Digital Migration in South Africa

October 2008

Save Our SABC

Libby Lloyd

What does it mean to you?

• How should civil society be interacting with DTT migration?

Why Digital Migration

• International Telecommunications Union has resolved that 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 (about 8 digital channels for each one analogue frequency?)

The Digital Dividend

How it works

Digital Terrestrial Television System

Production

STB

TV

DTT changes the nature of television

Technology features Multi-channelBetter quality pictures and soundPotential for Interactivity (with or without return path)Can have multiple language tracks

PROS• More channels potentially allows more audience choice•Bouquets for specific interests – greater viewer differentiation•Quality can be controlled per channel or per event to optimise resources•More capacity to deal with specific needs

CONS • No signal in marginal areas • Multichannel makes it harder to attract viewers to a given channel•Need regulation to ensure diversity• Decoders complex – need for aerials?• Expensive for viewers and broadcasters

DTT Impacts on Broadcasters’ on Different Levels

Content Production, Packaging and Programming

Signal Distribution and Transmission

Signal Reception and Devices

Broadcasters need to digitize archives, studios, and production networks

Broadcasters will need to develop and test new DTT channels

Transmitter Network rollout

Costs of signal distribution will rise

Design of Electronic program guide (EPG) needs to be undertaken – may require co-operation of different broadcasters

STB specs to be developed which will determine what kind of services can be offered

Revenues and business models will be impacted: license fee collection, interactive service revenues

DTT migration therefore requires the co-operation of multiple stakeholders

History in SA

2005: 2005: • Minister sets up Digital Migration Working

Group (DMWG)• Includes all industry players

20062006DWMG submits recommendations to

Minister

DWMG key recommendation

“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”.

Background cont…

20072007• Cabinet announces in Feb digital signal will

be switched on 1 Nov 2008 – switched off 1 Nov 2011

Three year “dual illumination period”

An Aside…

Dual illuminationWhen analogue and digital signal running togetherPurpose: Purpose:

to test signal, to persuade consumers of benefits and to get ready for switch-offto ensure ongoing universal access

Very expensive for existing broadcasters

Back to history

2007 cont…2007 cont…

• March:

Government issues a draft policy and Government issues a draft policy and strategy docstrategy doc

Asks for comment within two weeks as Asks for comment within two weeks as urgent urgent

Promises, promises, promises

Government repeatedly states policy will be out “shortly”, “next week”, “next month”

No policy but…

• May 2007 Budget speech Minister announces Digital Dzonga

• 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 “

Finally

• Finally – almost 18 months later

Digital Migration policy is launched

But

• Not detailed enough

• Only released specs for STBs at same time

…and only 3 months till switch-on

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

Distraction…. Signal distribution

• All transmitters need to be converted

• Sentech (signal distributor) says needs R950m for conversion

R917m for dual illumination

BUT only awarded R600m

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

ICASA draft regulations

• ICASA issued regulations for comment on 3 October

• Comment due in by 7 November

Broadcasting during dual illumination

• Government Policy does not state how many channels each will get

• DWMG suggested:– SABC five (3 existing and two regional?)– E-tv two– M-Net three

Costs high for broadcasters – new content and double transmission

ICASA draft regulations

• Reserve two “multiplexes” for existing broadcasters

• One multiplex for public and community television

• One for commercial

• Each multi plex can carry 8 channels.

ICASA proposals on allocating channels

• “allocation must aim to increase the number of channels falling under the public wing of the SABC for the purpose of public service broadcasting including regional broadcasting

• “Digital incentive channels must be assigned proportionally to …commercial channels… including etv, m-net and the commercial wing of the…SABC”

What this means

• Presumption that commercial and public split continues

• No query of if model works

• Issues of fair competition

What it means cont…

Propose: 2 commercial channels for SABC

(SABC 3 and another)Five channels for public section (SABC

1, 2, 3, 4 and another)1 for community2 e-tv and 4 m-net

How propose allocate?

• “Authorisation of channels for public broadcasting …will be subjected to a public value test and may be subjected to a public process”

• Define public value test as meaning that the channel … should seek to meet the programming objectives set out in relevant section of regulation and may be subjected to further public processes

Proposed programme objectives

– Level of educational programming– Distribution of different languages – emphasising

marginalised (isiNdebele, siSwati, XiTsonga, TshiVenda)

– Promotion of cultural diversity– Programming aimed at persons with disability,

children youth and women– The social development of persons in the Republic

including programmes providing entertainment and information

– Multi Genre programming

How define “public process”

• “May include any or all of following:– Publish a notice in gazette of application for

channel authorisation– Invite comments– Give a chance to SABC to respond to

comments– Conduct a public hearing

Problems

• Nice idea• Limited public involvement prescribed• Missed chance to define how public broadcasting

is distinct from public commercial• Presumption that model will continue• Not clear how determined what is of public value• No requirement for SABC to conduct research

into public value

content

• More channels

• More content

• Expensive

• What will local content quotas be?

• Is there capacity in independent production sector?

Content development

DMWG

Need government support for content development

Government policy

Vague

Digital Content Generation Hubs will be developed

But When?Any financial

support?

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

Subsidy scheme

R2.45 bill•BUTNot clear where funds will come from:Suggested Universal Service and Access Fund

maybe

But … telecommunications operators unhappyUSAF – capacity to manage such a large roll out?

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

STB’s

• Launch with no STB’s• No-one will be able to watch – except 500

people chosen to test• STBs will be manufactured in South Africa• STBs will only be available from mid 2009• most basic box will have inbuilt capability to

facilitate e-government applications to enable users to receive and send back messages, download information on government services and submit, for example, application forms

What does it mean to broadcasting policy?

• Need to review entire broadcasting policy and legislation – currently only allows a private company to own one tv channel

• Need to review laws – SABC public and public commercial

• Need to review funding for public broadcasting

Funding of public broadcasting issues

• SABC will need more money for more channels and for dual illumination

• Need to rethink funding model• Public and commercial division not worked – still

all commercial• SABC previously raised potential for using STB

to monitor payment of licence fees…• UK and France relooking at public broadcasting

funding in light of multi-channel environment

Need to review all regulations

• Local content

• Must carry rules for public broadcasting

• Frequency spectrum

• How will licence new players?

“…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

Issues for SOS?

• Monitor roll out of STB’s to ensure universal access

• Engage with subsidy scheme• Engage with roll out process…• Respond to ICASA position paper – public value• Question funding model for public broadcasting• Use to advance call for rethink of broadcasting

policy