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Digital migration still fuzzy

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 23 Oct 2014
A budget allocation for broadcast digital migration has not cleared up jurisdictional issues plaguing the process.
A budget allocation for broadcast digital migration has not cleared up jurisdictional issues plaguing the process.

While finance minister Nhlanhla Nene yesterday announced R620 million has been allocated to support SA's broadcast and digital migration programme, it still does not clarify which ministry is ultimately responsible for driving this project.

Tabling his medium-term budget policy statement before Parliament yesterday, Nene also allocated R551 million to the Universal Services and Access Fund (USAF) to cover the costs of digital migration, and a further R69 million was given to Sentech to cover the dual-illumination costs relating to the migration project.

The R620 million figure appears to be a rollover from the February budget, when it was first mentioned by former finance minister Pravin Gordhan. However, the funding allocation does not point to whether the Department of Communications (DOC) or the Department of Telecommunication Postal Services (DTPS) is ultimately responsible for the project.

This is due to the fact that the former DOC - which was split into the two current entities by president Jacob Zuma in May - has yet to be functionally divided into two departments.

As the DOC and DTPS are still effectively functioning as one, this year's Adjusted Estimates of National Expenditure has seen only one budget allocated - to the DOC. A National Treasury official yesterday explained this is because the split has yet to happen.

The official noted there is an agreement between the two ministries that work done by the DTPS will be invoiced to the DOC, and paid out of its budget. She says budgets are expected to be split in next year's main budget vote, which takes place in February. "They are still functioning as one department."

Up in the air

Industry observers have admitted to being stumped by questions over departmental jurisdiction and whether ultimate responsibility to finalise the project would lie with communications minister Faith Muthambi or telecommunications and postal services minister Siyabonga Cwele.

It is understood the bulk of the former DOC - which is now government's marketing arm - is supposed to reside within the DTPS, while the new DOC has policy oversight on communications, and is also responsible for entities such as the Independent Communications Authority of SA (ICASA) and the South African Broadcasting Corporation (SABC).

While the DTPS is understood to have been tasked with handling infrastructure projects, such as broadband access and digital migration, both ministers have claimed ownership of the latter project, sparking speculation that a turf war has erupted between the two ministries.

Soon after taking office after the May elections, Cwele identified broadcast digital migration as a priority project for his department, warning of dire consequences for the country, should it miss the International Telecommunication Union's June 2015 cut-off date for analogue signal protection.

However, earlier this month, Muthambi's department stated it is "intensely involved in the digital migration policy", following the Presidential Proclamation, gazetted in July 2014, which transferred the Broadcasting Act No 4 [of] 1999 to the newly-established Department of Communications.

A DOC spokesperson stated this "logically transfers the policy formulation responsibilities and any project relating to broadcasting", including broadcast digital migration. "We are finalising details on how to get the migration project on track and we will share those details with industry and the public during the month of October 2014."

Final step

This flies in the face of previous statements made by the DTPS, which gave October as the latest deadline for digital migration to begin. In reality, the digital migration policy has disappeared into the fold of National Cabinet for "final approval", and neither department has been able to comment on its progress. The major holdup is the as yet unresolved issue of set-top box controls, which etv is in favour of, but MultiChoice and the SABC oppose.

Yet, the treasury official says DTPS is responsible for digital television, and Muthambi is only involved because her department has oversight of the embattled SABC.

Meanwhile, aside from the funds allocated to the DOC, Sentech and USAF, SA's move to digital broadcasting could set back the country at least another R1.9 billion in set-top box subsidies. During a recent portfolio committee meeting, Universal Service and Access Agency of SA manager Thabo Makenete said there was a R1.9 billion shortfall that needed to be found to subsidise set-top boxes and installation costs for those earning less than R3 200 a month.

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