SA's Department of Communications (DOC) has received additional funding from National Treasury, thanks to a budget surplus.
The funds, outlined in today's budget speech by Finance Minister Trevor Manuel, have been earmarked for key projects such as Sentech's digitalisation programme and the East African Submarine Cable System. Sentech's budget for the next three years has been boosted by R200 million, while the under sea cable benefits from an additional R21 million.
Additional allocations, totaling R377 million over the next three years to end March 2010, have been added to the department's budget for priorities including digital signal distribution, enhancing the regulatory framework, and ICT research and innovation.
Sentech's total budget over the next three years for its digitisation rollout is R318 million, of which R125 million has been earmarked for the current financial year. It will also receive R21 million to partially fund its role in the 9 900 km undersea cable, previously known as the East African Submarine System cable.
The state signals provider may also benefit from a R3 billion broad contingency fund set aside by Manuel for the new financial year. This amount will be shared out between Sentech, Infraco, SA's nuclear plant, the Pebble Bed Modular Reactor and settlement of a land claim relating to the Alexkor mine.
However, future allocations are contingent on a few outstanding conditions, including "resolution of outstanding regulatory requirements". A National Treasury official explains the DOC and the Department of Public Enterprises must coordinate SA's ICT infrastructure to ensure there are no duplications of initiatives before money will be released.
Towards a goal
DOC is expected to spend R1.4 billion this financial year in accordance with its three-year or medium-term expenditure framework. Departments involved in the run up to the 2010 Soccer World Cup will benefit from top up funding, allowing them to meet their obligations.
The Communications Department is currently wrapping up plans to ensure the "appropriate ICT infrastructure" is in place for the 2010 World Cup. In Treasury's Estimates of National Expenditure, government says state-of-the-art voice and data telecommunications technology will be available for international broadcasters.
It has been allocated funding of R176 million for communication networks this year. Over the three-year term of the budget, the department will receive an extra R316 million for communication networks, thanks to government's expected surplus of R89.5 billion. Treasury pulled in R29 million more than expected in the last financial year, allowing it to increase spend in priority areas.
The department has completed a comparative information benchmark study on broadband, which will inform the development of an ICT strategy for SA and a policy directive aimed at reducing the cost of ICT is expected to be complete this year. SA's ICT strategy is expected to be complete in March next year.
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