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DTT STATE OF READINESS GENERAL UPDATE REPORT 27 – 28 NOVEMBER 2012 PRESENTATION TO DTT STATE OF READINESS GENERAL UPDATE REPORT 27 – 28 NOVEMBER 2012 PRESENTATION TO THE PORTFOLIO COMMITTEE ON COMMUNICATIONS 1

DOC TEAM • Ms Rosey Sekese Director General, Do. C • Mr Themba Phiri DOC TEAM • Ms Rosey Sekese Director General, Do. C • Mr Themba Phiri DDG, ICT Policy Development, Do. C • Mr Roy Kruger Technical Advisor, Ministry of Communications • Mr Wonder Dlangamandla Chief Director, Technology & Infrastructure, DTT PMO • Mr Sithembiso Manzini Director, e-Content & Policy Development, Do. C 2

DTT PROJECT MAP Frequency Plan Platform Management DTT Regulations TV Channels Service Information for DTT PROJECT MAP Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio Stations Channel Licensing Interactive Content Playout Coding and Multiplexing Contribution Linking Transmitter Network Customer Contracts STB Control System Revise MHEG Profile Go-Live BDM Policy DVB-T 2 Standard Approval Do. C Direct All Broadcasters FTA Broadcasters ICASA SENTECH USAASA SAPO SABS Revise STB Standard for DVB-T 2 Manufacture STBs EPG User Interface Conformance Testing Trademark Certification Wholesale Distribution FTA Platform Brand Award STB RFP STB subsidy Consumer Messaging On-ground support Marketing Channels Retail Installations STB Manufacturers CPE Installers Retailers All Acknowledgement: SABC 3

DTT DOC ACTIVITIES Frequency Plan Platform Management DTT Regulations TV Channels Service Information for DTT DOC ACTIVITIES Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio Stations Channel Licensing Interactive Content Playout Coding and Multiplexing Contribution Linking Transmitter Network Customer Contracts STB Control System Revise MHEG Profile Go-Live BDM Policy DVB-T 2 Standard Approval Revise STB Standard for DVB-T 2 Manufacture STBs EPG User Interface Trademark Certification Wholesale Distribution FTA Platform Brand Award STB RFP STB subsidy Do. C Direct Conformance Testing Consumer Messaging On-ground support Marketing Channels Retail Installations STB Manufacturers: appointment by Do. C CPE Installers: appointment by Do. C Acknowledgement: SABC 4

DOC ACTIVITIES • BDM POLICY • BDM Policy amended and gazetted on 17 February DOC ACTIVITIES • BDM POLICY • BDM Policy amended and gazetted on 17 February 2012. • DTT STANDARD • DVB-T 2 Standard adopted for South Africa and SADC. • SET-TOP-BOXES • The Set Top Box Manufacturing Strategy and Scheme of Ownership Support were approved by Cabinet in March 2012 • STB RFP was issued July 2012, closing date extended to 14 September to allow for updates on local production stipulations • A total of 37 tender responses were received • Adjudications and contract awards were planned for end October 2012, but suspended due to e. tv’s court challenge against the Minister. 5

DOC ACTIVITIES cont. . • The tender included the contentious STB Control, which is DOC ACTIVITIES cont. . • The tender included the contentious STB Control, which is the subject of e. tv’s litigation. • Plan to procure a seed order of 350 000 DTT and 100 000 satellite STBs in the current financial year • The total cost will be an estimated R 432 m for the 450 000 STBs including installations, at the approved 70% subsidy for the STBs and 100% full subsidy for installations. • An allocation of R 230 m is available for this financial year, with rollovers of R 220 m and R 180 m from financial years 2011 and 2010 respectively. • Submissions for the rollovers have been made and Treasury is currently reviewing the applications. • We plan to roll out 1. 5 million STBs per year for the next three financial years. • There is enough industry capacity to produce 5 million STBs within two years, subject to vendor appointments and funds being available • Our goal is to finalise the STB rollout within the next two financial years 6

DOC ACTIVITIES cont. . • CONSUMER SUPPORT AND AWARENESS CAMPAIGN • The consumer awareness DOC ACTIVITIES cont. . • CONSUMER SUPPORT AND AWARENESS CAMPAIGN • The consumer awareness program has commenced. External Service Provider has been appointed. • Permanent Call Centre establishment unexpectedly delayed by the e. tv situation. • SITA has provided Call Centre facilities for an initial six month period, as an interim, contingency measure. • Call centre facilities to be shared between Do. C, Sentech and the SABC & FTA broadcasters • SITA to cost R 357 k per month for 6 months , shared between Do. C, SABC and Sentech • We aim to create about 4500 jobs on call centres in the long term 7

DOC ACTIVITIES cont. . • INSTALLER TRAINING • Phase 1: Upskilling existing installers with DOC ACTIVITIES cont. . • INSTALLER TRAINING • Phase 1: Upskilling existing installers with DTT installations The training would target the already existing 1, 500+ installers and provide them with specific DTT technical installation training. DTT technical installations are similar to DSTV training and hence does not require a great degree of extra training • Phase 2: Community Support Representatives These are the backbone of DTT migration The experience is derived from the MNet test DTT installations in Soweto where it is recognised that people with DTT installation prefer to have a local community person assist them when they have problems with installation. Most important skill are soft community support skills. 8

DOC ACTIVITIES cont. . • Phase 3: New DTT Installers. • This group would DOC ACTIVITIES cont. . • Phase 3: New DTT Installers. • This group would consist of newly trained installers with both satellite and DTT technical installation capabilities. • Do. C together with industry representatives and learning institutions held a successful workshop to streamline the training program • Working with MICT SETA, a common curriculum is being developed for accreditation across all industry players and training institutions. • Nemisa/e. Skills also working with higher learning institutions for further formal training in Digital Technology. • Combination of new installers, community support representatives and content creation industry expected to create about 20 000 new jobs 9

ICASA Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio ICASA Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio Stations Channel Licensing Interactive Content Playout Coding and Multiplexing Contribution Linking Transmitter Network Customer Contracts STB Control System Revise MHEG Profile Go-Live BDM Policy CALL CENTER • DVB-T 2 Standard Approval Revise STB Standard for DVB-T 2 Manufacture STBs EPG User Interface To create sustainable jobs • To ensure that communities receive support and help services during the migration period Conformance Testing Trademark Certification Wholesale Distribution FTA Platform Brand Award STB RFP STB subsidy Consumer Messaging On-ground support Marketing Channels Retail Installations Acknowledgement: SABC 10

ICASA • ICASA published a revised set of draft DTT regulations and held public ICASA • ICASA published a revised set of draft DTT regulations and held public consultations • The public consultations stage has been concluded and the final DTT regulations have been taken for legal vetting before being published • Regulations to be published end November 2012 after Council approval • DTT signal distribution tariffs to be approved • DTT Frequency Plan finalised 11

SENTECH Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio SENTECH Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio Stations Channel Licensing Interactive Content Playout Coding and Multiplexing Contribution Linking Transmitter Network Customer Contracts STB Control System Revise MHEG Profile Go-Live BDM Policy CALL CENTER • DVB-T 2 Standard Approval Revise STB Standard for DVB-T 2 Manufacture STBs EPG User Interface To create sustainable jobs • To ensure that communities receive support and help services during the migration period Conformance Testing Trademark Certification Wholesale Distribution FTA Platform Brand Award STB RFP STB subsidy Consumer Messaging On-ground support Marketing Channels Retail Installations Acknowledgement: SABC 12

SENTECH • Sentech rolling out DTT transmitter network, signal aggregation and multiplexing facilities • SENTECH • Sentech rolling out DTT transmitter network, signal aggregation and multiplexing facilities • Sentech working together with the Do. C and SAPO in the provincial STB rollout program, in accordance with the transmitter network rollout plan • Sentech also collaborating with the Do. C and SABC in establishing and implementing e-government services. This project is at a feasibility stage • Other government departments to be involved for content and other related aspects of e-government services • Sentech to manage STB Control for DTT and full Conditional Access for DTH networks for Free To Air Broadcasters. • The STB Control issue is currently being contested by e. tv in the South Gauteng High Court 13

SABS Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio SABS Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio Stations Channel Licensing Interactive Content Playout Coding and Multiplexing Contribution Linking Transmitter Network Customer Contracts STB Control System Revise MHEG Profile Go-Live BDM Policy CALL CENTER • DVB-T 2 Standard Approval Revise STB Standard for DVB-T 2 Manufacture STBs EPG User Interface To create sustainable jobs • To ensure that communities receive support and help services during the migration period Conformance Testing Trademark Certification Wholesale Distribution FTA Platform Brand Award STB RFP STB subsidy Consumer Messaging On-ground support Marketing Channels Retail Installations Acknowledgement: SABC 14

SABS • SABS partnered with established UK based company to develop test suites, transfer SABS • SABS partnered with established UK based company to develop test suites, transfer technology IP, advise on project execution strategy, hardware and equipment, and support with integration, acceptance and testing. • STB Standard launched at ICT Indaba in June 2012 • Conformance lab to be ready by January 2013 • Test Suite Developers in a position to perform Conformance Testing on behalf of SABS from as a contingency measure, if required. • SABS will issue conformance certificates to accredited manufacturers • All South African boxes to conform to the SANS 862 standard and bear the SABS mark of approval. • This is a measure to protect consumers and limit the flood of non-compliant boxes into the SA market • Conformance marks to be used in all awareness campaigns 15

SABC AND OTHER BROADCASTERS Frequency Plan Platform Management DTT Regulations TV Channels Service Information SABC AND OTHER BROADCASTERS Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio Stations Channel Licensing Interactive Content Playout Coding and Multiplexing Contribution Linking Transmitter Network Customer Contracts STB Control System Revise MHEG Profile Go-Live BDM Policy CALL CENTER • DVB-T 2 Standard Approval Revise STB Standard for DVB-T 2 EPG User Interface To All Broadcasters create sustainable jobs FTA Broadcasters Manufacture STBs • To ensure that communities receive support and help services during the migration period Conformance Testing Trademark Certification Wholesale Distribution FTA Platform Brand Award STB RFP STB subsidy Consumer Messaging On-ground support Marketing Channels Retail Installations Acknowledgement: SABC 16

SABC • Ready to transmit SABC 1, 2, 3 on DTT network. • Universal SABC • Ready to transmit SABC 1, 2, 3 on DTT network. • Universal Access • 19 SABC Radio Stations are available on the DTT platform • Coverage of all SABC channels will be equally available throughout the country • SABC plan to launch other incentive channels in the future • SABC and etv collaborating on a Free-To-Air partnership • Provision has been made to accommodate new FTA entrants • A Rules Of Operations Committee was established by SABC, Sentech and other broadcasters to ensure technical interoperability between all stakeholders and a seamless user experience 17

OTHER BROADCASTERS • etv is ready to launch on DTT platform, awaiting approvals of OTHER BROADCASTERS • etv is ready to launch on DTT platform, awaiting approvals of ICASA regulations and tariff structures • Memorandum of Understanding between SABC and etv has been finalized to achieve DTT launch • M-Net ready to launch subscription TV on DTT platform, also awaiting approvals on final ICASA regulations and tariff structures • Draft regulations have made provision for Community TV Broadcasters and other new broadcasters to be included in the DTT network 18

USAASA Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio USAASA Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio Stations Channel Licensing Interactive Content Playout Coding and Multiplexing Contribution Linking Transmitter Network Customer Contracts STB Control System Revise MHEG Profile Go-Live BDM Policy CALL CENTER • DVB-T 2 Standard Approval Revise STB Standard for DVB-T 2 Manufacture STBs EPG User Interface To create sustainable jobs • To ensure that communities receive support and help services during the migration period Conformance Testing Trademark Certification Wholesale Distribution On-ground support FTA Platform Brand Award STB RFP STB subsidy Consumer Messaging Marketing Channels Retail Installations Acknowledgement: SABC 19

USAASA • USAASA has defined the STB subsidy qualifying criteria • USAASA to place USAASA • USAASA has defined the STB subsidy qualifying criteria • USAASA to place STB orders with manufacturers on behalf of Do. C and pay the manufacturers after STBs have been delivered at SAPO warehouses • STB Distribution logistics to be handled by USAASA and SAPO according to a set of business rules • Distribution business rules developed and in the process of being finalised by Do. C, SAPO and USAASA • STB distribution process to be fully automated and run by SAPO, in accordance with the provincial rollout plan between Sentech, Do. C and SAPO 20

SAPO Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio SAPO Frequency Plan Platform Management DTT Regulations TV Channels Service Information for EPG Radio Stations Channel Licensing Interactive Content Playout Coding and Multiplexing Contribution Linking Transmitter Network Customer Contracts STB Control System Revise MHEG Profile Go-Live BDM Policy CALL CENTER • DVB-T 2 Standard Approval Revise STB Standard for DVB-T 2 Manufacture STBs EPG User Interface To create sustainable jobs • To ensure that communities receive support and help services during the migration period Conformance Testing Trademark Certification Wholesale Distribution FTA Platform Brand Award STB RFP STB subsidy Consumer Messaging On-ground support Marketing Channels Retail Installations Acknowledgement: SABC 21

SAPO • SAPO has signed Mo. U with Do. C, USAASA and SABC for SAPO • SAPO has signed Mo. U with Do. C, USAASA and SABC for the distribution logistics • SAPO has designed software processes to carry out agreed- upon business rules for the distribution of STBs to qualifying subsidy recipients • SAPO will be working with USAASA on distribution logistics countrywide, under Do. C’s supervision 22

DTT LAUNCH CALENDAR • Phase 1: October 2012 • Proof of Concept launch - DTT LAUNCH CALENDAR • Phase 1: October 2012 • Proof of Concept launch - realizing successful operation of DTT and DTH network in SKA area and demonstrating start of Digital Migration in SA • Minister successfully launched and demonstrated the workings of Digital TV technologies in the Northern Cape. • Satellite technology was demonstrated in the SKA towns of Williston and Carnavon, while terrestrial was demonstrated in Motswedimosa near Kimberley • Phase 2: Early - Mid 2013 • Start of Commercial launch – Availability of STBs for both Subsidized and Retail Markets • Phase 3: Beyond June 2015 • Analogue Switch Off (ASO) 23

DTT LAUNCH CALENDAR • Challenges • Current legal case by e. tv threatens to DTT LAUNCH CALENDAR • Challenges • Current legal case by e. tv threatens to delay the project even further, thus extending the dual illumination period with the associated running costs. • Whilst we still have funding issues, there has been some improvements and we continue to work with entities and National Treasury to ensure that this national project gets fully funded and that the funding and project delivery schedules are aligned 24

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