Sentech: briefing; Postal Services Amendment Bill: adoption

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Communications and Digital Technologies

03 September 2003
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Meeting report

COMMUNICATIONS PORTFOLIO COMMITTEE
3 September 2003
SENTECH: BRIEFING; POSTAL SERVICES AMENDMENT BILL: ADOPTION
 


Chairperson:

Documents handed out:

Postal Services Amendment Bill [B40-03]
Sentech Presentation

SUMMARY
Sentech briefed the Committee on the status of multimedia and carrier of carrier licences. It addressed the way forward for multimedia communications and services, presenting digital technology as an affordable manner in which to address the infrastructural problems which impact on communications and life in general within South Africa. As a conclusion, it demonstrated to the Committee its new VSAT technology which, if utilised, would have immensely positive implications for health, education, and communications.

The Postal Services Amendment Bill was adopted.

MINUTES
Postal Services Amendment Bill: voting
The Bill was approved, with the DA opposing the whole Bill. The Chairperson suggested that, due to National Assembly's loaded programme, the Bill should not be debated in the House.

Ms D Smuts (DA) felt that, as a matter of principle, when laws were being passed, they should be discussed, especially where there was opposition to parts of the Bill. Such a discussion would serve as a "report-back" both to the House who would vote on it, and to the public.

Mr Pieterse (ANC) stated that at the last meeting, all parties had seemed to be in agreement with the amendments. The DA's current opposition was something new. He cautioned the members that debates should not be held for their own sake.

Mr Maziya (ANC) said he was surprised that Ms Smuts wished there to be debate on the amendments. He could see no point in discussing the Bill, other than if members wanted to discuss matters apart from the amendments.

Mr V Gore (DA) stated that the members have a duty as legislators to report back to their constituencies. The DA felt that it was important for the public to hear what was happening in postal services.

Mr A Maziya (ANC) proposed that the Chairperson make a ruling on the matter.

The Chairperson said that, since the public would not be informed of anything new, he would not recommend debate on the Bill. However, if any parties remained opposed, they were free to approach the Programme Committee, where they are represented.

Sentech's briefing on its licences
The team from Sentech were:
Mr Gladwin Marumo, Chief Operating Officer
Mr Johan Raath, Group Executive: Business Development
Mr Dingane Dube, Manager: Legal & Regulatory Services
Mr Matime Nchabeleng, and Government Relations Manager: Corporate Affairs
Mr Jeremiah Sikhosana, Manager: Chief Operating Officer's office

Mr G Marumo said that Sentech wished to inform the Committee where they stood with regard to their multimedia licence. The team wished also to demonstrate to the Committee the new VSAT technology which the organisation had deployed.

Sentech's vision is to provide world-class communication services combined with excellence in customer satisfaction.

Sentech supports the objectives of NEPAD to build infrastructure, and in so doing, to grow Africa. Africa is under-developed today, because of past slavery and injustice, which caused Africa to miss the industrial revolution. The ICT revolution is one that Africans need to "catch". Nations like Malaysia, India, and South Korea, have demonstrated what could be done when people grab hold of opportunities, and run with them. The NEPAD imperative of building Africa through establishing infrastructure is therefore extremely important. For this reason, it was vital to address the matter of teledensity (the measure of which individuals have access to telecommunications). He informed the Committee that Africa has the lowest teledensity level in the world. Each year, the gap between Africa and developing countries widens, and should this trend continue, Africa would face another wave of colonialisation.

It is imperative to Africa's future to grow universal access, to ensure affordability of services, and bridge the digital divide. At the same time, it was also important to maintain a focus on South African realities:
(1) South Africans are faced with some of the most expensive telephone tariffs in the world. This is in spite of the fact that South Africa also has some of the lowest tariffs in the world, with respect to energy.
(2) There are still people today who have never made a telephone call.
(3) Verbal communication is extremely important, as the literacy rate is still high.
(4) Internet access is minimal.

Mr Marumo noted some of Sentech's achievements in multimedia and communications:
(1) They provide broadband communication facilities anywhere in Southern Africa.
(2) These facilities enable the provision of internet connectivity, both in urban and rural areas.
(3) Through internet connectivity, they are able to link schools in a tele-education network.
(4) The facility also offers the opportunity for telemedicine solutions, where radiological breakthroughs are being implemented.
(5) They have become the communications driver for community telecentres, of which the Siyabonga Telecentre at Orange Farm is an example.

Sentech will build and provide access to one hundred telecentres in the current financial year.

Mr Marumo reported that Sentech has proven digital technology to be cheaper for the broadcaster than the present analogue system. Digital technology offers true interactivity, and makes it possible to convey data services other than television into the home. It is possible to run digital technology off of South Africa's infrastructure, meaning that the country will not have to rely on foreign satellite services, which is extremely costly. He noted the dangers posed by utilising the services of foreign satellites, since that could place confidential information in the hands of outsiders, thereby threatening national sovereignty. With respect to broadcasting, it was important that South Africa control its resources completely. A terrestrial digital infrastructure would ensure that.

Mr Marumo informed the Committee that a much cheaper decoder, which can be locally manufactured, was now available, at about R500 per unit. The Committee could discuss incentives for those entrepreneurs who wanted to manufacture these decoders. Export opportunities would also exist.

He noted that there was "no spectrum" to licence more national services. The only answer for the country was to digitise, and so free up the spectrum, allowing more competition in broadcasting. In terms of licensing, Sentech is able to manipulate images, and transfer data. The limitations on licensing do not permit them to do pure, switched voice. He emphasised that voice is the most important communication tool that exists.

At this stage, Mr Johan Raath addressed the Committee on Sentech's new VSAT (Very Small Aperture Terminal) technology. VSAT enables internet access, networking, intranet, broadband connectivity, and more. The system works via satellite, with small dishes at customer centres connected to computer terminals, local area networks, and so forth.

The Sentech delegation was to launch this service to the corporate sector in Cape Town that afternoon.

Discussion
Ms Smuts had no doubt that South Africans would be eager to buy the new decoders at R500 per unit, even if they were poor. She asked what parliamentarians could do to advance the manufacture of cheaper decoders in South Africa. Such decoders would make digital terrestrial television and radio possible, and would "transform every household". She asked if Mr Marumo had argued in favour of digital technology, or in favour of building a South African satellite.

Mr Marumo responded that Sentech required assistance, especially from the Department of Trade and Industry, and from National Treasury, to attract investment for the manufacture of the decoder. He clarified that he was not speaking in favour of building a South African satellite, but rather, he was speaking in favour of digital technology.

Mr Gore thanked Sentech for the presentation. He congratulated Sentech on the new VSAT technology, saying it would have huge implications for the delivery of services to rural areas. He asked, with regard to the quality of service to the user, if it would be broadband. He added that it was very encouraging that Sentech was considering entering into voice communication. He asked if the quality of service would equal cellular, GSM or PSTN networks.

Mr Marumo agreed that it was important to use particular technologies to address particular problems. He reported that the service was IP-based, fully redundant and broadband. The quality of service compares well with other applications.

Mr Pieterse (ANC) said that, at the moment, ESKOM's services are relatively cheap. However, if ESKOM's services were to be privatised, he wondered if prices would continue to remain as cheap. Although people often argue against state-owned enterprises, it is exactly those enterprises which manage to keep prices reasonably low. He added that it was dangerous to make statements about Telkom's charges for services, when they were not around to defend themselves.

Mr Pieterse referred to the problem in rural areas, where people are unable to access certain SABC channels. Those people who can afford it, access these channels via DStV. He questioned the practice of reaching into other African countries, when people in South Africa are prevented from receiving basic services. He felt that proportionally, people pay more in rural areas for services, than in urban areas.

Ms Newhoudt-Druchen (ANC) asked, with special regard to keeping telephone lines open for the operation of telecentres, if anything was being done to reduce telephone costs, so as to prevent telephone lines from being cut.

Mr Marumo said it was not Sentech's intention to speak badly of another company. However, it was difficult to speak of the successes and failures of telecommunications in South Africa, without mentioning telephone services, and Telkom is the only telecommunications service provider in the country. When Sentech mentioned the high prices of telecommunications, they refer automatically to the situation in which a monopoly is held by Telkom. Because there is no competition, prices are high.

Having been to the Orange Farm telecentre, Ms Vos (IFP) noted that whenever it rained, the power went out. Could solar power be used to get around the problem? She also asked if it was possible to legislate the sharing of technology, so that one decoder could be used for various applications.

Mr Marumo responded that Sentech supports an open standard for decoders, along with MultiChoice. However, the encryption systems differ, since encryption codes are there for security reasons, and are company specific. Sentech feels that Government should move quickly on legislating the standardisation of decoders.

He continued that it was clearly necessary to have standby generators in the event of power failures. However, ESKOM is considering the possibility of using solar power, and other sources, for energy.

Mr Mulder (FF) asked if hospitals and education centres must make licence applications for VSAT frequencies.

Mr Marumo responded that the onus for making licence applications would not be upon hospitals, but upon the operator, which in this case would be Sentech itself.

Ms Vos asked the Deputy Director-General (DDG) to respond on her question concerning the sharing of technology.

The DDG, Mr Joe Mjwara, commented that the Department was engaged in discussions with other government departments, particularly the Department of Trade and Industry, about multimedia deployment in the country. The Department of Communications was at an advanced stage in producing a support package, to focus on the digitisation of studios, and the establishment of digital centres, which would disseminate mulitmedia services. A programme to manufacture decoders in South Africa would receive substantial support from Government, both at a tax and at an incentive level.

On the inter-operability of the handsets, the DDG said that the government would consider standardisation. They would encourage the industry to discuss the matter, in order to find agreement on the standards which they would share. Legislation will provide the framework within which standardisation will take place. Encryption issues will be addressed, so that one card could decrypt the codes of more than one application. Legislation will encourage inter-operability, so that one decoder can supply a variety of services.

Ms Vos asked if the DDG was considering including all these considerations in the Convergence Bill.

Mr Mjwara replied that the Convergence Bill would provide an opportunity to address the issues. Later on, it might be necessary to have a re-look at the broadcasting laws, and how the issues would be more effectively dealt with. The foundations of the licensing of digital technology will appear in the Convergence Bill. More specific issues will be dealt with in further legislation.

Ms Morutua (ANC) was impressed by Sentech's report on telemedicine. Had the new radiology technology been introduced into all hospitals? She also asked if it had been a deliberate move to have Sentech situated in Honeydew, which was quite inaccessible to school children and others who were interested, to visit.

Mr Marumo said it would be good if all hospitals could be supported by the new radiology technology. Sentech has engaged the Department of Health about this. Public hospitals will have to decide how they will use the infrastructure.

Mr Marumo explained that the location of Sentech was a national key issue. In the past, Sentech had been a target of Umkhonto we Sizwe, and for that reason it was highly protected. At the same time, as much as Sentech tries to ensure that radiation limits are within proposed standards, they prefer to be situated far from communities, where they might pose a danger.

Mr Gore asked for an update on progress on the multimedia and carrier of carrier licences.

Mr Marumo stated that Sentech was taking off with the multimedia licence in earnest. With each passing month, more products will be made available on VSAT. In a few months, more technology will be announced, which will be introduced into homes.

On the issue of carrier of carriers, he reported that Sentech is already carrying MTN. In a few weeks, they will be carrying Vodacom, and they have just signed with Cell C. They have found that it can take up to twelve months to sign an agreement with an operator. Sentech has experienced problems with the definition of a "public operator", since ICASA has excluded Sentech from this definition. They have since taken the regulator to court over the matter, as the exclusion from the definition had slowed down their output.

Sentech's new VSAT technology was then demonstrated to the Committee in their special utility vehicle outside the building, after which the meeting was adjourned.

 

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