Digital Migration in South Africa
October 2008
Save Our SABC
Libby Lloyd
What does it mean to you?
• How should civil society be interacting with
DTT migration?
Why Digital Migration
• International Telecommunications Union has
resolved that analogue television frequencies will
not be protected anymore after 2015
• This is to free up frequencies for new services
• Both more channels for SA and other broadband
services (about 8 digital channels for each one
analogue frequency?)
The Digital Dividend
How it works
Digital Terrestrial Television System
Production
STB
TV
DTT changes the nature of
television
Technology
features
Multi-channel
Better quality pictures and sound
Potential for Interactivity (with or without
return path)
Can have multiple language tracks
PROS
• More channels potentially allows
more audience choice
•Bouquets for specific interests –
greater viewer differentiation
•Quality can be controlled per
channel or per event to optimise
resources
•More capacity to deal with specific
needs
CONS
• No signal in marginal areas
• Multichannel makes it harder to
attract viewers to a given channel
•Need regulation to ensure
diversity
• Decoders complex – need for
aerials?
• Expensive for viewers and
broadcasters
DTT Impacts on Broadcasters’ on
Different Levels
Content Production,
Packaging and
Programming
 Broadcasters need to
digitize archives, studios,
and production networks
Signal Distribution
and Transmission
Transmitter Network rollout
Signal Reception
and Devices
 Design of Electronic program
Costs of signal distribution will guide (EPG) needs to be
rise
undertaken – may require co-
Broadcasters will need to
develop and test new
DTT channels
DTT migration therefore requires the
co-operation of multiple stakeholders
operation of different
broadcasters
 STB specs to be developed
which will determine what kind of
services can be offered
Revenues and business models
will be impacted: license fee
collection, interactive service
revenues
History in SA
2005:
• Minister sets up Digital Migration Working
Group (DMWG)
• Includes all industry players
2006
DWMG submits recommendations to
Minister
DWMG key recommendation
“That government should establish a
joint body with industry to develop
an action plan for the switch-off of
analogue television broadcasting,
to monitor the switchover process
and promote consumer
awareness”.
Background cont…
2007
• Cabinet announces in Feb digital signal will
be switched on 1 Nov 2008 – switched off 1
Nov 2011
Three year “dual illumination
period”
An Aside…
Dual illumination
When analogue and digital signal running
together
Purpose:
to test signal,
to persuade consumers of benefits and to get ready
for switch-off
to ensure ongoing universal access
Very expensive for existing broadcasters
Back to history
2007 cont…
• March:
Government issues a draft policy and
strategy doc
Asks for comment within two weeks as
urgent
Promises, promises, promises
Government repeatedly states
policy will be out “shortly”,
“next week”, “next month”
No policy but…
• May 2007 Budget speech Minister announces
Digital Dzonga
• But…only in next budget speech details other
players who will sit on Council
Includes broadcasters, signal distributors,
unions, consumer bodies….
Responsible for “consumer awareness and
education, liaison with the regulator and
monitoring of implementation “
Finally
• Finally – almost 18 months later
Digital Migration policy is launched
But
• Not detailed enough
• Only released specs for STBs at same time
…and only 3 months till switch-on
policy
•
•
•
•
Repeats switch on 1 Nov 2008
Switch off 1 Nov 2011
Phased increase in transmission coverage
On 1 Nov major urban centres (50% of
population)
• By 2010 80% coverage
• Promised by switch off everyone will be
able to receive
Distraction…. Signal distribution
• All transmitters need to be converted
• Sentech (signal distributor) says needs
R950m for conversion
R917m for dual illumination
BUT only awarded R600m
Policy: which broadcasters
• All existing terrestrial tv channels will be
accommodated during dual illumination
period
– SABC
– E-tv
– M-Net
No new players licensed during dual illumination
ICASA draft regulations
• ICASA issued regulations for comment on 3
October
• Comment due in by 7 November
Broadcasting during dual
illumination
• Government Policy does not state how many
channels each will get
• DWMG suggested:
– SABC five (3 existing and two regional?)
– E-tv two
– M-Net three
Costs high for broadcasters – new content
and double transmission
ICASA draft regulations
• Reserve two “multiplexes” for existing
broadcasters
• One multi plex for public and community
television
• One for commercial
• Each multi plex can carry 8 channels.
ICASA proposals on allocating
channels
• “allocation must aim to increase the number of
channels falling under the public wing of the
SABC for the purpose of public service
broadcasting including regional broadcasting
• “Digital incentive channels must be assigned
proportionally to …commercial channels…
including etv, m-net and the commercial wing of
the…SABC”
What this means
• Presumption that commercial and public
split continues
• No query of if model works
• Issues of fair competition
What it means cont…
Propose:
2 commercial channels for SABC
(SABC 3 and another)
Five channels for public section (SABC
1, 2, 3, 4 and another)
1 for community
2 e-tv and 4 m-net
How propose allocate?
• “Authorisation of channels for public
broadcasting …will be subjected to a public
value test and may be subjected to a public
process”
• Define public value test as meaning that the
channel … should seek to meet the
programming objectives set out in relevant
section of regulation and may be subjected to
further public processes
Proposed programme
objectives
– Level of educational programming
– Distribution of different languages – emphasising
marginalised (isiNdebele, siSwati, XiTsonga,
TshiVenda)
– Promotion of cultural diversity
– Programming aimed at persons with disability,
children youth and women
– The social development of persons in the Republic
including programmes providing entertainment
and information
– Multi Genre programming
How define “public process”
• “May include any or all of following:
– Publish a notice in gazette of application for
channel authorisation
– Invite comments
– Give a chance to SABC to respond to
comments
– Conduct a public hearing
Problems
• Nice idea
• Limited public involvement prescribed
• Missed chance to define how public broadcasting
is distinct from public commercial
• Presumption that model will continue
• Not clear how determined what is of public value
• No requirement for SABC to conduct research
into public value
content
•
•
•
•
•
More channels
More content
Expensive
What will local content quotas be?
Is there capacity in independent production
sector?
Content development
DMWG
Need government
support for content
development
Government policy
Vague
Digital Content
Generation Hubs will
be developed
But When?
Any financial support?
Consumer Issues
• STB’s : R700
• 5 million will not be able to afford this
• Government subsidy “Scheme for
Ownership Support (SOS):
– 70% of cost for those on government grants
– Estimated 5million people
Subsidy scheme
R2.45 bill
• BUT
Not clear where funds will come from:
Suggested Universal Service and Access Fund
maybe
But …
telecommunications operators unhappy
USAF – capacity to manage such a large roll out?
Consumer Issues
•
•
•
•
Need clear rules on subsidy system
Need to know how will roll-out
Need massive awareness campaign
Need to have campaigns to show how to use
STB
STB’s
• Launch with no STB’s
• No-one will be able to watch – except 500
people chosen to test
• STBs will be manufactured in South Africa
• STBs will only be available from mid 2009
• most basic box will have inbuilt capability to
facilitate e-government applications to enable
users to receive and send back messages,
download information on government
services and submit, for example, application
forms
What does it mean to
broadcasting policy?
• Need to review entire broadcasting policy
and legislation – currently only allows a
private company to own one tv channel
• Need to review laws – SABC public and
public commercial
• Need to review funding for public
broadcasting
Funding of public broadcasting
issues
• SABC will need more money for more channels
and for dual illumination
• Need to rethink funding model
• Public and commercial division not worked – still
all commercial
• SABC previously raised potential for using STB
to monitor payment of licence fees…
• UK and France relooking at public broadcasting
funding in light of multi-channel environment
Need to review all regulations
•
•
•
•
Local content
Must carry rules for public broadcasting
Frequency spectrum
How will licence new players?
“…the introduction of new channels will
fragment audiences …drive down
advertising rates. It is unlikely … that
advertising spend … 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.”
Marcel Golding
e-tv CEO
Issues for SOS?
• Monitor roll out of STB’s to ensure universal
access
• Engage with subsidy scheme
• Engage with roll out process…
• Respond to ICASA position paper – public value
• Question funding model for public broadcasting
• Use to advance call for rethink of broadcasting
policy