Rooivalk Set-Top box Project, Redux .

Who didn't see this coming? Digital TV migration will cost three times as much as first thought, and happen many years later.

See full article here: http://www.itweb.co.za/index.php?option=com_content&view=article&id=57950:rooivalk-set-top-box-project-redux&catid=69

QEC comments on the article:

Hi Ivo - Your article states it is expected to cost R400 for the STB. DOC had stated for a while that they expect it cost about R700 - a misguided amount still, given the fact that it is more expensive to manufacture in SA, the DOC have also now finalised the inclusion of conditional access, another couple of dollars on that price and the fact that the SA manufacturers will need to pay royalties to Dolby, etc (something not really adhered to in places like Asia...). All the above push the base price up resulting in a market price above R700...

The comment of free market participation is a fair one, but one should consider the dire labour conditions our Asian counterparts work under. In South Africa, our labour force wage rate is negotiated between the manufacturer and the bargaining councils. The wage rate is far higher here, and the indirect costs of leave, work hours, training etc extrapolate those even further. The reason our government has taken this route is to foster growth and development in the manufacturing industry thereby creating employment (higher skills requirement) and ultimately a higher skilled workforce. This (if successful) will show future benefits. So as South Africans, we need to balance the economic benefits of protecting and developing the manufacturing industry vs. the cost to the consumer. -Granted, it is dependent on whether this strategy is successfully executed or not, and only time will tell. Further to this, technology changes (T1 to T2) took place in the middle of government's DTT migration talks... and then the more advanced (and more expensive) DVB-T2 technology was chosen.

Everyone, including myself, believe that this migration process could have been handled differently... but one resounding fact is that this is an enormously intricate task, and with all that has happened, the DTT process is showing signs of successful deployment.

In the interest of positive debate, what would you have done differently to promote a more successful transition?