Progress on SA Connect

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1 Progress on SA Connect PRESENTATION TO PARLIAMENTARY POTFOLIO COMMITTEE 13 June 2017 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 1

2 Outline 1. SA Connect Program 2. Institutional Framework 3. Progress on the implementation of SA Connect Strategic Pillars 3.1 Digital Readiness 3.2 Digital Development Provincial initiatives National Initiatives Complementing SA Connect 3.3 Digital Future 3.4 Digital Opportunity Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 2

3 1 SA Connect Program Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 3

4 Four Key strategic Pillars SA Connect - Meeting the Broadband Challenge in SA Digital Readiness Digital Development Digital Future Digital Opportunity Enabling policy & regulatory frameworks; institutional capacity Public sector demand aggregation to address critical gaps National Broadband Network Demand Stimulation Broadband as an ecosystem of digital networks, services, applications, content and devices, will be firmly integrated into the economic and social fabric of the country. A key objective of SA Connect is that broadband must reach a critical mass of South Africans Making South Making Africa South a Global Africa Leader a Global in Leader Harnessing Harnessing ICTs for Socio-economic ICTs for Socio-economic Development Development 4

5 SA Connect Broadband Implementation Approach Enabled by Government through aggregated procurement of services. (Phase 1 and 2 will ensure 100% connectivity to Government facilities.) To build an enabling ICT infrastructure for the connected government Government Enabled by government through policy (spectrum Coverage and capacity spectrum, Infrastructure non-duplication and sharing (open access) and Streamlined/Coordinated application and approval process for deployment rapid deployment). Mobile and fixed broadband initiatives by public and private sector. Individual Infrastructure Business Enabled by government through policy (spectrum Coverage and capacity spectrum, Infrastructure non-duplication and sharing (open access) and Streamlined/Coordinated application and approval process for deployment rapid deployment). Mobile and fixed broadband initiatives by public and private sector. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 5

6 2 Institutional Framework Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 6

7 Key Role Players for SA Connect Implementation DTPS Functions Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 7

8 Coordination Framework Provincial Broadband Steering Committees PBSC Progress The main purpose of the broadband steering committees is to coordinate and facilitate broadband implementation across all the role players in the province and to ensure that the benefits of Broadband are achieved in the provinces. Identify synergies and opportunities with other infrastructure projects with a view to aligning them to the Broadband implementation plan. Ensure alignment between both existing and planned infrastructure roll-out of public and private sector operators; Line Departments to appoint official in the steering Committee Different task teams to be established to assist the steering committee in facilitating the implementation of broadband. Demand stimulation initiatives identified and task teams appointed to ensure successful implementation. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 8

9 Engagement with Provincial Broadband Steering Committees The Department is continuously engaging with the PBSCs in planning the implementation of SA Connect within the 8 identified District Municipalities. Some of the activities being undertaken by the PBSCs Site Auditing and Verification Technical review and support on the Provincial broadband initiatives Coordination of work streams dealing with Local SMME Development, ICT Skills and training, Research and development, Content, application and service development and the review of Provincial broadband Funding options/models Observations emanating from Provincial Engagements: The quality and bandwidth of connectivity provided to schools under the various programmes it takes too long to repair when broken, and the services do not adhere to the SA Connect Policy Sustainability of the connectivity Theft and vandalism equipment get stolen from schools, copper lines get stolen. Some of the facilities do not have Power Location of some facilities had to be corrected. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 9

10 3 Progress on the implementation of SA Connect Strategic Pillars Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 10

11 Digital Readiness Pillar Progress The ICT policy White Paper gazetted in October 2016 contains the following policies that are key to the implementation of SA Connect: Spectrum, Rapid Deployment, Wholesale Open Access Network policies and Digital Development Fund. Draft legislation has been developed to implement the above policies as contained in the ICT White Paper. Internal consultations are underway, which will be followed by public consultations. In addition to the drafting of the legislation the following progress has been achieved: Agreement reached with industry on way forward to implement spectrum and wholesale open access network (WOAN) policies There may be no urgency to return the current high demand spectrum from licensees until the end of current licence period to ensure investment certainty The licensees committed to buy at least 30% of the capacity of WOAN to ensure its viability Given the current levels of investment on the 4G network, the Minister committed to conduct an urgent high level study to determine spectrum capacity required by WOAN. If there will be remaining spectrum, it will be licenced to operators with rural coverage obligations. In such case the licensees further committed to buy at least 50% of WOAN capacity The Minister has approved the National Radio Frequency Plan 2017 which will be gazetted by ICASA to facilitate the release of additional spectrum for Broadband and other radio-communication services taking into consideration the outcome of the ITU-R World Radio Conference 2015 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 11

12 Digital Development Pillar - Phase1 - Scope The implementation will be achieved through a two phased approach implementation. The strategy includes cconnecting schools, clinics, post offices, police stations and other government facilities Phase 1 : 6135 facilities (8 District Municipalities) Internet Access and Government site distribution within the 8 district municipality Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 12

13 Digital Development Pillar - Phase1 2017/18 APP Targets Program 5 SA Connect Timelines Connect 2700 Government facilities by 31 March 2018 Funding requirements Upfront funding for infrastructure roll out to be finalised by the ICT SOCs MTEF Allocation Rand (R) Budget available Possible impedimentsenablers of the to implementation implementation Leasing existing infrastructure where R416 m to procure Funding for broadband broadband rollout services feasible from public and private sector players DFI funding to support Infrastructure roll-out leveraging long term contract by government Rollover requested 2700 Sites 1718 Sites 1717 Sites 2015/ / / / /20 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 13

14 Digital Development Pillar Revised Approach In 2016 the Department planned to commence the implementation of the first phase of South Africa Connect in eight pilot districts after following the open tender process by State Information Technology Agency (SITA). Unfortunately, there was no successful bidder among those who participated, resulting in its cancellation in November The Department has since decided to utilise the State Owned Entities (SITA, BBI and SENTECH) in line with their mandates to implement SA Connect Phase 1 project. Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 15

15 Digital Development Pillar Mandates of SOCs Function Entity Rationale a) Internet Connectivity b) Government Applications c) Core network connectivity d) Terrestrial last mile connectivity (wired and wireless) e) Satellite last mile connectivity SITA BBI BBI Sentech SITA Act, Internet Services convergence strategy. SITA currently provides internet connectivity to most Government facilities. SITA Mandated to provide transversal systems, transversal data processing, information system security. SITA currently hosts the Government information systems and data centres ECA Act Section 3 (1A) to ensure strategic ICT infrastructure investment. Existing contract between SITA and BBI to upgrade and expand SITA s core network. Coordinate, aggregate and leverage existing and new ICT infrastructure from service providers in the 8 Phase 1 districts to minimise duplication Sentech has extensive satellite experience. Sentech has made concrete plans to deploy Ka band, VSAT in undeserved areas where the roll-out of the terrestrial solution is not feasible. A demo site/test bed and the network operations centre (NOC) dedicated for SA Connect will be deployed by end of June Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 16

16 Digital Development Pillar SOC Collaboration Access Network: Fibre+ Satellite + Microwave Operator Fibre Operator Router Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 17

17 Digital Development Pillar - Phase1 Progress The Minister has formally mandated SITA and BBI to work with the Department to finalise the detailed implementation plan and service level agreements The Department is engaging the Chief State Law advisor on the legal framework envisaged between the Department and the SOCs The Department is engaging National Treasury on the relevant financial considerations The DG will work with the CEOs of SOCs to finalize the Service Level Agreement. SOCs have commenced with detailed planning to finalize the roll-out schedule and the process to identify the facilities to be connected as per the roll-out schedule is underway. The SOCs are in the process of Identifying SMMEs and ISPs to ensure local empowerment. Furthermore, training of small entities will be done. Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 18

18 Digital Development Pillar - Phase1 Progress The Department in collaboration with SOCs engaged the following DFIs for SA Connect funding: DBSA Development Banking of South Africa IDC Industrial Development Corporation SEFA Small Enterprise Fund Agency NEF National Empowerment Fund FDA French Development Agency PIC Public Investment Corporation The DFIs showed interest to support the SOCs with the implementation of SA Connect. Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 18

19 Digital Development Pillar Phase 2 - Scope Phase Progress Phase 2 business case was developed and submitted to National Treasury for funding, to connect facilities, (44 District Municipalities) No funding allocation for Phase 2. The Department is working with the Treasury to unblock the funding issue, taking into consideration the lessons learned and to be learned from Phase 1 project. Building a better life for all through an enabling and sustainable world class information and communication technologies environment. 19

20 Digital Development - Overall Progress on Phase 1 and Phase 2 Finalization of SLA s Infrastructure Roll-out Mandate SOCs High Level Planning Business Case development Funding to procure services Site Verification) Site Verification Appointment of a service provider Infrastructure Roll-out Infrastructure Gap Analysis Funding Governance and Co-ordination Framework Business Case development Governance and Co-ordination Framework Infrastructure Gap Analysis High Level Planning Completed Underway Not yet started Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 20

21 4 Provincial initiatives Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

22 Digital Development Pillar Provincial Led Initiatives Complementing SA Connect (Gauteng) The Gauteng Provincial Government has connected 1000 of the 3000 targeted sites. June 2014 March 2016 March Core = 0 Access = 0 Core Nodes = 8 Access Sites Connected = 592 Core = 8 Access Sites Connected = 1000 Target3000 Sites Target of 3000 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 22 22

23 Digital Development Pillar Provincial Led Initiatives Complementing SA Connect (Gauteng) Support for Township Economy The Gauteng Provincial Government (GPG) is Collaborating with the Innovation Hub to provide ekasi Labs with broadband connectivity. The GPG is also collaborating with the Department of Economic Development and its agencies to connect township industrial hubs and economic zones. The GPG has also connected the following Township Economic Zones: Soweto ekasi Lab; Alexander ICT Center; Ennerdale Skills Development Centre; Mohlakeng Enterprise Hub; Winterveld Enterprise Hub; Gauteng Automotive Learning Centre; Ford Incubation Centre; Tshimologong Precinct; and Ga-Rankuwa ekasi Lab; 2015/ / / / /20 # of G2C sites connected # of G2B sites connected (Economic zones & ekasi Labs) # of G2G sites connected (Departments and Agencies) Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 23

24 Digital Development Pillar Provincial Led Initiatives Complementing SA Connect (Western Cape) Minimum network speeds at start of phase Phase 1 Phase 2 Phase & beyond Duration 3 years 5 years 2 years Cumulative Duration 3 years 8 years 10 years 10 Mbps 90% 0% 0% 100 Mbps 4% 90% 0% 1 Gbps 6% 10% 90% 10 Gbps 3 Sites 3 Sites 10% 1286 Schools 298 Healthcare facilities 413 Other Govt. Offices Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 24

25 Digital Development Pillar Provincial Led Initiatives Complementing SA Connect (Western Cape) To date the Western Cape Government connected more than 1900 sites. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 25

26 Digital Development Pillar Provincial Led Initiatives Complementing SA Connect (Limpopo) The Limpopo Provincial Government plans to establish an open access, shared, secure, affordable next generation broadband transmission carrier network infrastructure for Limpopo Offer broadband connectivity of 100 Mbps or higher and connect approximately 6000 Government sites by 2030 in line with SA Connect targets. Tender issued on 11 April 2017 and closing on 9 June Department engaged with LPG to ensure alignment and coordination. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 26

27 Digital Development Pillar Provincial Led Initiatives Complementing SA Connect (North West) North West province published a tender for Broadband implementation which was subsequently cancelled. The province is consulting District Municipalities on the provincial broadband strategy. The Province plan to appoint a service provider for the development of the Provincial Broadband business case by June The Province has appointed a service provider for the provision of WiFi connectivity in four villages within the Ngaka Modiri District Municipality. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 27

28 Digital Development Pillar National Initiatives Complementing SA Connect Universal Service Obligations The USO rollout forms part of the license obligations for MTN, Vodacom, Neotel & Cell C Target of 5250 Schools in 5 years Progress: Project commenced in 2015/16 with a yearly target of 1050 schools 3641 schools connected to date Education content placed in local servers Province Neotel Vodacom MTN Cell C Total WC EC FS KZN LP MP NW NC GP Total Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 28

29 Digital Development Pillar National Initiatives Complementing SA Connect Universal Service and Access Fund USAASA used the Universal Service Access Fund (USAF) to expand their program of connecting underserved areas in the OR Tambo District Municipality (King Sabata Dalindyebo and Mhlontlo local Municipality) 210 of the planned 609 sites have been provided connectivity. Category Planned Completed Health Facilities Police 4 - Post Office 5 - Schools Community Centre 2 2 Total Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 29

30 Digital Future Pillar SOC Rationalization Purpose of rationalization: o o o Consolidate/align DTPS ICT SOCs Avoid duplication and wastage of scarce financial resources Assist with SA Connect aspirations of delivering broadband access to all citizens SOE rationalization project will culminate with the formation of two entities: o State Infrastructure Company/National Broadband Network Company (NBN Co) The NBN Co will focus on the consolidation of DTPS ICT infrastructure SOCs, with the main aim of avoiding duplication and wastage of scarce financial resources as stated in the National Development Plan (NDP) and Presidential Review Commission (PRC). o State Information Technology Company (IT Co), IT Co will focus of the following areas: Research and development Innovation Localization (Local procurement and open source) Cybersecurity Procurement of IT Products and Services E-Government implementation IT Service management Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 30

31 Digital Opportunity National e-government Domains e-strategy and e-government Framework were gazetted on 7 April 2017 for public consultations and comments. Provincial consultations are currently underway. Building a better life for all through an enabling and sustainable world class information and communication technologies environment.

32 Digital Opportunity - National e- Government Strategic Approach e-enhanced Governance National audit of government ICT systems towards elimination of legacy systems; Develop e-government governance structure and plans; Open Government Data Framework; Digitalization of Government Business Services; e-government common service centres; Institutional Mechanisms to drive e-government National e-government Model e-government Services Transformation Digitally-enabled Society Standardized open digital platform to allow for a connected government; Mobile sites to increase access to e-services; and Use mobile phones for access and social media tools for citizen participation Digital literacy for citizens; Public access to ICTs E-Commerce stimulation Communication and awareness plans for e- Government services rollout across all levels of government to drive change management towards a paperless government Building a better life for all through an enabling and sustainable world class information and communication technologies environment.

33 Digital Opportunity - e-education Develop teachers Curriculum knowledge Pedagogy and technique Help teachers teach better Improved lesson delivery Tailored learner insights Portfolio of additional material Provide access to engaging material Interactive and adaptive material Comprehensive quantity Provide access to teaching Independent learning Remedial lessons Increase social cohesion Bridging the socio-economic gap between learners Effective integration of ICT s into teaching and learning activities that promotes deep learning experiences for learners so that They can enjoy improved learning outcomes And we have a better prepared learner for the 21 st century Learners Teachers Quality and equity Establishment Aspiration Improvement levers Enhance performance management Learner and teacher transparency Analysis and insights Improve administration Timetable scheduling Human Resources Finance Strengthen Centre support to schools Identification and prioritisation of problem areas Coordinated delivery of targeted improvement initiatives Making South Making Africa South a Global Africa Leader a Global in Leader Harnessing Harnessing ICTs for Socio-economic ICTs for Socio-economic Development Development 33

34 Digital Opportunity - e-education DBE Cloud - An education based web portal- Teacher will have ability to develop own lessons and upload supporting content Learner login to interface to access content, assessments include specific grades, Parents to access learner information DBE Cloud -solution ( will work as an online /offline platform ) Online datacenter is needed to host the content in order for cloud solution to work. Offline platform require localised server in schools for the solution to be loaded Making South Making Africa South a Global Africa Leader a Global in Leader Harnessing Harnessing ICTs for Socio-economic ICTs for Socio-economic Development Development 34

35 Digital Opportunity - Progress on e- Education Education Initiative DBE Cloud Requirements Project Status DBE Cloud - An education based web portal Progress as of May 2017 WiFi at schools Devices for teachers and learners Local server at schools for offline solutions Broadband connectivity to sync to DBE cloud at datacenters Datacenters to host the content and for the solution That can be accessed via the cloud (DBE will provide) E-learning content, supplied by DBE User training (through partners, Intel, Google etc) Leaner and teacher components are developed Parents and admin will be developed by July 2017 Pilot will be conducted in 3 schools, completion by November 2017 WiFi at schools 2x Access points per school, 7282 APs provided; Devices (for leaners & teachers) 24 tablets & 3 laptops per school, 98307devices delivered; Local Server at school for offline solution 1 local server per school, 3641 servers delivered; Broadband Connectivity to sync to DBE Cloud at Datacenter connectivity provided, 3641 schools connected; Making South Making Africa South a Global Africa Leader a Global in Leader Harnessing Harnessing ICTs for Socio-economic ICTs for Socio-economic Development Development 35

36 Digital Opportunity - Universal Service Obligations for connecting Health facilities In January 2017 ICASA published a notice to amend the public payphone Universal Service Obligation for Telkom to include connectivity to public health institutions. The obligation requires Telkom to provide connectivity to 3631 public health institutions within the five (5) from commencement. This will support some of the e-health initiatives of National Department of Health. Health Patient Registration System (HPRS) District Health Information System (DHIS) - As part of National Health Information Repository and Data Warehouse Project (NHIRD). Making South Making Africa South a Global Africa Leader a Global in Leader Harnessing Harnessing ICTs for Socio-economic ICTs for Socio-economic Development Development 36

37 Thank You Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development 37

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