The Department of Communications and Digital Technologies (DCDT) has placed completing digital migration, providing policy directions for 5G deployment, and ending local production and importing analogue TV sets at the top of its priorities list over the medium-term.
The DCDT noted its plans in the Estimates of National Expenditure (ENE) document, handed out to coincide with the 2022 National Budget.
The DCDT, charged with driving South Africa’s ICT agenda, digital transformation and creating an enabling policy and regulatory environment, is overseeing implementation of the broadcasting digital migration (BDM) programme, also known as digital migration.
In the ENE document, it states it will mainly focus on implementing the BDM programme in order to release high‐demand spectrum.
After missing the International Telecommunication Union-mandated June 2015 migration deadline, the South African government has made numerous attempts to conclude the digital migration process, which will make way for the country’s long-awaited spectrum allocation.
Communications minister Khumbudzo Ntshavheni last week conceded that part of the challenges that bedevilled the auctioning of the high-demand spectrum has been the availability of sub-1GB spectrum that is to be released through digital migration.
In the ENE document, the department indicates it has revised its delivery model to fast‐track the broadcasting digital migration project.
Says the DCDT: “All analogue transmitters are expected to have been shut down by the end of 2021/22. The bulk of funding for this project has been transferred to the Universal Service and Access Fund and the South African Post Office in previous financial years, and has been retained by the entities with approval from National Treasury where required.
“As a result, spending in the broadcasting digital migration sub-programme in the ICT infrastructure development and support programme is expected to decrease from R1.3 billion in 2021/22 to R84.1 million in 2024/25, at an average annual rate of 59.5%.”
Access to high‐demand spectrum will help mobile operators provide faster and more widespread high-speed data services. On the consumer front, it would mean making affordable data available to firms and households.
For government, the allocation of spectrum is at the forefront of its economic reforms, with the national fiscus set to benefit in excess of R8 billion from the proceeds of the auction.
Turning to its policy and regulatory functions, the department says it will continue to provide a supporting and enabling legislative environment through the development of relevant policies, strategies and legislation.
“Over the MTEF (medium-term expenditure framework) period, this will include finalising the audio‐visual white paper, providing policy direction on discontinuing the local production of and importing analogue television sets; drafting and finalising the Digital Transformation Bill, the ICT Regulatory Reform Bill and the State Digital Infrastructure Company Bill; and providing policy direction for the deployment of 5G.
“Expenditure for these activities is within an allocation of R155.5 million over the period ahead in the ICT policy development and research programme.”
Budgetary matters
National Treasury’s ENE document reveals the department has a budget of R7.7 billion over the medium-term, of which 72.2% (R5.4 billion) is allocated for transfers to entities for their operations, and for project‐specific funding.
“Expenditure is expected to decrease at an average annual rate of 13.3%, from R3.9 billion in 2021/22 to R2.5 billion in 2024/25 because of a one‐off allocation of R1.1 billion in 2021/22 for the broadcasting digital migration project.”
According to the ENE, the department’s second‐largest cost driver is compensation of employees, spending on which increases at an average annual rate of 1% from R295.8 million in 2021/22 to R304.4 million in 2024/25.
“The number of personnel is expected to decrease from 379 in 2021/22 to 376 in 2024/25 in line with the new organisational structure, which is expected to be finalised over the medium-term.
“This is also expected to enable the department to remain within its expenditure ceiling for compensation of employees,” it states.
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