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R1.9bn reprioritised for digital migration

Simnikiwe Mzekandaba
By Simnikiwe Mzekandaba
Johannesburg, 26 Feb 2020
Minister Stella Ndabeni Abrahams’s ministry is mandated to enable SA’s digital transformation agenda.
Minister Stella Ndabeni Abrahams’s ministry is mandated to enable SA’s digital transformation agenda.

Budget 2020: The Department of Communications and Digital Technologies (DCDT) will devote considerable attention to the implementation of its policies, including the SA Connect broadband policy.

This was revealed in the Estimates of National Expenditure (ENE) document, which highlights plans and projected spending in national government over the medium-term expenditure framework period.

In the ENE document, the DCDT says it will focus on rolling out SA Connect, implementing digital migration and submitting new Bills to Parliament, over the medium-term.

“The department will continue to provide broadband connectivity to government buildings over the medium-term by implementing the digital development pillar of the South Africa Connect broadband policy.

“By 2022/23, a targeted 970 government buildings will be connected in the pilot phase, resulting in projected expenditure of R739 million over the medium-term in the ICT infrastructure development and support programme.

“The business case for the second phase, which aims to connect government buildings throughout the country, will be developed over the medium-term.”

SA Connect is government’s ambitious national broadband policy that was adopted in 2013; however, full implementation has been characterised by years-long delays and uncoordinated initiatives.

Government is also looking to the project to meet the technology goals of the National Development Plan (NDP). As part of the NDP, government has undertaken to connect its offices across the country, starting in the rural areas, to ensure South Africans have access to the most modern communication tools and services.

It aims to deliver widespread broadband access to 90% of the country's population by 2020, and 100% with the next phase of implementation.

Migration budget

Treasury’s review document highlights that R1.9 billion is reprioritised to subsidise devices that allow analogue televisions to receive digital signals for 2.8 million low-income households.

This, notes the document, will help to unlock spectrum for high-speed Internet.

The South African government has committed to supply digital migration resources to households that depend on social grants and those with an income of less than R3 200.

In the ENE document, the DCDT indicates the new implementation model of digital migration over the medium-term includes the provision of vouchers to indigent households for devices that will allow analogue televisions to receive digital signals, and compensation to the South African Post Office for the costs of administering the voucher and distribution systems.

“To subsidise the provision of these vouchers, R1.6 billion over the medium-term is allocated to the Universal Services Access Fund, and R275 million is allocated to the Universal Service and Access Agency of SA to compensate the post office for the administration of the project.

“A further R100 million is allocated to Sentech in 2021/22 for dual illumination, which will allow the entity to operate both analogue and digital signals until digital migration is fully implemented.

“As a result, spending in the Broadcasting Digital Migration sub-programme in the ICT infrastructure development and support programme is expected to increase from R312.8 million in 2019/20 to R1.4 billion in 2021/22,” reads the document.