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DTPS insider: 'SA Connect is dead'

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 10 Jul 2015
Despite occasional mentions by telecoms and postal services minister Siyabonga Cwele, it is understood the SA Connect project has stalled.
Despite occasional mentions by telecoms and postal services minister Siyabonga Cwele, it is understood the SA Connect project has stalled.

Despite what government is saying, inside sources claim the Department of Telecommunications and Postal Services' (DTPS) big broadband push - SA Connect - is all but dead in the water.

While the DTPS says government has started implementing the first phase of SA Connect this financial year, a senior manager within the department says this is simply not true.

"Nothing has happened. Committees were established, but it died a natural death," says the official, who does not wish to be identified, but whose name is known to ITWeb.

SA Connect was unveiled in December 2013 by then minister of communications Yunus Carrim, who gazetted the initiative as the country's a new broadband policy for SA. The policy and associated strategy outline a several projects to boost broadband connectivity and access in the country, including an overall vision to give every citizen access to a broadband connection at a cost of 2.5% or less of their average monthly income.

However, despite occasional mentions by telecommunications and postal services minister Siyabonga Cwele and the designation of Telkom as lead implementing agency for the initiative earlier this year, it is understood virtually no progress has been made.

When approached for specific details around the project and its implementation, the DTPS provided generic answers: "The first phase is scheduled to be implemented over three years and is focusing on eight rural districts. During this period, we'll be connecting government facilities such as schools, clinics, hospitals, police stations, correctional services, disaster management centres and post offices.

"We are connecting these facilities to bring modern communication tools and services to these rural areas."

Criticism

President Jacob Zuma's announcement of Telkom's designation as SA's lead broadband agency for the project at the beginning of the year sparked outrage within the industry, with some saying it would further entrench the company's monopoly. Government also came in for criticism due to the designation being made without an open tender process.

Cwele recently attempted to defend the decision, stressing the operator has been "designated", but not "appointed". He did not, however, clarify whether a process would eventually be announced to formally appoint a lead partner for the project, but said government is satisfied with choosing Telkom on the basis of its extensive fibre network.

Cwele pointed out previously Telkom's role as a lead entity would be to coordinate the broadband efforts of the Universal Service and Access Agency of SA, the State IT Agency, Broadband Infraco, Sentech and the private sector to eliminate unnecessary duplication of infrastructure.

Attempts to get further clarity on Telkom's designation were again met with a generic statement from the DTPS: "The minister has on numerous [occasions] explained the designation of Telkom as a lead agency.

"He has said that other agencies have a role to play, including the private sector. This collaboration on infrastructure rollout is aimed at, amongst others, reducing unnecessary duplication."

Questions around whether tenders have been issued for the project and when private sector players would be involved in the project went unanswered.

Project funding

Questions have also been raised about funding for the project. In May, Cwele stated Telkom has committed most of its R5 billion capital budget towards reaching more areas and to upgrade technology as part of its contribution to the implementation of SA Connect.

"Broadband rollout is a huge, but urgent project, which must not be delayed if we are to remain globally competitive."

However, the minister last month told the National Council of Provinces that the R720 million allocated to the DTPS for the SA Connect initiative will not be enough to deliver broadband services. Cwele said the figure was allocated to connect all schools, health facilities, government offices, Thusong Centres and post offices to broadband service in eight municipal districts.

While he did not elaborate on how much more money would be needed for SA Connect, or where this funding would be sourced from, Cwele stated: "There is a need for the eradication of all duplications and the use of all available resources to deliver on our collective goals through the shifting of resources to enable e-government and ensure the training of staff."

When approached for comment this week, the DTPS stated it is a "coordinating department in relation to the roll out of broadband infrastructure and services".

"Our main responsibility is to bring broadband infrastructure. To increase usage, we are working with other national departments, provincial government and local municipalities to identify areas where budgets can be reprioritised so that the departments purchase end user devices."

No clarity

Democratic Alliance shadow minister of telecommunications and postal services Marian Shinn says is struggling to get clarity out of the DTPS as to the progress of SA Connect. "As far as I know, there have been no request for tenders issued and no deals signed.

"There seems to be a lot of noise and fury, but not much action."

Shinn says there has also been very little clarity about the funding for the project, with no information about where the money for broadband rollout is actually meant to come from. She says she is also unclear about Cwele's differentiation between the "designation" of Telkom as lead agency, opposed to it being appointed.

"It means absolutely nothing. We are hoping there will be a briefing about SA Connect when Parliament reconvenes. But I don't they've started yet. I don't think it's gone further than a piece of paper."

ICT commentator Adrian Schofield says the project is most likely "not moving very quickly". "As always, it's a great plan, but lousy execution. The biggest question is: who's driving it? Whose head is on the block of it doesn't actually happen?"

Schofield says it is unlikely Telkom has much time and energy to steer the project at this stage, as it is battling labour issues and conducting a major restructuring exercise. "This means management's focus is not where it ought to be, so I suppose it doesn't matter whether Telkom is the lead agency or not."

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