Competition in the distribution of broadcasting signals and the building of a national fixed wireless broadband network would, strangely, benefit Sentech, says chairman Quraysh Patel.
“If broadcasters had to self-provision in terms of distributing their signals, they would have to invest money in developing those skills that are in short supply, thereby increasing the pool, and Sentech would benefit from this,” he comments.
Earlier this week, Patel mentioned this fact to Parliament's communications committee. However, the remark seemed to have been overlooked by the politicians who were more concerned about the financial and management irregularities that have been highlighted in Sentech's annual report.
Broadcasting and telecommunications regulator ICASA stated at the end of September that it intends to begin an inquiry into wholesale transmission services for broadcasting.
This inquiry, according to a Government Gazette notice, should begin at the end of October with the circulation of a questionnaire. A discussion document would be published in January 2011, with possible public hearings after that. The findings and conclusions would be published by the end of June next year.
ICASA is empowered to conduct such an inquiry in terms of the regulator's governing law.
There is only one private company, Orbicom, which is wholly-owned by satellite TV broadcaster MultiChoice, and provides limited signal distribution services.
Patel says that should broadcasters decide they want to self-provide transmission services, it would help lessen Sentech's capital expenditure requirements and it would then be able to use the money elsewhere.
“What broadcasters often forget is that every TV aerial in SA is facing towards a Sentech transmission site. If a broadcaster wants to self-provision, they will have to come to us to rent space on our sites; if necessary, pay us to install a transmitter, and, if necessary, pay us to maintain it.”
Patel says that should broadcasters want to self-provision, they would have to employ and train people with the requisite skills, some of which are specialised and therefore in short supply.
He says a significant threat to the national signal network is the shortage of riggers, people who are trained to erect transmission towers and climb them to repair and maintain the transmitters.
Government has long considered Sentech to be a strategic asset and has dismissed any suggestion of privatising it, discouraging competition in the signal distribution sector. So Patel's comments may seem to fly in this face of this.
“The shareholder [government] has passed the Electronic Communications Act, which allows for competition in this arena and so it does want it,” he says.
In terms of the ruling at the ANC's Polokwane conference two years ago, the party stated that Sentech should be tasked with building a national wireless broadband service to rural areas.
Patel, however, wants the private sector to also begin to roll out such networks.
“Currently, the only wireless broadband services are over the cellular 3G networks. There are no fixed wireless broadband services operating. The more choice there is in the market, the more services people will use, and therefore, the cost to communicate will be lowered.”
Patel is adamant Sentech will not re-enter the retail market, but remain wholly focused on a wholesale model.
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