Telecoms6.03.2008

ANC MPs push hard for Sentech funding

Sentech has been tasked with rolling out infrastructure for digital broadcasting for the 2010 Soccer World Cup as well as a high-speed national wireless network, but has complained about lack of funding.

Matsepe-Casaburri raised her frustration about the lack of state funding for Sentech this week, but reassured Parliament’s communications portfolio committee yesterday that “most” members of the cabinet had been brought around, and the Presidency was seized with the matter.

“Funding for Sentech is very important. We have requested the funds. We really cannot continue like this,” she said.

ANC MP Khotso Khumalo insisted that if state funding was not forthcoming Sentech’s listing under the Public Finance Management Act should be changed, enabling it to raise funds.

Sentech needs R955m to roll out the digital broadcasting infrastructure, but treasury undertakings fall R300m short of this.

Matsepe-Casaburri said banks had indicated they were willing to lend Sentech about R800m, but this would be impossible until Sentech’s listing under the act was changed. It was important the transfer took place, she said, but not everyone agreed.

Matsepe-Casaburri referred obliquely to people in government, officials advising ministers, who believed the private sector should be doing the things for which Sentech was responsible. They believed Sentech should not be given funding that would squeeze out the private sector.

However, the minister was clear that the private sector would not get involved in certain areas, and it could not be forced to do so. “There is a role for the private sector to play, but the realities of SA tell us you can’t expect it to do so everywhere. It will not, and you will be living in a fool’s paradise if you think it will go there,” she said.

Sentech was on track to switch on a digital signal for 50% of TV viewers in metropolitan areas on November 1. The minister said the digital migration policy should be ready by week’s end.

Digital Dzonga, a body that would oversee the roll-out, would work on standards and technology for set-top boxes, economic and financial modelling for the boxes and a public awareness strategy for their use.

The acting communications deputy director-general for ICT policy development, Norman Munshelele, believed the set-top boxes would sell for about R400. Talks were under way with the treasury for an incentive for the poor who could not afford them.

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