It is premature to discuss digital dividend allocation when the prerequisites for the existence of such a dividend are not yet in place.
This was echoed by numerous broadcasters yesterday at the Independent Communications Authority of SA (ICASA) Digital Dividend Workshop, in Sandton.
The authority invited all interested stakeholders to participate in a workshop on the allocation of the digital dividend spectrum.
A large amount of spectrum, known as the digital dividend, will be freed up after the country switches over from analogue broadcast to digital terrestrial television.
According to ICASA, a fair and well-balanced reallocation of the spectrum between broadcasting, broadband and ICT sectors will ensure all South Africans receive the social and economic benefits of the digital dividend.
Speaking at the workshop, M-Net's director of regulatory and legal affairs, Karen Willenberg, said spectrum to the communication age is like coal was to the industrial age.
“Around the world, governments have required broadcasters to move from analogue to digital broadcasting, primarily to ensure the release of spectrum - digital dividend,” she said.
Willenberg stressed that the decision taken about this dividend will have a profound impact on SA's ICT sector for many decades to come.
Therefore, she urged that ICASA - before setting off on the discourse of digital dividend allocation -should first iron out preliminary issues, such as defining, timing and processing if SA is to see progress on the issue.
Timing
“How can we begin to discuss allocation of the dividend when digital broadcasting has not yet commenced?”
She noted that broadcasters are still awaiting the gazetting of the performance period, in the form of dates for dual-illumination. Willenberg added that government is also yet to finalise the issue of subsidising set-top boxes (STB).
“The digital dividend is dependent upon the completion, not start, of the migration to digital broadcasting, which is marked by the switching off of analogue TV. Only when a significant number of SA's 11 million TV households have acquired their set-top boxes can we even begin to contemplate switching off analogue,” she said.
Willenberg noted that Cabinet has set 31 December 2013 as the date for switch off, saying that “the longer we delay switching on digital, the longer we will delay the release of the dividend”.
She also pointed out that there needs to be a proper definition of the digital dividend, before discussing the topic.
“How can we even discuss allocating the digital dividend when we have not defined what the dividend will be?” she asked.
According to the International Telecommunication Union consensus, Willenberg said, 790-862MHz is allocated for mobile broadband services on a shared primary basis at WRC-07, while 470-790MHz still remains exclusively allocated for broadcasting services in region one.
She also explained that there are two aspects of the dividend - dividend one, above 790MHz, for mobile broadband, and dividend two, below 790MHz, for broadcasting.
“In respect of dividend two, ICASA must decide how much spectrum will be reserved to ensure that more South Africans access television services by improving the coverage of the existing DTT platforms.
“It should also decide how much spectrum will be reserved to increase the capacity of broadcasters who are undertaking digital migration.”
How much spectrum?
She also called on the authority to decide on how much spectrum will be available to create new multiplexes, whether for commercial, community or regional TV.
“ICASA should also make up its mind on the amount of spectrum that will be reserved for future innovation on the terrestrial platforms like HDTV, 3DTV and interactive services, among others,” said Willenberg.
Concerning the process of allocating the dividend, said Willenberg: “How can we even allocate the dividend when the current frequency plan does not deal with the digital-to-digital migration which will be required?”
She pointed out that for optimal usage, the digital dividend should consist of contiguous blocks of spectrum.
“But this is not the case; when analogue TV is eventually switched off, it will leave many small vacant blocks of spectrum or interleaved throughout the upper broadcast frequency bands.”
In order to create a meaningful digital dividend, she explained, there needs to be another migration of digital broadcasting services at some sites to create new frequencies below 790MHz in order to produce a large, contiguous block of free spectrum at the top end of the broadcasting services bands.
“This second digital-to-digital migration has not been planned yet by ICASA, and until this frequency plan is done, it is not possible to allocate the digital dividend.”
Enormous challenge
Speaking at the same event, Lara Kantor, etv's group executive for regulatory strategy, concurred with Willenberg, saying allocating the digital dividend will be an “enormous national challenge”.
Kantor said releasing the digital dividend means three out of every four South Africans will need access to a digital terrestrial television (DTT) STB, before analogue transmissions can be switched off.
She believes that the approach to the digital dividend must take into account the need for government to facilitate and fund an efficient migration process.
“Without an efficient and well-funded process, there will be no dividend in the foreseeable future. The considerable costs faced by broadcasters also need to be taken into account,” said Kantor.
On the challenges that the country is facing for launching DTT, Kantor noted that the regulations and frequency plan have been finalised, meaning broadcasters have been able to commence with internal planning for launch.
However, she also lamented that there has been no clarity yet on the launch date or performance period.
“STB specifications are still to be reviewed by SABS. There is no clarity yet on the STB subsidy and how it will roll out. Network is still to be fully upgraded to T2 [second generation terrestrial],” she added.
Kantor also expressed that first there needs to be an agreement on what the digital dividend is.
“Those frequencies available after future broadcasting needs are taken into account and new DTT multiplexes licensed, for example to enable each broadcaster to have its own Mux. There is also need to allow spectrum for future broadcasting technology innovation,” she said.
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