SAPO mooted as STB distributor

The South African Post Office (SAPO) has been mooted as a possible distribution channel to get subsidised set-top boxes (STBs) to poor households.

The suggestion came out of a two-day workshop held last Thursday and Friday, in Midrand. During the discussion, the industry considered the move to digital broadcast, and how best to set up a manufacturing sector that would grow SA's electronics and ICT capabilities.

The proposals put forward by industry will be considered by the Department of Communications as it finalises its “Set-Top Box Manufacturing Development Strategy for SA”, which is expected to be released this month.

Suggestions emanating from the workshop included that SAPO be used as a distribution centre to deliver five million subsidised boxes to SA's poor households. SAPO has more than 2 000 outlets countrywide.

In addition, because of the complicated nature of administrating delivery of the subsidised boxes, it was suggested retailers not be requested to take responsibility for this.

Government has put aside R2.45 billion to subsidise STBs for about five million households. The boxes, which are expected to cost about R700 each, are necessary to enable South Africans to watch television when SA switches over to a digital signal in November 2011. The country is currently in the middle of a dual-illumination period.

Concerns were raised over the amount of empowerment companies must have in order to benefit from the migration, but it was suggested that established firms would be able to assist small and empowered organisations to enter the industry.

The previously published draft strategy suggests established companies must share their intellectual property with the emerging firms to assist them in taking part in SA's digital initiative.

Other suggestions included that small empowered companies be accredited to repair the STBs, and manufacturers should outsource the warranties to these organisations.

Serious concerns were raised that the entire project could be undermined by cheap decoders being imported from countries such as China.

The industry says it is concerned it will invest large amounts to develop the capacity to manufacture the boxes locally, which may be undermined by cheap imports. It called for a form of tariff protection to be put into place.

Deputy communications minister Dina Pule says the department is trying to limit the amount of STBs brought into the country by having standardised operating systems installed. The software will incorporate security features, interoperability, addressability and interconnectability.

“In addition, to facilitating e-government, these features enable disconnection of stolen boxes and reduce the possibility of an influx of boxes not manufactured or approved in SA from flooding the market.

“The South African Bureau of Standards is at final stages to gazette the South African DTT [digital terrestrial TV] standard,” she notes.