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This presentation by Sentech to the Portfolio Committee on Communications discusses the progress of the DTT project, including rollout, regulations, spectrum plan, and challenges faced. The report covers standards, team overview, progress updates, regulatory risks, and frequency plan concerns.
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SENTECH’S PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONS ON ITSPROGRESS REPORT ON DTT PROJECT Date: 1 June 2010
Note on standards • DOC held a colloquim on 29 – 30 April 2010, Sentech attended. • Different standards were presented i.e. European, Japanesse, Korean and Brazilian. • Sentech is studying the different standards and will report its findings and recommendations to the DOC in due course.
Sentech Team • Chairperson – Mr. Q Patel • Non- Executive Board Member – Mr. M. Dhlamini • CEO (Acting) – Ms. B. Ngwenya • CFO - Mr. S. Cassim • COO (Acting) – Mr. D. Dube • Specialist Government Relations – Mr. Ndleleni
Overview • Progress on DTT project roll out • DTT Regulations • DTT Spectrum Plan • Conclusion
Progress on DTT project roll out • Rollout • 33% population coverage • Funds • CAPEX allocation to date R1 billion and received R525 million. • OPEX allocation to date R330m and received R100m • 60% population coverage by March 2011.
Risk and challenges (Regulatory) • On 15 February 2010 ICASA published the final DTT Regulations. • The Regulations have assigned two multiplexes i.e 1 SABC/TBN and 1 etv/mnet. • Sentech’s initial rollout (Capex and Opex) assumed 2 network of frequencies (multiplexes). Government funded Sentech to deploy two multiplexes.
Risk and challenges (Regulatory) cont. • The Final DTT Regulations published by ICASA on 15 February 2010 are unfavourable to Sentech and will reduce its revenue substantially. • BDM policy on co-assignment: • The network of frequencies designated for public broadcasting should be co-assigned and managed by Sentech as a common carrier on a non-preferential and non-discriminatory basis. • Sentech should also provide broadcasting signal distribution to commercial broadcasters, which should be provided on an non-preferential and non-discriminatory basis
Risk and challenges (Regulatory) cont. • The Final DTT regulations define multiplex as frequencies designated for DTT. • The manner in which ICASA has defined multiplex in the Final DTT Regulations falls under a licensable category (radio frequency spectrum). • However, ICASA contradicts itself in its Reasons Document on Digital Migration at paragraph 27.12 by ruling that “The Authority has decided that the questions as to who will assume responsibility for multiplexing will be left to the broadcasters on the basis that multiplexing is not, in and of itself, a licensable activity in terms of the ECA, and certainly, does not constitute ECNS”
Risk and challenges (Regulatory) cont. • Sentech is challenging ICASA on the following basis: • Multiplexing and encoding are a part of multichannel signal distribution • ICASA is of the view that there is a legislative gap under the ECA (multiplexing and encoding not licensable activities) • Sentech’s view is in conformity with the definition of multichannel in the ECA “means a broadcasting signal distribution service that provide broadcasting signal distribution for more than one channel at the same time and on the same signal, and “multi-channel distributor” is construed accordingly.
Risk and challenges (Regulatory) cont. • The Final DTT Regulations assign a network of frequencies to broadcasters. • Sentech is of the view that according to section 31(2) a broadcaster requires a radio frequency spectrum licence over and above the broadcasting service licence Sentech is of the view that the ECNS that will be providing broadcasting signal distribution also requires a radio frequency spectrum licence issued by ICASA, in terms of section 31(1) of the ECA. • Section 32(1) of the ECA prohibits any person from possessing any radio apparatus unless in possession of a radio frequency spectrum licence or exempted from possessing such. (Sentech is currently operating equipment in contravention of Section 32(1) of the ECA) • Sentech’s interpretation of section 31(1) and 31(2) of the ECA is that radio frequency spectrum has to be co-assigned between the broadcaster and an ECNS licensee.
Risk and challenges (Regulatory) cont. • ICASA in making such pronouncement has actually ruled that multiplexing can only be a broadcasting services activity, although it ruled that it is not a licensable activity. • ICASA is wrong in pronouncing that there is a legislative gap under the ECA regarding multiplexing and encoding. The definition of multi-channel distribution service according to Sentech includes multiplexing and encoding.
DTT Frequency Plan • Effective Radiated Powers (ERPs) defined for DTT in the ICASA Final Spectrum Plan (FSP) are generally significantly lower than those on which the original Sentech project was based (the Sentech Complementary Frequency Plan). • With the ICASA plan some people who are currently receiving the analogue coverage will not be able to receive the digital coverage. • It will not be possible to mitigate this situation until additional frequencies are made available through rollout additional sites for such purposes. • Additional Capex and Opex will be required for a greater number of sites.
DTT Frequency Plan & Regulations (coverage and capacity implications) Discussion of DTT Coverage Implications • A very significant portion (estimated at 10% of the television household) would be deprived of the benefit of receiving DTT by means of low-cost indoor-portable receive antennas (e.g. short vertical rod or ‘bunny ears’). • The SCFP provides a benefit of indoor portable reception whilst the ICASA plan has a cost to the viewers in that they might have to buy outdoor aerials (if Sentech has to go low power in terms of the ICASA FSP).
DTT Frequency Plan & Regulations (coverage and capacity implications) • In a single example of a key station such as near Polokwane (on the next slide) it can be seen that at least half a million persons will be deprived of the social benefits digital technology has to offer (ease of reception, use of low-cost receive antennas, universal access) .This illustration is for one main site only. The network will comprise of approximately 180 sites.
DTT Frequency Plan & Regulations (coverage and capacity implications)cont.
DTT Frequency Plan & Regulations (coverage and capacity implications)cont. • Due to the inherent nature of metropolitan development, the most vulnerable and disadvantaged sections of the population residing on the fringes of cities and towns will be mostly affected by inadequate coverage and higher levels of interference. In this example, the entire Seshego, Polokwane and several other townships are excluded from this portable reception benefit (a benefit that is so easily achievable when using appropriate transmitter powers).
Conclusion • Compliance with the ICASA FSP in its current form will require addition CAPEX and OPEX. • More time will be required to achieve analogue switch-off. • There is currently not enough spectrum in the FSP to achieve full digital switch-on using the ICASA FSP. • Properly understood in terms of ECA, multiplexing is a broadcasting signal distribution activity and should be licenced as such.
