Hon Chairperson, hon members of the House and members of the Cabinet present, hon Deputy Minister of Communications, Mr Bapela, chairperson and members of the Portfolio Committee on Communications, chairperson and members of the select committee, distinguished guests from the information, communication and technology, ICT, sector, ladies and gentlemen, you will, of course, excuse me this morning as I seem to have a frog in my throat - it is a remnant of the flu.
Elections are an absolutely lucid moment in the march of a nation's history. The marvellous thing about this is that it takes you closer to the people. It is when the truth is there for all to see. It is indeed an honour for me to deliver my first Budget Vote of the Department of Communications for the financial year 2011-2012, two weeks after the most successful local government elections ever held in this country. The amazing part of all of this is that some sections of the media celebrate the increase in the DA vote, rather than the fact that the elections were won by the ruling party by a 63% victory. [Applause.]
As we move towards the celebration of 100 years, charged with this mandate by our people, we are neither triumphalist nor boastful. Years of commitment to the cause of our people have instructed us to remain humble, improve on our shortcomings and ensure continued service delivery to our people. We are humbled by this confidence. We also take this opportunity to congratulate the DA on having improved on its showing nationally. We also trust that, as we accept our victory with humility, you will graciously accept your defeat with dignity.
The overwhelming participation in the local government elections was made possible by the unprecedented use of electronic communications services. This includes the role played by the SA Broadcasting Corporation, SABC, e.tv, and our community radio stations, as well as Sentech and the Independent Communications Authority of South Africa, Icasa, in taking the elections to the people through technology. In 2010, the Human Sciences Research Council, HSRC, published a study which indicated high levels of public confidence in the SABC, and satisfaction with the SABC as a disseminator of information.
In the build-up to the elections, millions of voters checked their registration details using mobile phones, and millions of messages were distributed over our electronic communications networks. Many compatriots, including political parties, accessed social media such as Facebook and Twitter via mobile phones, laptops, smart phones, etc. President Zuma's first tweet reads: "Democracy is flourishing in South Africa, thanks to the active participation of all citizens. It's wonderful. Vote 18 May!"
This Budget Vote presents our programme, building on the foundation that has been laid during the past 17 years. In the future we will in time make it possible for every South African to access and use information and communications technology, as we shape our country towards being an inclusive, people-centred information society. We are committed to working faster, harder and smarter in ensuring that we take technology to the people in the service of the people.
A few days before the local government elections, I launched various service delivery projects in several rural areas, amongst others Ndwedwe, Nongoma, Impendle, Esikhawini and Msinga in KwaZulu-Natal. We introduced cyberlabs to the communities and schools, demonstrating that through the power of ICT, we can help our learners to realise their true potential and improve their lives. In Msinga, we switched on a low-power transmitter, which for the first time allowed Gogo [Granny] Khumalo to watch SABC's Izindaba [News] and listen to uKhozi FM.
Bringing the joys and benefits of radio and television creates value for the communities. To a gogo [granny] it means accessing news in isiZulu, to a school-going learner it means access to educational content and using a computer to experience the Internet for the first time, and to a bambino [small child] it means learning through Takalani Sesame. I was encouraged by the way these communities, and learners in particular, enthusiastically demonstrated their eagerness to embrace technology to improve their lives.
Since 2007, the ICT market has grown by over R131 billion to R179 billion in 2010. It is estimated that the sector will grow to R187 billion in 2011, with an estimated figure of R250 billion by 2020. This growth will be driven by the rapid uptake and usage of data and applications-driven mobile communications.
To achieve this growth target we will implement several interventions to address the cost, communicate access to electronic communications infrastructure, and reduce barriers to entry to promote competition in the sector. We will further introduce in the House amendments to the Electronic Communications Act.
To address this deficit we will work with key stakeholders, which include organised labour, towards the development of a shared Vision 2020 for the country.
To consolidate partnerships within the sector we established an industry working group, comprising representatives from the top 30 ICT companies operating in South Africa and tasked with strengthening the partnership between government and the private sector.
We are commencing with a new broadcasting landscape. In December 2010 Cabinet reaffirmed its decision to adopt the Digital Video Broadcasting - Second Generation Terrestrial, DVB-T2, standard for the process of digital migration. Accordingly, Cabinet adopted the preferred standard of DVB-T2, an upgrade of the Digital Video Broadcasting - Terrestrial, DVB-T, and agreed to December 2013 as the new switch-off date, with a view to allowing the period between 2013 and 2015 to address any challenges. In the light of all these developments, the department will implement interventions to ensure that South Africa migrates to digital broadcasting by 2013.
Substantial work has been done by Sentech in upgrading its broadcasting infrastructure from the existing DVB-T to DVB-T2. By March 2011 Sentech achieved 60% population coverage on the DVB-T2 standard. The uptake of digital broadcasting technology will expand the public bouquet in content viewing. We expect the SA Bureau of Standards to finalise the second generation DVB-T2 standard.
The set-top box manufacturing strategy, with the scheme for the framework for ownership support, will be submitted to Cabinet in August 2011. We are consulting widely with the industry and relevant stakeholders to finalise this process. The manufacturing of subsidised set-top boxes will commence following Cabinet's approval.
Sentech will, in June 2011, switch on the first DVB-T2 transmission at the Brixton Tower, in Johannesburg, targeting townships and informal settlements around the Johannesburg metropolitan area.
On the Broadcasting Policy Review's ushering in the new digital environment, the process to review the current broadcasting policy landscape will commence with great urgency. We will in the coming three weeks launch the broadcasting review process. This process will, amongst others, inform the interventions to be implemented in order to position the public broadcaster in the new digital environment. We will also use this opportunity to investigate an appropriate funding model for the SABC. It will be to ensure that the provision of public service remains the SABC's main priority.
To fast-track this process, and broaden the base of participation, I will constitute a panel of experts to assist with the policy review. This panel will advise on various policy issues, including the following: embracing convergence and new media services; the creation of an enabling licensing and regulatory environment; growth and development of local content industries; and the role of the three-tier broadcasting system - public, commercial and community broadcasting. Community broadcasting remains a critical project for the department, and will remain on our radar screen for years to come.
Technology changes and advances in forms of communication such as e-mail and social networking are placing increasing pressure on traditional forms of communication. R180 million has been allocated for the distribution network of the Post Office to be expanded, to ensure the inclusion of rural communities in the mainstream.
The vision of Postbank is to provide a national banking system that delivers stable, accessible and dependable services to the public and businesses. It stands to be one of the best guarantees underpinning economic resilience. The South African Postbank Limited Act was signed into law in December 2010. This will allow the SA Post Office, Sapo, through the Postbank to prioritise the banking needs of the unbanked majority.
The ICT infrastructure is a basic foundation for economic competitiveness. Government has during the past few years increased investment in infrastructure to create jobs and stimulate the economy. In this regard an initial R450 million over the Medium-Term Expenditure Framework, MTEF, period has been allocated for the provision of broadband services.
Sentech and eThekwini Municipality are in discussion to create an intelligent city, as part of our focus on providing broadband services in urban areas. This will allow for Internet-based government services that enable ubiquitous connectivity to transform key government processes.
Radio frequency spectrum is a strategic natural scarce resource at our disposal to effect changes in the provision of electronic communications services at a faster rate. The department, in partnership with Icasa, will therefore conduct a radio frequency spectrum audit to ensure effective utilisation of scarce resources, covering all bands contained in the national frequency plan. We intend to issue a policy direction to Icasa to conduct a review of the Digital Dividend, which is the spectrum to be freed by the digital broadcasting migration process.
During the state of the nation address the President highlighted job creation and rural development as amongst the key priorities of government. The department is currently finalising its ICT Rural Development Strategy to determine the priority underserviced areas. As per the target set out in the New Growth Path, the department, together with the ICT sector, will facilitate the creation of over 150 000 direct and indirect jobs by 2020. State-owned enterprises are the delivery arms of government.
At Sentech the newly appointed chairperson, board and chief executive officer are showing remarkable commitment to working together to stabilise the organisation. As part of our efforts to refocus Sentech to deliver services to the people, R279 million has been allocated to prioritising the roll-out of digital broadcasting signal coverage to the entire country.
The SABC remains a critical focus for us. We have made significant strides in stabilising the corporation. It has been allocated R84 million to improve its technological capabilities and educational programming. Another R41 million has been allocated to Channel Africa, whose future role and social obligations will be discussed as part of the Broadcasting Policy Review process.
A review of the Universal Service and Access Agency of South Africa, Usaasa's, strategic direction in the provision of universal access and service is to be undertaken. This strategic repositioning seeks to transform Usaasa into a digital opportunity foundation, and to remove the bottlenecks. They have made it difficult for us to exploit the Universal Service and Access Fund. Specific focus will be given to Icasa to increase its capacity to regulate a fast-changing technological and market environment.
Commercial radio services will also be licensed in the Free State, Eastern Cape and Northern Cape, following the licensing of similar services in Limpopo, Mpumalanga and North West. Icasa will soon announce the successful bidders for the commercial radio licences in Gauteng, Cape Town and Durban.
ICT skills and the capacity to use new technologies remain a prerequisite for effective participation of citizens. We have established five provincial e-Skills Knowledge Production Hubs at partnering universities, which will better co-ordinate and invigorate all e-skills-related activities. ICTs have changed traditional boundaries between countries globally. Therefore, our interventions to take technology to the people continue to be influenced by developments in other parts of the world.
In June 2011 the Southern African Development Community, SADC, Ministers responsible for ICTs and postal services will inaugurate the new Regional Association of Regulators. Together with other developing countries, we will continue to advocate for an equitable global ICT environment through participation in our work in the International Telecommunication Union,