Presentation by Nirvesh Sooful, Technical Advisor. Presented at the Western Cape Government briefing to ICT industry stakeholders on the Western Cape Broadband Programme (March 2012), President Hotel, Bantry Bay, Cape Town

1. Western Cape Broadband strategy
and plan
Industry Briefing
March 2012

2. Why we are here
“Zille promises 100Mbit/s
broadband for Capetonians”
“Zille reveals ‘game-changing’
plans for Western Cape”
“Broadband boost for Western
Cape”
“Ambitious plans to make W Cape
technology hub”
“Zille’s plan for Cape to ‘go live’”
“Affordable broadband on cards for
rural SA”

3. Economic Development is at the centre of the provincial strategy,
“Economic development is key to addressing the many challenges facing the Province. Strategies
adopted must subscribe to the paradigm that there cannot be development without economic growth”
1. Increasing opportunities for growth and jobs
2. Improving education outcomes
3. Increasing access to safe and efficient transport Cost Efficiency
4. Increasing wellness
5. Increasing safety
6. Developing integrated and sustainable human
settlements Increased Effectiveness &
7. Mainstreaming sustainability and optimising improved Government
resource-use efficiency
8. Increasing social cohesion Service Delivery
9. Reducing poverty
10. Integrated service delivery for maximum impact
11. Increasing opportunities for growth and Economic and Social
development in rural areas Development
12. Building the best-run regional government in
the world

4. Broadband stimulates economic growth
World Bank - in low- and middle-income countries every 10% increase in
broadband penetration accelerates economic growth by 1.38%—more than in
high-income countries.
Similar studies by McKinsey & Company and Booz & Company
The development of an inclusive information society is a key part of our
national growth and development strategy
“However, concern with the
slow pace of South Africa’s
transition to the information
society is growing. South
Africa continues to slide
relatively rapidly down most
global indices relating to ICT
or related information
society issues raising serious
alarm bells about current
approaches and strategies.”

5. Staggering growth in number of Internet
users in the rest of world (1991 – 2010)
There is growing evidence that the diffusion of ICT is seen as an
accelerator of economic growth in a country. The growth and
productivity enhancing effects of well-implemented investments in
ICTs can lead to increased trade and to more and better
employment (OECD).
In the animation, the
redder a country is, the
higher the Internet
penetration is.
White means there is no
data from the World Bank,
or it’s less than 1 Internet
user per 100 people.

6. Context
Last year, the Premier announced that a plan was being formulated
The Western Cape economy is moving from one based principally around
the production and distribution of physical goods to one driven primarily by
the production and application of knowledge.
As such, the Western Cape is currently characterised by many initiatives in
the ICT/ Knowledge economy space.
In many of these initiatives, the presence of a well functioning, robust and
accessible telecommunications infrastructure is a prerequisite.
“A growing economy must connect people through transport and
technology. We have to learn from places like Kenya where an ICT
revolution is driving strong economic growth. To emulate this, we
are developing a telecommunications strategy, based on a fibre
optic network infrastructure that connects government, citizens
and the economy to improve productivity and access to new
markets. The World Bank has calculated that the economy of a
developing country grows by 1.38% for every 10% increase in
broadband penetration. We cannot afford to get left behind.”
Premier Helen Zille, State of the Province Address, 2011.

7. Process Map – a fast-track 12 month programme
Consolidated
Strategic Implementation Strategy & Ratifi-
Project Initiation Implementation
Framework Plan cation
Plan
 Problem statement  30 year strategic  Terms of reference for  Consolidation of all  Preparation of
defined outlook and projection appointment of service findings and cabinet
 Prepare TOR  Vision-statement for the providers recommendations of submission
 Appoint Technical western cape province  Service providers to business cases  Distribution of
Advisor  Identification of short, undertake Business  Key recommendations approved
Key actions
 Develop Draft Position medium and long term case development for unpacked strategy and
Paper interventions prioritised interventions  Stakeholder buy-in and implementation
 Establish Provincial  Prioritisation  Costing and operating support from industry, plan
Steering Committee methodology models municipalities and  Launch of
 Identify stakeholders –  Project definition  Additional research provincial steering strategy
reports for top 6 - 8 where necessary committee
industry, municipalities,
NGOs interventions  Stakeholder
 Establish Industry  Engagements with consultation (ongoing)
Advisory Forum municipalities  Oversight of service
 Stakeholder providers and
consultation (ongoing) researchers
 Draft Position Paper  Strategic framework  Detailed business  Consolidated telecoms  Approved
developed and prioritised projects cases of prioritised infrastructure strategy cabinet
Outputs
 Review of provincial  Cabinet approval of interventions and submission
policies, activities final position paper and  Stakeholder buy-in  Immediate projects  Planning for
 Stakeholder database strategic framework identified for implementation
 Stakeholder  High-level analysis of implementation phase
Consultation interventions
 Steercom TOR
Note: Workstreams will overlap

8. An idea of the Gap
Indicators: South Africa & Africa

9. Strategic Framework
Connected
Government
 INFRASTRUCTURE
 READINESS (SKILLS, APPLICATIONS, ETC)
 USAGE
The vision is that of a
Co-ordinated
and Integrated Western Cape where every
Action (Catalytic citizen in every town and
Telecoms
Environment) village
has access to affordable
Connected Connected high speed broadband
Citizens Economy
infrastructure and services,
has the necessary skills to
be able to effectively utilise
this infrastructure
and is actively utilising this
in their day to day lives.

10. High level Western Cape broadband
infrastructure milestones
Infrastructure development is a key catalyst and that Government’s role has to be to
facilitate and drive the development of telecommunications infrastructure in the
province.
• 70% government buildings & 100% of public schools connected.
• All communities have access to public ICT facilities (in every ward)
2014 • Large government buildings and specific targeted industries in the
metropolitan area are connected via “fibre to the premises”.
• Pilot wireless mesh network deployed in Khayelitsha, Mitchell’s Plain
and Greater Saldanha Bay as alternate last mile access infrastructure.
• Every citizen in every town and village has access to affordable
2020 broadband infrastructure.
• Citizens in the metropolitan area have access to affordable broadband
infrastructure at network speeds in excess of 100Mbps.
National Targets
• Universal broadband access by 2020
• Public ICT Access within a 2 km radius of anyone by 2019
2030
• Every citizen in every town and village has access to affordable
broadband infrastructure in accordance with internationally accepted
speeds and standards.

11. Six core projects
Connected
Government
Connecting Connecting
Government Leadership
Connecting Co-ordinated Connecting
Communities and Integrated
to the World
Action (Catalytic
Telecoms
Environment)
Connected Connected
Citizens Economy
Connecting Connecting
Households Business

12. Connecting Leadership
The objectives of the project are to have integrated and complementary initiatives between
government and the private sector, harnessing limited investment for maximum impact.
Key deliverables include:
• Set up and manage a Broadband Advisory Council/ Leadership forum which will drive the
strategic direction and on-going investment in the broadband environment in the Western Cape.
• Setup and operationalise the Broadband Programme Office to manage and direct the entire
programme ensuring integration and synergy between projects. This includes responsibility for
advocacy and lobbying, securing and managing of funding, commissioning activities needed by
the various projects, monitoring & evaluation, etc.
• Evaluate and setup of an appropriate institutional model
for the long term success of the Western Cape Broadband
Programme (SPV/ PP discussed later).
• Setup and manage a Way-leave Co-ordination Office to
standardise and fast track way leave applications, co-
ordinate infrastructure development projects and
encourage the sharing of passive infrastructure like ducts,
trenches, towers, etc.

13. Connecting Government
2 Core programmes
• Part 1: Building a Provincial backbone (Mainly fibre)
• Part 2: Connect government facilities (via building municipal infrastructure - mainly wireless, tactical
quick wins)
Part 1: Build Provincial backbone
• Phase 0 (Planning & initial setup)
• Phase 1 (District Municipalities – 132 km & 5 POPs) – start in Year 2. 7 months.
• Phase 2 (862 km & 26 POPs – fibre backbone to all LGs) . - Start in Year 2, complete in year 3 (approx.
13 months).
• Phase 3 (1553 km) - Extend communications to other communities and build redundancy. Requires
private sector buy-in and funding contributions
Part 2: Connect Government facilities
• Key Provincial Government buildings to be connected to City
fibre (already underway).
• Connect all schools
• Extend school network footprint to connect all government
building in the vicinity, with the objective of creating a single
government network – reducing cost and facilitating
integration of services to citizens.
• Build links to backbone

14. Synthesis: Conceptual design part #1 – Backbone
component

15. Synthesis: Conceptual design part #2 – Municipal
component
Connectivity to
provincial network
Local Municipality
HQ
Other LM
buildings in Schools, hospitals
same town etc. in same town
LM’s fibre optic
and/or microwave
backbone
Other
Other towns towns
in LM in LM

16. Synthesis: Conceptual design part #1 & part #2

17. Phase 1, 2 and 3 overlaid over PGWC sites
• Medium term (3 – 10 year) Provincial Fibre Backbone
• Phase 1 (District Municipalities – 132 km & 5 POPs) –
start in Year 2. 7 months.
• Phase 2 (862 km & 26 POPs – fibre backbone to all
LGs)
• Phase 3 (1553 km) - Extend communications to other
communities and build redundancy.

18. Connecting Communities
This is a project to integrate and expand shared public access to ICT facilities to all
communities in the Western Cape. Public ICT access facilities (e.g. telecentres, Smart Cape,
Cape Access, etc.) are a very important tool to provide poor people with access to technology.
It is being used extensively in both developing countries and developed countries.
A phased approach will be adopted
• Phase 1 will ensure that there are public ICT facilities in every ward by 2014. There are 388
wards in the Western Cape, 233 (60%) of which do not currently have public ICT facilities.
• Phase 2 will extend the public access footprint to every voting district by 2018. There are
currently 1576 voting districts in the Western Cape.
• Phase 3 will evaluate the situation post-Phase 2,
determine the gap with the national targets at that
stage and put in place a strategy to close the gap.
Across all three phases, sustainability models for the
public access facilities (including entrepreneur driven
models) will be explored.

19. Connecting Households
• Create a wireless mesh networks as a “last mile” open access network connecting all
households in an urban area (Khayelitsha & Mitchells Plein) & a non-urban area (Greater
Saldana)
• Utilise network for government-related initiatives e.g. connecting offices, schools, CCTV
cameras, Public Warning Systems, smart meters, etc. and delivering government services
(e-Government, e-Education, e-Health, etc.)
• Partner with private sector to make access to broadband services more affordable to
recipient communities – must also consider readiness (eg. skills)
• Explore partnerships with the private sector to extend and/ or maintain this network while
ensuring “open access”.
• Deploy over a two year period (services live by Q1 2014
• Seeding the environment with low cost computing
devices
• 10 000 refurbished computers per annum
• Pilot 10 000 other low cost computing devices (targeting
schools)
• E-Waste Centre (in support of the environment)
Medium term goal (by 2020) is that every citizen in every town
and village has access to affordable broadband infrastructure. It
is anticipated that wireless and wireless mesh systems will have
a key role meeting these objectives.

20. Connecting Business
This is a pilot project to develop a model fibre to the premises (fttp) infrastructure in the City
of Cape Town.
Key players in this model will be the City of Cape Town, Western Cape Government, a
broadband operating company (a SPV/PPP between government and the private sector) and
private sector telecommunications service providers.
• Pilot 1: Fringe Precinct
• Pilot 2: Oude Molen (vicinity of planned Cape Health Technologies Park)
• Pilot 3: Khayelitsha business nodes linked to the VPUU programme
• Supporting identified priority sectors

21. Connecting to the World (International connectivity)
• Reduce international bandwidth costs to the Western Cape by using government as a
demand aggregator and an anchor client to obtain dedicated international capacity
• Project viable only taking into account Western Cape Government’s needs and will result in
significantly reducing the cost of international bandwidth.
• Adding CCT needs and the needs of the schools will only strengthen the business case.
• Anticipated to be completed by mid-2013, as it is a key enabler for all of the other projects
• Spare capacity available (if any), will be made available on a cost basis to the targeted
industry sectors/ areas – which should result in these sectors/ areas experiencing a
reduction in the price of international connectivity.
Example : what Tenet achieved

22. Broadband Programme commences with key
task of establishing PMO with capacity to drive
Timeline with significant milestones programme (April 2012). Only interim capacity PMO formally open
at this stage. on 2 July 2012
Various activities needed
before anything else can
happen, tenders, etc.
Phase 1 complete Phase 2 complete
March 2014 end 10/2014
Connecting
Schools starts by
mid 2012 Phase 3 complete
end 2/2016
Phase 4
(municipalities) on-
Schools connected going
by March 2014
Connecting
Fibre backbone to K/ MP – Communities
run by City of Cape Town, completed by Jan 2014
commenced March 2012
Wireless Mesh
Deployment starts in
first quarter of 2013
Wireless Mesh
network live by March
2014
Open Access ISP
(lower cost
international
connectivity by mid
2012

23. Institutional model
• A ringfenced special purpose vehicle (spv) will be needed for the implementation of this
programme.
• This entity will primarily be responsible for utilising Government as a catalyst for the
creation of affordable provincial wide broadband network infrastructure and services by
• Aggregating government infrastructure, complimenting it with private sector infrastructure, and
extending where necessary
• Aggregating Government demand and providing services to Government on an integrated basis.
• Operates as an Open Access Network Service Provider by making the aggregated backbone and
access infrastructure available to private sector on an open access basis. Will act as a wholesaler of:
• Wholesaler of provincial backbone and access network infrastructure.
• Fibre to the premisis as proposed by the “Connecting Business” project.
• Wireless mesh networks proposed by “Connecting Household” and “Connecting Business:. SPV will play role of
Exchange Management operator (ExMO) for the wireless mesh.
• Wholesaler of spare international capacity to targeted industry sector as envisaged in Connecting Business. Will
operate as a wholesale open access ISP.
• This entity will not provide services to private businesses and end users. The entity is
responsible to enable the private sector to provide these services.

24. Business Model
Wholesale Service providers – Government and Private Sector
Other
Municipalities
Etc.
S
R e
e r Purchase/ rent existing
v v
e
Infrastructure & Services
i (where affordable)
n c
u e
e
Western Cape
SPV
Services
Services (open
Municipalities Operating agreement i.e. access basis) Licenced
Aggregated demand, Off take Telcoms Service
agreement & grants Broadband providers
“Royalties” Western Cape Revenue
Other possible partners S
R e
e r
v v
Debt Debt e i
n c
facility service u e
e
Funders Consumers
Commercial Banks
and
DBSA/IDC
Green indicates money flow Businesses
Grey indicates service flow Others

25. Stepped Approach (linked to Funding approach)
“Direct “ Benefit Model<----Policy process maturation------->”Indirect “Benefit Model
---------------------------------------------------Time-------------------------------------------------------
Step 1: Startup activities (Broadband Programme Office)
Set up Broadband Programme Office to get the programme off the ground.
Drive the creation of the Broadband Leadership Council, Start and co-
ordinate initial programmes (Schools connectivity, wireless mesh, connecting
PGWC building, connecting communities, etc.), advocacy , investigate &
setup SPV. Funded by PGWC MTEF funding
Step 2: Migrate to SPV
SPV based on cost replacement business case motivation. Also leverage
EPWP and Municipal Contributions. Funded on the basis of long term
contact from PGWC. Will drive the creation of Provincial Fibre backbone
(Phase 1 & Phase 2)
Step 3: Leveraging Private Sector and social investment
the basis of funding
Incorporate SPV into either a Public Entity or PPP if required. A Transaction
Advisor (TA) must be appointed with Treasury. Private sector commitment
added to the funding mix – increased capital leverage for Phase 3.

26. Conclusion
• Extensive research undertaken indicates programme is viable and cost
effective.
• Leverages future expenses to build economic infrastructure that will take the
province into the future.
• Position the province well for modernization, efficiency and effectiveness of
government.
• However, the true value is in the economic development benefits and how it
increases the competitiveness of the Western Cape, bringing us on par with
our competitors in the developed world, the developing world and the rest
of Africa.
• Big bold project, but one that is necessary at this stage.
• Current approaches are not working. South Africa is rapidly sliding down the
international indices. More of the same is not going to work if South Africa is
to turn the situation around.
• The Western Cape Broadband programme is a true legacy project that will
position the Western Cape for the future, but also light the path ahead for
the rest of South Africa.
Premier Zille - “game-changing infrastructure agenda”

27. Discussion
Contact Details:
Jo-Ann Johnston,
Chief Director: Strategic
Initiatives,
Jo-
ann.johnston@pgwc.gov
.za
Nirvesh Sooful,
Advisor/ Consultant,
nirvesh.sooful@eoh.co.za
Presentation downloadable from
http://www.slideshare.net/nsooful/