Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      Starlink satellite anomaly creates debris in rare orbital mishap

      Starlink satellite anomaly creates debris in rare orbital mishap

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Malatsi buries Post Office's long-dead monopoly

      Malatsi buries Post Office monopoly the market ignored

      18 December 2025
      China races to crack EUV as chip war with the West intensifies

      China races to crack EUV lithography as chip war with the West intensifies

      18 December 2025
    • World
      Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

      Trump space order puts the moon back at centre of US, China rivalry

      19 December 2025
      Warner Bros slams the door on Paramount

      Warner Bros slams the door on Paramount

      17 December 2025
      X moves to block bid to revive Twitter brand

      X moves to block bid to revive Twitter brand

      17 December 2025
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Keith Thabo » Consumers set to lose in digital migration

    Consumers set to lose in digital migration

    By Keith Thabo2 March 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    keith-thabo-180Consumers stand to be the biggest losers during South Africa’s migration to digital terrestrial television (DTT). As the country races to meet an international deadline to switch off analogue TV by 2015, major decisions are being made that will raise costs for consumers and ultimately for government.

    The move to DTT means that South Africans must buy a digital decoder or set-top box by 2015 or risk losing TV reception. The proposition is simple: no digital decoder, no more TV. But in these tough times, how much will this cost and will it be affordable? Internationally, we have seen that affordability alongside content is a major driver of take up for DTT.

    What is being hotly debated at the moment is whether the set-top box for free TV services should include the kind of encryption or conditional access software normally used by pay-TV operators to cut you off when you don’t pay your subscription. Why must a free-to-air platform invest in software to switch viewers on and off?

    One possible explanation is that this system is being introduced to cut off viewers who don’t pay their TV licences. If this indeed is the case, the worst affected will be the poorest of the poor who will definitely not want to migrate to digital if it means being deprived of TV services.

    It’s never been clear why free TV would need software like this, particularly when it is so out of line with international best practice (no other major TV market in the world has gone this route). The UK, arguably the most successful DTT market, did not include encryption in its free-to-air set-top boxes.

    It gets even more confusing when you start unpacking the costs — software royalties, management services, certification, call centre operations, etc. Government is subsidising 5m set-top boxes up to 70% of the cost. This software increases the cost of the box — the increased cost will have to be borne both by government and the consumer.

    The increase in the cost of adding conditional access to a set-top box can range from US$9 to $12. This is based on the type of secured silicon that is required, royalties, labour, card or cardless readers, maintenance, etc. Let’s assume it’s $9/box. Government will sponsor in excess of 5m boxes, which equals R450m of taxpayer money. In the past, CA systems have been hacked over and over again, and the ongoing replacement costs and operational costs will amount to millions of rand. For what benefit?

    Conditional access has its place — as a mechanism used by pay-TV operators to allow them to monetise use of content. So unless the SABC intends to become a pay-TV operator, what is the point?

    Government has already invested heavily in Sentech’s infrastructure and its platform called Freevision, which is the place to launch pay-TV services. Those in favour of conditional access can go to Sentech. Why should taxpayers be burdened again with this cost? The new subscriber management system alone has just cost Sentech millions to implement to cater for pay-TV services.

    Contrary to popular belief, conditional access does not prevent set-top box migration to neighbouring countries or cross-border spillage. Free-to-air channels can still be picked up using conditional access on a set-top box. A simple network “locking” solution (similar to mobile network locking of mobile phones) at minimum cost will solve this issue.

    The picture doesn’t improve in the long run because the inclusion of this kind of software creates a new and bigger problem. Set-top boxes for free-to-air television are an interim step designed to enhance the life of your existing analogue TV. The set-top box allows the digital signal to be displayed on existing television sets.

    TV-640

    The box becomes redundant when consumers replace their analogue TVs with digital TVs. In the rest of the world, digital TVs are outselling set-top boxes and are fast becoming the norm for receiving free-to-air digital television. If conditional access software becomes a requirement, these digital TVs won’t work in South Africa. The consumer will still have to purchase an additional set-top box in order to receive a picture on their new digital TVs.

    The other consideration is that some argue that this software is necessary to protect local manufacturers. The fact is that only local manufacturers that will be protected are the established ones that already have relationships with the conditional access vendors. The emerging black manufacturers will have to start a new relationship and try to get accreditation, which will set back the migration process by at least a further six months, and with no guarantee that they will be accredited. It is our view that this software will serve to entrench the dominance of incumbent manufacturers.

    Foreign companies have now become the largest manufacturers of set-top boxes with conditional access. How will this stop grey imports? The answer to this is simple. Firstly increase the duty on set-top box imports in order to support the local manufacturing base.

    Secondly, ensure set-top boxes sold through retailers are compliant and endorsed by the South African Bureau of Standards as well as by communications regulator Icasa and National Regulator for Compulsory Specifications.

    It is in the best interests of the public for government to use a simple box (adapter) to replace existing viewing. The focus should be on empowering local black manufacturers and on meeting the mid-June 2015 deadline government agreed to with the International Telecommunication Union to switch off analogue broadcasts.

    • Keith Thabo is president of the National Association of Manufacturers in Electronic Components


    Icasa Keith Thabo Namec SABS Sentech
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleLet’s collaborate to cut costs, Vodacom says
    Next Article The market has failed us: Cwele

    Related Posts

    Telecoms industry backs Malatsi policy directive, warns on execution - ACT CEO Nomvuyiso Batyi

    Telecoms industry backs Malatsi policy directive, warns on execution

    17 December 2025
    ICT BEE fight deepens as MK, EFF target Malatsi - Colleen Makhubele

    ICT BEE fight deepens as MK, EFF target Malatsi

    15 December 2025
    ANC's attack on Solly Malatsi shows how BEE dogma trumps economic reality

    ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

    14 December 2025
    Company News
    Why TechCentral is the most powerful platform for reaching IT decision makers

    Why TechCentral is the most powerful platform for reaching IT decision makers

    17 December 2025
    Business trends to watch in 2026 - Domains.co.za

    Business trends to watch in 2026

    17 December 2025
    MTN Zambia launches world's first 4G cloud smartphone solution - Huawei

    MTN Zambia launches world’s first 4G cloud smartphone solution

    17 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Digital authoritarianism grows as African states normalise internet blackouts

    Digital authoritarianism grows as African states normalise internet blackouts

    19 December 2025
    Starlink satellite anomaly creates debris in rare orbital mishap

    Starlink satellite anomaly creates debris in rare orbital mishap

    19 December 2025
    Trump space order puts the moon back at centre of US, China rivalry - US President Donald Trump

    Trump space order puts the moon back at centre of US, China rivalry

    19 December 2025
    TechCentral's South African Newsmakers of 2025

    TechCentral’s South African Newsmakers of 2025

    18 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}