USA STRATEGIC PLAN AND

BUDGET 2005/2006

PRESENTATION TO THE PORTFOLIO COMMITTEE ON

COMMUNICATIONS4 MARCH 2005

The Universal Service Agency, established in accordance with the

Telecommunications Act 103 of 1996.

Telecommunications Act 103 of 1996

Objectives of the Act[a] To promote the universal and affordable provision

of telecommunications service.[c] To make progress towards the universal provision

of telecommunication services.

Chapter VIIEstablishment of the Universal Service Agency.

Chapter VIIIEstablishment of the Universal Service Fund.

• Conduct Research

• Survey and evaluate the extent to which universal service has been achieved

• Make recommendations to Minister in relation to universal access or service

• Advice the Authority on any matter relating to universal service and access

• May appoint expert and other consultants

• Manage the Universal Service Fund

Functions - USA

The Universal Service Fund provide subsidies for:• Assistance of needy persons towards cost of

telecommunication service.• To holders of licences in terms of Chapter V.• To public schools and education and training

institutions.• For the establishment of centres where access can

be obtained to telecommunication services.• For establishment of public information terminals.• To assist small businesses and cooperatives to

acquire and construct infrastructure.• To facilitate the provision of multimedia services

Universal Service Fund

• Strive to promote the goal of universal service

• Encourage and facilitate any scheme to provide universal

access and service

• Foster the adoption and use of new methods of attaining

universal access and service

• Stimulate public awareness of the benefits of

telecommunication service

• The USA shall, after obtaining public participation make

recommendations to enable the Minister to determine what

shall constitute:

• Universal access to telecommunication services.

• Universal provision of telecommunication services.

Functions - USA

Source of Strategic Plan

• Legislation

• State of the Nation Address

• Minister’s Budget Speech

• Parliamentary Debates

• Roadshows & Stakeholders Meetings

• Interactions with ICASA

The Vision

To be the leading organisation in the

strive to promote the goal of

universal service and universal

access to Information and

Communications Technology in

South Africa.

Organisational StructureManagement

• The Chief Executive Officer• Internal Audit• Corporate Secretary• Chief Operations Officer

• The Project Service Division• Knowledge Management Division• Human Resources Division• Regulatory & Corporate Affairs Division• Chief Financial Officer

Project Service Division Kedibone Serero-Chiloane

1.Community Digital Hubs

2.The Telecentres

3.Batho Pele e-Government Gateway

4.Cyberlabs

5.Virtual Private Network

6.Subsidization of USALs

1. Research• Extent to which universal service and universal access has been achieved;• research on definitions and categories of the needy in S.A;• study on affordability of Telecommunications services in S.A; and• To provide the Minister and ICASA with researched information on the

effectiveness of the Telecommunications act as well as the provision of universal service and universal access.

2. Education and Development• Continue to build capacity for ICT utilisation in the under-serviced areas.• Two certified ICT training centres in each Province located in the under-serviced

areas • The ICT trainers to work with the Telecentre Association of South Africa (TASA)

as a vehicle to build capacity for making Telecentres viable and sustainable

3. Content Development• Development of Community websites and e-mail services in the rural nodes.• Payment of subsidy for online education and training content.

Knowledge Management Division Dennis Memela

Human Resources Division Thandi Dibakwane

1. The development and implementation of improved human resource procedures systems and policies;

2. The implementation of performance management and personnel development systems;

3. Implementation of transformation program through restructuring and enhanced HR systems

4. Implementation of a structured remuneration system5. Effective advise on labour related matters6. The attraction and retaining of the appropriate talent

and skills;7. Ensure training and development of staff8. The management of the internship program; and9. To ensure compliance with the employment equity

legislation

Regulatory & Corporate Affairs Division Dr Sam Gulube

1. Support the agency in preparing all legal documentation relating to the granting of subsidies and procurement;

2. Manage the engagement with external legal counsel;

3. Management of relations with various stakeholders;

4. Co-ordinate all legislative and regulatory advisory activities

5. Government, Parliamentary and Community relations

6. Improve corporate image of the Agency; and7. Market the Agency ICT projects in the underserved

area

Chief Financial Officer Division Andries Louw

1. Effective, efficient and transparent systems of financial and risk management and internal control;

2. An appropriate procurement and supply chain management system which is fair, equitable, transparent, competitive and cost-effective;

3. The management, including the safeguarding, of the assets and for the management of the revenue, expenditure and liabilities of the Agency;

4. Insuring the submission of all reports, returns, notices and other information to management and the Board; and

5. Ensure compliance with the provisions of the PFMA and any other legislation applicable to the Agency.

Organisational Structure

The Board of 7 Members:• Board Executive Committee

• The Audit Committee

• The Human Resources Committee

• Operations & Mandate Committee

UnitFilled

VacanciesMale Female

Chief Executive Officer 2 2 -

Project Services Division 4 5 1

Information and Knowledge Management Division

4 1 -

Regulatory and Corporate Affairs Division

1 3 1

Human Resources Division 1 4 -

Chief Financial Officer Division 4 4 1

Total 16 19 3

Organisational Structure

USF Project Budget 2005/2006 Act Total Cost

1 Digital Hubs Phase 1 d 6,000,000

2 Telecentres & Gateway project d 12,470,000

3 TASA capacity building & Training d 860,010

4 Increase Telecentre utilization d 1,135,000

5 VPN Connectivity b 6,204,990

6 Cyberlabs c 8,560,000

7 Websites, e-mail access, educational content - Telecentres b 175,000

8 Websites, e-mail access, educational content - Cyberlabs c 175,000

9 Telecom affordability and categories of the needy in SA Report a 500,000

10 Existing USALs f 35,000,000

13 Holding of National Universal Service Conference & WTD All 1,000,000

14 2004/05 Annual Report (Including AG) All 220,000

15 Monitoring and evaluation report by March 2006 All 1,200,000

16Telecoms penetration in SA Report & Extent of Universal ICT Access in SA Report

All 1,000,000

17 Insurance All 1,000,000

18 Project Management All 500,000

  Total   76,000,000

Summary Opex % Amount

Board 6.7% 1,180,970

CEO 23.9% 4,182,539

Legal Services/ Comms 4.1% 713,079

Finance Unit 30.0% 5,258,656

Corporate Services 10.3% 1,804,593

IKM 5.5% 970,346

Project Services 19.4% 3,389,818

Total 100.0% 17,500,000

USA Budget 2005/2006

THANK YOU