‘Details of set-top boxes in digital migration process to be filled in later’

FACED with questions from MPs about contracts and subsidies inherent in the digital migration process, Communications Minister Faith Muthambi and senior officials yesterday said the blanks would be filled in later.

A joint sitting of the communications and telecommunications portfolio committees saw members ask whether the state would help carry the cost of set-top boxes for the nearly three million South Africans who do not qualify for full subsidy of the devices but do not belong to the wealth bracket of 4.5 million current satellite subscribers.

The initial response to the question came from SABC chief operations officer Hlaudi Motsoeneng.

He said it had always been apparent that there would be a group of consumers who fell somewhere between the “needy” and the affluent.

While the needy numbered about five million, it would later become clear how many of an estimated three million others needed help to buy the boxes. These would retail at between R300 and R700.

“The idea has always been that you are going to have two kinds of markets, one subsidised – which will now be 100 percent – the other is three million households. As we move along we will be able to look at the three million to say if it is more of less.”

When the DA pressed the issue, Muthambi reiterated that government would see how many unsubsidised viewers struggled to buy set-top boxes once migration began, and then find a solution.

“Government will monitor the uptake during the dual period and find solutions if there are problems,” she said.

MPs demanded to know the implications of a decision by the Universal Service and Access Agency of SA (Usaasa) in April to give more than 20 bidders a slice of the R4.3 billion tender to produce set-top boxes for the indigent market.

“I think we need to also understand that this project is about the availability of the set-top boxes, because there was a criteria about empowering local producers. I don’t think we have a duty to go out and account on every detail. There has been a a strategy… it is about empowering the people,” Muthambi said.

Usaasa’s CEO, Zami Nkosi, dismissed concerns from DA MP Gavin Davis that the unusual decision did not comply with procurement rules, and said it had been approved by auditors.

He said at this stage individual contractors did not know the scale of their involvement as this would be determined as the project unfolded, based on government’s requirements.

Muthambi assured the committees that digital migration was on track, though the country missed a long-standing June deadline to switch on the digital signal.

The new deadline would be set in conjunction with the cabinet.

She was also confident that the South African Post Office would be able to handle the contract for delivering all subsidised set-top boxes, despite its cash woes, and told MPs that the cabinet would finalise appointments to the post office board today.

The head of Communications’ migration programme, Solly Mokoetle, said the technical details of the switch-over were secondary to government’s long-term aim of rolling out local broadcast content to viewers. – ANA