NPC details plan for ICT 2030

The National Planning Commission (NPC) has published its first draft of the National Development Plan and Vision for 2030, and has zeroed-in on the importance of substantial policy review in the ICT sector.

The NPC was formed by president Jacob Zuma 18 months ago, with the mandate to take a “broad, cross-cutting and independent view of SA” in drafting a development plan.

While the main priority of the almost 500-page plan is the elimination of poverty and the reduction of inequality, expanding infrastructure is one of its key proposals, and this includes the expansion of information and communications infrastructure.

The NPC's vision for the ICT sector states: “By 2030, ICT will underpin the development of a dynamic information society and knowledge economy that is more inclusive and prosperous. A seamless information infrastructure will meet the needs of citizens, business and the public sector, providing access to the wide range of services required for effective economic and social participation - at a cost and quality at least equal to SA's competitors.”

The plan also takes a critical view of the current state of the ICT sector in SA.

“Despite the uptake of mobile phones, growth in SA's ICT sector has not brought affordable, universal access to a full range of communications services,” states the plan.

While the report notes some of the interventions of the Department of Communications to address ICT gaps, it states the performance of most state interventions in the ICT sector has been “disappointing”.

According to the NPC, pricing of services and equipment remains a significant barrier to the expanded use of mobile phones and fixed lines, with limited network competition further increasing costs.

“A single cohesive strategy is essential to ensure the diffusion of ICTs in all areas of society and the economy. Like energy and transport, ICT is an enabler - it can speed up delivery, support analysis, build intelligence and create new ways to share, learn and engage.

The future role of the state in the ICT sector, according to the NPC, will be to facilitate competition and private investment, and to ensure effective regulation where market failure is apparent.

“Direct involvement will be limited to interventions needed to ensure universal access, such as the introduction of 'smart subsidies', and to help marginalised communities develop the capacity to use ICTs effectively.”

The national plan proposes the phasing of priorities for the development of the sector into short-, medium- and long-term investment strategies.

In the short term (2012 to 2015), the NPC says there is an urgent need for policy review of the ICT sector, and SA needs to develop a more comprehensive and integrated e-strategy.

Some of the key areas identified for policy review include: the adjustment of market structures and removal of legal constraints to enable full competition in services; fast-tracking of local loop unbundling; urgent availability of spectrum for next-generation services; low-cost high-speed international bandwidth with open access policies; and a review of the role of SOEs and structural separation of the national backbone from the services offered by the historical incumbent to create a common carrier with open access policies to ensure access by service competitors.

The plan states: “Most fundamental is the structural conflict of interest that exists between the state's role as a competitive player in the market (through its majority share in Telkom), and as policy-maker for itself and its competitors. Better distinction of roles and functions, more coherent approaches and clearer strategies will be required to avoid unintended policy outcomes.”

For the medium term (2015 to 2020), the NPC says it supports the DOC's proposed target of 100% broadband penetration by 2020. The definition of broadband will also be changed from the current 256Kbps measure to at least 2Mbps by 2020.

“With both planning and delivery, SA should regain its position as the leader in both quality and cost of ICT services in Africa.”

In the long term (2020 to 2030), the NPC says the e-strategy collaborations between state, industry and academia will create innovation systems, including software and applications incubators, local content and multimedia hubs and research and development networks.

Strategy Worx MD Steven Ambrose says the National Development Plan is a laudable effort to encapsulate the needs of SA, and the ICT section is big on desired outcomes and fairly strong on the contribution ICT can make to the overall economy.

“It is truly encouraging that the role of government is seen as an enabler and not as an active participant in the sector. This is also clear in the entire document. The role of government and the private sector is clarified, and a managed free market economy across all sectors is encouraged.

“It does read like a wish list of desirable outcomes and this is especially apparent in the ICT section. In general, the comments are fair and the issues are well highlighted.

“Taking the developmental nature of the South African economy into account, I do feel that the role of ICT has not been fully expanded as an enabler of growth,” noted Ambrose, adding that this could result in a lack of focus and resources being made available to the sector.

Ambrose also says the plan sets out what is needed to be achieved with a “fairly light hand” when actual implementation is concerned.

“It is gratifying to see clear focus on an open transparent market, less interventions by government and a general clarification of what government's role in the economy should be.

“The focus on competition, and market efficiency, especially in the ICT sector, is also welcome, and if properly implemented will ensure success of the sector.”

Planning minister and NPC chairman Trevor Manuel officially handed over the plan to president Jacob Zuma on Friday afternoon. Deputy president Kgalema Motlanthe was also there to receive the plan.

At the event, Zuma called on South Africans to take ownership of the proposals, and refine and implement them.

"Taking forth this plan requires leadership through society. Every shop steward, induna, football team captain, church leader and business person has to provide leadership, to encourage dialogue about the solutions to our collective problems," said Zuma.

The next three to six months will involve a period of public consultation during which the proposals set out by the NPC will be discussed and expanded. Thereafter, Zuma will take the plan to Cabinet for consideration.

Manuel also emphasised the need for public input, saying: “This is by no means a final product. By the time it is finalised we want to be able to say this is not just the plan of the commissioners, but of all South Africans.

“Our paradigm is one where communities are active in their own development.”