Digital Terrestrial Television

1. SOS 23 April 2010 Digital Terrestrial Television

2. What is DTT? • DTT is digital versus analogue transmission • Terrestrial rather than satellite • Compresses channels so can fit more on one frequency • Multi-channel • Digital not analogue – means can have electronic programme guide, e-government, different languages turned on

3. Digital Terrestrial Television System Production STB TV

4. Why Digital Migration • International Telecommunications Union has resolved that in this region 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 The Digital Dividend The Digital Dividend

5. Will change television Multi-channel Better quality pictures and sound Possibilities of high definition tv Interactivity (with or without return path) • CONS • No signal in marginal areas • More channels means less viewers per channel? • Complexity of decoders • Migration is expensive – STBs for public, new transmitters/upgrades, new equipment in broadcasters (compression technology, multiplexing) • PROS • More channels • More choice for public • Better able to meet mandates • Bouquets for specific interests • Quality can be controlled per channel or per event

6. Benefits in future BUT expensive to migrate Signal Distribution and Transmission Content Production, Packaging and Programming Signal Reception and Devices • Transmitter Network rollout • During migration double transmission costs • Broadcasters need to digitize archives, studios, and production networks • Broadcasters will need to develop and test new DTT channels • All viewers will need STB to be able to watch DTT migration therefore requires the co-operation of multiple stakeholders

7. How far are we?History in SA 2005: • Minister sets up Digital Migration Working Group (DMWG) • Includes all industry players 2006 DWMG submits recommendations to Minister

8. “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”.

9. Background cont… 2007 • Cabinet announces in Feb digital signal will be switched on 1 Nov 2008 – switched off 1 Nov 2011 Dual illumination – when both signals are running at same time to give audiences time to get STBs and switch Three year “dual illumination period”

10. History 2007 cont… • April: Govt issues draft policy and strategy doc - Asks for comment within two weeks as urgent • May Budget speech Minister announces Digital Dzonga and appoints chairperson (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“

11. 2008 • August (almost 18 months after urgent draft policy is launched)…. Digital Migration policy is announced • Nov – DTT is “launched” – but actually a pilot to about 1 000 viewers

12. 2009 • June: Digital Dzonga launched and conformance scheme (digital tick) • July: STB standards set by SABC • DoC issues digital content draft strategy • DoC issues draft STB manufacturing strategy and holds conference • July: ICASA issues regulations (outlining what broadcasters will be required to do) • ICASA withdraws regulations after challenge (e-tv and Nafcoc) • ICASA issues frequency plan

13. 2010 • DG says still switch off 1 Nov 2011 • Says STB manufacturing strategy will be issued • Says subsidy scheme before Cabinet • Digital Dzonga dissolved and calls for nomination for new members • Says are reviewing standard (DVB-T or Brazilian/Japanese model) • Feb: ICASA issues new regulations • Minister calls for nominations for SA Broadcast Production Advisory Committee

14. Govt 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

15. 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

16. Policy: Content development Digital Content Generation Hubs will be developed Recognises need capacity But When? Any financial support?

17. Policy: 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

18. ICASA regulations • One multiplex for SABC (with 10% for Trinity Broadcasting Network) • E-tv and M-Net will share other multiplex • ICASA will decide on date when broadcasters must go digital • Analogue will be switched off 3 years after that date • Says will be public hearings on applications

19. Regulations • Does not state how many channels each broadcaster will get – BUT allocates space on multiplex • SABC 100% of Multiplex 1 (about 10) • E-tv 50% of Multiplex 2 • M-Net 40% Multiplex 2 • Will simulcast existing channels – plus have digital incentive channels • 3/4s of SABC channels must be public (not public commercial)

20. Regulations • ICASA says will review SA content policies • In interim abide by existing – but can apply for exemption for niche channels

21. 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 • Need policies to ensure affordability…

22. What does it mean to broadcasting policy? • Need to review entire broadcasting policy and legislation (Bill???) • laws – SABC public and public commercial • Says certain channels? Is that what we want? • Don’t licence channels anymore – but Bill muddles • Need to review funding for public broadcasting

23. Need to review all regulations • Local content – but no difference between digital content and tv content • Need more! • Must carry rules for public broadcasting

24. What is Standards Debate?Standards – Govt policy Sep 2008 • “There are numerous standards for digital broadcasting in use across the world. After significant technical evaluation and specific consideration of South Africa's unique market requirements, this Policy adopts the following technical standards for type approval by ICASA and for use by industry: • 5.1.3.1 DVB-T (EN 300 744) is adopted as the national standard for terrestrial digital television broadcasting in South Africa. DVB is reported to be the fastest growing DTT platform in Europe and other parts of the world. Many governments have started to plan for analogue switch-off and DVB- T has become the de facto standard, which has been adopted by the whole of the ITU Region 1 comprising Europe, Middle East and Africa.”

25. Latin America …..Due to the low cost of DVB-T set-top boxes (STBs), the standard was expected to achieve near ubiquitous deployment across the region. However, Brazil's SBTVD-T standard and Mexico's use of ATSC have spearheaded a movement away from DVB-T.Given that a DVB-T STB can be purchased for as little as $30 and an ATSC STB for around $40, Brazil's and Peru's use of SBTVD-T with its $120 STBs is surprising, considering the price sensitive nature of Latin America. Screen Digest – Global Media Intelligence May 2009

26. What does it mean for public broadcasting? • During Dual illumination – SABC 1,2,3 plus up to seven more channels • Radio • Can better meet mandate – language, specialist channels… • Funding???? After dual illumination - ?????????

27. What does it mean for public broadcasting? • Costs? • Funding? • Less advertising per channel? • Fragmentation of audiences?

28. “…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 Goldinge-tv CEO