No cash for DTT

By Damaria Senne, ITWeb senior journalist

Johannesburg, 05 Mar 2008

About eight months before SA's dual illumination period begins, cash-strapped state signal distributor Sentech does not know where it is going to get the funds to cover the cost of transmitting both analogue and digital signals.

In a media briefing yesterday, the state-owned entity said while public focus had been on funding for its operations and the rollout of its wireless broadband network infrastructure, its immediate problem lay in raising the R917 million it needed to cover the cost of dual illumination.

The briefing was in response to a media storm after reports that the reason Sentech's 2008/9 financial allocation was drastically cut was because of government's lack of confidence in Sentech's management structure. Sentech hit back this week, blaming government for lack of funding and clear direction.

Sentech CEO Sebiletso Mokone-Matabane says while funding for the DTT infrastructure rollout is on track, it is not yet clear who will pay for the dual illumination.

Dual illumination begins on 1 November. At that stage, SA must have at least 56% of the country digital-ready, with coverage growing to 78% by next year and 92% by 2010.

Mobokone-Matabane says Sentech submitted its proposal for funding for dual illumination to the Department of Communications. "There was no feedback from government."

Broadcasters have already indicated that they can't fund dual illumination, as they already have obligations to invest in equipment to get their operations digital-ready, and Sentech couldn't possibly carry the cost, she says. "We don't want the subject to slip between the cracks."

Sentech has previously noted that it is on track for the roll-out of DTT infrastructure.

Mobokone-Matabane says Sentech needs R917million, spread over a three-year period, to cover the cost of transmitting both analogue and digital signals during the dual illumination process.

Escalated

This morning, Sentech's portfolio manager Polly Modiko said the state-entity was heartened by the fact that communications minister Ivy Matsepe-Casaburri had emphasised the importance of adequately funding Sentech in her speech in Parliament yesterday.

"At least now the issue of Sentech's funding has been escalated to be dealt with by minister to minister. We will see how it evolves."

Ministerial spokesman Joe Makhafola adds the DOC would also like to see Sentech's status being amended, so it is able to raise funds from the private sector.