Achievement of the Achievement of the Objectives of theObjectives of the
Telecommunications Act Telecommunications Act 103 of 1996103 of 1996
HEALTH INFORMATICS SOUTH AFRICA CONFERENCE
MAFEKING
2nd to 5th MAY 2006
CHOSE CHOEU
Promote The Universal And Affordable Provision Of Telecommunication Services
• Created the Universal Service Agency, to promote, facilitate and monitor the achievement of universal service and access in under-serviced areas, and also manage the Universal Service Fund
• Created and maintained the Universal Service Fund to implement subsidising access by needy persons to telephone services and provision thereof in under-serviced areas
• Licenced operators in various categories to increase the supply of services
Promote The Provision Of A Wide Range Of Telecommunication Services In The Interest Of The
Economic Growth And Development Of The Republic
• Licenced operators who have invested in infrastructure and telecommunications services
• Fixed line– Prepaid and postpaid services– ISDN and ADSL– Wide range of business and domestic products
• Mobile– Prepaid and postpaid services– GSM, GPRS, EDGE, 3G– >95% coverage of populated areas
• Infrastructure– Satellite and cable carriers internationally
Make Progress Towards The Universal Provision Of Telecommunications Services
Mobile operators coverage reaches >95% of population
Phone penetration >50% of population
– Fixed lines - 4 million– Vodacom - >10 million– MTN – 8 million– Cell C – 2.7 million
Licences issued for operators in under-serviced areas (i.e. teledensity below 5%)
Encourage Investment And Innovation In The Telecommunications Industry
Sector contributes 6% to GDP
Investment in telecommunications between 1997 and 2004 exceeds R 53 billion (US$ 9 billion)
Innovations include:– Prepayment vouchers– Wide range of tariff plans– Free “Please call me” SMS– Phone services for people with disabilities– Introduction of 3G– Aesthetic cell masts– Access to cellphone banking
Encourage The Development Of A Competitive And Effective Telecommunications Manufacturing And
Supply Sector
Global market structure restricts ability of small economies to
start up new manufacturing facilities
Local production facilities include:
– SIM cards (Namitech)
– Community Service Telephone units (Psitek/Siemens)
Significant growth in number of WASPs providing content
services and application services
Promote The Development Of Telecommunication Services Which Are Responsive To The Needs Of
Users And Consumers
• Wide range of products and services available• Prepaid vouchers• Free “Please call me” SMS• Speaking phones for people with disabilities• ISDN• ADSL• 3G• Internet accessibility• Public Internet Terminals• Multi Purpose Community Centres• Community Service Telephones
Ensure That, In Relation To The Provision Of Telecommunications Services, The Needs Of Local
Communities And Areas Are Taken Into Account
• Universal service and access policy supported by Universal Service Agency and Universal Service Fund
• Introduction of special licences for operators in Under Serviced Areas
• Placement of 65 telecentres
• Placement of Community Service Telephones (e.g. 36000 installed by Cell C, 24000 by Vodacom)
• Acquisition of computers/networks for under-serviced schools
Ensure That The Needs Of Disabled Persons Are Taken Into Account In The Provision Of
Telecommunication Services
• Speaking phones for blind/partially sighted customers• TTY loopset to assist users of analogue hearing aids• Implementing “specific needs” call centre at Vodacom• Interactive billing facility for blind/partially sighted users• Product and service information available in large print
and on audio tape• Public telephones placed at height accessible from
wheelchair• Wheelchair ramps to access CSTs• SMS-only contracts
Ensure Compliance With Accepted Technical Standards In The Provision And Development Of
Telecommunication Services
• Independent Communications Authority of South Africa
(ICASA) responsible for technical regulation of licenced
operators and compliance with ITU standards
• Standards South Africa (SSA) involved in setting technical
standards in accordance with international practice
• Mobile operators comply with international specifications
(GSM)
Ensure Fair Competition Within The Telecommunications Industry
• Mobile industry characterised by strong competition
– Vodacom, MTN, Cell C
– Confirmed by Yankee Group study
– Rapid and sustained growth
– Real choice for consumers
– Regulator monitors business practices
• Fixed line monopoly terminated in 2005 by licencing of Second National
Operator
• Telkom response to mobile competition with lowered tariffs and flexible
pricing
• Competition Commission role ensures fair play
Promote The Stability Of The Telecommunications Industry
• Institutional framework provides certainty, mandates
regulatory restraint and provides for independent regulator
• Market structure governs who can be licenced and for how
long, sets time frame for liberalisation
• Regulation of market activity encourages competition and
limits intervention
• Spectrum and number allocation assigned fairly
• Fair and reasonable imposition of fees and obligations on
licensees
Encourage Ownership And Control Of Telecommunication Services By Persons From Historically Disadvantaged Groups
• MTN 23.5% BEE ownership
• Telkom special placement of shares
• Vodacom 50% owned by Telkom
• Cell C 25% BEE ownership
• USALs required to be BEE enterprises
• SNO >19% BEE ownership
• Phone shops
• Sentech owned by the State
Protect The Interests Of Telecommunications Users And
Consumers
• ICASA mandate includes consumer protection
• ICASA outreach program to educate consumers
• Recent ICASA investigation into contract periods
Encourage The Development Of Human Resources In The Telecommunications Industry
• Significant investments by vendors and operators in training technical skills
• Programs initiated by Information Systems Electronics & Telecommunications Technologies Sector Education & Training Authority (ISETT SETA) funded by Skills Development Levy (SDL)
• ICT Sector Jobs Summit initiative through the National Economic Development & Labour Council (NEDLAC)
• Reskilling and enterprise development programs implemented by Telkom during rationalisation process
Promote Small, Medium And Micro Enterprises Within The Telecommunications Industry
• Community service telephone franchise operators
• Under serviced area licensees
• Phone shop operators
• Kerbside phone services
• Prepaid voucher sales
• Enterprise development in procurement process
Ensure Efficient Use Of The Radio Frequency Spectrum
• ICASA mandate to manage and licence use of radio spectrum
• 900 and 1800 bands used for mobile telephony
• In accordance with global practices
Promote The Empowerment And Advancement Of Women In The Telecommunications Industry
• ICT Sector Jobs Summit• ICT Sector BEE Charter• USAL conditions• Example: Women as % of Board Directors:
– MTN 23%– Vodacom 8%– Telkom 9%– Sentech 36%
All specifically promote interests of women
All specifically promote interests of women
Roles in the Software Ecosystem
GovernmentEnterprisesSoftware Industry LeadersAcademiaInvestorsLocal and International MarketsEntrepreneurs & LabourOthers including …
– Parents– Mentors & Coaches– Role models
Key Role Players In The LSE
EnablersEnablers
ConsumersConsumersProducersProducers
Core of the Ecosystem•GovernmentGovernment•AcademiaAcademia•InnovatorsInnovators•Entrepreneurs & Entrepreneurs & InvestorsInvestors•Technology VendorsTechnology Vendors•Large EnterprisesLarge Enterprises
Key LSE Indicators In SA
Skills capacity ~ 33,000 prof. devs.
Software consumption ~ R15bn
Govt adoption of ICT’s for e-Gov
Software production ~ R8bn
Software export ~ <R1bn
Venture capital support of software businesses ~ <R600m
Key Innovation & Skills Capacity Indicators In SA
Doing WellQuality of graduatesEducation policy
frameworksResearch Activity Internships and Skills
Development Policies
Needing Attention? # of graduates? Diversity of graduates? Skilled Educators? Attraction to ICT? Investment from Idea
to Incubation
LSE’s Rated & Ranked
Sweden
France
Norway
Israel
Finland
Austria
Ireland
Brazil
Hong KongItaly
New Zealand
China
Hungary
India
Greece
Malaysia
Thailand
Turkey
Bulgaria
Egypt
Japan
United States
United Kingdom
Germany
CanadaAustralia
NetherlandsSwitzerlandDenmark
KoreaBelgium
Spain
Taiwan
Czech Republic
Singapore
South Africa
Russia
Mexico
Poland
Portugal
Romania
Philippines
Saudi Arabia
Indonesia
Vietnam0
2
4
6
8
10
12
14
16
0 2 4 6 8 10 12 14 16
Supply Score
De
ma
nd
Sc
ore
STAGE 1
STAGE 2
STAGE 3
STAGE 4
STAGE 5
STAGE 6STAGE 7
Relative to others within the same tier, countries below the grey bar tend to produce more software
than they consume
Relative to others within the same tier, countries above the grey bar tend to consume more software
than they produce
Key Drivers:Key Drivers:
•Abundance of relevant skills
Abundance of relevant skills
•Innovation – Incubation - Investment
Innovation – Incubation - Investment
•Govt and Private Sector Procurement
Govt and Private Sector Procurement
•Policy’s and Frameworks
Policy’s and Frameworks
•PC Penetration & Internet Access
PC Penetration & Internet Access
•Export Revenues
Export Revenues
• … … attractive to VC’s and R&D ($$$$$)
attractive to VC’s and R&D ($$$$$)
Copyright Microsoft 2006Copyright Microsoft 2006
ResultsResults•Revenue Growth ($$$$$$$$)
Revenue Growth ($$$$$$$$)
•Market GrowthMarket Growth
•ExportsExports
•Leverage Intellect (IP)
Leverage Intellect (IP)
•Focussed Excellence
Focussed Excellence
•Established Reputation
Established Reputation
•Brand & IdentityBrand & Identity
Leverage consulting into productConverting hours into millions
ISVISVCapabilitiesCapabilities- $ Multiplier$ Multiplier
-SustainabilitySustainability-Employment EngineEmployment Engine
InputsInputs•TimeTime
•IntellectIntellect
• $$$$
•Govt & Corp SpendGovt & Corp Spend•InvestorsInvestors•Tech VendorsTech Vendors
How do we address this challenge?
Skills creation
Public-private partnerships
Policy frameworks
Support & Incentives for Entrepreneurs
Incentives for Patent and Production
Encourage creation of software product
Publicise the successes to inspire others
And …..
What is Microsoft doing in Academia?
Project Firefly – “Let your potential shine”
– www.projectfirefly.co.za
– 1500 participants
– 30 departments
– 350 projects
– Winners to India for Imagine Cup Finals
– 5 Competition categories• 70% of departments teach MS technologies
• Research grants and affiliations to MSR
• Faculty days and curriculum material
• Helping more scholars into ICT field
What is Microsoft doing in SA?
Creation of Software Product
– Renewed and Updated Partner Program– ISV Empower
• > 180 Active Registrations• 15 “graduations” to Certified Partner Program
– Revitalised and Improved Partner programme– Local resource for software globalisation– 800 ISV businesses in the country
• more than 80% are on Microsoft technologies
– Working with govt and large enterprise to drive ISV successes
What is Microsoft doing in SA?
Public Private Partnerships– Dept. of Science and Tech & CSIR– Dept. of Education
• Schools, Universities and FET’s– Dept. of Labour
• ISETT SETA– Business Incubators
• Several country-wide– Local and Provincial Govt’s
• JCSE with Partners & City of Johannesburg• Microsoft Innovation Centre for ISV’s in Africa with
partners & City of Durban at SmartXchange• And more to come …
What role can you play?
• Partner with us in this effort
• Educate to empower
• Responsible development
• Responsible procurement