BROADCASTING DIGITAL MIGRATION (BDM) POLICY PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONS 17 JUNE 2008 Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

FROM INCEPTION TO IMPLEMENTATION Three years from inception to implementation in spite of being developing country with particular challenges Very few, if any country has done this Three years of transition Only Finland One language Size of country small Developed country etc

BDM POLICY AND DEVELOPMENT AGENDA Opportunity to close the digital divide Building social cohesion and national identity Grow the sector, electronics manufacturing Job opportunities and poverty reduction Access to information and services

Building competitiveness of the SA economy Local Manufacturing of STBs creates an opportunity to build an electronics manufacturing industry in SA and forms part of the Industrial Policy Action Plan This also presents an opportunity to support and extend South Africa’s global excellence in this sector. An Interdepartmental Task Team (DOC, DTI, NT, DST) established to work on the STB Manufacturing Strategy.

Building competitiveness of the SA economy 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 Research and Development activities Facilitate participation by SMMEs on key areas of the value chain such as distribution, logistics, support and maintenance. The Strategy will be ready end-June 2008

Broadening participation in the economy The public broadcaster shall cater for the three public regional television channels as well as channels prioritising education, health, youth, sports, SMME, interactive services, Parliamentary and government information. The 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. STBs should be enabled to receive services from different platforms and operators to avoid multiplicity of STBs. This also enables the integration of the second and first economies.

Broadening participation in the economy Furthermore, as part of contributing to job creation and the STBs shall be sourced primarily from South African manufacturers.

Improving capacity of the State to deliver The availability of e-government and information

Building a better world Local content development SA African International Contribute to building electronics sector in Africa

BACKGROUND (1) SA is a member of the International Telecommunications Union’s (ITU), a specialised UN agency responsible for broadcasting and telecommunications. 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 obliged to comply with this Resolution. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

INTRODUCTION Activities on transition to digital broadcasting: In June 2005, Minister established an industry-wide Digital Migration Working Group (DMWG). DMWG handed its final report to Minister in November 2006. In February 2007, Cabinet announced switch-on and switch-off digital signal and analogue signals respectively. Draft Broadcasting Digital Migration Policy document presented to stakeholders in March 2007. Policy document published for public comments Presented to both Social and Economic and Employment FOSAD Clusters in September 2007. In May 2008 BDM Policy presented and adopted by the Economic Cluster. Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

KEY POLICY DECISIONS (1) 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 broadcasted thus providing for a 3-year dual illumination period. Broadcasting signal coverage to be achieved in a phased manner, covering 50% population in 2008, 80% by 2010 and close to 100% of population coverage by 2011 enabling analogue switch-off. During the transitional period two (2) national multiplexes will be reserved for incumbent broadcasters, designated for public as well as commercial broadcasting services.

KEY POLICY DECISIONS (3) 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 (4) 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. The introduction of mobile broadcasting services, will seek to promote service based competition, as opposed to infrastructure based competition. Two metropolitan networks of frequencies designated for the provision of mobile broadcasting service, shall be operated by a single network operator with a possibility to achieve national coverage.

KEY POLICY DECISION (6) STBs should be enabled to receive services from different platforms and operators to avoid multiplicity of STBs. STBs will have standardised operating systems prioritising security features, and interoperability. As a means to achieve universal service and access in digital broadcasting basic STBs will be made affordable. Furthermore, as part of contributing to job creation and South Africa’s global excellence in electro-manufacturing sector, the STBs shall be sourced primarily from South African manufacturers.

KEY POLICY DECISION (7) 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.

KEY POLICY DECISIONS (8) Digital Dzonga Establishment of the Digital Migration Office known as Digital Dzonga. Digital Dzonga is a multi-stakeholder structure reporting to the DOC. Its mandate is to coordinate South Africa’s switchover from analogue to digital television. It will be in place until June 2016. It consists of 12 non-executive members. Members were appointed following a public nomination process. It will be supported by a Project Management Office headed by an Executive Director.

KEY POLICY DECISIONS (8) Digital Dzonga Its work will be organized into the following areas: Technology and standards Consumer Affairs Communications and marketing International Affairs. Ten (10) members of the Digital Dzonga Council appointed following a public nomination process. Held its first induction meeting on 13 June 2008. Funding has been allocated to operationalise Digital Dzonga. Organisational design of the Digital Dzonga completed.

KEY PRIORITIES IN THE IMPLEMENTATION PLAN Development of a competitive STB Manufacturing Sector Development of a STB Incentive scheme to support the poor Local and digital content development strategy Consumer Awareness Campaign

BUILDING AN ELECTRONICS MANUFACTURING INDUSTRY (2) 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. STB specifications has been developed and is ready for submission to South African Bureau of Standards. The specifications have the underlying STB Control software.

BUILDING AN ELECTRONICS MANUFACTURING INDUSTRY (3) In 2007, DOC and DTI visited six (6) local STB manufacturers to assess the manufacturing capacity. The assessment indicated that: Sufficient capacity to manufacture STBs locally exist. Limited opportunities for the local STB industry to grow. Manufacturers in different stages in terms of manufacturing scale and engineering design expertise. The local sourcing of STBs provide an opportunity to revitalise and build a competitive STB industry.

INCENTIVE SCHEME TO SUPPORT THE POOR TV HOUSEHOLDS Cabinet approved that the DOC investigate appropriate models to incentivise poor TV households. This includes in pensioners, people receiving social disability grants and social grants as well as those earning less than R3 200 per month. DOC is investigating three possible policy options: Administer an incentive scheme to support poor TV households Free market approach; and A hybrid model combining policy option 1 and 2 above. A Cabinet memorandum is being finalised.

BUILDING A COMPETITIVE CREATIVE INDUSTRY Opportunity to build a competitive Creative Industry as part of the National Industrial Policy Action Plan. An Interdepartmental Task Team comprising of DOC, DAC, DTI and DST has been established. Focus is to develop a Local and Digital Content Development Strategy for South Africa. The Strategy seeks to: Digitize our existing content so that it can be usable in the digital environment. Stimulate content development industry in South Africa. Enhance the value of public sector information (e-services) so that it is ubiquitously accessible; Use content creation activities to create jobs The strategy is expected to be completed by the end of June 2008

CONSUMER AWARENESS CAMPAIGN Consumer Awareness Strategy developed. The Strategy seeks to ensure clear, consistent communication on: What digital migration means to ordinary people Why it is of benefit to migrate What people need to do to migrate When a digital signal will be available in specific areas Likely cost Impact on current TVs What to look for when buying an new TV sets, STBs, etc Where to go for assistance

WAY FORWARD ICASA to develop the necessary regulations for implementing BDM Policy. Digital Dzonga to develop and monitor the Implementation Plan. DOC to implement digital migration awareness strategy Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Thank you ndivhuho@doc.gov.za Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development