Altech's UEC has come out in support of the National Association of Manufacturers of Electronic Components' (Namec's) call that government should localise spending on set-top boxes.
This comes as no surprise to ICT expert Adrian Schofield, who notes Altech would have to endorse Namec's plea as it is a founding member and must be seen to toe the "party line".
Namec secretary general Adil Nchabeleng has said the association is lobbying to make sure the bulk of the tender to make subsidised set-top boxes is awarded to emerging electronic manufacturers. The Universal Service and Access Agency of SA (USAASA) is evaluating the tender, worth about R4.3 billion, and is set to make its decision towards the end of this month, or early in March.
The association has 67 members that are at various stages of readiness and, because they bid in groups for the tender, most would be able to start producing decoders in about three months from the date of order, Nchabeleng has said. He explained its members have been aligned into cooperatives based on what skills they bring to the value chain so that each venture can offer a comprehensive solution.
Emerging manufacturers only need 10 000 units a year each, and factory space of 50m2 to be viable, said Nchabeleng. He noted, in total, its members could more than meet government's targets, as the combined run rate would be around 10 million units a year, as well as supply several other African countries. However, he could not disclose which manufacturers were Namec members and had bid.
One voice
Some 17 companies bid for the four tenders USAASA issued, which includes satellite decoders, aerials and satellite dishes in addition the set-top boxes. About 10 million homes will need decoders, with about half of these set to be subsidised by the state.
Altech is likely SA's largest decoder manufacturer through its Multimedia entity, which falls under UEC. It has already made more than 24 million decoders and has a 13 500m^2 manufacturing facility in Mount Edgecombe, South Africa, that has a set-top box production capacity for 750 000 boxes a month.
Schofield notes Namec, as an industry body, has to speak with one voice as it has already suffered one split that it seems to have patched up. In September last year, the association went through internal strife over a R51 million set-top box deal inked by its representatives, reportedly with local pay-TV provider MultiChoice and Chinese set-top box manufacturer Skyworth Digital, for the potential supply of 15 million boxes, over the next three years.
That issue saw former chairperson, Keith Thabo, and CEO, Vijay Panday, ousted from the organisation after claims they tried to hijack the deal.
Broader benefit
Altech Multimedia MD Danie du Toit says larger manufacturers such as itself need to work together with government and related stakeholders to ensure a smooth digital migration in order to benefit all South Africans and their communities.
"The imminent rollout of the South African digital migration programme paves the way for the revival of the local electronic manufacturing industry of South Africa which has suffered immensely due to delays in the past," says Du Toit.
"Altech UEC was a founding corporate member of Namec and we fully support Namec's call for more involvement by local electronic manufacturers in the digital migration programme. We have a strong relationship with local manufacturers and we are ready, willing and able to work with Namec members to ensure that the digital migration programme is beneficial to emerging manufacturers.
"The electronic manufacturing business is highly capital-intensive and we will continue to work with emerging manufacturers to assist in skills transfer, assist with capacity requirements and provide kits for assembly in order to support them to develop and grow their capabilities and take part in the digital migration value chain."
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