Chapter 4 of AfriMAP's 2010 Public Broadcasting in Africa (SA County Report)  traces the process and impact of the migration from analogue to digital broadcasting in South Africa. The Report is prepared by Libby Lloyd, Jane Duncan, Jeanette Minnie and Hendrik Bussiek. 

 

 

4. Digital migration

1 Policy

2 Signal distribution

3 Impact on broadcasters

4 Impact on consumers

5 Convergence

6 Competition and the broadcasting environment

7 Conclusions and recommendations

 

 

DIGITAL MIGRATION

The International Telecommunications Union (ITU), a United Nations agency tasked with co-ordinating global telecommunications and services, has set a deadline of 17 June 2015 for broadcasters in Europe, Africa, Middle East and the Islamic Republic of Iran to migrate to digital television broadcasting technology, for both transmission and reception. Deadlines for the digitalisation of radio have not yet been determined.

 

The ITU sees the digitalisation of broadcasting as a means of establishing a more equitable, just and people-centred information society, leapfrogging “existing technologies to connect the unconnected in underserved and remote communities and close the digital divide”.

 

The switch-over from analogue to digital broadcasting will expand the potential for a greater convergence of services, with digital terrestrial broadcasting supporting mobile reception of video, internet and multimedia data. Digitalisation of television is seen as a means of enhancing the viewer’s experience by permitting more channels through greater spectrum efficiency, better quality through wide-screen, high definition pictures and surround sound, and interactive services. It also allows for innovations such as handheld TV broadcasting devices (Digital Video Broadcasting – Handheld, or DVB-H), and will mean greater bandwidth for telecommunication services.

1. Policy

The South African policy for migrating from analogue to digital broadcasting has gone through an extended gestation period. The process got off to a good start in 2005 when the Minister of Communications announced the establishment of a Digital Migration Working Group (DMWG) including representatives of the broadcasting sector, government, the regulator, organised labour and civil society. The group finalised recommendations to government in November 2006. Apart from detailed proposals on the migration process and future digital policy environment the recommendations emphasised that it was essential for government to work together with all stakeholders (including broadcasters, signal distributors and consumer groups) to ensure an effective and successful switch-over. 

Government seemed to move relatively quickly after delivery of the report:

• In February 2007 Cabinet announced that the digital television signal would be switched on in November 2008 and the analogue signal switched off in November 2011 – allowing for a three-year period of dual illumination. According to the Cabinet statement:

(T)he meeting approved the retention of sufficient frequency spectrum for broadcasting purposes to provide for new television channels for specialised services that would be dedicated to education, health, and youth, small to medium enterprises, sports; and three regional service channels that would cater for three channels each.

• The Department of Communications issued a Draft Digital Migration Strategy and proposed an Implementation Plan (draft policy) for public comment in March 2007.

 

• About two weeks later, however, the Department distanced itself from the proposals. In a statement, the then-Director General of the Department, Lyndall Shope-Mafole, said that the strategies and plans distributed for public comment were “not representative of the views of the Department and therefore the Minister”.

 

• At the release of the draft strategy/policy, the Department of Communications stated that a final strategy would be gazetted in May 2007. Despite repeated promises by a range of government leaders (including the President, the Ministers of Trade and Industry and Communications as well as public officials) that a policy would be finalised “shortly”, a broad policy statement (with no clear implementation plan) was only released in August 2008 - more than a year after the initially proposed date. The following plans for digital broadcasting were approved: The digital terrestrial television signal will be switched on on 1 November 2008 and the analogue signal will be switched off three years later on 1 November 2011. The first deadline was met.  

A relatively short dual illumination period (when both digital and analogue television services will be available) is in line with proposals by the Digital Migration Working Group. Although the signal distributor Sentech stated just before the dual illumination period started that it was ready to start transmitting a digital signal in some parts of the country, there are, for example, no set top boxes in place yet to enable viewing of the transmissions for the large majority of those without satellite decoders. It is therefore unclear if it will be feasible to stick to the 2011 switch-off date. 

• Over the three-year dual illumination period there will be a phased increase in digital coverage. Initially the digital television signal will be available only in major urban centres or, given their population density, to about 50 per cent of the population. Government has suggested that there will be 80 per cent population coverage by 2010 (when the FIFA Soccer World Cup is held in South Africa) and has pledged that “all households should be enabled to receive a digital signal” when analogue transmission is switched off in 2011. 

 

All existing free-to-air and terrestrial subscription broadcasters will be accommodated on the digital network during the dual illumination period. In a Parliamentary presentation in June 2008, the Department of Communications stated that two national digital networks would be used for these existing broadcasters. 

 

It is unclear - as suggested in the Draft Digital Migration Strategy - whether one of these will be reserved for the public broadcaster. The draft strategy suggested that at least initially, the SABC would be allocated five channels, e.tv two channels and M-Net three. The final policy was however vague and stated that “two national multiplexes” would be reserved for public and commercial television during the transition period. The DMWG recommended that no new broadcasters be licensed during this period. Existing broadcasters bear the costs of migration and they argued that introduction of additional competition would be unsustainable. 

 

• The Digital Policy stated that “about eight” standard definition channels will be created for each single frequency currently allocated to analogue television. At the time, though, it was unclear how many of these channels would be reserved for existing broadcasters.

 

• Whilst no time frames have been announced for the switch-on of the digital radio signal (Digital Audio Broadcasts or DAB), government has indicated that the analogue signal will not be switched off. 

Proposed implementation plans as suggested at the launch of the draft strategy in May 2007 are meanwhile also lagging behind – though the Department of Communications and the Minister initially seemed to be pressing ahead.

The Minister announced in her May 2007 budget speech the establishment of an agency to oversee the digital migration process – called the Digital Dzonga (South), as well as the appointment of SABC head of regulatory affairs, Lara Kantor, as the chairperson of the board of the agency. This is in line with recommendations made by the DMWG which suggest that government establish an “organisation to co-ordinate and monitor the roll-out of digital broadcasting ….”  

It was only a year later in her next budget speech in May 2008, however, that the Minister named the other ten Digital Dzonga board members (including representatives from the broadcasters, signal distributors, consumer bodies and unions). The Dzonga was moreover only formally established with the launch of the Digital Policy in August 2008. The policy states that the Digital Dzonga will be responsible for consumer awareness and education, liaison with the regulator and monitoring of implementation.

The regulator, the Independent Communications Authority of South Africa (ICASA), released its regulations for the digital migration process only in July 2009. In a departure from previous policy indications, three multiplexes of eight channels each were established. This approach of allocating channel capacities to broadcasters rather than single frequencies is meant to encourage more efficient use of the spectrum. The first multiplex was assigned to the SABC, with 10 percent having been set aside for Trinity Broadcasting Network. Sixty per cent of the second multiplex was allocated to e.tv, while fifty per cent of the third multiplex was given to M-Net. 

There was no clarity about community television in the regulations other than with regard to the Trinity Broadcasting Network, which sent out worrying signals for the future of the sector. The regulations also put paid to the hope that radio broadcasting would be allowed on the multiplexes. This exclusion not just represents a missed opportunity to address SABC radio’s language coverage problems, but generally reduces the potential for television sets to serve as radio devices. At the same time it is likely that many of the television channels on the multiplex will lie dormant due to the expense of launching a new channel.

Another source of considerable debate was the extent to which the regulations protected public interest values, such as media diversity and local content. The multiplex assigned to the SABC would be subject to a public value test, which meant that the authorisation of public channels should involve a public process. According to Media Monitoring Africa (MMA), the concept of media diversity was not adequately catered for in the regulations, as only the public service channels of the SABC were meant to comply: a requirement the MMA contested on the grounds that all broadcasters should comply with the public value test. Also, ICASA had the discretion and not the obligation to pursue a public process. New conditionalities on digital services – such as conditions in which a receiver can be cut off – were also not spelt out. 

Soon after the release of the regulations, ICASA was also criticised by the industry for having released flawed regulations. A consortium of companies under the umbrella of the National African Federated Chamber of Commerce (NAFCOC) and e.tv filed court papers against ICASA to force the regulator to withdraw the regulations. The NAFCOC consortium claimed that they stifled competition in the pay-tv market as it allowed the incumbent M-Net to retain its monopoly. The consortium claimed that it was therefore prevented from applying for a licence. E.tv was unhappy with the regulations because they required the station to use the services of Sentech, which could charge what it liked as ICASA had entrenched its monopoly status. E.tv also raised concerns about the prohibitively high fine that broadcasters would have to pay if they failed to comply with certain digital migration timelines.

ICASA buckled under pressure in September 2009, withdrew the regulations and reissued them for public comment. By November 2009 ICASA had just held public hearings on its revised regulations. In terms of the new regulations, reference is no longer made to eight channels to each multiplex: recognising the fact that some channels may use less capacity than others and that there might thus be space for more channels. The latest draft also takes into account the need for a balance between public and commercial channels, stating that ‘the SABC shall maintain a ratio of not less than three public service channels to one commercial channel’. The media lobby group Save Our SABC (SOS) Coalition, though, expressed unhappiness about the fact that ICASA had allocated further public commercial channels to the SABC, given that the split between public channels and public commercial channels had proved to be unworkable and their purpose was no longer clear. 

Another area of concern is that the public value test seems to have been abandoned altogether for digital incentive public broadcast channels – channels that are not used for the migration of existing services. In the case of such channels the regulator will now use ‘market impact analysis’ as its main authorisation tool. This could lead to the deprioritisation of public interest values. 

2. Signal distribution

Before the digital switch-on on 1 November 2008, South Africa’s common carrier signal distributor, Sentech, stated that it would be ready for the switch-on deadline, but expressed doubts about being able to meet the targets for extension of the digital network due to budgetary constraints. 

The signal distributor explained in a hearing with the Portfolio Committee of Communications in Parliament on its 2008/2009 budget that it needed R955m to upgrade the network to handle digital instead of analogue signals, but that Treasury had only approved R650m (a R300m shortfall). A further R917m to run analogue and digital signals simultaneously had also not been granted. As a result, the CEO of the company said, they would only be able to reach 40 per cent digital coverage of the country by March 2009, instead of the government target of 56 per cent coverage by that date. Executive Director of the National Association of Broadcasters (NAB), Johann Koster, also expressed concern about signal distribution capacity in an interview. “It is unclear whether or not Sentech will have sufficient resources to transform all its analogue equipment by November 2011,” he said. “This has implications for universal access.” 

Koster further highlighted the need for developing a holistic digital frequency plan:

There is a need for government, together with the regulator and industry, to holistically re-plan the frequency allocation, in line with ITU (International Telecommunications Union) requirements, in order to create certainty and ensure capacity for new technologies well into the future. At the moment there is little clarity about how government and the regulator plan to accommodate new users of the spectrum.

By July 2009, it had become apparent that the cost factor was going to delay Sentech’s plans significantly, and government had to consider contributing a further R1.16 billion to the parastatal. The shortfall in funding meant that two extra phases had to be added to the conversion process. In September 2009, it emerged that Sentech was in a financial crisis and that the parastatal appeared close to insolvency.  By October 2009, the company had only been able to achieve 33 per cent of national coverage due to delays in the finalisation of the frequency plan and the Digital Terrestrial Television (DTT) migration regulations as well as to underfunding. Sentech noted in December 2009 that it was in the fourth phase of its DTT rollout, and that it aimed to achieve coverage of 63.3 per cent by 31 March 2010. The company is obviously struggling to achieve its own DTT rollout targets, and it remains to be seen whether the latest deadline it set for itself will be met. 

3. Impact on broadcasters 

3.1 Readiness

Broadcasters have indicated that they are as ready as they can be for the digital switch-over - given the long policy delays. 

Government, on the other hand, has become increasingly concerned that the 2011 target will not be met. In October 2009 the Deputy Minister of Communications, Dina Pule, stated that the country had already missed its 50 per cent target for the end of this financial year, with digital coverage at that stage standing at 33 per cent only.  She expressed concern at the lack of assistance from industry participants.

As far as equipment is concerned, commercial and community broadcasters are in a more advantageous position than the established national broadcaster. Most of them have been licensed in the past 14 years, and thus from set-up have purchased and been working with digital production equipment. 

The South African Broadcasting Corporation (SABC), on the other hand, has had to convert its equipment from analogue to digital. The public broadcaster has set aside R1.3 billion (including R400 million from government) to upgrade all its production facilities to digital technology by 2010 and says it is on track to meet deadlines. It must be noted that the preparation for digital migration at the SABC also involves digitalising all the archives.

The initial intention was to have its Digital Terrestrial Television (DTT) trials for its own channels completed in the second half of 2009. There have been numerous hold-ups, however, including the finalisation of ICASA’s DTT regulations, as well as the final frequency plan. Nine channels and nineteen radio stations are being tested as part of the DTT trials. 

In the final official policy, Government has stated that it will request ICASA to review existing television content requirements as these are based on a single channel broadcaster rather than the multi-channel environment, but has not clearly identified other policies or laws that may need amendment. 

Lara Kantor, in her capacity as head of policy in the SABC’s digital unit, echoed the difficulties raised by Koster:

We are doing as much as we can do given the delays. But we don’t know how much capacity will be given to the SABC or therefore how many channels we should be putting together. We are presuming that public broadcasting will have access to one multiplex in line with recommendations from the Digital Migration Working Group, and are planning around this.

It is also difficult to budget given the uncertainties about number of channels and the actual costs that will be involved in transmitting both analogue and digital signals during the dual illumination period. 

A further challenge highlighted in the DMWG report to the Minister is the need to develop capacity in the independent production sector to meet increased content demands. The report recommends that “additional government support mechanisms for content development should form part of government’s digital switch-over strategy”.

 

The national policy recognises this, but does not outline clearly how it will support the development of South African content. It states that Digital Content Generation Hubs will be established aimed at increasing content production and that these will work with “all broadcasters, independent producers and the National Electronic Media Institute of South Africa (Nemisa is a training school established by Government focusing on radio, television and electronic communication).”

 

 

3.2 Costs

Whilst the long-term benefits of digital television broadcasting are many (more frequency space, increased number of channels, potential to offer additional services to viewers such as multiple audio tracks and interactivity, etc.), the costs of the migration for existing television services are extensive. These include the costs of transmitting both digital and analogue signals during the period of dual illumination and the development of additional channels.

 

In a submission to Parliament in June 2008, e.tv head Marcel Golding estimated that for his company the costs of dual transmission alone over the three-year transition period would run into “tens of millions of rand per annum” and argued that it should not be liable for these costs over this period.   

In recognition of the substantial costs involved, the Digital Migration Working Group had recommended that government put in place a range of incentives for existing broadcasters.  It suggested that these include:

(P)referential treatment in terms of access to frequencies for the purposes of initiating digital transmissions, reductions in licence fees, lowering of SA content requirements for additional digital broadcasting services offered by existing broadcasters, signal distribution subsidies or lower tariffs, etc.

The final policy however, does not address these issues. Instead, statements made by government officials hint at the possibility of existing levies on broadcasters being increased in order to subsidise the roll-out of set top boxes to disadvantaged communities. The former Minister of Communications suggested, for example, that they might increase the contributions payable by all licensees (broadcasters and telecommunications services) to the Universal Service and Access Fund (USAF) to assist in covering these costs. 

 

The USAF is a fund established by the Electronic Communications Act aimed at increasing access to telecommunications and broadcasting services. It is managed by the Universal Service and Access Agency of South Africa (USAASA). The fund had originally been created in terms of the since repealed Telecommunications Act and focused only on facilitating access to telecommunications. Telecommunications operators have been required since 1999 to pay 0.2 per cent of their annual turnover towards the fund. 

4. Impact on consumers 

4.1 Consumer awareness

There was little clarity at the time of conducting this research about how government would create awareness of the implications of digitalisation, as this task had been allocated to the Digital Dzonga, finally launched in July 2009. While there had been some media coverage about the switch-over deadlines, much of this was negative due to reports on the policy delays and bungles.

In order to view digital television, audiences will need either a digitally enabled television set or a set top box (STB) to convert the digital signal into an analogue one. 

The South African government has approved the technical requirements for the development of a set top box and emphasised that these will be manufactured in the country, rather than imported.  Official statements regarding the launch of the digital migration policy specified that even the most basic box available will have some inbuilt capability in order to facilitate e-government applications (including Return Path Capability to enable users to receive and send back messages and therefore not only download information on government services but also to submit application forms, for example).

 

However, the process of kick starting manufacturing of STBs has been slow to get off the ground. It was only in July 2009 that the Department published a Draft STB Manufacturing Sector Development Strategy for public comment. In line with the policy, the draft strategy aimed at establishing local capacity, as well as export capability, in the manufacturing of STB’s, using South African intellectual property only. It stated that up to four companies would be designated as prime manufacturers. The draft strategy was discussed at a summit on STB manufacturing in October 2009. At the time of writing, the final strategy had not been released. 

 

This rendered the “launch” of digital television on 1 November 2008 essentially irrelevant as no-one is able to view services without an STB. It remains unclear whether there will be sufficient capacity to manufacture enough STBs to meet demand prior to the date of switch-off of the analogue signal (November 2011). Between 7 and 8 million households currently have televisions and will require STBs by that date.

4.2 Mechanisms for support

Government has estimated that the most basic STB will cost R700. It has agreed to subsidise set top boxes for poor people (those that receive government social grants) in order to ensure universal access to the digital signal after the analogue signal is switched off.  In its statement on the approval of the digital policy, Cabinet indicated that government would subsidise 70 per cent of the cost of the set top box for the five million poorest television owning households.  Beneficiaries of this subsidy would have to pay the remaining 30 per cent (R210) themselves. 

The subsidy system has been dubbed the ‘Scheme-for-Ownership-Support’ (SOS) by government and whilst the principles have been determined by Cabinet, the details of exactly who will qualify for the subsidy and the mechanisms for providing it still have to be finalised. In her statement on the approval of the policy the Minister of Communications said only that “(t)his support will be based on the anti poverty strategy and its conditionalities”.

The overall cost of this support is estimated at R2.45 billion.  At the time of writing, the National Treasury had allocated R400 million to the Universal Service and Access Agency of South Africa (USAASA) to cover subsidies for set top boxes over the next three years. However, questions have been raised by the Portfolio Committee on Communications and a range of stakeholders about USAASA’s effectiveness and management capabilities. In the past, when the agency was focused solely on telecommunications access, it regularly received qualified audit reports and much of its budget remained unspent.  This has fuelled doubts about the body’s capacity to lead such an extensive and critical process and to roll out the subsidy effectively. It is also still unclear how the subsidy will be administered, with proposals being considered of applying the subsidy at the manufacturing level, or at the distribution level, or as coupons to individuals as a last resort.

 

5. Convergence

Convergence in relation to broadcasting refers both to the capacity to air broadcast content over what have traditionally been thought of as telecommunications networks (e.g. over cellular phone networks) and to utilise telecommunications networks (such as broadband) to facilitate interactive television.  

The promulgation of the Electronic Communications Act (ECA) in 2006 was aimed specifically at promoting such convergence by recognising new technologies and providing what are termed technology neutral definitions of broadcasting and telecommunications. 

 

However, the process of converting all licences in terms of the new legislation is a laborious one, and the licensing of new technologies in terms of the Act requires frameworks to be developed through public consultation (see chapter five). Some of these frameworks (like those for mobile television) are also awaiting finalisation by government of strategies.

 

 

5.1 Mobile television

Whilst mobile television (available on a mobile telephone) is available through the streaming of broadcast content on 3G handsets, there is no licencing framework for DVB-H (Digital Video Broadcast Handheld). 

The then Minister Matsepe-Casaburri announced in her 2007 budget speech that digital television would be prioritised for the FIFA Soccer World Cup in 2010. Availability of DVB-H is reportedly one of the commitments made by South Africa to FIFA.  The minister also said that a single national network for mobile broadcasting would be established. No time frames were set.

ICASA’s invitations to tender for licences ran into trouble, ostensibly because of objections from broadcasters. In February 2009, ICASA invited tenders for two DVB-H multiplexes in Johannesburg, Cape Town, Durban and Pretoria, but the invitation was withdrawn a month later. At the time of writing, Cabinet had just approved a temporary mobile broadcasting licence, due to expire two weeks after the 2010 FIFA World Cup. This decision was taken to allow ICASA time to design a proper licencing process.  

The 3G standard for mobile television does not require a licence as it utilises the cellular provider’s network infrastructure and frequency. It is a one-to-one transmission and content is downloaded on demand. 

Cell phone operator Vodacom has for example launched what it calls mobile television available on 3G handsets.  The operator offers 22 different television channels and the web-site states that subscribers can access 10 of these for R29 per month (this is apart from the costs involved in streaming). The company has produced content specifically for cell phones (including a soap opera, SoLikeLife). Radio stations are available for free (one South African station is listed – SABC public commercial service Metro FM).

 

Subscription television service MultiChoice (which owns DSTV), in the meantime has conducted tests on DVB-H, together with mobile operator MTN. They are awaiting finalisation of the licensing framework by ICASA, however, before launching a full service. DVB-H uses broadcasting frequencies and thus requires a licence. DSTV offers 11 channels as part of the trial – including sports channels and SABC 1. 

 

In the meantime, broadcasting services have started using mobile phones to send news via text messages.  You can for example subscribe to what is called Newsbreak from the SABC to receive SABC news headlines for R10 per month. SABC also provides information such as matric (grade 12) results to pupils via text messages.

 

 

5.2 Internet and broadcasting

South Africa licensed its first internet protocol television service (IPTV) in 2007– Telkom Media. IPTV delivers television signals over broadband or computer networks rather than through traditional broadcasting formats. It provides for what is called ‘triple play’ –a service that combines broadcasting, telephony and internet access. 

Super 5 Media, formerly known as Telkom Media (which is in part owned by the country’s fixed line operator) has stated that it will launch this service once ICASA approves changes to its ownership structure.  

In the meantime all SABC channels and radio services, commercial broadcasters and some community radio stations are streaming their services over the internet – enabling listeners and viewers around the world to listen to and view internet broadcasts.

 

 

6. Competition and the broadcasting environment

Digitalisation and convergence open up opportunities for the licensing of more broadcasters and for creative use of new technology to deliver content over new networks. Existing broadcasters will have access to additional channels, and will be able to explore innovative services to enhance their offerings to the public (such as interactive television, closed captioning to enable viewers to select captioning of programmes, audio description to assist viewers with vision disabilities and multiple language tracks to address language needs). The new technologies also offer the potential of new revenue streams.

 

In South Africa, where spectrum limitations have restricted, for example, the licensing of new television channels and community television, the new environment will potentially increase access to diverse content for all viewers (not only those that can afford subscription services).

 

However, this also poses a risk to existing broadcasters (who bear the costs involved in the switch-over). Additional channels increase the costs for these broadcasters and the potential of new players further threatens their revenue streams.

 

The head of e.tv, Marcel Golding, emphasised potential risks in his presentation to Parliament in June 2008:

 

…the introduction of new channels will fragment audiences and will drive down advertising rates. It is unlikely, particularly given the current economic environment, that advertising spend available to broadcasters will increase – it is more likely that the available spend will have to be shared across more channels. As more channels mean higher costs for broadcasters, this will have an adverse affect on incumbent broadcasters.

 

Moreover, plurality and access to a wide range of channels and stations does not necessarily lead to more diversity of content. Existing policies and regulations need to be reviewed to ensure that all viewers have easy access to, for example, a range of creative South African content in the language/s of their choice. It is also important to ensure that public interest programming and programming of importance to society does not get marginalised.

Current laws, regulations and practice do provide some protection of viewers’ needs. These include:

• The Electronic Communications Act, No 36 of 2005 (EC Act) stipulates that its primary objectives is to regulate broadcasting “in the public interest”; (Section 2). This section further outlines the following goals:

• The Act defines “diversity” of broadcasting services as one of the key aims of policy and legislation. (Sec 2(s)(i)).

• It provides for three tiers of broadcasting – public, commercial and community.

• The law also states that broadcasters must provide for regular news services, actuality programmes on matters of public interest, and programmes on political issues. (Sec 2 (s) ii EC Act). 

• The EC Act stipulates that the integrity and viability of public broadcasting must be protected. (Sec 2 (t) EC Act).

• Legislation emphasises the need to ensure fair competition and encourage investment and innovation (Sec 2 (d) & (f)).

• Legislation further requires that in deciding on any new licence, the regulator must consider the above objectives as well as the need and demand for the suggested service. (Secs 49, 50 and 51 EC Act).

• The EC Act further requires the regulator to develop regulations on “the extent to which subscription broadcast services must carry … the television programmes provided by a public broadcast service licensee” (Sec 60(3)). Such “must carry” rules are aimed at ensuring that viewers can easily access public interest programming on the platform of their choice and thus protect the viability of public broadcasting. In some countries must carry rules have been extended to cover a range of free-to-air broadcasters. ICASA has initiated this process, and final regulations were published in October 2008. 

• The regulator has previously only invited applications for licences after considering the impact of new services on the public interest and the market. Application processes are competitive – and thus aimed at enhancing choice and diversity for viewers and listeners. The Digital Migration Working Group has recommended that what it identifies as South Africa’s ‘public trustee model’ of broadcasting regulation should continue. This approach recognises that the spectrum is a public resource and that all broadcasters, therefore, should be required to meet identified public goals in exchange for the privilege of access to frequency. The report posits this as an alternative to a market driven approach.

 

The digital environment requires both government and the regulator to review some of the laws and regulations developed to assist in achieving the objectives of broadcasting policy in an analogue environment. Licence conditions of existing free-to-air broadcasters will also need to be evaluated in line with this. Issues which need to be reviewed include:

 

• The sections of the Act that deal with ownership limitations (including those limiting the number of services that one group can control and foreign ownership limitations).

• South African content regulations should be reviewed and regulations developed for free-to-air multi-channel broadcasters. 

 

 

7. Conclusion and recommendations

Digital broadcasting has the potential to enhance the ability of all stakeholders to meet the identified objectives of broadcasting in South Africa. In order to achieve this, however, it is necessary for government to proactively determine the parameters and strategies for migration from analogue transmission.  

 

Initially government was deservedly praised for starting as early as 2005 a consultative process to determine policy and for setting in 2007 clear timeframes for the switch-on of the digital signal and switch-off of analogue transmission. However, since then, the unexplained delays in finalising an overarching strategy and implementation plan have cast doubt on the Department of Communications’ ability to provide the decisive leadership essential to ensure that the migration process will address the needs of all South Africans.

 

Recommendations

 

• Government should extend the date for switch-off of the analogue signal from 01 November 2011. The procrastinations affecting policy development, funding and STB specification details, have led to delays in the effective launch of digital services to the public. In order to ensure that all South Africans have the requisite set top boxes  prior to switch-off it is critical to allow for a period of at least three years after the commercial launch of STBs before analogue transmission is discontinued. As this launch has not taken place yet, government may need to consider extending the dual illumination period for a further two years.

• The entire framework for broadcasting in South Africa should be reviewed in light of the move to digital broadcasting (including the White Paper on broadcasting and the Broadcasting Act). Clauses relating, for example, to limitations on the number of free-to-air terrestrial television channels which a private broadcaster can offer become irrelevant in a multi-channel environment. The provisions in legislation regarding the number of public channels the SABC provides – and the division into public and public commercial channels - also become meaningless in the new environment.

• The vagueness in many areas of the policy must be addressed through development of an implementation plan and specific policies/regulations addressing these issues. This includes details on incentives for broadcasters and clarity on the number of channels each broadcaster will have during the dual illumination period.

• The policy for subsidising set top boxes for poor families needs to be developed beyond a mere statement of intention and principles. While a Scheme for Ownership Support has been drawn up, it does not identify exactly what criteria will be used to determine who qualifies for the subsidy, how the roll-out will be implemented and who will take responsibility for the process. A comprehensive plan must also include proposals for assisting audiences with installation and operation of STBs where necessary. 

• The Digital Dzonga must be fully operationalised and have clearly outlined powers and responsibilities to allow it to act decisively. It must also be provided with an adequate budget to enable it to carry out its mandate effectively.

• A mass awareness campaign must be launched as soon as possible to ensure that consumers know how they can view digital television channels and what benefits this will have for them. It is important to ensure that any information released is consistent and accurate. Even Cabinet in its statement on the launch of the digital migration policy referred to a plan for the disposal of “redundant” television sets – creating the misleading impression that viewers will need to purchase new sets rather than just set top boxes. 

• ICASA must as soon as possible finalise its digital regulatory framework to create certainty around the licensing process and identify how it will licence digital services.