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Johannesburg - Digital migration should open up a huge opportunity for growth in the local information and communication technology (ICT) sector, said a manufacturer.
By November 2011, South Africa will have completed the switch from analogue to digital terrestrial television broadcasting. Government has budgeted R2.45bn for the change-over. This includes subsidies for the supply of set-top-boxes (STBs) to qualifying analogue television set owners.
"I'd like to see government utilise subsidies not only to assist poor households, but also to promote local manufacturers and ICT sector growth," said Anton Lan, business development director at Altech UEC, a subsidiary of ICT group Altech.
Spokesperson for the ministry of communications Tiyani Rikhotso said cabinet took a decision to migrate in the three-year period from November 2008 to November 2011.
The retail price of the STBs is estimated at around R700, but "the prices are likely to drop as consumer take-up increases", said Rikhotso. He said the five million poorest households will receive a 70% subsidy of the retail purchase price, excluding installation.
Karen Willenberg, a member of Digital Dzonga - an advisory group appointed on Tuesday to oversee and coordinate the country's preparation for the switchover - said the government is still deciding how the subsidies will work.
"The strategy paper on subsidies is not complete yet, but we hope government will subsidise manufacturers," said Lan.
According to Rikhotso, various companies will be appointed to manufacture the STBs.
However, production has not yet started as manufacturers are waiting for STB software standards to be published by the South African Bureau of Standards. The hardware standards have already been published.
According to Rikhotso, the only way to receive digital terrestrial television in South Africa will be through an STB.
"There is no need to buy a new television set, because no television on the market will be able to receive the digital channels without an STB," said Rikhotso.
He said Dstv subscribers will continue to receive existing and some future free-to-air channels.
Willenberg said Digital Dzonga is "aware of the complexity of digital migration" and will advise the department of communications on how to prevent consumers being ripped off.
- Fin24.com
