Rollout of broadband in the Western Cape: Department of Premier briefing

Public Accounts (SCOPA) (WCPP)

09 October 2020
Chairperson: Mr L Mvimbi (ANC)
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Meeting Summary

Video: Public Accounts Committee, 9 October 2020, 10:00

The Department of the Premier briefed the Public Accounts Committee on the rollout of the broadband in the Western Cape for 2019/20 financial year. The meeting took place on a virtual platform

The Department indicated the broadband can improve the efficiency, cost and reach of private sector services in areas high of government interest such as health, education and government services. The broadband could be used as a medium to facilitate knowledge transfer, skills development, and improved education outcomes. The broadband has the potential to stimulate economic growth and job creation through gains in productivity and improved information exchange. Access to widespread and affordable broadband can contribute to productivity, economic growth, and social inclusion.

SITA, together with partner LTSA, is rolling out a ten-year broadband programme on behalf of the WCG.

The scope of the programme includes WCG corporate sites, schools, healthcare institutions, libraries, Cape Access Centres as well as satellite administrative offices and depots of the WCG. The network infrastructure can provide access to government clients as well as businesses to better serve citizens.

The first major benefit of this project is to reduce communication costs. Financial cost efficiencies through economies of scale can add national and municipal sites. The second major benefit is that it increases broadband penetration and reduces the digital divide. Infrastructure has reached distant rural areas/sites that are otherwise not commercially feasible to connect. Third major benefit is that it improves service delivery. Greater speeds allow more efficient use of information and applications.

Members remarked the presentation was fairly insightful, a good news story and that the project needed to be amplified. They asked why 198 schools might not be able to access the resource; enquired what the role of the City of Cape Town (COCT) was in this roll-out; wanted to find out if there was a reason for having no generous hotspots for the Deep South area (Simon’s Town and surrounding areas) and asked if it was possible for the Department to authorise a local supplier or office to do the software updates on the MTN tablets donated to one high school in Laingsburg instead of sending someone from Cape Town to Laingsburg. The Committee questioned if the fibre rollout was existing in Prince Albert and the stage in which it is at; the BBBEE status of the project and if it was compliant; and also asked if the Department was satisfied with how SITA was dealing with the BBBEE issues.

The Committee resolved it be provided with the list of schools that have been provided with broadband. It also decided that a document on the roll-up plans of the broadband in the Western Cape be forwarded to the Committee.

 

Meeting report

Briefing by the Department of the Premier

Mr Evan Alexander, Chief Director for the Centre of Innovation, Western Cape Department of the Premier, informed the committee the Western Cape has a 20% overall penetration of internet amongst rural households. 86% of the schools in the province have been provided with broadband connectivity.

He reported the broadband can improve the efficiency, cost and reach of private sector services in areas of high government interest such as health, education and government services. The broadband could be used as a medium to facilitate knowledge transfer, skills development, and improved education outcomes. The broadband has the potential to stimulate economic growth and job creation through gains in productivity and improved information exchange. Access to widespread and affordable broadband can contribute to productivity, economic growth, and social inclusion.

SITA, together with partner LTSA, is rolling out a ten-year broadband programme on behalf of the WCG.

The scope of the programme includes WCG corporate sites, schools, healthcare institutions, libraries, Cape Access Centres as well as satellite administrative offices and depots of the WCG. The network infrastructure can provide access to government clients as well as businesses to better serve its citizens.

The added value of the broadband is to reduce the cost of communication. Financial cost efficiencies through economies of scale (WCG connectivity and VOIP; SITA) can add national and municipal sites.  The service provider is able to on-sell spare broadband capacity and other services to businesses and citizens. The other added value is that it increases broadband penetration and reducing the digital divide. Infrastructure has reached distant rural areas/sites that are otherwise not commercially feasible to connect. It catalyses the development of regional and local backbone networks, enabling opportunities for more citizens to be connected, and has enabled the rollout of public Wi-Fi hotspots.

Further, the value add improves service delivery. Greater speeds allow more efficient use of information and applications. It underpins the transformation to a digital work place: digital government strategies / e-visions; health applications; e-learning; cloud integration; remote working. The broadband is the foundation for the WCED’s entire e-learning initiative.

Mr Alexander also reported that a total of 1 911 sites have been connected to the broadband. 192 133 new users were recorded during August 2020, bringing the total users since start of project to 1.88m. During August 2020, approximately 189TB of data was consumed. Using current data prices of R100 per GB, this equates to R19m we saved our citizens during the month. That is an average of 1104MB per user.

(Graphs and tables were shown to illustrate wi-fi project usage overview, wi-fi project sites, status of sites connected to the broadband, broadband objectives, state of SA rural connectivity in the provinces, and rural household internet penetration)

Discussion

Mr D America (DA) remarked the presentation was fairly insightful, good news story. The journey has not yet been completed. Our people are already benefiting and that needed to be amplified. He wanted to know to what extent the SMMEs were benefiting from this infrastructure project. He wanted to establish if there was collaboration with the private sector. He asked why 198 schools might not be able to access the resource. He enquired what the role of the City of Cape Town (COCT) was in this roll-out. He wanted to find out if there was a reason for having no generous hotspots for the Deep South area (Simon’s Town and surrounding areas). Lastly, he wanted to understand who the owner of the infrastructure was, and what the duration was for the allocation of the infrastructure.

Mr Alexander explained that 1 280 schools were connected. 251 connections would also be made available. He said they connect to any existing infrastructure in the schools, and if it is not there, no connection is done. He said they have received a list of schools from the WCED that needed connection. Feasibility in some of the schools has been overlooked, but that does not mean in all of them. Regarding collaboration with COCT, he stated they have started to make use of the City’s broadband infrastructure, especially in hospitals. It is the backup link to the primary broadband connection. He pointed out the COCT has a free public wi-fi service and as the Premier’s Office they try to see where to complement and support the COCT to avoid duplications. Concerning the Deep South, he stated they were planning to deploy two wi-fi hotspots in the area, particularly in the Simon’s Town High School and museum. He admitted there no many sites in the area. With regard to ownership and duration of infrastructure allocation, he indicated the Premier’s Office does not own it, but is owned by Liquid Telecom. Sita is the implementing agent, and they were not sure for how long this rollout was going to be completed.

Ms D Baartman (DA) thanked the Department for the connections it has done in primary and high schools. She wanted to know if it was possible for the Department to authorise a local supplier or office to do the software updates on the MTN tablets donated to one high school in Laingsburg instead of sending someone from Cape Town to Laingsburg. Most of the software in these tablets has been found to need an update.  She wanted to know if the fibre rollout existed in Prince Albert and the stage in which it is at.

Mr Alexander stated the rollout in some rural areas has been slow. It all depends on how Liquid Telecom does its things and costs so that this works for it as well. By September 2022 they would have achieved a high speed service because already they are trying to move fibre in these rural areas.

Mr Harry Malila, Director-General, Western Cape Department of Premier, explained his Department had visited the access centre at Prince Albert and engaged with its staff about possible rollout of fibre to the broader community, including Oudtshoorn.  This was something the Department would look at in terms of drawing from local capacity because the issue has been raised many times by the affected communities.

Ms L Maseko (DA) commented that around 2015 there were 925 connected sites for schools, libraries and clinics. During 2019, a high school in Robertson had no access to connectivity and children had to go to the local library to get connectivity. She wanted to know what was being implemented currently in order to address the matter.

Mr Alexander explained as the Department they only account for what they have rolled out. The WCED has a school network infrastructure to ensure the broadband is expanded to many users – learners and teachers - because internet usage in schools was appearing to be high.

Mr M Xego (EFF) remarked this was a beautiful project, but the challenge remained in rural areas like Laingsburg and Kannaland. He asked to be updated on the work that was being done along the N2. He wanted to know the BBBEE status of the project and if it was compliant. He also asked if the Department was satisfied with how SITA was dealing with the BBBEE issues.

Mr Alexander reported the fibre installation project on the N2 was being handled by Liquid Telecom and is divided into sections. The Department tries to work with municipalities to find out what they need in terms of infrastructure to meet the challenges.

Mr Malila explained the Department was buying a service via SITA, which is doing all the contracting. Fortunately, SITA is a government unit/entity which is expected to check all procurement procedures. The whole matter is between SITA and Liquid Telecom.

Premier Alan Winde added that Liquid Telecom is a Level 3 BEE company and its information can be googled.

Ms D Nkondlo (ANC) wanted to know the level of spread especially in non-metro areas and schools and what the strength of the broadband in public areas.

Mr Alexander stated the wi-fi service is provided to sites where it is possible to have a wi-fi.

Nomination of Members to serve on the Association of Public Accounts Committee (APAC)

The procedural officer took Members through the procedure that has to be followed in nominating the two Members to serve on APAC nationally.

Ms Maseko and Ms Baartman were nominated.

The Committee supported the nomination

Committee minutes dated 18 September 2020

The procedural officer took the Members through the document, page-by-page.

The minutes were adopted with minor amendments.

Matters arising

The procedural officer indicated he has prepared the procedural advice with regard to Covid 19 Ad Hoc Committee expenditure and oversight on the municipalities of the Western Cape.

Members suggested the document be circulated to all Members.

Resolutions

The Committee resolved it be provided with the list of schools that have been provided with broadband. It also decided that a document on the roll-up plans of the broadband in the Western Cape be forwarded to the Committee.

The meeting was adjourned.

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