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Can we DTT?

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THE move to digital terrestrial television is well under way in South Africa, with the first decoders going on sale in mid-2010. The migration is not only going smoothly, but South Africa's plans have been praised by the international community.

Speaking at the launch of the Digital Dzonga - an advisory overseeing the transition - new Minister of Communications Siphiwe Nyanda said that SA's plans were nominated as the best in the world, alongside those of Finland and Sweden, at the Digital Switchover Strategies event in London.

The whole world is going DTT with some countries, such as the UK and USA, already having made the transition. South Africa's switchover target is 2011, although there will be a transition period during which both old analogue broadcasts and their new digital replacements will be running.

The what and how

DTT will replace traditional analogue television used to broadcast SABC stations, eTV and M-Net in South Africa. As such, it does not affect DStv subscribers who can continue using their satellite decoders to receive television stations - including those of the SABC and eTV - via Multichoice. However, any new channels introduced by DTT broadcasters may not be included in the DStv bouquet.

The requirement of DTT decoders is only for people who relied on traditional analogue broadcasting. M-Net decoders, for example, will have to be replaced with new DTT decoders.

The new set top boxes needed for viewing SABC and other free to air stations will be retailed for about R700, although government will subsidise part of the decoder price for those who meet social welfare grant requirements.

Television licences will still be required, as they are now, and it will be possible to plug the new decoders into just about any television set.

In future decoder technology will be incorporated into the televisions themselves, replacing the conventional receivers currently integrated.

When might be a problem

The department of communications says a pilot is already under way for DTT in South Africa ahead of the November 2011 switchover. Technically the signals are already live and SA is well on its way. Despite this, some analysts have expressed doubt at our ability to meet the deadline, suggesting that an extension will be required.

The problem is to get South African television viewers, estimated to number just under 10 million, to acquire the decoders they will need in time for the switchover.

In the USA, which recently made the switch, confusion gripped the market especially with older viewers who had not been informed of the changeover. However, the Digital Dzonga and the department of communications have promised to make educating the SA market a priority to ensure the simplest possible change for consumers.

From an investment perspective, the companies to watch are Reunert and Altech, who will both be pitching for the state tender to provide decoder technology. Multichoice is also expected to benefit, given the new multiplex it will receive to broadcast on.

To incentivise M-Net's move to DTT, the department of communications has offered Multichoice a potentially lucrative broadcasting spectrum, which will enable it to provide a number of stations over DTT. In exchange, Multichoice has been asked to move over to DTT by this time next year (mid-2010).

A smooth switchover to DTT would be a feather in the cap for minister Nyanda, who is proving to be a breath of fresh air to the local industry after the antics of the late Ivy Matsepe-Casaburri.

- Fin24.com

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