Digital TV subsidised
Broadcasting and telecoms licence holders are likely to pay the R2.45 billion subsidy to 5 million households that cannot afford a decoder to get digital TV services.
Companies such as Telkom, MTN and Vodacom contribute 0.2 percent of their annual turnover to the Universal Service and Access Fund (Usaf).
The money raised is used to help poor communities access basic telecoms services such a telephones.
The Independent Communications Authority of SA (Icasa) is pushing for regulations to make broadcasters contribute to the fund.
Ivy Matsepe-Casaburri, the minister of communications, said yesterday that the government would fund up to 70 percent, or R490, of the cost of the set-top box (STB) decoder needed to convert digital signals to play on analogue TV sets. The rest would be paid by householders.
"Funding for this support could be sourced from Usaf," she said, adding that the government could look into increasing the rate of contributions to the fund.
The country has an estimated 7.5 million households with television sets, about 5 million of which would be unable afford an STB, the cost of which is estimated at R700.
There are 3 million households in South Africa on government social grants, such as pensioners, and a further 2 million households earning less than R3 200 a month.
This week the cabinet approved the broadcasting digital migration policy that would result in switching the country’s TV transmission mode from analogue to digital by 2015.
The switchover is required to conform with the requirements of the International Telecommunication Union.
Some of the primary benefits for a digital signal are clear pictures and fewer TV reception problems.
Several companies – including Altech UEC, owned by JSE-listed Altech, RC&C, Vetronics, Tellumat, Amalgamated Appliances, Tedelex and Sabertec, as well as new small and medium companies – would manufacture the boxes.
The boxes would be available from next year.
It is not clear how the estimated R3.5 billion, which is the total value of the STBs, will be spread among the manufacturers. The STB sector had the potential to manufacture up to 5.6 million boxes a year when running at full capacity, said Matsepe-Casaburri.
South Africa will start the dual broadcasting analogue and digital TV signals in November. Dual broadcasting will continue until November 2011.
There has been criticism that this is an overambitious deadline, but Matsepe-Casaburri said the tight deadline would reduce the exposure to cost duplication and support the emerging digital broadcasting industry.
Sentech, the government-owned signal broadcasting distributor tasked with upgrading the analogue signal to digital, said it required an additional R917 million for the operational cost of the simultaneous transmission of both analogue and digital signals.
Sentech had applied for R960 million for the digital migration process.
The treasury had allocated R215 million and had committed a further R450 million.
Business Report
Loading ...