DStv's Explora decoder, which launched last July, is now being fully made locally as manufacturer Pace seeks to expand its local presence.
The decoder, which is DStv's next-generation PVR decoder, previously came into the country as a semi-knocked down unit to be put together by Vektronix, which was contracted by Pace to build the boxes.
As a result of the move, hundreds of thousands of decoders are now set to be made locally each year.
Pace's regional sales director for Africa, Darren Granger, says the decision to fully produce the boxes in SA was partially to boost its relationship with MultiChoice, DStv's parent company, and also grow its presence in SA.
Granger adds the move reduces time to market, lead times to source material, and cuts down on costs because the import duty is eliminated. Pace can also now react quicker to MultiChoice's needs, he adds.
Pace is looking to grow its current business and is keen to provide decoders to other broadcasters, Granger says. He adds the group hopes to benefit from SA's much delayed move to digital television. Pace, founded in 1982, has more than 2 000 staff globally and turned over $2.5 billion last year.
Pace would consider making boxes for African sales locally if this proved to be competitive, says Granger. He adds the group, which supplies gateways to Telkom, also wants to expand its presence in the telecoms sector.
Creating jobs
Vektronix MD Craig Tyzack notes the company, which recently lost its Samsung contract after the Korean company decided to make its own TVs in Dube TradePort, had some spare capacity, although additional machines were required.
Tyzack notes Pace's move has led to the creation of 25 jobs, taking Vektronix's staff complement to 290. He notes, however, that the company could lose as many as 100 staff early next year when its Samsung work runs out.
Gerdus van Eden, CEO of MultiChoice's Business Technology Department, says as much material as possible is sourced locally, such as plastic, printing and packaging, although the chips are imported as they cannot economically be produced in SA. The boxes are assembled through surface bonding machines, he adds.
Van Eden notes DStv offers two types of decoders: the standard HD, which was recently launched, as well as its PVR offering. Its HD decoders are made locally by Altech UEC.
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