The roll-out of Sentech`s wireless broadband network, to be completed during the 2006/2007 financial year, will be one of government`s three major public infrastructure programmes under the Accelerated and Shared Initiative for SA (ASGI-SA) policy.
This was said during a parliamentary media briefing yesterday by the Economic Cluster of Ministries, which includes the Department of Trade and Industry (DTI), the Department of Public Enterprises, the Department of Communications and the Department of Transport.
Trade and industry minister Mandisi Mpahlwa chaired the briefing, which included representatives from the other departments, except the communications department. The other two major infrastructure projects are the construction of the De Hoop Dam in the Limpopo Province, costing about R4 billion, and the development of the Durban-Gauteng transport corridor.
According to minister Mpahlwa`s presentation, the Department of Communications will head a project to bring down the costs of ICT.
"This project will dovetail with Sentech`s infrastructure project. The project will focus on creating an enabling policy and regulatory environment and remove Telkom`s monopoly in the fixed line network. This will have the effect of reducing telecommunication prices to internationally competitive levels and assist in the achievement of universal service," the presentation`s notes say.
"During 2006/7, the cluster is hoping to achieve the complete roll-out of a wireless broadband network. The roll-out will accelerate the delivery of universal communication access, including providing cost-effective connectivity that supports government e-health and e-education services."
Minister Mpahlwa was unable to give ITWeb a definite amount that has been earmarked by government for the Sentech project, but said: "The number of about R400 million has been floating around. However, I don`t know how definite it is, or if this is just for part or the whole project."
The Electronic Communications Bill (formerly the Convergence Bill) and the ICASA Amendment Bill should be signed into law soon, he added, but could not give any dates.
Mpahlwa confirmed that communications minister Ivy Matsepe-Casaburri will make further announcements concerning the Sentech project, the relevant changes to legislation, and other developments, during March.
BPO a top priority
Business process outsourcing (BPO), particularly the development of call centres, was allocated as part of a major government strategy of creating jobs in the rural areas.
During her briefing, deputy president Phumzile Mlambo-Ngcuka said BPO, along with tourism, is a top priority and immediate implementation will begin in the first half of this year.
The deputy president said through BPO, this country had attracted 5 000 jobs from the rest of the world and that it has the potential to create 100 000 direct and indirect jobs by 2009.
In terms of the broader ASGI-SA economic policy, BPO is seen as one of the key industries that can bridge the gap between the first and second economies.
Challenges facing the local BPO industry that have to be addressed include marketing, skills/training, telecoms costs and regulatory challenges, she said.
"A tailor made incentive environment for BPO is being finalised. Government and business have a joint project, supported by the Business Trust, led by the minister of trade and industry and the chairman of Standard Bank, to remove obstacles and refine incentives to achieve this goal," said Mlambo-Ngcuka.
The Department of Public Enterprises and the Department of Education plan to set up five BPO centres in rural areas, the first of which will be in the Limpopo Province, the notes said.
According to an education department spokesperson, these centres will not be new entities, but will use existing education and training facilities.
"We aim to leverage the broadband network that has been set-up by Eskom and Transtel that is being taken over by the second national operator," said Mlambo-Ngcuka.
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