ICASA sets DTT rules

By Candice Jones, ITWeb online telecoms editor

Johannesburg, 03 Apr 2009

Broadcasters and network implementers will find small comfort in the marginal change in coverage deadlines set out in the new digital terrestrial migration (DTT) regulations.

The Independent Communications Authority of SA (ICASA) published its digital terrestrial television regulations in the latest government Gazette. It stipulates that implementers with electronic communications network services (ECNS) licences will need to have covered 50% of SA by the end of 2009; have 60% coverage by the end of 2010; and show at least 95% reception by the analogue switch-off date in 2011.

Hearings held at the end of last year had the broadcasters concerned that the expected deadlines were overly ambitious. At the time, the authority had stipulated digital networks needed to cover 100% of the country by 2011.

The new coverage expectations show marginal changes, and network builders, like Sentech and Orbicom, may feel the pressure. Orbicom noted last year that to expect carriers to have implemented 100% coverage in three years was unrealistic, especially since the analogue network of the SABC had not made that kind of penetration in its entire lifetime.

Reports indicate that SABC1 has 89% coverage, SABC2 has 92.5% and SABC3 only reached 82.1% of the local population.

Sentech, the second carrier expected to roll out digital networks, will also not be pleased. It has had a troubled start to DTT migration, complaining bitterly of a lack of government funding. The government-owned company reported in its last financials that it was committed to providing 40% coverage by the end of this financial period - 20% below the regulatory mark.

Incentivised?

While the timeframe compromise is small, the authority has taken other complaints to heart. The regulations speak of an incentive programme, a concept the broadcasters fought for during last year's hearings.

The details of the incentive are not listed in the regulatory framework and ICASA's spokesman was not available for comment at the time of publication. However, it indicates that an additional channel may well be made available to broadcasters that are participating in the dual-illumination and trial periods.

The three broadcasters participating in the trial period, last year explained that converting from analogue to digital and running over both would be a costly exercise. Essentially, the likes of etv, M-Net and SABC will have to broadcast the same channel twice for three years, once in analogue and again in digital.

The broadcasters' concern was that advertisers are unlikely to pay for the same broadcast spot twice, limiting the advertising revenue the broadcasters can bring in over the next three years.

Neither M-Net, nor etv, are subsidised in the way the public broadcaster is. However, government has allocated funding for the national broadcaster, SABC, to complete its migration, with costs for infrastructure reaching R700 million.

Five objectives

According to ICASA, the regulations have five main objectives, including time frames for the roll-out of DTT, accessibility, provision of a procedural framework for usage of multiplexes, and the creation of competition in the space.

Essentially, the three trial participants have been assigned a multiplex each, with some space left over for additional entrants into the market after the full switch to digital TV. Smaller players will be disgruntled that they are not being given a chance to participate in the trials or dual-illumination.

However, the number of new entrants has dwindled since ICASA issued licences two years ago. Etv gave up its pay-TV channel claims in favour of running a 24-hour news channel on DSTV.

Pitted winner Telkom Media has been hamstrung by its majority shareholder, Telkom, which is planning to liquidate the business. Walking on Water and On Digital Media have not made the splash that consumers had hoped for.

Full details of the regulations can be found on the authority's Web site. The authority is calling for public comment on the new draft, which should be submitted to ICASA by the end of this month.