The South African Broadcasting Corporation (SABC) and Sentech are facing a shortfall of about R8 billion for SA's digital migration plan, putting the ambitious 2013 target in jeopardy.
SA is moving to digital terrestrial television (DTT), using the upgraded European DVB-T2 standard, and aims to turn off the outdated analogue signal towards the end of 2013.
However, the process has already experienced several setbacks, including launching digital TV, which was recently pushed out to the third quarter of this year, after initially being mooted for next month.
During a meeting of the Parliamentary Portfolio Committee on Communications this week, regarding DTT, the Department of Communications (DOC) indicated the SABC needs R7.36 billion over the next three years, says Butch Steyn, the Democratic Alliance's deputy shadow minister of communications.
Steyn says although this amount may include other projects, he specifically queried digital migration when questioning minister Dina Pule, who did not indicate that any other schemes were included in the shortfall.
The SABC has, based on the meeting, been allocated R138 million, creating a shortfall of R7.2 billion, says Steyn. He adds that, based on information provided during the meeting, Sentech has a R1.29 billion shortfall.
No signal
According to National Treasury's Budget Review booklet, covering government spending for the next three years, Sentech is expected to invest R1.3 billion over the next three years to move SA into a digital broadcasting era.
A total of R643 million has been set aside for Sentech to provide both analogue and digital signal during migration, notes the review. The SABC will also receive R138 million as part of a total allocation of R478.6 million for a digital playout centre, and to make sure analogue programmes are available in digital format.
Steyn says the funding requirements for migration are “a bit fuzzy”. He points out that the department only spent 67% of its 2010 budget, because of delays in moving to digital TV and that R600 million was rolled over as a result.
This amount should have been ring-fenced by the department for migration, says Steyn. In addition, the SABC has said it will have a R836 million cash flow shortfall if it takes part in the migration project.
Steyn will ask Pule for clarity on exactly what amounts are required for migration and for information on specific projects.
The DOC did not respond to a request for comment, but its presentation to the committee this week indicates it aims to cover 96% of the population by 2013, when SA is set to turn off analogue. Sentech should have provided coverage to 60% by the end of this month. The presentation also indicates the department will engage treasury over funding the national broadcaster. The PowerPoint slideshow does not refer to Sentech.
Delayed dividend
SA is likely to miss the deadline and end up in a dual-illumination period for longer than expected, which will push out the benefits of freeing up spectrum for broadband rollout, says World Wide Worx MD Arthur Goldstuck.
The Independent Communication Authority of SA (ICASA), late last year, issued draft invitations to apply for high-demand spectrum in the 800MHz and 2.6GHz bands. Space in the 800MHz band, which will be freed up after digital migration, can be used to provide broadband in rural areas and aid government to meet its 2010 universal coverage target.
At the time, ICASA said operators could submit proposals for frequency in the digital dividend and may be allocated space, allowing them to plan for when analogue is turned off. However, this month, the regulator put spectrum allocations on hold until an unspecified future date.
Goldstuck says the current situation is the result of the “broken foundation” that was put in place in 2008 when an unrealistic 2011 turnoff deadline was set.
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