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Manufacturing 'deal' delays digital migration?

Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 22 Sept 2014
The digital migration policy is being adapted to suit certain STB manufacturers and benefit government officials, says a source.
The digital migration policy is being adapted to suit certain STB manufacturers and benefit government officials, says a source.

A source close to government's broadcast digital migration process says there could be more than meets the eye to the latest delays in government's release of a final digital migration policy.

A well-placed source, who cannot be named, said this morning that government is trying to adapt the policy to suit the requirement of certain unspecified entrants into the set-top box (STB) manufacturing sector.

While details of precisely which parts of the policy are being adapted have yet to emerge, the source says it is ultimately part of a bigger deal that would see a number of government officials benefit financially once digital migration is under way and the manufacturing of STBs has started.

The latest delay saw telecommunication and postal services minister Siyabonga Cwele fail to brief Parliament's portfolio committee on the progress of digital migration last Friday - a meeting at which government officials and opposition politicians were hoping to get clarity on the much-delayed digital migration process.

However, the briefing never took place. "The briefing never happened," says Marian Shinn, Democratic Alliance shadow minister of telecommunications and postal services. "We were asked to be patient on the digital migration issue, but I'm not sure how much more patience we can have."

Shinn says the briefing has been rescheduled to sometime in October, but says she is mystified by the latest delay. "We have grave reservations about the whole thing. What are they doing with this policy that it is being repeatedly delayed?"

No explanation

At this stage, the policy is awaiting Cabinet approval so that it can be gazetted and a process of migration to digital broadcasting can be implemented by the Department of Telecommunications and Postal Services (DTPS), the Department of Communications (DOC), or both.

DTPS spokesperson Siya Qoza could this morning not comment on the progress made with regard to the migration policy, saying Cabinet would communicate any progress made.

However, Shinn, as well as several market watchers, are equally mystified by government's silence on the issue, as Cwele had previously announced he would gazette the final version of the digital migration policy at the end of July. However, that deadline was not met and the policy was sent back to Cabinet, with little in the way of explanation. Cwele has promised to announce a switch-on date next month.

Speculation has emerged that the delay was caused by interference from communications minister Faith Muthambi, who was accused of starting a turf war between the DOC and the DTPS. While both departments have denied there is a power struggle between Cwele and Muthambi, no other information has come to light regarding the digital migration policy, or the nature of the delays plaguing it.

At this stage, there is still no clarity about which department - the DOC or the DTPS - is ultimately responsible for driving digital migration. Shinn's attempts to write to president Jacob Zuma and seek clarity have gone unanswered.

Manufacturers in turmoil

Cwele previously stated there is not much time left for SA to complete the switchover and said the country could not afford to miss the June 2015 International Telecommunication Union deadline. However, it almost certain now that - with less than eight months to go - the deadline will not be met.

"As part of the international community, SA's reputation is at stake, and the country would remain backward and not become part of the information society if digital migration does not happen," Cwele said.

Meanwhile, as the source close to the digital migration process says STB manufacturing seems to be the key to the latest delays, a local electronics industry body has found itself split down the middle, as the opposing sides of its senior management accuse each other of acting illegally, and claim to have taken legal action against one another.

The National Association of Manufacturers in Electronic Components (Namec) is embroiled in a dispute over a R51 million set-top box deal inked by its representatives, reportedly with local pay-TV provider MultiChoice and Chinese set-top box manufacturer Skyworth Digital, for the potential supply of 15 million boxes, over the next three years.

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