Federation of Periodical Authority Act, 1993 (Act 153 of 1993). Press. Allied to the PMSA, but not a constituent It monitors broadcasting licensees for their member, is the ABC, responsible for auditing compliance with, or adherence to, the terms, and verifying print-media circulation fi gures. conditions and obligations of: The AIP represents the interests of more than • their broadcasting licences 250 independent publishers in southern Africa. • the Code of Conduct for Broadcasting Services The South African National Editors’ Forum • the Code of Advertising Practice. (Sanef) was formed at a meeting of the Black Edi- The BMCC receives and adjudicates complaints tors’ Forum, the Conference of Editors and senior from the public regarding licence conditions, and journalism educators and trainers, in October is also entitled to initiate its own investigations 1996. into suspected non-compliance by a broad- Sanef membership includes editors and senior caster. journalists from the print, broadcast and online/ The mission of the National Association of Internet media, as well as journalism educators Broadcasters is to protect the interests of broad- from all the major training institutions in South casting as a whole, and to liaise with Icasa on Africa. matters such as freedom of speech. The Forum of Black Journalists addresses The mission of the DMMA is to provide a issues that directly affect its members. forum in which South African online publishers Members of the public who have complaints can address issues of common interest, and or concerns about reports in newspapers and magazines can submit their grievances to the For 167 years, The Witness has served the interests of the Offi ce of the Press Ombudsman. Should they inland KwaZulu-Natal community. Now what is one of the oldest newspapers in South Africa, which started life as The not be satisfi ed with the resultant ruling, they Natal Witness in 1846, is printing a Durban and coastal edi- can lodge an appeal with an independent appeal tion and has a new editor to guide it in its latest incarnation.

2013COMMUNICATIONS_NEW.indd 91 2014/10/29 4:44 PM which can represent these publishers to advert- South Africans, Msindisi Fengu and Yandisa ising agencies and the advertising community, Monakali from The Daily Dispatch, were named the press, government and the public. overall winners of the CNN MultiChoice African The National Community Radio Forum Journalist Awards 2013 in October 2013 at the (NCRF) lobbies for the airwaves in South Africa Cape Town International Convention Centre. to be diversifi ed, and for a dynamic broadcasting environment through the establishment of com- Media awards munity radio stations. In October 2013, the MDDA and Sanlam, co- The NCRF is a national, member-driven sponsors and organisers of the MDDA-Sanlam association of community-owned and run radio Local Media Awards, announced that they would stations and support-service organisations. invest more in the awards by introducing new Radio-station members are independent, non- categories for the competition. profi t community-based organisations. The 2013 awards, which were presented in The Professional Journalists’ Association’s May 2014, covered the period from 1 January 2013 mission is to give a voice to working journal- to 31 December 2013. ists and represent their interests in newsrooms across the country. Advertising Other press organisations operating in the South Africa has a vibrant and dynamic advertis- country are the: ing industry. Local advertising agencies are often • Foreign Correspondents’ Association of South recognised internationally for their excellence. Africa • Printing Industries Federation of South Africa, Advertising Standards Authority (ASA) the South African Typographical Union The ASA is the protector of the ethical stand- • Specialist Press Association ards of advertising in South Africa, and protects • South African Guild of Motoring Journalists consumers against manipulative advertising and • Professional Photographers of South Africa unfair claims. • Media Institute of Southern Africa It is an independent body established and • Publishers’ Association of South Africa funded by the marketing-communication indus- • press clubs in major centres. try to manage advertising in the public interest by means of self-regulation. News agencies The ASA co-operates with government, statu- The national news agency, the South African tory bodies, consumer organisations and indus- Press Association, is a cooperative, non-profi t try to ensure that advertising content complies organisation. with the Code of Advertising Practice. The main foreign news agencies operating in The code is the ASA’s guiding document South Africa are: based on the International Code of Advertising • Reuters Practice, prepared by the International Chamber • Agence France-Presse of Commerce. • Associated Press Drawn up by the ASA with the participation of • Deutsche Presse Agentur representatives of the marketing-communication • United Press International. industry, the code is amended from time to time to meet the changing needs of the industry and Journalism awards of South African society. South Africa’s most important awards include In May 2013, the ASA applied to be recognised the: as an ombud for the industry. • Mondi Shanduka Newspaper Awards This would make it a recognised statutory • Sappi Magazine Publishers’ Association of body, in terms of the Consumer Protection Act South Africa Pica Awards 2008, (Act 68 of 2008). • Sanlam Community Press Awards • Vodacom Awards for Journalism Across All City Press scooped the South African Editor of the Year, Mediums Story of the Year, Journalist of the Year, Investigative • South African Breweries Journalism Awards Journalism, Feature Writing and Joel Mervis Awards at the • Sanlam’s Financial Journalist of the Year Standard Bank Sikuvile Journalism Awards. The newspaper also took home top honours in the Digital Category Award Award at the African CNN Journalist Awards raked for “Faces of • CNN MultiChoice Africa Awards Marikana.” The Sunday title was voted into second place in • Discovery Health Journalism Awards the weekly newspaper category at the Sunday Times Top • Sanef’s Nat Nakasa Award for media integrity. Brands Awards.

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Advertising awards The Loerie Awards are the best-known South African awards recognising distinction in advertising. In September 2013, a total of 238 Loeries were awarded, four of which were Grands Prix – to Draftfcb Cape Town, Ogilvy & Mather Cape Town, and FoxP2, respectively. In the Tactical Use of Newspaper category, a Loeries Bronze was awarded to King James for Santam’s Halloween advertisement. In the Newspaper Advertising category, Ogilvy & Mather (Jhb), FoxP2, Volcano and Ireland Dav- enport claimed Bronze awards. Silver Loeries went to Ogilvy & Mather (CT) for Volkswagen, TBWA Hunt Lascaris (Jhb) for Twinsaver, and NetworkBBDO for Mercedes-Benz. Gold Loeries were awarded to DDBSA for McDonalds, TBWA Hunt Lascaris (Jhb) for Flight Centre, and Lowe & Partners (CT) for The Cape Times. The Grand Prix winner was FoxP2 for a radio advertisement, entitled “Death Doesn’t Have To Try Very Hard” on behalf of Frank.net Life Insur- ance. A special Loeries Hall of Fame award was bestowed on Graham Warsop, CEO and founder of The Jupiter Drawing Room. Other important annual media awards are the Eagles, the Pendoring and the AdReview Awards. International relations The international branch of the DoC continues to be the primary vehicle through which the department pursues government’s priority of contributing to a better South Africa and contributing to a better and safer Africa in a better world. In 2013, South Africa was elected to the Council of Administration of the Universal Postal Union (UPU) for the ﬁ rst time. South Africa chairs its Future Strategy Com- mittee. The department was also re-elected to the Postal Operations Council that deals with the operational, economic and commercial aspects of the postal business. South Africa also made an important contribution to addressing the world ministerial debate. This led to ministers adopting the White Paper in support of the UPU’s global declaration to prioritise the development of infrastructure for allocating addresses. South Africa has contributed signiﬁ cantly to the UPU’s work in developing National Address Systems. The country’s use of Global Position- ing Systems to allocate addresses to people in rural and undeveloped areas has proved critical.

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