STAATSKOERANT, 24 JANUARIE 2014
No. 37261
10.2.2 Broadband Investment
Domestic investment has been strong with Telkom, Neotel, Vodacom, MTN, and Cell C
investing billions of Rands in infrastructure. Other organisations such as Dark Fibre Africa,
Metrofibre Networx, and Dimension Data have also made notable investments. Some
municipalities have invested in fibre and microwave telecommunications including
eThekwini, City of Cape Town, City of Tshwane, City of Johannesburg, Ekurhuleni, Nelson
Mandela Bay, Manguang, and uMhlatuze.
There have been some policy and policy-related moves to foster investment
in
telecommunications, particularly in broadband. The Department of Communications is
finalising the Broadband Policy. The policy indicated that governments in other countries
have substantially increased public funding to invest in the building of national broadband
networks.
According to the BMI-T report (2013), some of the main reasons for the poor level of
investment in electronic communications and therefore in broadband includes lack of
effective competition for fixed local broadband access and absence of regulatory incentives
and obligations, amongst other things.
10.2.3 Broadcasting Sector
The PwC report has predicted the following:
A positive growth for broadcasting in South Africa for the next five years particularly
in television.
The advertising market in the next five years is set to increase at an 8,6% compound
annual rate, rising to an estimated R41,2 billion in 2016 from R27,2 billion in 2011.
Total television advertising is projected to increase at a 7,8% compound annual rate
to R14,6 billion in 2016.
The overall subscription household universe is growing rapidly. The number of
subscribers to pay-TV channels rose by 700 000 in 2011, the largest single-year
increase in South African pay-TV history. Between 2008 and 2011, the subscription
household base nearly doubled. The availability of popular sports on pay-TV has
proven to be a major lure.
The industry, according to the Stats SA Report on the SA Post and
Telecommunications, (2010), accounts for 5% share of the total post and telecoms
revenue.
Investment in the industry is overwhelmingly local, with about 58% of it representing
historically disadvantaged groups. The early promising entrance by foreign investors
seems to have fizzled out. Discounting China Star Times' impending investment into
On Digital Media's TopTV, foreign ownership of broadcasting services, both radio
and TV is standing at 1,3% and 6,2% respectively.
Sentech continues to dominate the terrestrial market. Pay-operators prefer to lease spare
satellite capacity from foreign firms. The introduction of Freevision satellite by Sentech has
added a mix to signal distribution on free-to-air. Thirty percent (30%) of local ownership is
still a requirement for any infrastructure licence.
75
This gazette is also available free online at www.gpwonline.co.za
79