This notice supersedes Government Notice No. 597 published in Government Gazette No.
I, Gen (Ret) Siphiwe Nyanda Minister of the Department of Communications, in terms of section 3(1) of the Electronic Communications Act, 2005 (Act No.
2005, hereby publish the National Broadband Policy, contained in the schedule attached hereto.
STA.ATSKOERANT, 13 JULIE 2010 No.
1 Context.. . .. . .. .. . .
Legislative frame\i'Jork 6 1.
Definition of broadband for South Africa 6 1.
BROADBAND POLICY OBJECTiVE 7 2.
Building the information sOciety 7 2.
Increasing affordability 8 2.
Economic development and growth 1 0 3.1.
Stimulating growth of SMME's and cooperatives 10 3.1.
I ncreasing employment 1 0 3.1.
Reducing the cost of communication 10 3.1.
I mproving marketability and encouraging investment 11 3.
Social benefits 11 3.2.
Improved quality of education11 3.2.
Improved quality of health services 11 3.2.
Improved quality of government services 12 3.2.
Access , 12 4.1.
Universal access to broadband 13 4.1.
Access for needy persons 13 4.1.
Access for legal personae 13 4.1.
Spectrum for broadband 13 6 No. 33377 GOVERNMENT GAZETTE. 13 JULY 2010 4.
Creating an enabling environment for broadband growth 14 4.2.
Electronic communications network services (ECNS) -infrastructure based competition 14 4.2.
Electronic communications services (ECS) -services based competition 14 4.2.
Physical infrastructure sharing 14 4.
Usage 15 4.3.
Uptake and usage 15 4.3.
Security 15 4.3.
Roles 16 5.1.
National Government 16 5.1.
Provincial Government 17 5.1.
Local Government 17 5.1.
State owned enterprises 18 5.1.
Private sector ........................... . ............... 18 5.
Implementation 18 5.2.
Broadband Inter-Governmental Implementation Committee 18 5.2.
It is acknowledged that both the private and public sector has played a significant role in the current provision of Broadband infrastructure. However this is not sufficient and as such requires direct policy intervention and strategic investment.
1.1 .6 The funding of Broadband services in the South African context is both fragmented and uncoordinated. At a national level all national departments have budgets that are allocated to ICT roll-out, however these are not spent appropriately and in a coordinated fashion. Further provincial and local Government competencies are not duty bound to coordinate ICT programmes and policies for national benefit and homogeneity. This policy therefore proposes to create a uniform, integrated, homogeneous and coordinated Government approach on the roll-out of Broadband in South Africa, thus ensuring both optimal utilisation of resources and coordinated rollout of infrastructure.
This Policy focuses on increasing the accessibility, availability, affordability and usage of Broadband services throughout South Africa.
Broadband services ("always available, high speed multimedia capable network services") have been identified globally as a powerful transformative force. Affordable access to these networks has become a key priority for governments internationally. Broadband empowers individuals, communities and businesses through access to the "Information Superhighway" which provides access to local and international electronic content.
STAATSKOERANT, 13 JULIE 2010 No.33377 that can increase productivity and marketability through the use of communication services.
This policy acknowledges the achievement of the private and public sector in establishing the Broadband infrastructure as it exists today. However this infrastructure is mainly confined to urban areas and is limited in affordability and accessibility. The policy also acknowledges that Broadband and ICT initiatives are already underway in the three spheres of Government.
articulate the Government's commitment to providing appropriate support for digital inclusion. thus building the information society; and clarify the roles of the Government, State Owned Enterprises (SOEs) and the private sector in developing world-class Broadband infrastructure in the country.
the Electronic Communications Act (ECA) 36 of (2005).
the Inter-Governmental Relations Framework (fGRF) Act (2005). which sets the framework for the interaction and relationship between the three spheres of Government; and the Electronic Communications Transactions (ECT) Act (2002). which sets the framework for electronic transactions and the verification thereof.
10 No. 33377 GOVERNMENT GAZETTE. 13 JULY 2010 internationally. Even within the International Telecommunications Union (ITU) the different sectors. in alignment with their functions, have different definitions for Broadband. The Standardization Sector defines Broadband as a speed of 1.5 to 2 Mbps while the Development Sector defines Broadband to be 256 kbps.
Comparative research demonstrated that the definition of Broadband in different countries, varies between 128 kbps and 10 Mbps.
South Africa will follow the guideline from the ITU Development Sector and as such Broadband will be interpreted as an always available, multimedia capable connection with a download speed of at least 256 kbps.
The vision of this policy is to ensure universal access to Broadband by 2019 by ensuring that South Africans are able to access Broadband either individually, or as a household, subscribe to a Broadband service, or are able to access a Broadband service directly or indirectly at a private or public access point.
To facilitate the provisioning of affordable, accessible, universal access to Broadband infrastructure to citizens, business, communities and the three spheres ofGovernment, and to stimulate the usage ofBroadband services in order to promote economic development and growth and act as an enabler for further social benefits.
As part of the o~ective to facilitate the provisioning of affordable, accessible, universal access to Broadband infrastructure, focus is also placed on the building of the information society, increasing affordability and the increase of uptake and usage of Broadband services.
12 No.33377 GOVERNMENT GAZETTE, 13 JULY 2010 to citizens electronically. This content will be used by citizens to access and interact with Government and will further stimulate the demand for Broadband services.
Digital literacy is critical for the increase of uptake and usage of Broadband services. It is acknowledged that there are other initiatives that focus on improving digital literacy.
Broadband is recognised as a strategic tool in the building of an information economy and society. Extensive international studies have been performed on the benefits of investing in Broadband infrastructure. In every such study Broadband has demonstrated the ability to deliver substantial economic growth, increased employment and vast societal benefits. The potential benefits will positively contribute to the improvement of lives of many South African households by. for example improving communication, access to services. employment and business opportunities. The benefits of investment in Broadband infrastructure in South Africa will not be limited by our national borders but will extend to the Southern African Development Community (SADC) region as a contributor to the regional strategy in relation to ICTs.
o reducing the cost of communication; and o improving marketability and encouraging investment.
o improved quality and access of government services; and o reduced carbon emissions.
3.1.4.1 Provinces will be able to increase their marketability, both inside the country and globally and attract investment by ensuring the availability and affordability of Broadband services. This will have a positive impact on provincial economic growth and will enable provinces to become more competitive. Broadband does not only provide access to provincial and municipal governments, but it also allows their businesses and citizens access to the rest of the world.
3.1.4.2 Access to Broadband creates opportunities to improve efficiency for both the private and public sector and ensure that services are more readily and speedily available to customers and communities.
3.1.4.3 Universal access to broadband will also contribute to reducing spatial inequalities in South Africa which had developed out of a system that fostered lopsided economic development through the unequal distribution and access to economic opportunities and assets. The ability to communicate increases the marketability of especially rural provinces and municipalities as investment destinations, making it more attractive for businesses to directly invest into these areas. Broadband investment in rural areas will act as a counter measure to the migration of persons to metropolitan areas, through local development initiatives as a result of this investment.
3.2.1.1 Broadband can improve the quality of education by enabling the delivery of digital content and iessons to aii learners, regardless of their iocation, over Broadband networks. A further benefit is the improvement of communication between different educational institutions at different levels of government.
3.2.1.2 Broadband access creates an opportunity for citizens to increase their knowledge through research and collaborative team work. It also provides an opportunity for citizens to become ICT literate, increasing their value in thejob market.
3.2.2.1 The healthcare sector is one of government's priorities, and can be greatly improved through the use of ICTs and Broadband. As an example improved communication between health care centres can greatly improve health care.
STAATSKOERANT, 13 JULIE 2010 No.33377 15 3.2.2.2 Broadband services can enable the use of a number of applications such as telemedicine, remote diagnosis and the treatment and care of patients in rural areas.
3.2.2.3 Online inventory systems. enabling the electronic prescription and ordering of medicine in health care institutions can significantly improve the access and efficiency of current systems. Availability of electronic medical patient records will facilitate uninterrupted and reliable treatment of patients.
3.2.3.1 Government's ability to communicate with the citizens is central to service delivery. Universal access to Broadband services can greatly enhance Government's capability of communicating with its citizens. Government services need to be updated to incorporate services that citizens could access online and use not only for information purposes but also for transactional purposes. This would reduce the cost of govemance and would enhance service delivery, CIS turnaround times could improve significantly.
3.2.4.1 Broadband also has the potential to indirectly reduce carbon emissions. The ITU-T is focussing on the role leTs can fulfil in order to reduce green house gases. As an example video conferencing has the potential to reduce travelling which supports the reduction of green house gases.
Ensuring access to Broadband services is the first of the three essential key priority areas considered in this policy. These areas are critical components for the realisation of the potential benefits, as listed in section 3 of this policy, of increased Broadband penetration in South Africa. This key priority area is specifically concerned with the provision of infrastructure towards achieving the goal of universal access.
4.1.1.1 It is the intention of the policy to ensure that people in South Africa have universal access to Broadband services. Success will be measured based on the targets set in section 5.2.2 of this document, specifically referring to individuals.
4.1.1.2 To achieve universal access to Broadband networks there are three components that should be addressed: access to international networks. national backbone networks and local networks. All three these components are required to facilitate universal access. While the policy does not specifically distinguish between the three, they will be considered individually during the implementation phase. Depending on the challenges experienced with regards to achieving universal access to Broadband, government will through policies intervene in any of the three components mentioned above to address the universal access to Broadband.
4.1.2.1 Access to Broadband networks can create many opportunities for social development and access to job-opportunities for needy persons. Citizens using Broadband services can communicate and work from anywhere, providing means to needy persons to contribute their skills and time towards achieving their own goals and thereby benefiting from social upliftment and economic growth. Needy persons will be assisted to access Broadband services through appropriate means, such as the provision of subsidies from the Universal Service and Access Fund (USAF), as contemplated in section 88 the Electronic Communications Act, 36 of 2005.
4.1.3.1 All public and private institutions, as well as civil society. must have access to Broadband services. This will ensure demand stimulation and uptake of ICTs by Government departments especially in education and health. Content from departments will be used for both information purposes as well as e-government service delivery to citizens. This will ensure that education and health facilities have access to Broadband.
4.1.4.1 This Policy recognises that the radio frequency spectrum is a scarce national resource and that the allocation shall be guided by the developmental objectives in the public interest.
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It is necessary to distinguish between the roles of the three spheres of Government.
namely National. Provincial and Local Government. The policy further articulates the roles of the SOEs, and the private sector.
promote access to SMEs, co-operatives, rural areas and private households, and bridge the digital divide including through community and workplace access facilities; and promote and advance economic development goals through infrastructure build as well as in broadband provision by the public and private sectors. These goals include opportunities to grow employment and identify local industrial opportunities. rural development and strengthening the knowledge based economy.
5.1.1.2 National Government will by means of policy, direct the Authority to create an enabling regulatory environment for the private and public sector to develop infrastructure, services and applications towards the increase of access to and affordability of Broadband services.
20 No.33377 GOVERNMENT GAZETTE, 13 JULY 2010 5.1.1.3 The Department of Communications, as the custodian of ICTs in South Africa, will be ultimately responsible for the implementation of the policy as a whole.
5.1.2.1 This policy acknowledges the different ICT initiatives in provincia! government as It'Jell as the unique requirements of the different provinces.
connecting the provincial government and its entities with Broadband services and enabling the distribution of e-government services to drive the demand for Broadband and promote uptake and usage; and investing in the development of local content and Broadband awareness to support uptake and usage of Broadband services.
5.i.3.i This poiicy acknowledges the different jeT initiatives in iocal government as well as the unique requirements of the different municipalities.
identifying mechanisms to realise the potential benefits of Broadband; and preventing duplication of investment by advising National Treasury on government investment in Broadband electronic communication infrastructure on national, provincial and local government levels.
address all issues of national and provincial importance as related to Broadband; and be the custodian of all issues on Broadband and related matters.
The Broadband Inter-Governmental Committee in facilitating the implementation of the Broadband policy. through an implementation plan, will ensure that short and long term targets are achieved.
5.2.2.1.1 The Broadband Inter-Governmental Implementation Committee will be tasked to conduct a survey on the current status of Broadband in South Africa as well as the relevant market players in the industry.
5.2.2.1.2 Broadband penetration as well as ECN connectivity to municipalities will be used as the measure to determine the success of this policy. To ensure the measurability of penetration in terms of individuals this goal will be set per household, as this is the unit currently in use by Statistics South Africa.
STAATSKOERANT, 13 JULIE 2010 No.33377 23 5.2.2.1.3 The Broadband Policy shall be reviewed from time to time as determined by the Minister of Communications.
5.2.2.2.1 I n terms of access penetration, South Africans shall have universal access to Broadband services by 2019. Universal access meaning, for example, that there will be a public ICT access point within a two kilometre radius of any person in a sparsely populated area.
5.2.2.2.2 In terms of service penetration, household Broadband penetration should be at least 15% by 2019.
5.2.2.2.3 ECN connectivity should be available to all municipal areas by 2019.
6.1 Government's objectives include social upliftment and economic growth. One of the methods to achieve these goals is to increase the access to and availability of Broadband services. Broadband services open the global village to South Africa and its citizens by providing an electronic communications highway and enabling its people to communicate and transact anywhere, anytime in both urban and rural areas. South Africa's economy is in a transition phase like many other developing economies around the world, and investment into Broadband is crucial for South Africa to progress into a knowledge based economy. Broadband is a key catalyst to accelerate the country's developmental agenda as well as to achieve the Millennium Development Goals.
In 2007, the South African Government approved the building of an information society. This decision was based on the outcome of the United Nations World Summit on the Information Society. This summit resolved that Information and Communication Technology (lCT) infrastructure is the foundation to the development of an information society. (World Summit on Information Society (WSIS) Action Line C2, Information and Communications Infrastructure is an essential foundation for the Information Society.) The development of a Broadband Policy is in line with world trends and is critical for South Africa to ensure realisation of the goal of an all inclusive information society that can enjoy the economic benefits associated with Broadband in both urban and rural areas.
Broadband platforms promote the convergence of voice, data and audio visual services onto a single network. Broadband infrastructure is central in achieving the goal of digital inclusion, enabling universal, sustainable, ubiquitous and affordable access to ICTs by all. and providing sustainable connectivity and access to remote and marginalized areas at nationaL provincial and municipal levels.
The Organisation for Economic Cooperation and Development (OECD) states in their December 2008 Broadband statistics report that the average penetration rate, in OECD member states, for Broadband is 22.4%. South Africa had just over 1 million Broadband connections which translates into a penetration rate of 2% of individuals. South Africa is clearly well below the average penetration rate with regards to Broadband. The International Telecommunication Union (lTU) further confirms that South Africa has a Broadband penetration rate of 2% and just over a million Broadband connections.
From these statistics it is clear that Broadband penetration in South Africa is low. This situation can be ascribed to the unavailability of electronic communications infrastructure and the high cost of Broadband services, stifling growth of the information society.
1.1 .5 The lack of affordable universal access to Broadband services, slows economic growth and inhibits social benefits such as better education and health services.
STAATSKOERANT, 13 JULIE 2010 No.33377 11 individuals. communities and people to realise their full potential in promoting sustainable development and improving the quality of their life. This has informed the country's vision 'To establish South Africa as an advanced information society in which information and ICT tools are key drivers of economic and societal development...
This vision can only be attained if the country has reliable. robust and secure infrastructure that is available. accessible and affordable to all. Experience across the world has shown that well-developed information and communication network infrastructure as well as applications. adapted to national and local conditions. that is easily accessible and affordable. can accelerate the social and economic progress of a country, as well as the well-being of individuals and communities.
It is evident in the South African market that the provision of Broadband services in certain areas is prohibitively costly. The Government will intervene to expand networks into these marginal areas as contemplated under Chapter 14 of the Electronic Communications Act. 36 of 2005. Various options for the construction. operation and maintenance of networks in under-serviced areas will be developed by USAASA (Universal Service and Access Agency of South Africa) and implemented in co-operation with other stakeholders in their locations. This will ensure that access to Broadband services becomes affordable and available for citizens. businesses. civil society and government.
The development of content to increase the uptake and usage of Broadband is especially important in the areas of education, health and e-government.
ICTs have to be incorporated as a developmental tool in order to effectively increase uptake and usage, especially at household level. To achieve a knowledge based economy households and businesses should continuously be exposed to the use and benefits of ICTs and particularly Broadband services.
STAATSKOERANT, 13 JULIE 2010 No.33377 13 3.
Broadband creates an environment that stimulates economic activity and can contribute to economic development and growth. Universal access to Broadband services can lower the cost of telecommunications and attract business to provinces and municipalities, thereby stimulating their economic environments and increasing economic growth.
Therefore Broadband has an indirect impact on economic growth through improved ease of communications and the distribution of products and services to a wider market.
3.1.1.1 Stimulating growth of SMME's and cooperatives SMMEs and cooperatives can gain a competitive advantage by using Broadband, by reducing barriers to entry of markets through increased access to information as this technology would expose them to a broader market where they can promote and sell their products and services on the global scale. Broadband will also benefit cooperatives and SMMEs by reducing their cost of association.
3.1.1.2 Broadband will enhance both backward and forward economic linkages. Forward linkages will be enhanced through access to new domestic and international markets. SMMEs will also benefit from enhanced backwards linkages; especially in the rural context this will give them access to more suppliers and more competitive inputs thus increasing their bargaining power with suppliers and the competitiveness of their product.
3.1.2.1 I ncreasing employment Broadband networks have been shown to have a direct impact on employment. It is however the use of these networks towards growing economic activity and enhancing social development, that unlocks the potential increase in employment.
3.1.3.1 Reducing the cost of communication The cost of communication can be reduced by an increased rollout on infrastructure and improved availability of Broadband services. Reducing the cost of communication will be beneficial to citizens, business and government by reducing the cost of doing business and by making a wider range of products and services available at affordable prices.
STAATSKOE RANT, 13 JULIE 2010 No.33377 17 4.
Increasing competition, in both electronic communications network services (ECNS) infrastructure and electronic communications services (ECS), will improve the affordability of Broadband to government.
4.2.1.1 Creating an enabling environment for broadband growth Government will continue to promote competition in the market as contemplated under the Electronic Communications Act. 36 of 2005. In areas that are not economically viable, government witl intervene to increase the availability of infrastructure and services subject to section 5.1 of this document. The different categories of competition are listed below and will apply as relevant to the particular situation in the market.
4.2.2.1 Electronic communications network services (ECNS) -infrastructure based competition ECNS infrastructure based competition exists between operators of ECNS licensees where each compete based on providing its own ECNS infrastructure.
4.2.2.2 An increase in infrastructure results in improved access and availability of networks, providing choice to the user and facilitating the reduction of the cost to communicate.
4.2.3.1 Electronic communications services (ECS) -services based competition ECS based competition exists between operators of ECS licensees where each compete based on the electronic communications services provided.
4.2.3.2 More services results in more choice, reducing electronic communications costs for users.
4.2.4.1 Physical infrastructure sharing World trends reveal that the sharing of infrastructure is a powerful mechanism for cost reduction, as this reduces the cost base of the infrastructure. The benefit of following such a model is that citizens gain access to Broadband at lower prices than would have been the case if operators each had to construct their own physical infrastructure.
4.2.4.2 Physical infrastructure, such as masts, buildings, roads and power supply, constitute a significant portion of the cost of establishing a network.
4.2.4.3 Physical infrastructure can be shared between different operators, reducing both cost and environmental impact.
Awareness of the benefits of Broadband services and confidence thereof. is essential to the uptake and usage of Broadband.
4.3.1.1 Uptake and usage The three spheres of government must seek to take the lead in increasing the uptake and usage of Broadband and promotion thereof in both urban and rural areas as a key priority.
4.3.1.2 Government needs to adopt ICTs in its everyday business practices and also develop interactive online capabilities.
4.3.1.3 This would enable citizens to transact with government electronically and thus enhance service delivery. Government also needs to promote awareness of ICTs and the benefits thereof as well as ensure departments are connected to ensure communication between them.
4.3.1.4 Relevant content development needs to be promoted in order to stimulate uptake and usage for both current and new broadband users.
4.3.1.5 Digital literacy amongst citizens is vital to the uptake and usage of broadband.
4.3.2.1 Security I ncreased and continual commitment to improve the security of Broadband must be made by all three spheres of Government and the private sector.
4.3.2.2 Government should ensure that the necessary regulatory framework for securing networks and users is developed.
4.3.3.1 Awareness The three spheres of Government should actively and continuously increase public awareness of Broadband in partnership with other stakeholders. Focus should be on the content, applications, communications ability and opportunities that Broadband can offer to all citizens in both urban and rural areas. This will support the uptake and usage of Broadband.
STAATSKOERANT, 13 JULIE 2010 No.
investing in the development of loca! content support uptake and usage of Broadband services.
5.1.4.1 State owned enterprises Government will use SOEs such as Sentech electronic communications networks services.
5.1.4.2 The Authority and all SOEs and Agencies should fulfil their various mandates as stipulated in the EC Act. The Authority (lCASA) will contribute by implementing the policy through regulation. The Agency (USAASA) will consider the targets set in the Broadband policy when allocating funding to various projects.
5.1.4.3 All SOEs in the ICT sector will also be utilised to achieve Governments developmental agenda and to contribute in bridging the digital divide.
5.1.5.1 Private sector The role of the private sector, as included here, does not provide an exhaustive list of functions, but merely seeks to establish the general concept.
5.1.5.2 The private sector will provide both wholesale and retail ECNS and ECS within the regulatory environment / framework as determined by the Authority.
5.1.5.3 The private sector will also be utilised to achieve Government's developmental agenda and to contribute towards bridging the digital divide through their license obligations.
5.1.5.4 The private sector will also, in partnership with implementation of specific developmental initiatives.
5.2.1.1 Broadband I nter-Governmental Implementation Committee A Broadband Inter-Governmental Implementation Committee, incorporating spheres of Government, will be established.