SENTECH’S PRESENTATION TO THE
PORTFOLIO COMMITTEE ON
COMMUNICATIONS ON ITS
PROGRESS REPORT ON DTT PROJECT
Date: 1 June 2010
Note on standards
• DOC held a colloquim on 29 – 30 April 2010, Sentech
attended.
• Different standards were presented i.e. European, Japanesse,
Korean and Brazilian.
• Sentech is studying the different standards and will report its
findings and recommendations to the DOC in due course.
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Sentech Team
• Chairperson – Mr. Q Patel
• Non- Executive Board Member – Mr. M. Dhlamini
• CEO (Acting) – Ms. B. Ngwenya
• CFO - Mr. S. Cassim
• COO (Acting) – Mr. D. Dube
• Specialist Government Relations – Mr. Ndleleni
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Overview
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Progress on DTT project roll out
DTT Regulations
DTT Spectrum Plan
Conclusion
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DTT PROJECT PROGRESS
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Progress on DTT project roll out
 Rollout
• 33% population coverage
 Funds
• CAPEX allocation to date R1 billion and received R525
million.
• OPEX allocation to date R330m and received R100m
 60% population coverage by March 2011.
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Risk and challenges (Regulatory)
• On 15 February 2010 ICASA published the
Regulations.
final DTT
• The Regulations have assigned two multiplexes i.e 1 SABC/TBN
and 1 etv/mnet.
• Sentech’s initial rollout (Capex and Opex) assumed 2 network
of frequencies (multiplexes). Government funded Sentech to
deploy two multiplexes.
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Risk and challenges (Regulatory) cont.
• The Final DTT Regulations published by ICASA on 15 February
2010 are unfavourable to Sentech and will reduce its revenue
substantially.
• BDM policy on co-assignment:
• The network of frequencies designated for public
broadcasting should be co-assigned and managed by
Sentech as a common carrier on a non-preferential and nondiscriminatory basis.
• Sentech should also provide broadcasting signal distribution
to commercial broadcasters, which should be provided on
an non-preferential and non-discriminatory basis
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Risk and challenges (Regulatory) cont.
• The Final DTT regulations define multiplex as frequencies
designated for DTT.
• The manner in which ICASA has defined multiplex in the Final
DTT Regulations falls under a licensable category (radio
frequency spectrum).
• However, ICASA contradicts itself in its Reasons Document on
Digital Migration at paragraph 27.12 by ruling that “The Authority
has decided that the questions as to who will assume
responsibility for multiplexing will be left to the broadcasters on
the basis that multiplexing is not, in and of itself, a licensable
activity in terms of the ECA, and certainly, does not constitute
ECNS”
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Risk and challenges (Regulatory) cont.
• Sentech is challenging ICASA on the following basis:
• Multiplexing and encoding are a part of multichannel signal
distribution
– ICASA is of the view that there is a legislative gap under
the ECA (multiplexing and encoding not licensable
activities)
– Sentech’s view is in conformity with the definition of
multichannel in the ECA “means a broadcasting signal
distribution service that provide broadcasting signal
distribution for more than one channel at the same time
and on the same signal, and “multi-channel distributor”
is construed accordingly.
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Risk and challenges (Regulatory) cont.
• The Final DTT Regulations assign a network of frequencies to
broadcasters.
• Sentech is of the view that according to section 31(2) a
broadcaster requires a radio frequency spectrum licence over
and above the broadcasting service licence Sentech is of the
view that the ECNS that will be providing broadcasting signal
distribution also requires a radio frequency spectrum licence
issued by ICASA, in terms of section 31(1) of the ECA.
• Section 32(1) of the ECA prohibits any person from possessing
any radio apparatus unless in possession of a radio frequency
spectrum licence or exempted from possessing such. (Sentech
is currently operating equipment in contravention of Section
32(1) of the ECA)
• Sentech’s interpretation of section 31(1) and 31(2) of the ECA is
that radio frequency spectrum has to be co-assigned between
the broadcaster and an ECNS licensee.
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Risk and challenges (Regulatory) cont.
• ICASA in making such pronouncement has actually ruled that
multiplexing can only be a broadcasting services activity,
although it ruled that it is not a licensable activity.
• ICASA is wrong in pronouncing that there is a legislative gap
under the ECA regarding multiplexing and encoding. The
definition of multi-channel distribution service according to
Sentech includes multiplexing and encoding.
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DTT Frequency Plan
• Effective Radiated Powers (ERPs) defined for DTT in the ICASA
Final Spectrum Plan (FSP) are generally significantly lower than
those on which the original Sentech project was based (the
Sentech Complementary Frequency Plan).
• With the ICASA plan some people who are currently receiving the
analogue coverage will not be able to receive the digital coverage.
• It will not be possible to mitigate this situation until additional
frequencies are made available through rollout additional sites for
such purposes.
• Additional Capex and Opex will be required for a greater number of
sites.
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DTT Frequency Plan & Regulations (coverage and capacity implications)
Discussion of DTT Coverage Implications
• A very significant portion (estimated at 10% of the television
household) would be deprived of the benefit of receiving DTT by
means of low-cost indoor-portable receive antennas (e.g. short
vertical rod or ‘bunny ears’).
• The SCFP provides a benefit of indoor portable reception whilst the
ICASA plan has a cost to the viewers in that they might have to buy
outdoor aerials (if Sentech has to go low power in terms of the
ICASA FSP).
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DTT Frequency Plan & Regulations (coverage and capacity implications)
• In a single example of a key station such as near Polokwane
(on the next slide) it can be seen that at least half a million
persons will be deprived of the social benefits digital technology
has to offer (ease of reception, use of low-cost receive
antennas, universal access) .This illustration is for one main
site only. The network will comprise of approximately 180 sites.
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DTT Frequency Plan & Regulations (coverage and capacity implications)
cont.
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DTT Frequency Plan & Regulations (coverage and capacity implications)
cont.
• Due to the inherent nature of metropolitan development, the most
vulnerable and disadvantaged sections of the population residing
on the fringes of cities and towns will be mostly affected by
inadequate coverage and higher levels of interference. In this
example, the entire Seshego, Polokwane and several other
townships are excluded from this portable reception benefit (a
benefit that is so easily achievable when using appropriate
transmitter powers).
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Conclusion
• Compliance with the ICASA FSP in its current form will require
addition CAPEX and OPEX.
• More time will be required to achieve analogue switch-off.
• There is currently not enough spectrum in the FSP to achieve
full digital switch-on using the ICASA FSP.
• Properly understood in terms of ECA, multiplexing is a
broadcasting signal distribution activity and should be licenced
as such.
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Thank You
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