As SA's digital migration process shows signs of progress following the announcement that registration for households to receive free set-top boxes (STBs) will begin on Friday, attention has shifted back to the manufacturers that will produce these devices.
Last month, the Department of Communications (DOC) confirmed it had placed an order with the Universal Service and Access Agency of SA (USAASA) for 1.5 million STBs. This order forms part of government's plans to subsidise five million poor TV-owning households by providing free STBs.
The DOC also noted the Square Kilometre Array area of Kai Garib Municipality in the Northern Cape will be the first to migrate from analogue to digital, and 16 000 STBs will be distributed in the area.
However, a step that should be viewed as positive for digital migration and the manufacturing of STBs has left some manufacturers confused.
USAASA CEO Zami Nkosi confirmed that CZ Electronics, BUA Africa and Leratadima are the only manufacturers so far that have been allocated a purchase order for STBs.
Muzi Makhaye, CEO of ABT Africa, says his company was awarded the tender but has not been allocated to produce STBs.
"We have not been allocated," says Makhaye. "I don't know what this means."
USAASA awarded the R4.3 billion tender to manufacture STBs to 26 companies, and ABT Africa is one of those chosen to fulfil a tender to produce STBs and associated equipment.
Makhaye says, so far, there has been no clarity as to whether the three allocated manufacturers will be producing all the 1.5 million STBs ordered by the DOC.
"I hope USAASA will allocate a purchase order to all the bidders awarded the tender. If not, it means not everybody is a winner like they said when all companies were awarded the tender."
He adds: "I'm happy manufacturers have been allocated because it shows a step in the right direction for SA's digital migration process, but I hope this does not mean we are being left out."
Makhaye also indicates his company responded to USAASA's requirements, which included a tax clearance certificate, BEE certificate and for its STBs to be tested.
Earlier this month, Nkosi was unclear about the allocation of manufacturers contracted to produce the first order of STBs, but said: "Only SABS-certified companies at the time of ordering (were allocated). There is an internal allocation model guided by section 217 of the Constitution.
"Maybe one day USAASA will send us an order, but we wish this could be quick. ABT is really desperate for work," notes Makhaye.
Battle with DA
The Democratic Alliance (DA) has questioned the legitimacy of manufacturer BUA Africa's participation in the tender process, claiming it was not one of the 26 South African companies awarded the manufacturing tender.
According to the DA, BUA Africa is not a proudly South African company and has a Chinese backer. The DA says it uncovered a press release from Chinese telecommunications giant Shenzhen Skyworth Digital Technology stating it had through "its factory in Johannesburg - co-owned by local company BUA Africa - successfully completed its first shipment, delivering a total of 70 000 STBs across South Africa".
The DA has filed a Public Access to Information Act application for the details of the manufacturers selected to produce the STBs.
However, in a statement, USAASA refuted claims of misconduct with regards to the selection of BUA Africa Investments as one of the STB manufacturers. USAASA says it has undertaken the procurement of STBs in line with the National Treasury instruction note.
Left hanging
CZ Electronics is one of the companies that was awarded the tender and also allocated for the current production of STBs.
It manufactures about 120 000 electronic modules per month, ranging from prepaid electricity meters, to cellphones and vehicle tracking equipment.
Rob Bruggeman, CZ Electronics COO, says USAASA still needs to provide the company with the number of STBs it will need to manufacture.
"The start of manufacturing STBs is a major benefit for all South Africans as the frequencies can be made available to the cellular networks."
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