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
      Should South Africa ban ransomware payments?

      Should South Africa ban ransomware payments?

      29 September 2026
      MTN loses bid to halt US Anti-Terrorism Act claims

      MTN loses bid to halt US Anti-Terrorism Act claims

      29 September 2026
      Africa now hosts world's fourth-largest Comic Con

      South Africa now hosts world’s fourth-largest Comic Con

      29 September 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
      DStv tests free seven-day upgrades, starting with Sports

      DStv tests free subscriber upgrades, starting with Sports

      29 September 2026
    • World
      Anthropic weighs new model launch to blunt OpenAI's Astra surge - Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman

      Anthropic weighs new model launch to blunt OpenAI’s Astra surge

      21 September 2026
      Hackers hack hackers: ShinyHunters seizes cl0p's dark web site

      Hackers hack hackers as dark web feud erupts

      21 September 2026
      Film piracy malware is reaching corporate machines

      Film piracy malware is reaching corporate machines

      21 September 2026
      Crypto's big bet fails as US senate sinks Clarity Act

      Crypto’s big bet fails as US senate sinks Clarity Act

      16 September 2026
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
    • In-depth
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
    • TCS
      TCS | Octotel's Trevor van Zyl on the fibre merger question

      TCS | Octotel’s Trevor van Zyl on the MetroFibre merger question

      16 September 2026
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
    • Opinion
      Regulating AI: apply the laws we have first - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 2026
      The end is nigh, and the shares go on sale in October - Duncan McLeod

      The end is nigh, and the shares go on sale in October

      14 September 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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
    Get breaking news on 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
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    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

    Woan's ghost exorcised - Solly Malatsi

    Woan’s ghost exorcised

    25 September 2026
    Cell C boss buys into his own turnaround - Jorge Mendes

    Cell C boss buys into his own turnaround

    22 September 2026
    Vumatel operating profit jumps 57% as the Vodacom deal lands

    Vumatel operating profit jumps 57% as the Vodacom deal lands

    18 September 2026
    Company News
    Standard Bank and Huawei forge strategic cloud partnership

    Standard Bank and Huawei forge strategic cloud partnership

    29 September 2026
    Ease of doing business takes centre stage at GEC+Africa - Small business development minister Stella Tembisa Ndabeni

    Ease of doing business takes centre stage at GEC+Africa

    29 September 2026
    GEC+Africa 2026 celebrates Africa's most promising entrepreneurs

    GEC+Africa 2026 celebrates Africa’s most promising entrepreneurs

    28 September 2026
    Opinion
    Regulating AI: apply the laws we have first - Dirk de Vos

    Regulating AI: apply the laws we have first

    21 September 2026
    The end is nigh, and the shares go on sale in October - Duncan McLeod

    The end is nigh, and the shares go on sale in October

    14 September 2026
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026

    Subscribe to Updates

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

    Latest Posts
    Should South Africa ban ransomware payments?

    Should South Africa ban ransomware payments?

    29 September 2026
    MTN loses bid to halt US Anti-Terrorism Act claims

    MTN loses bid to halt US Anti-Terrorism Act claims

    29 September 2026
    Africa now hosts world's fourth-largest Comic Con

    South Africa now hosts world’s fourth-largest Comic Con

    29 September 2026
    TCS | Dominic White and Adam Ely on AI agents going rogue

    TCS | Dominic White and Adam Ely on AI agents going rogue

    29 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}
    🇿🇦 Sign up to the TechCentral newsletter