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Digital TV finally moves ahead

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 19 Dec 2014
Tenders for decoders for subsidised set-top boxes close on 6 January.
Tenders for decoders for subsidised set-top boxes close on 6 January.

The state has snuck out four tender documents around digital television and set-top boxes, but the impasse around controls - which has held up migration for years - has yet to be resolved.

Late last month, the Universal Service and Access Agency of SA (USAASA) put out requests for proposals for the supply of set-top boxes for both satellite and terrestrial coverage, as well as for satellite dishes and terrestrial antennas. The boxes are needed to convert the new signal for viewing on older TVs.

USAASA falls under the Department of Communications (DOC) which - led by minister Faith Muthambi - has successfully sought to take control of a process that has stalled several times. Industry observers mostly concur that SA will not meet the mid-2015 deadline for when the International Telecommunications Union stops protecting analogue signal.

Long awaited

Migration stalled at the end of 2012 after the South Gauteng High Court ruled against then minister Dina Pule's decision to have set-top box controls - which facilitate two-way communications - handled by Sentech.

This court case derailed the initial set-top box tender, which was initially issued in mid-2012 and - after delays - set to be awarded at the end of last year. However, it could not be finalised because there was no agreement around conditional access.

Last year, Carrim decreed that subsidised set-top boxes would have a built-in control system, but that broadcasters could choose whether to implement the system on their side. However, the matter failed to be resolved, as several parties took up positions on opposite sides of the fence.

No resolution

USAASA's tender shows the impasse is continuing, even though a resolution - contained in the Broadcast Migration Policy - has been with Cabinet for sign off for several months now. The tender document for terrestrial decoders calls for prices for boxes with, and without, conditional access.

Earlier this month, a presidential proclamation cemented the DOC as the ministry in charge of the digital migration, a move that followed a statement by Muthambi that said she was dealing with the issue of controls. "At this point, I have conducted significant consultations and I have also taken into account the developments that led to the impasse and the stagnation. I am close to reaching finality, which I will be able to announce after consultation with Cabinet. I have prioritised that this matter is served on Cabinet before year-end."

The agency's tender also requires that those who wish to bid are in a position to make boxes that have at least 30% local content. This was an issue at a briefing held earlier this month, where those who attended said there was a lack of capacity to develop local content on PC boards, according to a clarification document issued by USASSA.

As a result, says USASSA, bidders must indicate how much local content can be provided, and where this will have to be supplemented by imports. A source close to the project tells ITWeb that the satellite direct-to-home box tender does not specify controls, but this will be a requirement anyway as it is standard in satellite boxes.

Government subsidies

The tender issued by USASSA covers the boxes that will be subsidised by the state. USASSA has proposed STB subsidies that range from 66% for no-income households, to 15% for those earning up to R2 499 a month. In areas needing satellite transmission, the subsidy ranges from 77% for no-or-low income households, to 29% for those with an income up to R3 200 a month.

Subsidies will apply only to valid TV licence-holders, including concessionary TV licence-holders, and on proof of ownership of an operational TV set, South African citizenship and household income or dependency on social grants, USAASA said at the time.

The state has set aside some R2.45 billion for subsidies, although this figure seems likely to increase as it will also cover 70% of the cost of aerials. Sentech has covered just more than 80% of SA with terrestrial signal, with the balance to be filled in via satellite.

Some progress

ICT veteran Adrian Schofield notes the issue of the tenders indicates that, finally, something resembling progress has been made. However, he questions how long it will take for the tender to be awarded and then delivered and installed in the five million homes that will receive grants.

Schofield also notes that the tenders were released "without so much as a little toot of the trumpet". However, the briefing held earlier this month attracted attendance from 145 companies, among which were known names like Atron TMT and Reunert - companies that are already geared up to produce decoders.

Other hopefuls such as the National Association of Manufacturers in Electronic Components, which has been embroiled in a legal battle, EOH units and other relatively unknown companies also attended.

The cut off for submission of tenders was set to be today, but this has been extended to 6 January. As boxes will take some six months from award to roll off production lines, Schofield says there is no way SA will meet the migration deadline, despite government's previous assurances.

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