DOC accelerates broadband spending

The Department of Communications (DOC) has allocated an initial R450 million for the provision of broadband services.

In his budget speech - entitled “Taking technology to the people in service of the people” -this morning, minister Roy Padayachie said the amount has been allocated for the medium-term expenditure framework period.

“ICT infrastructure is a basic foundation for economic competitiveness. Government has, during the last few years, increased investment in infrastructure to create jobs and stimulate the economy. Government will accelerate broadband infrastructure spending.”

He added that an integrated broadband implementation plan, which will harmonise various broadband-related initiatives, will be finalised in the current financial year.

State signal distributor Sentech and the eThekwini Municipality are in discussions to create an intelligent city as part of the DOC's 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, both internally to improve efficiencies and externally to improve service delivery to the people.”

Democratic Alliance shadow minister of communications Natasha Michael said universal access to broadband, television and radio is the most critical issue that should be addressed in the current economic climate and in terms of social upliftment.

Padayachie said broadband penetration stands at approximately only 5% of the population.

“While mobile communications continue to experience unprecedented growth rates, Internet connectivity to the home remains low. Many South Africans still rely on broadband services at their place of work to access the Internet.”

He said this growth will be driven by the rapid uptake and usage of data and applications-driven mobile communications. To achieve this growth target, the DOC will implement several interventions to address the cost to communicate, access to electronic communications infrastructure, and reduce barriers to entry to promote competition in the sector, he explained.

“In the future, we will in time make it possible for every South African to access and use information and communications technologies as we shape our country towards an inclusive, people-centred information society,” said the minister.

The DOC this month launched several projects in rural areas to help achieve this aim. It introduced cyber labs to communities and schools, and switched on low-power transmitters for the first time in some areas, allowing them to access television and radio.

Current research indicates that under conditions characterised by the high cost of services, saturation in urban markets and limited access in rural areas, the rate of expansion of the Internet in SA will decline from above 15% to 10% per annum by 2015, said Padayachie.

This projection envisages 11.3 million Internet users by 2015, which is approximately 22% of the population.

“To address this deficit, we will work with key stakeholders, which include organised labour, civil society and academia, towards the development of a shared Vision 2020, for the country.”

The DOC is committed to creating a partnership with the private sector where business targets growth and government realises a developmental digital dividend for citizens, he said.

State-owned entities (SOEs) will receive 67% of the department's budget.

As part of the DOC's efforts to refocus Sentech to deliver services, R279 million has been allocated to it to prioritise the rollout of digital broadcasting signal coverage to the entire country.

The SABC has been allocated R84 million to improve its technological capabilities and educational programming.

Padayachie said a review of the Universal Service and Access Agency of SA's (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 that have made it difficult for us to exploit the Universal Service and Access Fund.”

The minister added that the department will engage USAASA to set out the new strategic direction which will be presented to Parliament as it advances into the next financial year.

He noted that specific focus will be given to the Independent Communications Authority of SA (ICASA) to increase its capacity to regulate a fast-changing technological and market environment.

“In June 2011, we will present the performance management system of ICASA's chairperson and other councillors for deliberations in Parliament. We will also review the current ICASA Act to, among others, introduce a new funding model for ICASA so as to strengthen its capacity to regulate the sector.”

In the current financial year, R313 million has been allocated to ICASA to cater for operational and project expenses.

Padayachie said ICASA will pursue further liberalisation of the pay-TV market by issuing new television licences.

“Commercial radio services will also be licensed in the Free State, Eastern Cape and the Northern Cape, following the licensing of similar services in Limpopo, Mpumalanga and the North West in 2007. ICASA will soon announce the successful bidders for the commercial radio licences in Gauteng, Cape Town and Durban.”