Digital Migration Briefing to Portfolio Committee on Communications 01 June 2010

1. Digital Migration Briefing to Portfolio Committee on Communications01 June 2010 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

2. BACKGROUND (1) South Africa is a member of the International Telecommunications Union’s (ITU), a specialised UN agency responsible for broadcasting and telecommunications regulations. At the ITU’s Radio Regional Conference (RRC-06) held in Geneva in 2006, member countries resolved that analogue signal will be switched-off on 17 June 2015. SA is gearing towards complying with the timelines of this Resolution; SA has not ratified this Resolution. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

3. INTRODUCTION Activities on transition to digital broadcasting: • The Minister of Communications established the industry-wide Digital Migration Working Group (DMWG) in 2005. • DMWG handed its final report to Minister in Nov. 2006 • Subject to discussion, Cabinet announced digital migration timelines. • The Broadcasting Digital Migration Policy was approved by Cabinet and gazetted August 2008. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

4. OBJECTIVES OF THE BDM POLICY • To establish a policy environment within which broadcasting digital migration is implemented. • Encourage TV viewers uptake of digital terrestrial television. • Ensuring a future for existing services and accommodate new services. • To give effect to the decision to implement digital migration within three year dual illumination period. • To provide framework for designating DTT network of frequencies to cater for public broadcasting, community broadcasting and commercial broadcasting as well as mobile broadcasting services • Encourage investment in the provision and production of new content services. • To provide for the establishment of body referred to as Digital Dzonga

5. BENEFITS OF MIGRATING TO DIGITAL TELEVISION • It uses radio frequency spectrum more efficiently than analogue technologies. • Digital TV offers clear pictures of free-to-air channels and fewer reception problems. • Removes the constraint on the amount of content delivered under analogue transmission. • Opportunities to facilitate investment in high tech manufacturing sectors for set-top-boxes. • Offers potential for interactive services to cater for people with visual and hearing impairments. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

6. KEY POLICY DECISIONS Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

7. Broadcasting digital signal switch-on and analogue signal switch-off The broadcasting digital terrestrial television signal will be switch-on 1st Nov ’08. The broadcasting analogue signal will be switched-off on 1st Nov 2011. Between 1st Nov 2008 and 1st Nov 2011 both broadcasting digital signal and analogue signal will be transmitted thus providing for a 3-year dual illumination period. Broadcasting Digital signal coverage Broadcasting signal coverage to be achieved in a phased manner, allowing for the phased digital migration. KEY POLICY DECISIONS (1)

8. The network of frequencies for Digital Terrestrial TV Broadcast signal and multi-channel distribution have been singled as a ring-fenced category of Electronic Communications Network Service. In terms of section 8 (g) of the Broadcasting Act, the network of radio frequencies dedicated for public broadcasting shall be co-assigned to and managed by Sentech as the common carrier on a non-preferential and non-discriminatory basis. Sentech must also provide broadcasting signal distribution to commercial broadcasters, taking into consideration section 63 of the ECA, which allows for self provisioning by broadcasters. Such services shall also be provided on non-preferential and non-discriminatory basis.” KEY POLICY DECISIONS (2)

9. The network of frequencies for Digital Terrestrial TV The public broadcaster shall cater for public regional television channels as well as channels prioritising education, health, youth, sports, SMME, interactive services, Parliamentary and government services needs. Regional Television services will be required to provide an open window for community television broadcasting for a minimum period to be determined. ICASA will provide the necessary regulations and guidelines for implementing this policy provision. KEY POLICY DECISIONS (3)

10. Local and Digital Content Development Access to public broadcasting services by all South Africans to continue in the digital era. Local content quotas shall continue. “Must carry” rules will continue. ICASA will develop an appropriate regulatory framework. Ongoing Local and Digital Content Advisory Council – Finalisation of member nomination due before June 16, 2010; Local Content hosted on 6-7th May, this will culminate in the promotion of Local Content and establishment of Content Generation Hubs in provinces and rural areas; Community Broadcasting Summit was also held on 24-25 May 2010. KEY POLICY DECISION (5)

11. Digital Dzonga Establishment of Digital Dzonga to oversee the implementation of the BDM Policy in South Africa. It will be in place until 2016. Key among its functions are: Consumer education and awareness Manage a help desk for public support Liaison with relevant stakeholders KEY POLICY DECISIONS (8)

12. KEY PRIORITIES IN THE IMPLEMENTATION PLAN Set-Top-Box Manufacturing Strategy Scheme for Ownership Support Framework Consumer Awareness Campaign

13. STB MANUFACTURING STRATEGY • STB take-up critical for success of DTT migration. • Affordable STBs therefore very important. • STB price appears greatly influenced by two factors: • Technology choices on specifications; and • Timing of STB roll-out • But also need to ensure that STBs are future-proof and allows for applications broadcasters and government require. • In the light of the above, STB specifications that will enable the delivery of e-services as well as the protection box integrity has been developed and is ready for submission to SABS. • The specifications have the underlying STB Control software.

14. STB MANUFACTURING STRATEGY (2) • The Strategy seeks to: • Support the building of a competitive local STB manufacturing industry • Encourage ICT sector growth by encouraging innovation • Maximize BEE initiatives • Provide a model for African digitization • Create a sustainable service businesses with export potential • Create job opportunities • Facilitate participation on key areas of the value chain such as distribution, logistics, support and maintenance. • The Strategy has been widely consulted and presented to Cluster several times and Ready for Cabinet approval processes.

15. Scheme for Ownership Support (SOS) Framework • The concern of subsiding poor TV households has its origin in the Digital Migration Working Group Report (2006) ; • In recognising that many vulnerable TV house may not afford the Set Tip Box, the Cabinet approved the Scheme-for-Ownership Support (SOS) for STBs, which proposes that government would provide 70% incentive for STB to assist 5 million poor TV owning households;  • In this regard, R2.45 billion was earmarked to be funded through Universal Service and Access Fund (USAF); • The Scheme for Ownership Support (SOS) for Digital Set Top Boxes Framework has been developed and widely consulted within government system, and ready to be taken through the Cabinet processes. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

16. South African DTT Set Top Box Standard • The South African Set Top Box Standard based on DVB-T was developed and published by SABS in July 2009; • The SABS STB Standard was developed to provide more than the decoding of digital transmission but to be a tool to bridge a digital divide; • The SABS STB Standard has attempts to achieve this objective although with limitations, • There have been however developments within the Digital Broadcasting Standards; • DVB Group (European developed) has introduced a new generation Standard known as DVB-T2, • The ISDB-T Standard (Japanese developed) is now a standard now defined in the ITU-T, whose innovative solutions warrants consideration. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

17. South African DTT Set Top Box Standard • The SADC member states, have in the light of the new technological developments decided to revisit the DTT Standard; • The objectives of DTT Standard revisit is to seek a Standard that best addresses our developmental needs like; bridging the digital divide and local software adaptability; • The SADC Ministers of Communication and ICTs have set up a Committee to consider Standards and advised them within a set time framework. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

18. Key Priorities in the Implementation Plan DTT REGULATIONS • For: Licensing and Authorization of Current broadcasters to operate in digital platform and introduction of new services: • ICASA has published the Final DTT Regulations Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

19. Key Priorities in the Implementation Plan Set Top Box Strategy • The Availability and Local Manufacturing of STBs while providing take-up assistance to vulnerable TV Households; • STB Sector Development Manufacturing Strategy and Scheme for Ownership Support Framework have been developed and consulted widely and ready to be tabled in Cabinet processes. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

20. Set Top Box Strategy: Key Milestones • Define and Formalise Specifications; • Produce rules of operation – “D-Book” • Develop STB prototypes • Establish and Specify Conformances System; • Test and sign off prototypes • Define Retail Strategy • Define Subsidy Strategy • Manufacture • Fill the STB supply chain • DTT consumer communication • DTT Commercial Launch Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

21. Digital Dzonga • Key function of Digital Dzonga will be to roll out communications campaign on Digital Migration; • Digital Dzonga will need to, with other stakeholders, develop consumer awareness campaign using variety of media; • Television, radio and print • Community radio • On-line • In-store, post-offices etc • iZimbizo Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

22. Digital Dzonga • Digital Dzonga Council was formally launched in 2009; • It was dissolved in March 2010 due conflict of interest; • Call for new nominations published and nominations received; • The Department is in the process of finalising the nominations. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

23. Signal Distribution • Transmitter Roll-out will be done in terms of the approved frequency plan; • ICASA has finalised the DTT Frequency Plan; • DTT regulations make provision for the allocation of multiplexes to various broadcasters. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

24. DTT – Public Broadcasting • Public Broadcaster (SABC) in collaboration with other broadcasters have been conducting a DTT Pilot broadcasting over 12 months; • The broadcasters have learnt valuable practical lessons; • The public broadcaster is winding the Pilot and finalising Pilot Research; • SABC planning for DTT launch will be influenced by final outcomes of DTT Standard Revisit. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

25. Conclusion • Digital Migration is an enormous and complex national project; • Much work required to co-ordinate efforts of stakeholders and drive digital migration; • Support of all stakeholders is required. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

26. Thank you Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development