The South African Broadcasting Corporation (SABC) will not clarify its digital terrestrial television strategy and why migration will result in a R836 million cash flow shortfall.
SA is set to turn on digital broadcast in the third quarter of this year after an April launch was postponed earlier this year by recently-appointed communications minister Dina Pule.
Pule indicated that set-top box manufacturers had indicated they would not be ready by April to provide the decoders that about 10 million households would need to receive the new signal.
The old-fashioned analogue broadcast is set to be turned off towards the end of 2013, about 18 months before the International Telecommunications Union stops protecting the signal.
However, the public broadcaster has yet to provide clarity on its digital migration strategy, indicating only that the project is “delayed”.
Fuzzy picture
At the end of February, the public broadcaster said digital migration would lead to a R836 million shortfall. It said it may have to approach government for more funds, in addition to a R1 billion bailout it was granted in 2009.
However, during the Parliament Portfolio Committee on Communication meeting, no further details as to the plans the SABC had in place for migration were provided. Its presentation to the committee indicates its digital migration and multi-channel environment project is “delayed”.
ITWeb asked the broadcaster whether it required more time for a digital strategy and why. Questions were also asked as to why there would be a shortfall and what areas the SABC would be investing in.
Specifically, ITWeb asked the SABC whether it would be ready to turn on digital television in the third quarter of this year.
Spokesman Kaizer Kganyago responded: “We are unable, at this stage as the SABC, to give more information regarding our DTT plans. All the information we are able to disclose publicly is contained in our recent presentation to the Parliament Portfolio Committee on Communication.”
Funding issues
Last September, the SABC said it wanted government to give it R1.6 billion so that it could provide new content as part of SA's migration from analogue broadcast to digital television.
Migrating to digital television will enable it to offer 17 TV channels - including SABC 1, 2 and 3, a 24-hour news channel, a sports offering, 18 radio stations and an interactive video service.
However, the broadcaster said during the committee meeting that digital television was not provided for by government's bailout. Board member Suzanne Vos said digital TV would cost millions to implement and funding migration required a multi-faceted approach, which included the Independent Communications Authority of SA and National Treasury.
The broadcaster is involved in 21 turnaround projects, of which one has been completed, three are on track, four behind schedule and 13 - including the migration project - have been delayed.
In its presentation, the broadcaster said some of the challenges in getting projects off the ground include a lack of funding and issues with implementing the new operating model and organisational structure.
In the year to March 2011, the SABC made a R214 million loss, which was less than the anticipated R228 million. The SABC expects to report a net loss of R92 million by the end of March, R320 million lower than the R228 million in profit it committed to under the government guarantee.
Share