JSE-listed television equipment provider Ellies wants government to impose an import duty on outdoor aerials to protect the local industry when SA migrates to digital television.
SA will turn on digital television later this year, using the European DVB-T2 standard, and expects to turn off analogue broadcast towards the end of 2013. However, about five million households may need new aerials to receive the digital terrestrial signal.
Ellies, which manufactures about 70% of all locally produced antennae, has asked the International Trade Commission of SA to impose a 20% import duty on aerials in a bid to protect the local market.
CEO Wayne Samson says currently there are no imported aerials in the local market. However, he says when digital television is turned on, antennae are expected to come into the market from offshore locations.
The company has not asked for duties to be imposed on internal aerials - commonly known as bunny ears, Samson says. Most antennae sold in SA are for internal use, but asking for an import duty on these would affect low-income earners, which is the market that typically buys bunny ears.
Ellies has requested the import duty to protect the local electronics manufacturing sector, says Samson. Without the duty, an entire market will be destroyed and jobs may be lost, he notes.
If aerials are imported without a duty, suppliers in the value chain will also be affected, because of the knock-on effect. The local digital aerial market could be worth around R100 million, he says.
Share