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
      MTN Nigeria in dramatic full-year turnaround - Karl Toriola

      MTN Nigeria in dramatic full-year turnaround

      27 February 2026
      Provinces ordered to enforce ban on online casinos

      Provinces ordered to enforce ban on online casinos

      27 February 2026
      Liquid secures nearly R10-billion in new funding - Liquid Intelligent Technologies

      Liquid secures nearly R10-billion in new funding

      27 February 2026
      Global GPU shortage set to deepen gaming industry woes

      Global GPU shortage set to deepen gaming industry woes

      27 February 2026
      Netflix walks away from Warner Bros deal

      Netflix walks away from ‘irrational’ Warner Bros deal

      27 February 2026
    • World

      Stripe mulling bid for PayPal: report

      25 February 2026
      Xbox chief Phil Spencer retires from Microsoft

      Xbox chief Phil Spencer retires from Microsoft

      22 February 2026
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
      Russia bans WhatsApp

      Russia bans WhatsApp

      12 February 2026
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • TCS
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
    • Opinion
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
    • 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
      • Mitel
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • 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
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Icasa Keith Thabo Namec SABS Sentech
    WhatsApp YouTube
    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

    Treasury grants Sentech R700-million special allocation

    Treasury grants Sentech R700-million special allocation

    25 February 2026
    South Africa's dynamic spectrum breakthrough - Paul Colmer

    South Africa’s dynamic spectrum breakthrough

    20 February 2026
    Icasa gears up for South Africa's next big spectrum auction - Tshiamo Maluleka-Disemelo

    Icasa gears up for South Africa’s next big spectrum auction

    17 February 2026
    Company News
    Galaxy S26 brings proactive AI, pro-grade video and a privacy breakthrough

    Galaxy S26 brings proactive AI, pro-grade video and a privacy breakthrough

    27 February 2026
    Cell C to SMEs: We'll be your partner, not just a provider - Cell C Business

    Cell C to SMEs: We’ll be your partner, not just a provider

    27 February 2026
    The data sovereignty paradox - Altron Digital Business

    The data sovereignty paradox

    27 February 2026
    Opinion
    The AI fraud crisis your bank is not ready for - Andries Maritz

    The AI fraud crisis your bank is not ready for

    18 February 2026
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026

    Subscribe to Updates

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

    Latest Posts
    MTN Nigeria in dramatic full-year turnaround - Karl Toriola

    MTN Nigeria in dramatic full-year turnaround

    27 February 2026
    Provinces ordered to enforce ban on online casinos

    Provinces ordered to enforce ban on online casinos

    27 February 2026
    Liquid secures nearly R10-billion in new funding - Liquid Intelligent Technologies

    Liquid secures nearly R10-billion in new funding

    27 February 2026
    Global GPU shortage set to deepen gaming industry woes

    Global GPU shortage set to deepen gaming industry woes

    27 February 2026
    © 2009 - 2026 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}