1. Emerging Technologies in the Broadcasting Sector Leago Takalani Executive: Technology SENTECH SOC Ltd

2. SOME BACKGROUND GLOBAL REFLECTIONS SOUTH AFRICAN CONTEXT SOME PRACTICAL POSSIBILITIES FOR THE FUTURE INTRODUCTION 3 4 5 1 2

3. Presentation aims to provide an outlook on the emerging technologies and impact on the role of ECNS licensees providing signal distribution services. The presentation aims to stimulate discussion in the area of digitisation, convergence and role of ECNS licensees that provide content distribution services such as SENTECH. This will also form as input towards the construct of information that will assist the Panel/DTPS to formulate appropriate Policy Options for the Discussion Paper to be gazetted in November 2014 (toward finalisation of a White Paper in 2015) 3

4. BACKGROUND GLOBAL REFLECTIONS SOUTH AFRICAN CONTEXT SOME PRACTICAL POSSIBILITIES FOR THE FUTURE INTRODUCTION 3 4 5 1 2

5. 5 VISION To be a world-class provider of sustainable communications platform services in South Africa and the rest of the African Continent. MISSION To provide open access and interoperable communications platform services that enable affordable universal access to digital content services, in the context of South Africa’s socio- political imperatives as a developmental state. VALUES ●Integrity: We act with honesty, fairness and openness; ●Quality Customer Service: We are committed to proactively ensuring high values of customer satisfaction and building a relationship based on trust; ●Innovation: We endeavour to develop and support creativity and responsible risk-taking; ●Accountability: We deliver on our promises and take responsibility for our actions; and ●Social Responsibility: We endeavour to fulfill our mandate in a manner that benefits our employees, customers, suppliers, communities and the environment in all the areas that the Company operates in.

6. INTRODUCTION 6 SENTECH’s Public Service mandate was originally provided for in: – The SENTECH Act (No. 63 of 1996) – For Broadcasting Signal Distribution Services “...to provide, as a common carrier, broadcasting signal distribution, for broadcasting licensees in accordance with the provisions of the Independent Broadcasting Authority Act...”; Since then, the mandate has been generalized and incorporated in the ECA and amended SENTECH Act: – The Electronic Communications Act (No. 36 of 2005) – For Converged Communications Services “...to provide electronic communications services and electronic communications network services in accordance with the Electronic Communications Act.” SENTECH carries a common carrier obligation in terms of the ECA and by virtue of the conversion of the old broadcast signal distribution license to a specific ECNS license.

7. TECHNOLOGY REFLECTIONS 7 A reflection of the television evolution: Cloud Broadcast + Internet Broadcast

8. TRADITIONAL VALUE CHAIN: 8 BroadcastersSignal Distribution Consumer

9. EVOLUTION TO CONTENT DISTRIBUTION VALUE CHAIN: 9 SENTECH believes that the digitisation of the broadcasting signal distribution signal network to IP data transmission network and the continued evolution of the mobile technology is forcing changes in the regulatory environment and is impacting on the conditions of competition in both the telecommunications and broadcasting industry. Technological evolution has enabled the possibility of triple play products including telecommunications, TV and the Internet. As technological evolution has changed how the market can be contested, the regulatory environment is therefore required to make convergence a mutual beneficial environment. The motivation for converged networks is driven by the increasing demand from consumers to have greater variety of communications and media services on modernistic platforms and on various wireless portable devices. This demand is powered by the fact that consumers have now become content producers and are constantly seeking cost efficient and reliable ways of sharing/distributing content. Therefore moving forward, the broadcasting and telecommunications industry should not be reviewed without taking into consideration the requirement of network convergence and the required change to the current legislative framework of ECNS, ECS and BS licensing categories.

10. EVOLUTION TO CONTENT DISTRIBUTION VALUE CHAIN CONT… 10

11. BACKGROUND FOR THE FUTURE: MultiPlatform User Interface From a single Content Playout ingest source, Television and Radio content can be distributed across different multi-screens (devices) – fulfilling viewers demands for ‘content everywhere, anytime and on any devise’ – and enabling broadcasters to monetise these ‘eyeballs’ 24/7/365. 11

12. BACKGROUND FOR THE FUTURE: 12 The huge growth in the internet and mobile markets has afforded the consumer much more freedom in how they access their entertainment. Advances in internet and mobile technologies have provided alternatives for TV and content delivery which has led to the convergence of broadcasting and telecommunications sectors. Traditional Broadcasters and pay TV operators are being confronted with new competitors such as telecom carriers in the IPTV space and Over the Top service (OTT) providers (e.g. Netflix, Youtube, Amazon and Hulu). Source: Internal SENTECH documents.

13. BACKGROUND FOR THE FUTURE 13 According to Information Telecoms and Media forecasts (see Figure 5) there will be more than 1.8 billion devices (TVs, Blu-ray players, Set-top boxes, game consoles and media streaming boxes), with internet connectivity in use in over 570 million homes by end 2016. Connected TV sets and already the best-selling internet-enabled TV devices with sales of connected TV sets forecasted to more than double over the next 4 years to reach 227.3 million by 2016 worldwide. As connected TVs become the norm, new forms of distribution such as viewing of time-shift/on-demand TV and video streaming is expected to accelerate. The flooding of fully-connected TVs enable the OTT providers to deliver their content direct to the device optimised for TV.

14. BACKGROUND FOR THE FUTURE 14 The technical environment to support the new connected ecosystem becomes significantly more complex, requiring a back to basics approach to systems design and specification. The Hybrid Broadcast Broadband TV (HbbTV) specification for example makes an attempt to provide a formalization that makes the best of already existing formal methods in television, the Internet and consumer devices. OIPF = Open IPTV Forum; CEA = Consumer Electronics Association; DVB = Digital Video Broadcasting;

15. SOME BACKGROUND GLOBAL REFLECTIONS SOUTH AFRICAN CONTEXT SOME PRACTICAL POSSIBILITIES FOR THE FUTURE INTRODUCTION 3 4 5 1 2

16. GLOBAL REFLECTIONS Arbetis in Spain has implemented an HBBTV platform that allows them to integrate a number of communications services towards their broadcast and media customers. All converged services are provided under the cover of the main brand.

17. SOME BACKGROUND GLOBAL REFLECTIONS SOUTH AFRICAN CONTEXT SOME PRACTICAL POSSIBILITIES FOR THE FUTURE INTRODUCTION 3 4 5 1 2

18. SOME DATA: 18 Video Streaming: global IP traffic growth (monthly traffic PetaB) Source::CISCO VNI Forecast (feb/2012) Global IP Video Traffic Trend By 2016 total traffic will be 4 times larger than 2011. By 2016 Global Video Streaming traffic will be equivalent to 37 M DVDs/hour. The regions with higher potential of growth are: Middle East and Africa that in 2016 will be 21 times what is in 2011 and... Latin America with a growth around 11 times comparing 2016 and 2011. North America growth will be practically stagnant from 2014. Western Europe traffic will grow more than 4 times comparing 2016 and 2011.

19. SOME DATA: 19

20. SOME BACKGROUND GLOBAL REFLECTIONS SOUTH AFRICAN CONTEXT SOME PRACTICAL POSSIBILITIES FOR THE FUTURE INTRODUCTION 3 4 5 1 2

21. THE FUTURE For SENTECH, our operational challenges require us to look quickly at the Open Access network that is technology agnostic. Providing a ubiquitous service abstraction layer to the industry relevant for applications and multi-platform environment. Avoidance of duplication in technology investments. The future in the digital world, is about the efficiency in infrastructure deployment and service enablement based on infrastructure sharing/collaboration. There lies an opportunity for new entrants and removal of barrier to entry in provision of services. Most importantly, the industry will need to take the policy makers and the regulator along so as to avoid “rules being defined at the point of execution”. The real exciting future in convergence lies in the equilibrium of universal and affordable access to services and applications, through a unified network approach. This will call for review of current legislative framework for ECNS, ECS and BS licensing categories in Content Services, Multiplexing services and transmission facilities. 21