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Digital dividend to open up market

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 14 Dec 2012
Digital migration paves the way for about 140 standard definition channels instead of the less than 15 currently available.
Digital migration paves the way for about 140 standard definition channels instead of the less than 15 currently available.

The Independent Communications Authority of SA (ICASA) says freeing up the digital dividend, as well as other available higher spectrum frequency, is enough to allow the entrance of another three operators.

South Africa is moving from analogue to digital broadcasting using the DVB-T2 standard, which is more efficient and will free up space - the so-called digital dividend. This space is attractive to operators as it makes it more cost-effective to roll-out broadband in rural areas.

The regulator yesterday finally published the Digital Migration Regulations, making way for the long-awaited digital migration process, and held a briefing on the regulations.

ICASA initially published regulations in 2010, but then withdrew them last October because SA changed its previously-mooted standard, DVB-T, to go with DVB-T2.

The long-awaited decision as to which standard to choose followed a period in which migration stalled because the Department of Communications (DOC), under Siphiwe Nyanda, was considering using the Brazilian version of the Japanese ISDB-T standard.

Migration has been in the offing since about 2006, but several turn-on deadlines have yet to be met. Moving to digital TV allows for more stations and more spectrum.

Wider coverage

ICASA says the digital divide represents spectrum ideally suited to providing telecoms services, including broadband, in rural areas. It notes that many of these areas are not currently covered, partially because it is too costly to roll out using higher frequencies.

In the presentation, ICASA says the digital dividend, as well as other higher frequency spectrum available, is sufficient for three new entrants, a wholesale open access network, and the four incumbents. The DOC should soon make a decision on allocating space in 2.6GHz, which is seen as ideal for long-term evolution.

ICASA adds that migration also means television over broadband will become a practical alternative to broadcasting. Currently, about 85% of the population receive a signal via analogue.

Once migration has been completed, about 85% of South Africans will receive a digital terrestrial signal, while the rest will be covered via satellite. For the first time, all of SA will be covered.

In addition, migration will take SA from under 15 terrestrial channels to a situation in which 140 stations can be offered, extending choice. Incumbent broadcasters will be able to offer more choice, while there will be sufficient spectrum for more new providers to enter the market, and more community stations can be accommodated.

ICASA adds that increased spectrum also paves the way for new pay-television services to launch in the short-term, and new free to air providers in the medium- to long-term. The South African Broadcasting Corporation will receive 85% of the space in the first of two multiplexes, while community stations will benefit from 15%.

In the second multiplex, etv will have 50% capacity, M-Net 40%, and the 10% currently being used by temporary licences will be evenly split between MTN and etv when the temporary licences expire.

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