Speech by the Deputy Minister of the Department of Telecommunications and Postal Services, Honourable Prof. Hlengiwe Mkhize
During The GovTech Conference
At Gallagher Estate, Midrand
31 October 2016

Theme – “Universal Access”

Introduction
Thank you programme director for the opportunity given to partake in this valuable session which talks to “Universal Access”. This is an important session for us as government because we are constantly working towards ensuring that our services reach even the poorest of the poor as we advance towards building an inclusive information society.
Broadband networks, or more specifically, the services and applications they support are increasingly critical for economic growth and global competitiveness and a better life. While these networks are rolled out and technologies evolve there is a need to ensure that universal service regimes are reviewed so that they continue to fulfill their role.
As you are all aware, the notion of universal service and access was introduced in the then telecommunications sector as a means to guarantee affordable access to a minimum set of pre-determined services for all in order to prevent digital exclusion and to maximise socio-economic benefits.

The economic and social objectives that served as the original foundation for universal service remain valid today but acquire a new dimension with the expansion of high capacity networks and the evolution of social needs.
Although access to ICT services has improved significantly, particularly in terms of access to voice services, South Africa remains a deeply unequal society. This is evidenced by the latest available data from the General Household Survey (GHS, 2015) of Statistics South Africa. These statistics indicate that inequalities exist in access to ICT services, including the Internet according to income, education, age, race, gender and geographic location.

Younger people are more likely to have access to ICT services. More significant differences are found with respect to income, whereby the higher the income the more likely an individual is to have access to ICT services. Additionally, the higher qualified the individual, the more likely that the person will have access to ICT services. People that live in more urban communities have significantly more opportunities to access ICT infrastructure and services than people that live in rural areas.

Challenges in Implementing Universal Access
In trying to increase access to telecommunications services in rural and low‐income areas we often find ourselves facing different challenges. According to the World Bank, these challenges can be differentiated into two different groups: those related to the costs and investments implied in reaching and serving low‐income and rural areas (supply‐based), and those related to the characteristics of the population in these areas (demand‐based).
High investment and operation costs make operations in rural and low‐income areas unattractive for private operators. Serving these areas would be unprofitable, unless provided with alternatives that could reduce overall costs of providing service.

For example, new technologies that can allow operators provide telecommunications services for lower costs could expand network reach and increase service availability in rural and low‐income areas.
On the other hand, the inherent characteristics of the demand from population in rural and low‐income areas might also become obstacles for service delivery in these areas. The perception seems to be that rural areas are charecterised by low purchasing power, low usage, and seasonal income which will reduce the expected revenues that operators could realize. These obstacles can be overcome by finding alternative ways to increase revenues for operators. For example, government transfers for every new connection in rural and low‐income areas could create enough incentive for operators.

The WorldBank defines three pillars which are critical in addressing Universal Access challenges, and these are: Affordability, Accessibility and Availability.

New Unuversal Service Access Framework As Articulated In The White Paper
Through the National Integrated ICT Policy White Paper, we have put an overarching framework to achieve universal service and access to communications platforms, services, applications and content. If ICTs are to contribute to the goals of the NDP of eliminating poverty and reducing inequity, the policy framework we have articulated in the White Paper must be implemented at great speed. In a digital society, universal access to communications services is not just a tool to address inequality across society but also a precondition for equality.

Universal access and service has been at the centre of policy and regulation since the dawn of democracy. We have, in the past three years, reviewed the policies, strategies and regulatory interventions that we have put in place in the past 22 years to ensure universal service and access, such as universal service obligations, the Universal Service Fund, the e-rate regime and the Universal Service and Access Agency of South Africa (USAASA).

The review indicated a number of fundamental challenges in respect of universal service and access. These include the following:

 The digital divide still persists, there remains an unequal access to ICT services based on income, race, gender, educational attainment and geographic location;
 The focus of the universal service and access framework is that it has not adapted sufficiently to the convergence and technological changes;
 There is a persistent funding gap, as evidenced by the low-scale disbursement of the Universal Service and Access Fund;
 Institutional overlaps in respect of roles and responsibilities between the Ministry and Department, USAASA and the regulator;
 And more importantly, the support focused largely on supply side interventions.

Going forward we have taken a deliberate view that there needs to be a paradigm shift in the manner in which government, together with all role players should play to ensure that everyone, regardless of who they are, where they live or their social or economic standing, can benefit from the opportunities offered by ICTs.
In this regard, the new policy framework that we articulate in the White Paper must impact these five key areas: ensure that there is wide availability of networks and coverage. These include approaches to ensuring open access, the implementation of the rapid deployment policy as well as the spectrum policy. These interventions will, inter alia, ensure that there is network coverage of rural and remote areas of the country.

We also outline strategies on ensuring affordable access to public interest content and digital and mobile public services. Affordability means the ability to pay for access to infrastructure, networks, devices and services. The interventions in this regard, include the application of the g-rate and putting in place provisions on limiting the costs of data and zero-rating access to key digital and mobile public information online.

Government is also addressing the issues of universal access in which we extend the mandate of the postal outlets and define the role they can play in extending access and providing digital assistance programmes. The postal network remains one of the most extensive infrastructure networks with vast distribution capacity and therefore lends itself as a strategic platform through which citizens and businesses can access general ICT services.

Building trust in the use of ICTs remains the cornerstone of the new policy framework on universal service and access. When we engage with stakeholders across the breadth and length of our country, one of the key issues that citizens raise is that they are not online because of lack of trust, interest, understanding and time. In this regard, we will focus on implementing sustainable awareness programmes that are designed to creating awareness of what is available and increasing interest in the use the Internet.

Digital literacy programmes forms part of the policy framework on universal service and access. Concerted effort must be put on ensuring the ability of different groups of people in our society to not only access services and acquire information and data but also to use the information and data to enhance the quality of their lives.

Institutional Reforms To Support The Implementation Of The New Uas Policy
Perhaps more significantly, the new policy framework on universal service and access addresses the institutional framework that will broaden the scope, scale and impact of this policy. In this regard, the current USAASA and USAF will be evolved into the Digital Development Fund (DDF). The DDF will be a stand-alone funding agency to support universal service and access. This is in line with Government’s commitment to streamline roles and responsibilities of different entities to increase efficiency and public value for public resources.

The unique value proposition for the DDF is that it will provide support for both infrastructure and demand stimulation projects and programmes. These will include programmes relating to digital literacy and awareness, and will be funded through private sector levies, donor funding and state funding.

The focus of the Fund will also include extension of infrastructure, subsidies for end user and equipment subsidies to support access to a range of converged ICT application and services for designated groups such as persons with disabilities, youth and women; and support for innovative use by SMMSs of ICTs to improve productivity and competitiveness.

I thank you.