South Africa's Digital Broadcasting Migration Report

1. SPECIAL BRIEFING REPORT: DTT State of Readiness

2. BACKGROUND • DTT is a ITU compulsory transitioning of broadcasting migration system from analogue to digital technology broadcasting. • Digital broadcasting technologies will release additional spectrum which will be used to licence new mobile services. • Its advantages includes better quality picture, added channels of more that 16 per single frequency, and benefit for language and content diversity.

3. DTT BACKGROUND • South Africa as a member of International Telecommunications Union, has committed to finish its digital migration from analogue to digital broadcasting technology by June 17, 2015; • The initial South African self-imposed digital migration timelines were November 2008 to November 2011; • In early 2010, SADC made a decision to revisit the decision made in ITU Regional Conference of 2006, to adopt Digital Video Broadcasting – Terrestrial (DVB-T); • In January 2011, the Cabinet adopted the second generation of the same standard known as DVB-2 ; • DVB-2 has almost twice spectrum efficiency compared to the first generation DVB-T Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

4. BDM Policy Amendments • The final Broadcasting Digital Migration (BDM) Policy Amendments in February 7, with the substitution gazetted in February 17, 2012. The main amendments are: • The adoption of the DVB-T2 technology in line with the Cabinet decision; • Pronouncement of new Digital Migration timelines which are; the DTT services launch during the 2012/2013. • In both instances , the announcement of precise dates for DTT services launch and analogue transmissions switch-off, the Minister will make pronouncements after consultation with the Cabinet and broadcasting industry. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

6. BDM Policy Amendments Accommodation of three tier broadcasting services • The Policy Amendments promotes public, commercial and community television services, prioritising the incumbent broadcasters during the dual illumination; Promotes competition and introduction of new services • The Policy Amendments also promotes competition and introduction of new broadcasting services where possible during dual illumination; Establishment of the Digital Migration Office • The Policy Amendments give effect to the establishment of the Digital Migration Office to provide Project Management and Monitoring services to the DTT Programme Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

7. DTT: KEY MILESTONS Key Strategies • The STB Manufacturing Sector Development Strategy and SOS Framework were approved by Cabinet in March 2012; DTT Communication and Consumer Awareness Campaign • The Department has finalised the DTT Consumer Awareness Campaign Plan • STB Conformance Authority • DOC has finalised and signed an MOU with DTI and SABS for the establishment of STB Conformance Authority to support Digital Migration and local electronics manufacturing industry; procurement of conformance test facility has began. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

8. DTT: KEY MILESTONS SOS Roll-Out: Post Office Partnership • The roll-out of STB subsidy is an inherently complex process; • The Department is seeking a centralised system which will reduce costs and complexity of subsidy roll-out promote efficiency and DTT take up; • The Department has signed the MOU with Post Office as a possible SOS logistic partner; STB RFI AND RFP • The Department is conscious that the availability of Set Top Boxes is key to the successful launch; • To this end the Department has finalised STB RFP for local manufacturing of Set-Top-Boxes. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

9. STB Standard- SABS Process The STB Standard trough SABS process has been finalised and was launched by Minister; The Department urges all partners involved to assist in the speedily conclusion of this overdue process. The STB Control system will be developed under Sentech domain to the tune of R12 million. Final selection of Manufacturers will be completed by Setember 2012. DTT ROLL-OUT STATE OF READINESS

10. Sentech cont. • DTT network coverage currently at 61% of total population coverage • Sentech on track to hit 80% coverage by March 2012 and 88% by December 2013. Remaining 12 % to be covered by satellite technology • Sentech has so far been allocated R1.8bn for the DTT rollout and to cover the dual illumination . • Satellite portion of the network ready to launch, small technical infrastructure upgrade being done to accommodate network growth

11. SABC • Ready to transmit SABC 1,2,3 on DTT network • SABC will have an additional 24 hr news channel ready for DTT launch • SABC has submitted a Business Case for funding for additional channels for DTT • SABC and etv collaborating on a Free-To-Air partnership

12. E-tv ready to launch on DTT platform, awaiting approvals on ICASA regulations and tariff structures • Memorandum of Understanding has been finalized with SABC for a joint FTA brand collaboration • M-Net also ready to launch on DTT platform, also awaiting approvals on ICASA regulations and tariff structures

13. SAPO • SAPO has signed MoU with DoC, USAASA and SABC for the distribution logistics • SAPO has begun designing software processes for the distribution of STBs to qualifying subsidy recipients • SAPO will be working with USAASA on distribution logistics countrywide, under DoC’s supervision

14. USAASA • R940m ring-fenced at USAASA for this financial year in relation to STB subsidies • USAASA to place STB orders with manufacturers on behalf of DoC and pay after STBs have been delivered at SAPO warehouses

15. ICASA • Draft DTT Regulations have been released for public comment • Target end September for approval and finalization • ICASA also finalizing tariff structures with Sentech and in collaboration with the broadcasters

16. SABS • Completed their tender process and partnering with DTG & DTVL from UK for their STB Conformance Intellectual Property • STB Specification finalized and launched at ICT Indaba in June 2012 • Conformance lab to be ready by October 2012 • SABS have been allocated R10m by DoC to fund the conformance laboratory

17. DTT Phase 1 Launch • Launch dates 26 - 27 of September 2012. • The objectives of the Launch are as follows: • Proof of Technical Concept and announce to the nation that the network is ready and available • Launch is a build up to Phase 2 Commercial Launch to be held at the end of November 2012 or December 2012

18. DTT Phase 1 Launch cont. • The Launch will be in two folds: • Satellite or Direct-To-Home (DTH) around SKA area. • Digital Terrestrial Television (DTT) in a township around Kimberley, which currently has the only DTT transmitter in the Northern Cape • 20 Satellite STBs have been ordered by Sentech for the September Phase 1 Launch to be divided into 10 DTH and 10 DTT. • R3.5million has been put aside for the publicity campaign for Phase 1 Launch among other activities

19. Where are we Now – August 2012 • Sentech has rolled out the DTT network to 61% of the population with all major metro poles up and running. • New equipment has been ordered to cover 80% of population by Mar 2013. • RFP process for appointing local manufacturers of STB’s has been released and evaluation will be completed by Mid September 2012. • Sapo distribution procedure has been finalized and MOU between DoC and SAPO signed. • SABC is ready to transmit all existing channels onto the DTT network • Etv and Mnet are ready to transmit their channels as well. • Call centres are being finalized in the SABC, etv, Sentech and the DoC already has a Call Centre set up for the awareness campaign questions that have been coming in. • SABS is busy setting up the Conformance lab and has ordered the test equipment from the successful bidder of their tender process..target date for completion is end September.

20. Challenges • Budget shortfall for the Set-top-boxes – estimated R4 Billion. • Budget shortfall of over R800 million for DTT Awareness Campaign. • Government to cover the costs of dual illumination transmission through Sentech’s R2.4 Billion ending in 2015.

21. THANKYOU