Question NW3503 to the Minister of Communications and Digital Technologies

Reply:

In January 2022, Cabinet approved the implementation of SA Connect Phase 2 revised model. The revised model comprises:

• Community and household connectivity.
• Connectivity to government facilities.
• Universal Service Obligations to connect amongst others: schools and health facilities.

Broadband Infraco (BBI) and SENTECH will extend their networks and onboard Internet Service Providers (ISPs) to deploy Wi-Fi hotspots and enable household coverage. SITA will provide and maintain connectivity to government sites through the current process of tasking. The telcos, under the ICASA High Demand Spectrum social obligations, will connect schools, hospitals, clinics, libraries and tribal authority sites.

a) Allocated Budget

• (i) An amount of R3 billion was allocated over 2 financial years (2023/2024 – R1.1 billion and 2024/2025 – R1.9 billion). In light of the cost containment measures, the National Treasury has imposed a 15% budget cut on the year 1 budget allocation, reducing the year 1 budget from R1.1bn to R935 million effectively reducing the overall budget from R3bn to R2 835bn. This budget is split amongst the entities as follows:
  • Broadband Infraco has been allocated R1.36 billion to build and operate the core telecommunications network infrastructure for the SA Connect programme.
  • Sentech has been allocated R566 million to build the access network.
  • SITA has been allocated R576 million to provide network equipment and Customer Premises Equipment (CPE) for government facilities.
  • The balance of the funds is allocated to pay BBI and SITA for the maintenance of Phase 1 connectivity to schools, health facilities and government offices.
• (ii) The budget to connect schools and health facilities through the universal service obligations will be allocated by Telcos, that received the spectrum through the auction.

b) Expenditure

1. An amount of R359-million has been spent on the maintenance of Phase 1 connectivity to government, schools and health facilities by BBI and SITA.
2. The department has disbursed R167.4-million to the core network implementing agent (BBI) thus far. BBI has commenced the procurement process to enable implementation and has committed R163-million for aggregation IP equipment, core IP equipment, IP equipment installation, core network management services, resource costs, and the balance remaining in the bank (to be utilised by end of November) is R3.4 million.
3. The department has disbursed R172.5-million to the access network implementing agent (Sentech) thus far. Sentech has commenced the procurement process required to commence with the implementation and has committed R163-million for the proof of concept, access infrastructure, edge infrastructure, billing engine, very small aperture terminal (VSAT) services and the balance remaining (to be utilised by end of December) is R9.5-million.
4. SITA is finalising the implementation plan and engaging the respective national and provincial government departments regarding their requirements to upgrade their services and associated customer premises equipment. The approved implementation plan will enable the department to disburse funds to SITA. SITA has not spent the allocated funds.

c) Developments regarding the building of a national broadband network to connect government departments, hospitals and schools:

1. BBI has completed the design to extend and upgrade the existing network by almost 1144 km of fibre routes and 20 Points of Presence to aggregate SA Connect data traffic for the planned 32 055 Community Wi-Fi hotspots and household coverage over the next 36 months.
2. Sentech has completed the design for the access network consisting of 840 base stations and 1600 VSATs to be used in challenging or mountainous terrain.
3. SITA has commenced the upgrade of the core network and procurement of CPEs to accommodate the increased requirements for upgraded government facilities. To date over 5000 government facilities have been upgraded in Eastern Cape, North West, Mpumalanga, Gauteng, and Western Cape provinces. Further upgrades of the network will be implemented pursuant to the finalisation of the implementation plan.

Thank You.