Presentation to the Portfolio Committee on Communication
9 November 2007
2
OUTLINE
• Overview
• Business Performance 2006/7
USAASA
USAF
• Financial Performance 2006/7
USAASA
USAF
• Medium Term Outlook
• Conclusion
OverviewMs Cassandra Gabriel
Chairperson: USAASA Board
4
OVERVIEW
Challenges over the past decade
Evolution of the Agency mandate and strategy
The role of the Agency in managing the USAF was not aligned to its mandate.
Since inception, programmes lacked a sustainability plan
Achievements were never measured
Programme implementation lacked stakeholder participation.
Lack of public awareness of the Agency’s activities.
Business Review
6
Business Review 2006/7
• USAASA Focus on Agency stability. Translating the new mandate into new strategy. Implementing a turn-around strategy to reposition
the Agency. Bringing in needed skills and capacity. Audit of all funded projects. Addressing funding challenges.
7
Business Review: USALS Subsidies (1)
Plan Target AchievementReason
(Non-Achievement)
Subsidise New USALs
14 Not achieved
No new USAL licenses were issued by ICASA during the year under review.
Subsidise Existing USALs
6
A total of R5,95m was distributed to USALs that provided audited financial statements reflecting infrastructure development.
Existing USALs.
8
Business Review: ICT Access Subsidies (2)
PlanTarget2006/07
AchievementReason
(Non-Achievement)
Deploy qualifying projects: MPCCs Telecentres, Community Telecentres and Telecontainers
20 (New)
14 new Telecentres were established during the year under review.
6 not-complete: ownership issues with the relevant municipalities.
139 (Maintenance)
102 subsidized for equipment maintenance. Connectivity for 114 centres has been paid for in full by USAF.
Existing sites maintained.
9
Business Review
• Since inception the Agency launched 154 Telecentres.
10
Telecentre at an MPCC
11
Telecentre at an MPCC
12
Training Courses at a Telecentre
13
Training Courses at a Telecentre
14
Container Telecentre
15
Container Telecentre
16
Container Telecentre
17
Container Telecentre
18
Container Telecentre
19
ICT Telecentre for the Disabled
20
ICT Telecentre for the Disabled
21
Business Review: ICT Access Subsidies (3)
Plan Target 2006/07 AchievementReason
(Non-Achievement)
Deploy qualifying projects: School Cyberlabs
20 (New) Not AchievedFinancial constraints.
275 (Maintenance)
252 sites were maintained
Financial constraints.
22
Business Review
• Since inception the Agency launched 234 Cyberlabs
23
Cyberlab
24
Cyberlab
25
Cyberlab
26
Cyberlab
27
ICT Connectivity
28
Business Review: ICT Access Subsidies (4)
PlanTarget 2006/07
AchievementReason
(Non-Achievement)
Deploy qualifying projects: Community Digital Hubs
3 (New) Not achieved
Not achieved due to changes affecting the deployment model (demarcation of Provincial Border & ownership model being affected in presidential poverty nodes).
3 (Maintenance) Not achievedNon-utilization of some services in Digital Hubs
29
Business Review: ICT Access Subsidies (5)
PlanTarget2006/07
AchievementReason
(Non-Achievement)
Deploy qualifying projects: multimedia upgrade
40 Not Achieved
Out of the targeted 40 sites, none were deployed due to the organisation conducting a comprehensive review of its programmes.
30
Business Review: Capacity Building (6)
PlanTarget 2006/07
AchievementReason
(Non-Achievement)
e-Readiness Programme
33 (ICT
Training)
30 individuals exposed to training.
N/A
14239 individuals were engaged in refresher course training.
The shortfall is the result of a breakdown in partnership co-ordination.
e-Mails 50All planned connections were achieved.
N/A
Internet connectivity
218USAF continued to fully subsidise connectivity to 203 sites.
A number of existing sites with connectivity were maintained
Community websites
0No new websites established.
N/A
20 All websites maintained. N/A
31
Business Review: Audit Findings
• Community access Centres• Services that require rehabilitation
• Photocopying• Fax• Printing• Scanning• Telephone• Internet
• Training ( Accreditation)• Governance structures• Business and ICT skills training• Strong partnerships with Municipalities ( Oversight )• Schools
Services that require rehabilitation• All computers need to be replaced• Additional services required to enhance learning environment
– Digital Projector– Digital whiteboard
Financial Performance
33
AG audit opinions on USAASA and the USAF
Since 2001 the Agency and the USAF received
unqualified opinions from the Auditor-General
No emphasis of matters during the same period
34
USAASA Expenditure Summary
2006-2007Actual
R’000
Revenue 20,223
Administrative expenses 2,547
Staff costs 9,060
Marketing costs 544
Audit fees 356
Operating expenses 5,942
18,449
Capital expenditure 2,057
20,506
35
USAF Operator Contributions
Operators’ Fund
Year Contributions Appropriations
1998/99 482,000
1999/00 10,000,000 11,295,000
2000/01 10,220,000 25,595,324
2001/02 10,935,400 22,486,000
2001/03 11,438,428 23,679,000
2003/04 26,171,123 24,745,000
2004/05 91,969,066 26,230,000
2005/06 142,229,746 29,400,000
2006/07 151,993,963 31,164,000
454,957,726 195,076,324
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USAF Summarised Financial Performance
2006 – 2007Actual R’000
Revenue 31,164
Appropriation - DoC 2,122
Interest earned 33,286
Expenditure
Administration expenses 541
Research 2,807
Marketing 1,727
Audit fee 256
Project expenses 1,317
Subsidies 25,530
Operating expenses 142
32,320
37
USAF Subsidies
Communities R 9,303m Access Centre maintenance and Connectivity (R2, 504m) Capacity building (R6, 799m)
Schools R 10,277m Cyber-lab maintenance and connectivity
USALS R 5,950m
TOTAL R 25,530m
MEDIUM-TERM OUTLOOKMr. James Theledi
Chief Executive Officer
39
Strategic Context
• DoC ASGISA priorities Increase access to and enhance the quality of
education using ICTs. Increase access to and improve quality of government
service delivery. To provide robust, reliable, and affordable ICT
infrastructure. Contributing to social cohesion and national identity. ISET ICT Plan
• WTO issues, ICT and Broadcasting policy
40
Repositioning Strategy
• Redefine Universal Service and Access within the developmental agenda and converged platforms.
• Review the role, identity and image- involve stakeholders.
• Identify key partners.• Identify the niche to be addressed by the Agency -
Filling the Gap.• Provide accurate information on universal service and
access gaps and monitor progress.• Review the USAFund.• Address capacity and funding constraints.
41
STRATEGIC OBJECTIVES
• To reposition the Agency as a natural champion of universal service and access.
• To reach every South African excluded from universal service and access to ICT and Broadcasting facilities and services, especially the needy and the disabled.
• To effectively and efficiently manage the USA Fund.• To collaborate with the ICT industry in making ICTs
available, accessible and affordable to all South A Africans.
• To provide rigorous and continuous research regarding universal service and access.
42
Priority Initiatives
Collaboration with relevant stakeholders
Advise Minister and Department on issues impacting on
universal service and access
Expanding universal service to broadcasting and postal services
Central repository of knowledge: Portal
Definitions of under-serviced areas and needy persons, e.g. the
disabled
International benchmarking
Affordability and costs of ICT services
Develop a sustainability model for ICT projects
Monitor and evaluate progress of universal service and access
43
Research and Innovation
• Review current Universal Service and Access regime
and Reports conducted by the Agency.
• Consult the public and make recommendations on
definitions to the Minister.
• Define niche areas of research for the Agency.
• Collaborate with other Research Institutions on ICTs.
• Design programmes and schemes on universal service
and access.
• Monitor and Evaluate progress on Universal Service
and Access.
44
Research and Innovation (2)
PRIORITIES TARGET
Universal Service Policy Framework:
Definitions of universal Service, Universal Access, Under-Serviced Area, and Needy People
31 March 2008
Web Portal Development:
Geographical Mapping of ICT Initiatives in South Africa
31 March 2008
Development of a Policy Document for the Universal Service Obligations of the Electronic Communications Network Service Licensees in terms of the EC Act of 2005
31 March 2008
National Summit on Universal Access and Service July 2008
45
Corporate Services
• Finalise Human Capital, Media, Communications and Marketing strategies.
• Launch of new Agency brand.• Public awareness initiatives in support of Agency and USAF
programmes.• Consolidate Partnerships:
Parliament DoC MDDA GCIS ICASA Industry Civil Society
46
Finance
KEY OUPUTS
Request for more funding : Agency and USAF
Target Unqualified Audit Report for 2007/8 for USAASA & USAF
Appropriate controls to secure assets of the Agency
Effective Supply chain management system in place
Improved turnaround in payment to service providers
Effective financial systems in place
Improved Risk management and controls
Fraud and Anti-Corruption in place
47
USAF
• Access to ICT services
• Connectivity
• Funding Agent
• Enterprise development
• Competitive bidding
• Focus on needy persons and under-serviced areas
• Accelerate infrastructure development
• Training and skills development
• Public awareness campaigns
• Management Information systems
48
USAF: Sibsidising of ICT Access Facilities
Plan Target 2008/09 Target 2009/10 Target 2010/11
Community Access Centres: Restructured governance
model Handover of centres Deploy new mode
141
141 20
0
0 50
0
0 50
Schools & FETs: Connectivity provided at
Cyberlabs Connectivity provided at FETs Rehabilitated Cyberlabs New Cyberlabs deployed
Libraries
2209
34 40 200
0
2209
50 97 200
45
2209
0 97 200
45
Broadcasting: Broadcast Service Coverage
(under-serviced) Access to Broadcasting
Services (under-serviced) Digital Migration
95% TV / 89% Radio
Increased TV/Radio Households
Needy Inclusion
98% TV / 92% Radio
Increased TV/Radio Households
Needy Inclusion
95% Radio
Increased TV/Radio Households
Needy Inclusion
49
USAF: Telecentres Rehabilitation
50
USAF: Telecentres
4 telecentres completed. 24 under deployment. Rehabilitation cost per telecentre: R200,000 Envisaged completion date: December 2007 Equipment supplied includes: Photocopier,
networked computers, server, and internet connectivity.
Deployment of new telecentres = R387,000
51
USAF: Telecentres
Aligned with 6-Block Model Thusong Service Centre Business Plan (2006 – 2014)
20 new Telecentres within Thusong Service Centres per annum (GCIS Target)
GCIS Target: 283 Centres by 2014 (incl. Existing Centres)
Services provided by Thusong Service Centres Block 1: Government Social & Administrative Services Block 2: Office Services (Telecentre) Block 3: Education & Skills Development Services (Telecentre) Block 4: Local Economic Development (LED) Services Block 5: Business Opportunities & Services Block 6: Information & Communication Activities (Telecentre)
ICT Blueprint for connectivity VPN Connectivity to Thusong Service Centres
52
USAF: Cyberlabs Rehabilitation
Cyberlabs
8 schools completed 29 under deployment
Rehabilitation cost per telecentre: R300,000 Equipment supplied: 30-40 new computers, scanner,
printer, Internet connectivity, Laptop for teacher, Interactive Whiteboard,
Envisaged completion date: December 2007 New projects
Target 5 Cost per new cyberlab is R500,000 Envisaged completion date: December 2007
54
USAF
• Schools Current
• +27,000 Schools countrywide
• +7,000 Connected Schools countrywide
• 234 USAASA deployed Schools Future Plans
• Connectivity to Schools & Further Education & Training (FET) Institutes
– Aligned to Telecommunications Operators’ Universal Service Obligations (USO): 2209 Schools per Annum (until all SA Schools are connected)
– 50 FETs in Total
• New Cyberlabs
– 200 New Cyberlabs per Annum
• New Libraries
– 45 per Annum
55
Cyberlab
56
USAF
PROGRAMME INTERVENTION 07/8 8/9 9/10
Rehabilitation:- Telecentres
- Cyber Labs
Digital hubs
- Assist Business plan
- Replace equip- Pay stipends- Remodel governance
- Full replacement
- Finalise the deployment
30
29
02
108
104
-
-
-
-
57
USAF
PROJECTS TARGET
USALS Intensive engagement with USALs and Working Group to finalise new PUSANO business model
Payment of 2nd tranche based on planned infrastructure roll-out for Amatole and Kingdom.
58
USAF: e-Education (Operator Obligations)
MTN, Vodacom, Cell CProvision of Internet Access to Public
Schools Must provide Internet Access to no less
than 5000 Public Schools within 8 years.
Provision of Internet Access for 140 Institutions of People with Disabilities (IPWDs)
required to provide internet access to no less than 140 IPWDs within 3 years.
Provision of Terminal Equipment Required to provide a total number of
1400 Terminal Equipment, consisting of a minimum of 10 Terminal Equipment for each IPWD.
Internet Access must be provided by Licensees at the effective E-rate.
Compliance Reports are to be provided to ICASA once the Licensee’s commence with respective obligations.
SNO Telecoms is required to establish and maintain high speed
internet connectivity to 2500 public schools or public further education and training institutions. This only applies from no earlier than 9 Dec 2007 (2 years after the Effective Date).
WBS WBS is to provide internet access to 1000 rural and
urban public schools by the year 2011.
Sentech Must provide internet access to 1500 rural public
schools by 2014.Telkom Process of imposing obligations on Telkom has not
reached conclusion, but it was proposed that ito frequency application made by Telkom, it be given the obligation to provide:
Internet Access to 140 IPWD; Internet Access to 5000 Public Schools; and 1400 Terminal Equipment to IPWD.
It therefore may be that Telkom is imposed with these obligations.
59
USAF
OPERATOR 07/8 8/9 9/10
Cell C
Vodacom
MTN
Sentech
WBS (Iburst)
Neotel
625
625
625
167
167
636
1250
1250
1250
1 875
1 875
1 875
ConclusionMs Cassandra Gabriel
Chairperson: USAASA Board
61
CONCLUSION
New strategy to deliver on USAASA mandate Operational strategies being implemented Urgent need to internalise past research and learnings Ongoing research required Support from all USAASA’s stakeholders for USAASA to
play a more central and meaningful role in the delivery of universal service and access in South Africa
Problem accessing USAF funds Legislative Amendments needed to EC Act
62
Thank you