1. DTT readiness
20 September 2011

2. Introduction
e.tv grateful for the opportunity to make this presentation to the portfolio committee
e.tv faces its biggest challenge yet with the compulsory migration to DTT
World over DTT migration processes have been complex, costly and time-consuming
SA DTT has already seen multiple delays since 2008 when DTT was first supposed to launch

3. Introduction (2) Delays meant that …
Project lost momentum
DTT platform credibility was damaged
The broadcast environment became more competitive (pay TV has grown significantly)
Technology evolved – e.g. DVB-T2 commercially deployed
Some investment was wasted
Notwithstanding the challenges, there now seems to be renewed commitment by all stakeholders to get behind DTT. This has driven e.tv to plan for the launch of DTT in 2012

4. TV landscape
Important to consider the TV landscape when planning for DTT
Most South Africans get their television signal via analogue terrestrial delivery on a free-to-air basis – over 8 million households
A very small number of South Africans use the terrestrial pay TV service, M-Net – approx 100k households
About a quarter of South Africans access TV through pay digital satellite, mainly DSTV, and are not directly impacted by migration to DTT

5. Terrestrial TV landscape
Yesterday viewership
20 212
Includes viewership through DSTV. On terrestrial network only viewership is
15 216
14 353
10 070
5 419
955
Source: AMPS July 2009 – December Main Branded

6. Implications of TV landscape
3 out of 4 South Africans rely on free-to-air TV
3 out of 4 South Africans will need access to a FTA DTT STB before analogue transmissions can be switched off
The success of the migration to DTT therefore depends heavily on the free-to-air broadcasters
Given the aggressive growth of the Multichoice satellite platform, the FTA broadcasters’ future survival also depends on the DTT platform being strong

7. Implications of TV landscape (2)
In order for government to reach its policy objectives, it also needs the FTA DTT platform to be strong. If the FTA platform fails, these objectives are not met:
Job creation
e-government services
Digital dividend
Greater diversity of content in broadcasting including local content and growth of independent production sector which is largely supported by the free-to-air broadcasters
Above all, planning for DTT must be guided by how to build a strong free-to-air DTT platform

8. Building a strong DTT platform
Providing new channels is a key way to make the platform strong
Both national free-to-air broadcasters will be investing in new channels as a priority for building the FTA platform
But there are also other factors which can strengthen the free-to-air platform
These factors need to be put in place by stakeholders in the FTA platform – they do not concern M-Net / Multichoice which is focusing on its own platforms

9. Key features needed for strong FTA DTT
What the FTA DTT platform must offer the consumer
1. Additional functionality for FTA STB
2. Affordable and “easy to get hold of” STB
3. Ability to plug and play STB
4. Reliable service
5. Clear communication

10. How to achieve this
What the DTT platform must offer the consumer
How to achieve this
1. Additional functionality
Ensure FTA STB spec retains functionality – HD, STB Control
2. Affordable and “easy to get hold of” STB
Put STB subsidy in place (in due course) and work with retailers and distributors to build strong retail market for STBs
3. Ability to plug and play STB
Ensure the transmission parameters promote robust coverage
4. Reliable service
Ensure STBs are subject to a conformance testing scheme and digital tick marketing scheme
5. Clear communication
Ensure there is good consumer marketing
The only area where we are not on track is functionality where M-Net / Multichoice is opposing additional functionality in the free-to-air STB

11. DTT implementation
DTT implementation consists of at least 5 sets of issues which are inter-dependent:
Internal broadcaster issues
Those issues pertinent to free-to-air broadcasters
Those issues relevant to broadcasters sharing MUXes
Issues which all DTT broadcasters must jointly drive
Issues which government will drive

12. e.tv internal processes
Requirements for launch:
Business plan sign off
Playout ready
Studio ready
MUX ready
Linking arrangements in place
Channels ready (scheduling, on-air, marketing, publicity)
Sales strategy and rate cards ready
e.tv on track with internal processes
External processes more complex

13. External processes
Mux 2 issues
Multiplex configuration
Capacity allocations
Transmission network
Interactive applications
Negotiations with M-Net ongoing
Free-to-air issues
STB Control
Free-to-air EPG
Free-to-air platform brand (e.g Freeview)
Supply chain issues
SABC and e.tv working closely
General DTT issues
Technical specs
Central collation
Conformance
Consensus achieved among free-to-air broadcasters but process remains hampered by M-Net objections
Issues which government will lead
Consumer education
Viewer support
Subsidy scheme
Some progress but deadlines slipping
Progress on external issues is uneven, but there is movement

14. e.tv approach
e.tv wishes to launch a DTT service within next months. Together with SABC we are planning on a soft launch in April 2012 and a full commercial launch between July and September 2012
Meeting deadlines will require the focused attention of e.tv and will require strong collaboration of industry and government
e.tv keen to work with other broadcasters, government, ICASA and other role-players to ensure DTT plans are aligned and that the FTA DTT platform will be successful

15. e.tv approach (2)
e.tv believes there are only two major roadblocks standing in the way of a FTA DTT launch in mid 2012:
Continuing delays in decision on STB control
Possible amendment of ICASA regulations to reduce incumbent multiplex capacity
If these issues can be addressed urgently, all other issues can be managed to secure a launch in 2012

16. Conclusion e.tv is committed to launching DTT in 2012
But we need external processes to be finalised and roadblocks to be removed
Need leadership to resolve these matters speedily