Broadcasting Digital Migration implementation, with Deputy Minister

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Communications and Digital Technologies

23 November 2021
Chairperson: Mr B Maneli (ANC)
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Meeting Summary

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The Department of Communications and Digital Technologies and its entities briefed Members on progress with the implementation of Broadcasting Digital Migration. The Committee adopted the report on the World Radio Conference.

Cabinet approved the revised integrated analogue switch-off on 29 September 2021 and Broadcasting Digital Migration is planned to be achieved by 31 March 2022, as announced by the President in the 2021 State of the Nation Address. The Deputy Minister of Communications and Digital Technologies, the Department and its entities, Sentech and the Universal Service and Access Agency of South Africa, discussed the work of the steering committee and outlined progress to date and future activities.

Members mentioned the fact that the focus was more on subsidised households. Members were concerned on the involvement of existing role-players, such as the SA Post Office which faced many challenges. They asked about the repeat audit findings at the Universal Service and Access Agency of South Africa and what steps had been taken to address these. Members also sought clarity on the total number of registrations.

Meeting report

The Chairperson welcomed everyone and reminded Members of the rules of engagement on virtual platforms. All mics must be muted and cameras off, if not presenting. When there is a point of order, Members must be recognised before they proceed. There are instances when connectivity challenges are experienced, but it is important to ensure the smooth running of meetings. Apologies were noted and the agenda was adopted.      

Mr Philly Mapulane, Deputy Minister, Communications and Digital Technologies, greeted all present in the meeting and thanked the Committee for the opportunity. The President had announced during the State of the Nation Address that digital migration [- the phased switch-off of analogue television transmitters - ] would be completed by 31 March 2022. In response, the Department submitted a revised plan and is moving ahead with the analogue switch-off. The analogue switch-off started in the Free-State, and the next phase is the Northern Cape and North West. In terms of migrating, South Africa was late as a country. Government was not proud considering how resourceful the country is. There is commitment that the implementation will be reached by 31 March 2022. The implementation is led by the Minister with the steering committee and by 31 March 2022 the country would have been fully migrated.

Ms Nonkqubela Jordan-Dyani, Acting Director-General, Department of Communications and Digital Technologies (DCDT), repeated that the update on migration follows the announcement by the President, that by March 2022 the country should have migrated. This was followed by an accelerated integrated plan by the Department. The whole country will be migrated and not only indigenous households. The Department is leveraging on the expertise of the private and public sector. The integrated plan brings on the broadcasters, local manufacturing players, experts from the private sector, vehicle platforms and existing role-players. These are the Universal Service and Access Agency of South Africa (USAASA), Sentech, the SA Post Office (SAPO) and the State Information Technology Agency (SITA).

The meeting would also include the adoption of the report on the ratification of World Radio Conference (WRC) outcomes. This is part of what is entailed in the economic recovery plan. This is not only on the migration, but building on local capabilities of industrialisation, local manufacturers, the 4th industrial revolution and the digital economy.

The Department has key programmes to fast-track the migration to meet the deadline of 31 March 2021. The integrated plan was presented to Cabinet and approved. The steering committee is looking at the implementation of the plan. She said that she wants to ask the Minister of Communications and Digital Technologies and the Minister of Trade Industry and Competition to work together on measures to stop the dumping of analogue television sets in the South African market. This [would be required] together with supporting the local economy and manufacturers.

USAASA remains key to the funding process of the programme. This speaks to the vouchers that would be given to mitigate risks in the private and public sectors in the delivery of set-top-boxes (STB).

Update on the implementation of Broadcasting Digital Migration (BDM)

Mr Tebogo Leshope, Chief Operating Officer (COO), Sentech and Project Manager for the BDM, gave an update on the model adopted and progress made. [Please see the presentation slides.] Cabinet approved the revised integrated analogue switch-off (ASO) on 29 September 2021 and it is planned to be achieved around the 4 key principles. Following the approval of Cabinet, the Minister of Communications and Digital Technologies established a steering committee, and the project implementation is underway in line with the four principles of the implementation plan. The ASO model is divided in to five pillars namely; awareness campaigns, registration, installations, ASO and aftermarket support.

The steering committee approved the Communications and Awareness strategy during October and the Department and its partners were currently running national messaging on analogue receiving televisions. This included engagements on live radio.

Following the previous cabinet meeting, the Minister made a national call for STB registrations to improve the number of eligible households. For the first two weeks of November, over 30 000 new applications were recorded.

STB Installations are underway in the four provinces of the Northern Cape, North West, Limpopo and Mpumalanga. Installers are still active in the Free State province to conclude new registrations. Sentech is ramping up installer capacity for the remaining provinces, and National Treasury has recently approved the use of Broadcasters and Telkom in line with the Public Finance Management Act (PFMA) and Supply Chain Management Regulations. STBs had been installed in the Northern Cape to enable provincial switch-off.

The project had managed to conclude analogue Switch-off (ASO) in the Free-State province at the end of October in accordance with the plan, without TV blackouts. The project has reached the required Installation threshold to conclude analogue Switch-off in the Northern Cape Province. The project is also on track to switch-off North West in line with the approved plan. To date, 113 analogue transmitters have been switched off compared to 105 when Cabinet approved the revised plan. He reported on the National Analogue Services Switch Off per province and the allocated timeframes and targets towards successful migration to be achieved.

The aftermarket support plan was approved by the BDM steering committee on 22nd October 2021. The objective of the plan is ensuring that registered households are supported in all languages during and after STB installation process. The existing Call Centre within Sentech is being transitioned to the After-Market Support Centre and engagements are ongoing with the South African Broadcasting Corporation (SABC).

Critical success factors are the timeous approval of deviations by National Treasury, conclusions of service level agreements, decoder availability with efficient distribution and impactful communications and media engagement interventions

Plans for November 2021 include the drive for household registration, finalization of the master service level agreements with stakeholders, elevation of communication and awareness campaign implementation, finalization of the allocation delivery & funding model with broadcasters and the finalization of agreements with National Treasury for deviations.

Discussion

Mr Z Mbhele (DA) said the model and progress presented gave confidence. It was good to see the public and private sector’s involvement with the installation rollout. SAPO has experienced numerous challenges as reported before and currently still has challenges. It is a concern that SAPO is a key stakeholder as part of the model. The model and roadmap look good on paper. He sought clarity on the number of registrations as per slide 5, as previously a different number was communicated via a Ministerial response. He also sought clarity on slide 12, on whether these commitments are in process or finalized.

The Chairperson said the emphasis of awareness campaigns was more on the subsidised market. The after-market pillar should look at how households and broadcasters are brought on board. What happens when equipment becomes obsolete, continuation of services and access to services? There are key role players on board and the existing state owned enterprises (SOEs) and USAASA must ensure controls are in place considering the previous repeat audit findings from the Auditor-General South Africa (AGSA).

Responses

Ms Chwayita Madikizela, Acting CEO, USAASA said that in support of the programme the organisation negotiates the service level agreements (SLA) and master service agreements. The SLA’s include clauses that address any issues that would preempt, [the repeat of] previous findings as highlighted by the AGSA. The strict controls will address the management and flow of inventory to prevent repeated findings. The SLA’s will also ensure that operations take place in an environment that ensures a clean audit.

The AGSA gave a disclaimer on the partnership with Sentech. The audit action plan addresses the findings and the work conducted by Sentech. All controls are put into the master services agreements, the various SLA’s, the audit committee and the audit environment that translates into the programme. Building an environment of caution allowed them to be able to respond with the appropriate controls. The STBs were purchased with a 2-year warranty, post installation. There is a reverse logistics system at SAPO and Sentech. Most service providers provide a buffer to be able to swop in terms of repairs or replacement if boxes are faulty.

Mr Leshope said they will do everything to keep things tight and above board to ensure targets are reached within the timelines. Activities are near completion and engagements took place. They were now waiting on National Treasury. From a project point of view work has started and members are part of the steering committee. Certain tasks are completed and only signatures are outstanding. Certain issues currently raised in the meeting were already addressed.

The total number of registrations is an outstanding issue and will be handled within timelines. The scale of the messaging focused on the subsidised household in the first phase, this was due to driving the registration process. Non-subsidised households’ messages were communicated in media briefings, in terms of what to do. The non-subsidized households messaging will improve and will now receive more focus and awareness.

The support for the continuity of services and the integrity of installation is provided for. The 24 months will provide continuity of services and quality of installation. This is being looked at from a medium to long-term view and not just the period of warranty. Conversations had started with the partners to say, in cases where Sentech realised the STB was approaching end of life, we need to explore replacement of the boxes with a future fit device. Controls and issues raised by the AGSA are focused on to ensure improvement and good governance.

Ms Jordan-Dyani said the data management system crashed and the total number of registrations will be verified and reported on. The communication previously focused on indigenous households as the presentation indicated. The platforms of the broadcasters will be utilized in conjunction with the private and public networks to drive communication. The consumers to attract are already on these platforms and communication follows accordingly. The communication messages follow after the registration point. If you don’t qualify for a subsidized decoder, the necessary broadcasters need to be approached. The process is in full compliance with the Protection of Personal Information (POPI) Act, and registration forms have been revised in terms of full consent with information.

USAASA has indicated the findings of the AGSA, and the programme embarked on has been given assurance by National Treasury to ensure compliance. National Treasury gave consent to proceed, and all parties have to sign the agreements for payment.

The Deputy Minister said SAPO will report back after the verification of registration numbers. The challenges at SAPO are being worked on as there are weekly meetings with the leadership of SAPO. The decline in revenue at SAPO was a major concern and National Treasury was approached to assist. SAPO is responsible for 2 areas in the programme, the registration, the equipment and installation. SAPO is involved because it has access to majority of indigenous households and does have the capacity to handle it.

The first phase of the awareness campaigns was on the message of the subsidised households. The focus is to ensure that no one is left behind and was centered around the poor. Messages are revised to ensure all households are aware. There is a concern with the budget but the Department is looking at ways to ensure continued service beyond the 2-year warrantee.

There are risks, with litigation by one of the stakeholders. The Department hopes that the parties find each other that the litigation does not continue.

The Chairperson thanked the Deputy Minister and the team for the responses and asked if there were any follow up questions from Members. It was important that quality delivery of this programme takes place. He said the Committee will provide the necessary support and will hold the Department and its entities accountable.

Report of the Portfolio Committee on Communications on the Final Acts of the ITU World Radio Conference 2019

The Committee considered and adopted its report on the World Radio Conference (WRC).

The meeting was adjourned.

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