STATEMENT BY COMMUNICATIONS MINISTER, DR IVY MATSEPE-CASABURRI, AT THE GCIS
PARLIAMENTARY MEDIA BRIEFING
CAPE TOWN, THURSDAY 14TH SEPTEMBER 2000

Thanks to GCIS for giving me this opportunity to brief you about this
exciting, fast-changing and dynamic sector. My Ministry is working in an
environment characterised by imperatives which inform the manner in which we
need to pursue our activities. These imperatives amongst others are
globalisation, fast changing technology, connecting Africa to the global
information infrastructure and delivery of services in the most effective
way. These have been discussed at the recent United Nations Millennium
Summit in New York.
Coupled with these is the challenge to create linkages in the context of our
political mandate. That mandate is to improve the quality of life of our
people through the delivery of telecommunications, postal and broadcasting
services.
The other major challenge facing us as a department is finding the best way
of utilising information and communications technologies to connect our
continent into the global information highway. As President Thabo Mbeki has
said in his statement at the UN Millennium Summit: "....we will have to
ensure that the poor play their role not as recipients of largesse and
goodwill, but as co-determinants of what happens to the common universe of
which they are an important part."

At the start of the African Century, we need to utilise information and
communications technologies to lay the foundation for Africa to take its
rightful place in this rapidly globalising world.

The Highway Africa conference in Grahamstown, which I opened this week,
emphasised the need to address the challenges of bridging the digital
divide, especially on the African continent, in focussing on new media and
creating public, private partnerships.

In bridging the digital divide the Ministry has embarked on the following
projects.

Citizens' Post Office
Last Friday I launched the first Citizens Post Office (CPO) in Soshanguve,
in Gauteng . The first of 20 to be rolled out at a cost of R10 million.
One of the key objectives of these CPO's is to enable previously
disadvantaged communities to have access to digital infrastructure as part
of Government's objectives of bridging the digital divide. CPOs are
different to traditional post offices in that they have such facilities as
the Public Information Terminals (PIT), fax machines, photocopying and
Internet.

I am Dot ZA
The launch of Dot ZA was in Thembisa where young people are given access to
the Internet and e-mail.

Community Radio Stations
Digital equipment is being installed by the department to empower them by
giving them access to the airwaves.

Telecentres
By providing access to telephony and computing, the Universal Service Agency
(USA) is empowering historically disadvantaged communities. This provides
people with access to jobs advertised via the Internet and people are in a
position to e-mail their CV's to prospective employers.

Java Planet
In conjunction with Sun Microsystems, the Department of Communications is
establishing Java Planet. This project will train young historically
disadvantaged South Africans in Java programming language.

Web Internet Laboratories
The Department has established 60 web Internet laboratories in tertiary and
secondary schools.

I will now deal with specific issues within the sectors in my portfolio.

TELECOMMUNICATIONS

It is estimated that by 2004 global trade in the form of E-commerce, via the
Internet, will be in the range of US$ 6-7 trillion. It is for this reason
that the Ministry of Communications has embarked on an e-commerce policy
process, which started with the discussion document in July of 1999. This
debate is online and is available at the following address:
www.e-comm-debate.co.za <http://www.e-comm-debate.co.za> Following extensive
stakeholder consultations, a Green Paper on electronic commerce is planned
to be launched in October 2000. We have looked at how various international
organisations such as the International Telecommunications Union (ITU),
World Intellectual Property Organisation (WIPO), World Trade Organisation
(WTO) are dealing with the issue of E-commerce.

Amongst others the draft Green Paper deals with the following issues:
* Security, privacy and confidentiality of personal data;
* Cross border trade via the Internet;
* Consumer protection;
* Digital signatures;
* Intellectual property rights;
* Domain naming;
* Universal Internet access;
* Convergence of electronic media and ICT and publishing;
* Certification;

In addition, electronic commerce is playing an important role in enhancing
the productivity, competitiveness and profitability of business and SMME's.

The other policy area of focus is electronic government - commonly known as
E-Gov. The green paper will address this in order to improve the quality of
service that government is providing.

In the first quarter of 2001, the Ministry intends publishing the White
Paper which will determine the policy framework for E-commerce for South
Africa. The other critical issue that this policy will address is
pornography on the Internet.

In order to facilitate the development of e-government, the department is
engaged in a process of rolling-out Public Information Terminals (PIT) that
will provide electronic addresses to citizens. This PIT received an award
from the World Information Technology Services Association (WITSA) as the
best technology for providing access to the Internet and e-mail by ordinary
people.

TELKOM SA LTD. - INITIAL PUBLIC OFFERING (IPO)
In order to make Telkom SA globally competitive and to become one of the
significant players in the new Internet economy, the government has embarked
on the IPO process. This process is being spearheaded by my Ministry, as a
shareholder, in conjunction with the Ministry of Public Enterprises. The IPO
will facilitate greater diversification of ownership and empowerment in the
telecommunications sector in South Africa. The process of appointing the
global co-ordinator has been initiated and the appointment will be finalised
in the coming months.

3rd MOBILE CELLULAR LICENCE
This matter is before the courts.

NATIONAL PUBLIC EMERGENCY TELEPHONE SERVICE
The establishment of a national public emergency telephone service has been
presented to Cabinet. This is the culmination of a thorough consultation
with stakeholders to develop a single network for emergency communication.
The need for such a service has been highlighted by the recent floods in the
northern region of our country. The service will provide South Africans
with a three-digit telephone number - 911 type service - to reach all
emergency services such as ambulances, fire-fighting and police services to
name but a few.

BLACK ECONOMIC EMPOWERMENT
My Ministry is committed to Black Economic Empowerment and government is
considering the following with regard to the second national operator:
* An equity set-aside for the purposes of black economic
empowerment.
* A set-aside for parastatals (Sentech, Eskom and Transnet).
* The combination of the mobile service together with the
fixed line service in the licensing of competitor(s) to Telkom.

In 1997 government approved a divestiture of 10% of Telkom SA for the
purposes of black economic empowerment.

This 10% stake is broken down as follows:
* the National Empowerment Fund,
* the unions (Communications Workers Union and Alliance of
Telecommunications Unions) and Telkom Staff.
* An empowerment consortia

POSTAL

SOUTH AFRICAN POST OFFICE LIMITED
The SA Post Office is engaged in a process of delivering 3 million postal
addresses to citizens in rural and previously disadvantaged areas. In
meeting these rollout targets the Post Office is set to rollout 900 000
addresses and 200 postal outlets by the end of this financial year.

RESTRUCTURING OF POSTBANK
The objectives of restructuring of the Postbank are as outlined in the
Postal White Paper. The ultimate objective is to provide savings and banking
services to lower income earners, pensioners and rural communities. These
are communities that are considered "unbankable" by conventional commercial
banks. Cabinet approved the appointment of Ernst and Young to assist in the
corporatisation process. This process will be completed by April 2001.
Government is committed to seeing the Postbank becoming a fully-fledged
savings bank.

The appointment of Mr Maanda Manyatshe, by the Minister as chief executive
officer, is an historic event as he is the first black person to be
appointed to this position since the establishment of the Post Office in
South Africa in the 17th Century.

ELECTRONIC MEDIA / BROADCASTING
The process of restructuring of the SABC is underway. In terms of the
Broadcasting Act of 1999, this process will lead to the establishment of
SABC Limited which will be split into commercial and public broadcasting
entities.

AFRICAN RENAISSANCE
South Africa will be convening Africa Telecommunications 2001 with the
theme: "Bridging Africa's Digital Divide." This conference and exhibition
will attract both experts and policy makers from the continent and the
World.

Together with my colleagues in Africa, we are busy addressing the digital
divide through the African Connection project which will connect villages,
clinics and schools of our continent. The secretariat is being housed at
the Development Bank of South Africa (DBSA) and the Ministerial Oversight
Committee, chaired by South Africa, has appointed a CEO for the project.

South Africa was actively involved in the restructuring Pan African
Telecommunications Union (PATU) into a dynamic and effective African
Telecommunications Union (ATU) which we intend to use to galvanise
international support in bridging the digital divide in Africa.

We are also actively playing a role in a number of international
organisations and in particular organisations on the African continent. In
this regard we are involved in the restructuring of Pan African Postal
Union.

Sentech, our signal distributor, has had to reinvent itself. In this
process Sentech has started to play an active role in the African continent.
At the present moment Sentech is active in Ghana, Tanzania, Sudan and will
continue to forge links with other signal distributors on the Continent.

As the only voice from Africa at the World Radio Conference in Istanbul -
South Africa was key to ensuring that the concerns and needs of Africa were
addressed at this conference.

Issued by GCIS on behalf of the Department of Communications