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Digital migration likely to drag on as Malatsi hunts for funds

Investment needed to keep the changeover project going

Communications & digital technologies minister Solly Malatsi is scrambling to fund the drawn-out move from analogue to digital television broadcast. File photo.
Communications & digital technologies minister Solly Malatsi is scrambling to fund the drawn-out move from analogue to digital television broadcast. File photo. (GALLO IMAGES/MISHA JORDAAN)

Communications & digital technologies minister Solly Malatsi is scrambling to fund the country’s drawn-out move from analogue to digital television broadcast, which looks to be delayed again.

With the date set for December 31,  Malatsi told parliament on Tuesday the target was unlikely to be met.

“When we look at the progress that has been done, it’s very clear there will be difficulties with proceeding with the [cut-off] date,” Malatsi said during a parliamentary briefing by his department on the progress made in the analogue switch off.

At the heart of the matter is that the government is yet to reach its target of installing about 1.8-million set-top boxes in households that need new devices that can receive the updated digital broadcast signals. Since inception, just over than 1.3-million installations have been done, with 469,000 outstanding.

Sentech has indicated  it is under financial strain. In terms of the Universal Access Fund, which has previously carried the costs there hasn’t been any provision made for the next financial year.

—  Solly Malatsi, communications & digital technologies minister

This means Malatsi, the ninth minister to take on the digital migration project, and his department are hunting for funds to keep the analogue system operating alongside the digital one, a situation dubbed “dual illumination”.

“It also raises the dilemma in terms of funding for dual illumination, which will keep analogue and digital on, given that there hasn’t been a financial commitment/provision for this to happen,” he said.

“If we were to say the date should be extended, for instance, we’ll need to get into a conversation about where do we get the funding to cover the cost. Sentech has indicated it is under financial strain. In terms of the Universal Access Fund, which has previously carried the costs, there hasn’t been any provision made for the next financial year.”

The National Treasury said earlier this year it expected expenditure on digital migration to decrease at an average annual rate of 67.2%, from R1.6bn in 2023/24 to R57.5m in 2026/27, “due to the conclusion of the broadcasting digital migration project”.

The switch to digital TV has long been a thorn in the government’s side. While the process will clear the frequency spectrum occupied by broadcasters, allowing for faster wireless broadband services and other applications, broadcasters are reluctant to relinquish their existing frequencies until the migration process is completed.

Telecom operators

The process had been a major holdup for the release of radio frequency spectrum to telecom operators, which were looking to take up the same radio waves.

After the March 2022 spectrum auction, a number of operators have been unable to use the radio waves they bought. However, Business Day understands Sentech has completed work to clean up the spectrum, allowing telecom companies to use it. Even then, keeping the old system will cost the government a great deal.

According to Tinyiko Ngobeni, deputy director-general for ICT infrastructure development and support, the government has spent R1.23bn for dual illumination since 2014. However, no funding has been allocated for the 2024/25 financial year. The department needs R140m and is lobbying to have the Universal Service and Access Fund’s (USAF) fund “reprioritised” for the process

The USAF’s sole mandate is to subsidise ICT equipment and services, and electronic communications and broadcasting networks for needy people in underserviced areas. The fund is managed by the Universal Service and Access Agency of SA.

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