Govt progresses consultation on National Communication Satellite Strategy

The departments of Communications and Digital Technologies (DCDT) and Science, Technology and Innovation (DSTI), together with their entities, signal distribution company Sentech and the South African National Space Agency (SANSA), have provided an update on the National Communication Satellite Strategy (SatCom), which is aimed at narrowing the digital divide in the country.

The parties estimate that the projected R5.2-billion to be spent on building a satellite is an initial starting point for South Africa’s technological sovereignty in this regard and will address the challenge of many remote and underserved rural areas across South Africa that are not yet connected.

“The strategy will help ensure equitable access to communications for all South Africans thereby improve quality of lives and create economic opportunities especially in communities that have been historically marginalised,” says SANSA CEO Humbulani Mudau.

Other drivers of the strategy include reducing the costs of access and curbing capital outflows and delivering on national priorities of connectivity.

“The amount of money we pay to access services from foreign data providers is exorbitant. Through a local programme to launch an indigenous communication satellite, we can reduce these costs and create more opportunities in terms of jobs and regional connectivity,” he adds.

The costs for a local satellite involve an estimated R4-billion for the satellite launch and R1.2-billion for an operation support system, which, compared with the R1.5-billion that South Africa spends every year to buy satellite communication services, provides a viable economic business case, not to mention the revenue generation opportunities by exporting satellite communication services to other African countries.

South Africa is currently a net consumer of spatial technology and services, which is not a desirable position, rather, South Africa strives to become a net exporter of satellite technology and services, says SANSA chairperson Patrick Ndlovu.

The SatComs strategy has since its inception in 2022 been presented to various stakeholders including the director-generals of the DCDT and DSTI, other government departments and independent experts.

Sentech in 2019 formed a project management office to consolidate and guide all activities leading towards the scoping, development and approval of the National Satelite project, before the SatCom strategy was ultimately launched in 2021.

Notably, a social economic impact assessment system (SEIAS) was conducted on the SatCom strategy document, with the parties having received a sign-off letter from the Presidency on the SEIAS process.

The sign-off letter allows the SatCom steering committee to start a consultation process with the clusters and the public, before tabling the strategy to Cabinet.

Mudau warns that the DCDT still needs to brief Minister Solly Malatsi on the SatCom strategy and receive his inputs before the parties can begin to plan for the clusters’ presentation.

Mudau adds his concern that the DCDT’s internal team responsible for implementation of the project has failed to deliver for many years, which can be a hindrance to move forward on the SatCom strategy approval and a subsequent implementation plan.

Notably, Mudau clarifies that SatCom is a high-level guidance plan, with the parties planning to draft an implementation plan once the strategy has been approved.

Sentech first carried out a feasibility study for acquiring and operating a communication satellite in 2016, with the aim of demonstrating that such a satellite could serve the domestic communications market and provide export opportunities for the South African space industry over its 15- to 20-year lifespan.

SANSA has already strengthened its human resource capacity in its Space Engineering Programme to lead the build, project management and operation of the satellite.

SANSA is of the view that SatCom can provide sovereign capability to the country as required by South Africa’s national defence and security clusters, as well as enhance quality of life for citizens and provide economic transformation opportunities.

SANSA estimates that South Africa spends closer to R100-billion a year on foreign service providers for communications, which clearly demonstrates the net capital outflows and economic loss to South Africa, to which SatCom offers a solution.

Mudau believes following the R5.2-billion of investment required for a local satellite launch and operation system, South Africa can break even on its investment after six to seven years of the satellite’s operation.

The implementation plan, however, will provide a more detailed view on its return on investment and how revenue can be generated by investing in new capabilities.

In providing more context, DCDT information and communication technology infrastructure deputy director-general Tinyiko Ngobeni says many public and private entities use satellite communications which are priced in foreign currency leading to increased capital outflows.

Additionally, existing terrestrial communication infrastructure does not adequately cover remote and underserved areas. There is a significant digital divide between urban and rural areas. A national communication satellite can enhance national security by providing reliable communication channels during emergencies and disasters, he explains.

Ngobeni believes a national communication satellite will improve access to education, healthcare and financial services in remote areas, as well as ensure equitable access to communication services for all South Africans regardless of their location or socioeconomic background.

“The strategic focus is to position the country as a leader in digital transformation through satellite technology.”

Sentech COO Tebogo Leshope emphasises that telecommunications demand continues to grow, especially with more machine-to-machine and machine-to-human communication emerging. “We cannot rely on the same capacity we had in previous years.

“The sooner we take control of infrastructure, the sooner we can control the cost to communicate,” he says.

In terms of the key role-players throughout the SatCom implementation, SANSA and Sentech will be responsible for the upstream activities such as acquisition management, system engineering, satellite specification and design and industry development and localisation.

SANSA and Sentech will also be responsible for some of the midstream activity, alongside the Independent Communications Authority of South Africa, to launch, commission and operate the satellite, managing the spectrum and for signal distribution.

From a downstream perspective, the State Information Technology Agency will be responsible for last-mile IT infrastructure and platforms for e-government services.

There are still, however, uncertainties about South Africa being able to secure an orbital slot and effective spectrum allocation for the satellite, as well as around funding, since funding will have to stem from the fiscus and private sector.

Government will also have to institute a dedicated skills development programme to ensure that the requisite expertise is in place prior to the acquisition of the satellite mission, and work with international partners to plug any potential skills gap where capacity does not exist within the country.

The parties of SatCom will also have to ensure that internal controls are in place to circumvent any abuse of the procurement process.