2010 ICT spend revealed

By Christelle du Toit, ITWeb senior journalist

Johannesburg, 19 Mar 2008

The South African national government is to spend just over R1.5 billion on ICT for the 2010 World Cup. This is significantly less than the R3 billion to R5 billion initially anticipated by the industry. However, this figure could escalate as the event nears.

Yesterday, deputy president Phumzile Mlambo-Ngcuka presented the government's mid-term report on its progress on 2010 preparations since 2004, when SA was awarded the right to host the event.

"We are very satisfied we are on course [with the preparations]," she told the media at the launch of the document.

The report states R1.5 billion is to be spent on physical ICT infrastructure from the Department of Communications' coffers, as well as R71 million on air-travel ICT infrastructure from the Department of Public Works. This excludes spend by the likes of state-owned Sentech and fixed-line incumbent Telkom.

However, this equates to only 5% of the total 2010 state budget and comes in well below market expectations.

The announcement of government's 2010 technology budget was first anticipated in November last year, a deadline that was subsequently shifted to this year, when it was to be revealed in the latest budget speech of finance minister Trevor Manuel. This did not happen.

Some of the key ICT projects related to 2010 include last mile connectivity between stadiums and the national communications backbone, Sentech's provision of digital terrestrial broadcasting in time for the event, Telkom's updating of its national backbone, and the construction of the Uhurunet undersea fibre optic cable.

Telkom will be responsible for general connectivity during the World Cup, while Sentech will provide wireless redundancy.

Sentech has yet to reveal how much it is spending on 2010 preparations. This is true for Telkom also, although it has signed a R225 million sponsorship agreement with Fifa. It is also spending R30 billion on its next-generation network, which will be central to delivery on its 2010 mandate. In addition, 2010 Local Organising Committee (LOC) IT director Zakes Mnisi said last year Telkom would spend "whatever it has to" to make the sporting fixture a success.

As part of government's 2010 preparations, it will set up an international broadcasting centre (IBC), in Johannesburg, where the world's media will file stories.

However, authorities are unclear on whether these projects' costs are still to be added to the R1.5 billion it has budgeted.

Mixed messages

Sports minister Makhenkesi Stofile says ICT spend, as with other 2010 expenses, is "incremental according to plans and needs", but adds he is not aware of any plans that still have to be funded.

Fifa 2010 LOC CEO Danny Jordaan says the R1.5 million reflected commitments to date and agreements such as that for the IBC - which has not been finalised with the city of Johannesburg - and the figure could still rise.

"This is not the end of the road, but this far we [Fifa] are very happy with the progress that is being made. If you compare it to Germany's progress at the same point, SA is doing very well."

General 2010 spend has escalated dramatically since 2004. Initially set at R17 billion, it is now costing government in excess of R30 billion. A large chunk of this escalation is due to increases in construction costs relating to the building of stadiums.

Mlambo-Ngcuka yesterday said she was satisfied most of the budget ballooning was now over, and that government and other stakeholder had "found a rhythm" in terms of meeting each other halfway.