Updated List Released: Set Top Box Tender

The lasted round of tenderers have been released for the Request for Proposal (RFP) from Service Providers in respect of Digital Set-Top Box (STB) Production for Local Manufacturing Companies for Government Subsidised TV Owning Households.

See updated list below:

Digital TV Set-Top Box Tender Extended

The Department of Communications (DoC) sent out an e-mail on Friday (24 August 2012) announcing that it had extended the closing date of its tender for South Africa’s subsidised digital TV set-top box (STB).

These decoders, or set-top boxes (STBs), are needed to convert digital television broadcasts to the analogue signals which South African TVs understand.

Around R940-million has been ring-fenced at the Universal Service and Access Agency to subsidise STBs for the poorest in South Africa.

The closing date for the DoC’s Request for Proposal was extended to 14 September 2012, with the following amendments also highlighted:

• The stipulated minimum threshold for local production and content for the STB sector is set at 30%;

• In terms of the revised PPPFA, local content and functionality are a requirement to proceed to the second stage in the bid evaluation process;

• The section on National Industrial Participation Programme (NIPP) has been removed. The reason is that where an industry or sector has been designated for local production, NIPP or offset obligation is not a requirement;

• Antennas no longer need to be quoted for.

Interested bidders originally had to collect and sign for a printed copy of the RFP, but the DoC has announced that the revised version of the document will be on its website tomorrow (28 August 2012).

South Africa is set to begin its migration from analogue to digital broadcasting towards the end September 2012, and has agreed with the International Telecommunications Union to switch off its analogue TV transmissions by June 2015.

http://mybroadband.co.za/news/broadcasting/58213-digital-tv-set-top-box-tender-extended.html

Gallery | QEC

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?

QEC and the Set Top Box Tender 2012

QEC (Pty) Ltd has positioned itself to manufacture set-top boxes (STBs) locally. Established in 1994, QEC has spent several years growing and developing a successful electronics manufacturing company in South Africa.

Early in 2012, QEC's founder, Paul Soteriou, brought Lereko Investments on board. Lereko is a black-owned, black-led investments company operating in South Africa.  The founding partners, the late Eric Molobi, Valli Moosa and Dr Popo Molefe had a vision of becoming effectively involved in broad-based empowerment in South African business. Shortly after its inception, Dr Lulu Gwagwa joined Lereko as Chief Operating Officer.

Another profound shareholder in QEC is Utembezi (Pty) Ltd, Anitha Soni. Anitha Soni was awarded the much-coveted and prestigious "2002 Business Women of the Year BBQ Award". The BBQ Awards are a benchmark in the progress of empowered South Africa. It recognises achievements in Black Business and honours excellence in 12 Categories, amongst which is Businesswoman of the Year.

QEC then brought on Malibongwe Woman Empowerment Trust as a shareholder. This decision was taken in an effort to advance the empowerment of woman in the electronic industry. QEC views Malibongwe as a strategic partner that will play a vital role in identifying and positioning woman interested in a career in the electronic's industry onto the QEC Training and Development Programme for the roll out of set- top boxes in South Africa.

QEC is hard at work with all its partners in completing the tender submission due on the 31 August 2012. All the partners are exited about the future of the electronics industry in South Africa with the opportunity that set top box manufacturing presents.

R7bn Digital TV Shortfall

SA will turn on digital television towards the end of next month in the remote Karoo area, but analogue will only be turned off in the middle of 2015.

However, the Department of Communications (DOC) has a R7 billion shortfall to fund before migration can be completed. The lack of funding impacts the subsidy of set-top boxes and Sentech's dual-illumination period.

SA is migrating to digital TV using the European DVB-T2 standard, which is more efficient than its predecessor and will improve the viewing experience and free spectrum for more broadband services.

Although the turn on date is little more than a month away, there are still several things needed before launch, including approval of the amended broadcasting digital migration (BDM) policy, amended migration regulations by ICASA, and new content.

SA had previously agreed, along with other Southern African Development Community (SADC) members, to migrate by the end of next year. The International Telecommunications Union (ITU) will cease protection of analogue signal in mid-2015.

Shortfall

The DOC's deputy DG of ICT policy development, Themba Phiri, told a recent Labour and Public Enterprises Parliamentary Committee meeting it was very clear the country could not meet the SADC deadline, as there was not enough time to complete the work and there were funding constraints.

Key digital TV milestones

* In January 2011, DVB-T2 is selected as the migration strategy.
* The set-top box manufacturing sector development strategy and scheme for ownership subsidy (SOS) framework were approved by Cabinet in March 2012.
* The DOC has finalised and signed a memorandum of understanding with the Department of Trade and industry and the South African Bureau of Standards to establish a STB conformance authority.
* The DOC has signed a memorandum with the Post Office as a possible SOS logistics partner.
* The request for proposals for subsidised decoders has been issued.

However, Phiri said SA would meet the ITU timeframe, as it still had a full three years to wrap up the project. Digital TV will free up spectrum and allow 16 channels per frequency, with better picture quality, he added.

SA's initial self-imposed digital migration timelines were November 2008 to November 2011, which proved to be unrealistic, said Phiri. SA's current commitment, as a member of the ITU, was to complete its digital migration by 17 June 2015, he noted.

Phiri said the DOC needed a total of R7 billion more in funding to address a shortfall to rollout digital TV.

Some R940 million was ring-fenced at the Universal Service and Access Agency SA (USAASA) for this financial year to subsidise decoders. Cabinet set aside R2.45 billion several years ago to subsidise 70% of boxes for about five million houses.

Phiri said USAASA had challenges, but would be able to play its part with the DOC's support. The DOC is filling vacant executive positions in USAASA, which will regain its full functionality within the next few months.

The DOC needs subsidies to the tune of R2.635 billion, over and above the R940 million, said Phiri. Set-top boxes are now expected to cost around R400, instead of the previously estimated R700, he added.

The overall shortfall, including the SABC's technology upgrade and Sentech's dual-illumination requirements, was R7 billion, said Phiri.

Staggered approach

Sentech chairman Thabo Mongake said that, due to the outstanding issues, such as amended regulations, a staggered provincial rollout would be implemented. So far, 60% of the population has DVB-T2 coverage and the aim is to reach 80% by next March.

The state signal provider has been transmitting analogue and digital signals since November 2008 and will continue to do so until switch off. It needed an additional R213 million in 2014 and 2015 for dual illumination, said Mongake.Sentech's rollout would include eight planned stations for Limpopo, 11 for the Free State, 10 for Mpumalanga, 21 for KwaZulu-Natal, six for the Western Cape, two for the North West, and 10 for the Eastern Cape.

Turn on

DOC technical adviser Roy Kruger said digital TV would be lit up on 26 and 27 September. He said the department had targeted the Square Kilometre Array (SKA) area, in the Northern Cape.

The DOC selected the region to prove DVB-T would work and that frequencies would not interfere with the telescope. The SKA radio telescope project will be shared between SA, Australia and New Zealand.

Kruger says the launch will comprise satellite or direct-to-home around the SKA to prove the SKA signals would not interfere with broadcast signals, and DTT transmission to a township near Kimberley, which currently had the only DTT transmitter in the Northern Cape.

Thousands of jobs

Kruger says the DOC was mandated to create several categories of jobs along with migration. About 23 500 employment opportunities will be opened in total.

In the manufacturing sector, between 800 and 1 000 opportunities will be created, which include more jobs at existing factories and new jobs at new start-up small and medium companies, said Kruger.

Installation and maintenance of decoders would initially establish 3 500 jobs for new installers, said Kruger. There was a list of names with qualifications, which towns they were located, and plans for the training were in place, he said.

In addition, call centres would create a minimum of 2 000 to 3 000 jobs, noted Kruger. The DOC aims to have about 11.4 million houses on the new network, which will require about 6 000 call centre operators. However, Phiri says funding is not guaranteed.

The biggest job creation sector in the project would be in the content sector. Phiri said between eTV and the SABC, there would be around 20 new channels, requiring “tons” of content and creating between 10 000 to 15 000 openings.

 - http://www.itweb.co.za/index.php?option=com_content&view=article&id=57901:r7bn-digital-tv-shortfall

SA's Digital TV to Switch on 26 September

Cape Town – South Africa's launch of digital migration – the start of the real switch from analogue to digital broadcasting and digital terrestrial television (DTT) – is planned for 26 and 27 September 2012 in the Northern Cape with the area of the Square Kilometre Array (SKA) chosen where 20 set top boxes (STBs) will be activated in a symbolic, ceremonial "switch-on" ceremony.

The SKA has been chosen to demonstrate that the frequencies used will not be interfering with the SKA project and to show people in South Africa's "deep rural areas", currently without access to public television, that they could have access.

The government and South Africa's broadcasting industry plans to roll out DTT over the next three years, which will require TV viewers to buy a STB and an antenna, with poorest households receiving a partial subsidy.

Channel24 can also reveal that the government now also pegs the price of a STB at R400 – a big drop from the original R700. STBs will be distributed through the South African Post Office.

Broadcast Master Plan

Meanwhile a STB Control System is being developed under the auspices of Sentech which would cost South Africa R10m and enable the government and/or broadcasters to turn STBs on and off. Sentech is also working with the SABC and the broadcasting regulator, the Independent Communications Authority of South Africa (Icasa) on what is called a "Broadcast Master Plan" specifically regarding DTT coverage for the country.

According to South Africa's department of communications, the SABC, e.tv and M-Net are all ready to launch on the DTT platform, the department told parliament in a special progress report on the country's readiness for digital terrestrial television.

The SABC is ready to transmit SABC1, SABC2 and SABC3 on the DTT network and will also have its new 24-hour news TV channel ready for DTT which the SABC plans to launch at the beginning of September on MultiChoice's DStv platform. The SABC and e.tv is also working on a free-to-air (FTA) partnership to promote their collective digital television offering.

The SABC, e.tv and Sentech are meanwhile in the process of establishing specific call centres to deal with DTT enquiries from viewers and consumers, although the SABC needs more call centre space for this.

The launch, if it does take place on 26 and 27 September, will be largely ceremonial; a technical launch since no tenders for the manufacture of STBs have yet been awarded by government. No real STBs will exist to be bought by South African consumers and viewers to actually watch digital television transmissions since it takes three months to manufacture a STB.

Sentech has ordered 20 STBs for the 26 September DTT launch - with 10 to be used for direct-to-home (DTH) and 10 for the DTT technical launch demonstration.

SA's massive DTT budget shortfall

Meanwhile South Africa's DTT budget is experiencing a massive shortfall to enable the digital migration. The Department of Communications needs STB subsidies to the tune of R2.635bn, over and above the R940m projected earlier. The overall shortfall, including the SABC's technology upgrade and Sentech's dual illumination requirements is projected at R7bn for South Africa.

There is also a budget shortfall of R800m for the DTT Awareness Campaign of the Department of Communications, meant to inform South African consumers and TV viewers on how to switch-over to DTT.

Both the Department of Communications and Sentech, the parastatal signal distributor, were told by parliament to communicate and collaborate more with each other on digital migration.

Sentech told parliament that it is committed, ready and capable to support a national technical launch of DTT during the third quarter of 2012, within the existing DTT coverage areas for terrestrial services. Sentech further said that the signal distributor was working towards 80% coverage by the end of the financial year with full conversions of sites in Limpopo, the Free State, Mpumalanga and KwaZulu-Natal, and additional sites in the Eastern Cape, North West and the Western Cape.

SKA chosen to 'prove that DTT works'

Roy Kruger, the technical adviser to the Department of Communications, told Parliament that the department is targeting the SKA in the Northern Cape firstly as a "proof of concept" – to show that DVB-T2 works, and secondly that the frequencies used are not interfering with the SKA Project. Thirdly, it will show that people in rural areas without access to TV could now receive public SA television.

Logistics and political arrangements for the launch dates of 26 and 27 September are apparently already in place. The DTT technical launch would have two components to it – namely satellite or direct-to-home (DTH) around the Square Kilometre Array (SKA) to prove that the SKA signals would not interfere with broadcast signals, and DTT transmission to a township near Kimberley which currently has the only DTT transmitter in the Northern Cape.

The department of communications has already identified 3 500 installers nationally who would assist with DTT installation.

- Channel24

  http://www.channel24.co.za/TV/News/SAs-digital-TV-to-switch-on-26-September-20120821