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TechCentral is the leading quality news and information resource for people involved in South Africa’s fast-growing information and communications technology industry and those interested in the fast-changing world of information technology.

Victory as e.tv wins court appeal over DTT

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Victory as e.tv wins court appeal over DTT

Tech Central reported that e.tv has won the latest battle in the long-running war over digital terrestrial television in South Africa, potentially throwing the long-delayed project off-track once again.

The supreme court of appeal on Tuesday, 31 May, found that an amendment in 2015 by communications minister Faith Muthambi to South Africa’s digital migration policy did not follow a process of consultation and was irrational and in breach of the principle of legality.
The court found, too, that the amendment did not achieve its purpose and was thus irrational and invalid. Muthambi purported to bind regulatory authorities and broadcasters, and thus acted ultra vires, the court said.

The court set aside the amendment to the policy, throwing the country’s digital migration project, which was originally meant to be completed five years ago in 2011, into further disarray.

The judgment is particularly critical of Muthambi’s failure to consult with communications regulator Icasa, and the Universal Service and Access Agency of South Africa (Usaasa) over the amendment.

“…the failure by minister Muthambi to consult Icasa and Usaasa is even more egregious given their statutory duties. So, too, the failure to consult the appellants (e.tv and others), all of whom had an interest in the policy, was quite simply irrational.”

Supporting e.tv in its application was industry body Namec as well as Media Monitoring Africa and the SOS Coalition.

Last year, e.tv filed an application for leave to appeal a judgment by the high court that went against it in the ongoing battle over whether South Africa’s digital terrestrial television signal will be encrypted or not.

The high court had found that Muthambi’s amendments to the digital migration policy, gazetted in March 2015, would remain in force.

The judgment was a significant victory for both communications minister Faith Muthambi and for DStv parent MultiChoice, which was vehemently opposed to government providing subsidised set-top boxes that use an encryption-based conditional access system.

The pay-TV broadcaster argued, among other things, that doing so would amount to unfair competition. On the other hand, e.tv remains strongly in favour of the use of such a system in the set-top boxes, arguing that it is needed to prevent the “ghettoisation” of free-to-air television in South Africa.

Muthambi’s decision not to require encryption in the set-top boxes was a reversal of an earlier cabinet decision.

The appeal court did not make a determination on the merits or otherwise of using encryption. It found in favour of e.tv on costs.

The judgment was welcomed by e.tv. Its chief operating officer, Mark Rosin, said the ruling “allows the possibility of a strong and stable digital terrestrial television platform to South African free-to-air television viewers offering the best local and international content”.
Muthambi’s spokesman, Mish Molakeng, said the minister would issue a statement on the court’s judgment soon.

Source: (c) 2016 NewsCentral Media

“The Grand Tour’ goes to Johannesburg

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The first ever studio recording of the new Jeremy Clarkson, Richard Hammond and James May show, The Grand Tour, will take place in Johannesburg on 17 July 2016. The pre-recorded studio section of the programme will be filmed in front of a live audience, all housed within a giant tent.

According to Tech Central, Clarkson, who was fired in March 2015 for punching a Top Gear producer, signed a huge deal with Amazon last year to produce a new show for the Internet giant’s streaming video service Amazon Prime. It’s been reported that Clarkson and his production team signed a $250 million, three-season deal with Amazon.

To celebrate, Amazon is giving fans the opportunity to win one of three pairs of tickets, travel and accommodation to be part of the recording in Johannesburg.

To enter for a chance to win, entrants should share via Twitter, a photo or video of the most unusual place they’ve ever put up a tent, using the hashtag #TheGrandTourJoburg. The top ten entries will be shortlisted by an Amazon Prime Video panel, and the final three winners will be selected by Clarkson, Hammond and May.

The competition started on 2 June 2016 and closes on 8 June 2016.

For competition details and terms and conditions, visit the Amazon website.

Victory as e.tv wins court appeal over DTT

TechCentral
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Tech Central reported that e.tv has won the latest battle in the long-running war over digital terrestrial television in South Africa, potentially throwing the long-delayed project off-track once again.

The supreme court of appeal on Tuesday, 31 May, found that an amendment in 2015 by communications minister Faith Muthambi to South Africa’s digital migration policy did not follow a process of consultation and was irrational and in breach of the principle of legality.

The court found, too, that the amendment did not achieve its purpose and was thus irrational and invalid. Muthambi purported to bind regulatory authorities and broadcasters, and thus acted ultra vires, the court said.

The court set aside the amendment to the policy, throwing the country’s digital migration project, which was originally meant to be completed five years ago in 2011, into further disarray.

The judgment is particularly critical of Muthambi’s failure to consult with communications regulator Icasa, and the Universal Service and Access Agency of South Africa (Usaasa) over the amendment.

“…the failure by minister Muthambi to consult Icasa and Usaasa is even more egregious given their statutory duties. So, too, the failure to consult the appellants (e.tv and others), all of whom had an interest in the policy, was quite simply irrational.’

Supporting e.tv in its application was industry body Namec as well as Media Monitoring Africa and the SOS Coalition.

Last year, e.tv filed an application for leave to appeal a judgment by the high court that went against it in the ongoing battle over whether South Africa’s digital terrestrial television signal will be encrypted or not.

The high court had found that Muthambi’s amendments to the digital migration policy, gazetted in March 2015, would remain in force.

The judgment was a significant victory for both communications minister Faith Muthambi and for DStv parent MultiChoice, which was vehemently opposed to government providing subsidised set-top boxes that use an encryption-based conditional access system.

The pay-TV broadcaster argued, among other things, that doing so would amount to unfair competition. On the other hand, e.tv remains strongly in favour of the use of such a system in the set-top boxes, arguing that it is needed to prevent the “ghettoisation’ of free-to-air television in South Africa.

Muthambi’s decision not to require encryption in the set-top boxes was a reversal of an earlier cabinet decision.

The appeal court did not make a determination on the merits or otherwise of using encryption. It found in favour of e.tv on costs.

The judgment was welcomed by e.tv. Its chief operating officer, Mark Rosin, said the ruling “allows the possibility of a strong and stable digital terrestrial television platform to South African free-to-air television viewers offering the best local and international content’.

Muthambi’s spokesman, Mish Molakeng, said the minister would issue a statement on the court’s judgment soon.

Source: (c) 2016 NewsCentral Media

Drone pilots ready to service the movie and media industry

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UAV Industries (UAVI), the Western Cape’s only drone pilot training centre, with just four training schools currently in South Africa, has certified its first batch of 14 graduates. These are the first trained pilots who are authorised to fly drones in the region. This spells the commencement of new jobs in the country for a brand new industry.

UAVI chief instructor, Greg Donaldson, explained, “People think that drones are just good for Cape Town’s booming film industry, but there are a wide diversity of industries that will need, and employ, certified drone pilots – media and advertising particularly will also be huge. Anything that manned aviation does today that doesn’t involve the transportation of passengers will be taken over by drones over the next five to ten years so there’s huge opportunities for the industry. Things are moving incredibly quickly.’

To fly a drone legally the operator needs three items of paperwork: the drone, pilot and company all need to be licenced.

“What we’re offering through our training school is the ability to licence the pilot and to get the equivalent in manned aviation of a commercial pilot’s licence. There is a pre-on site programme and then there’s two weeks full time on site between the ground school and flight school, totalling three to four weeks in total.’

Donaldosn said that being a drone pilot is a “future-proof job.’ A large function of how much the pilot can expect to earn per day depends on the equipment with drones varying in size from the size of a smart phone to a motor car.

Gizela Parker, candidate attorney at Webber Wentzel posed this question on Tech Central, “Are SA’s new drone regulations overkill?’ Parker said that new regulations could put a dampener on innovation around drones in South Africa. “The pilot of the drone requires an RPA pilot licence, which is valid for two years, will only be issued if the pilot is 18 years or older, has a medical certificate, a radiotelephony certificate, English proficiency, completed flight training and passed both a theoretical examination and a skills test,’ said Parker.

To find out more about drone pilots visit the UAVI website.

To read the full article visit the Tech Central Website.

Muthambi: TV licences not required to qualify for free STB

TechCentral
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According to Tech Central:

Communications minister Faith Muthambi said in parliament on 6 May 2016 that indigent households wanting a free, government-subsidised set-top box to receive digital terrestrial television will no longer have to prove that they possess an SABC television licence.

Until now, government has insisted that those wanting a free set-top box — the state is providing more than five million free boxes to poorer households — must show that they have a valid TV licence. Muthambi said that government has “resolved to de-link the TV licence requirement from the set-top box subsidy registration process.’

“We have in the recent past noticed a slow registration take-up due to the TV licence requirement and insufficient funding to connect the public and [for the] consumer awareness campaign,’ she told parliament’s portfolio committee on communications.

“A properly funded public awareness campaign is crucial to a successful digital migration programme,’ Muthambi said. However, the minister made a “clarion call’ on South Africans to pay their TV licences to “enable the SABC to discharge its public service mandate with ease.’

She added, “I have also instructed the SABC to clean up their TV licence base to have accurate and reliable information on who owns a television set in South Africa to enable proper infrastructure planning.’

Source: Tech Central © 2016 NewsCentral Media

SA VOD players shut up shop

TechCentral
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Times Media Group’s (TMG) video on demand service VIDI is closing, a little over a
year since its launch in September 2014. According to a report by Tech Central the internet streaming service reported poor take-
up in the South African market and in June 2015 TMG parent company Tiso
Blackstar noted that VIDI management was “working hard at re-engineering the
business in light of weak market penetration and the slow pace of meaningful
broadband growth in South Africa.’

On 31 October 2015, video-on-demand (VOD) player Altech Node discontinued its
services, stating on its website that: “Increased competition in the video-on-demand
environment and unfavourable market conditions have necessitated Altron having to
make the difficult decision to close the Altech Node business.’

Recently South Africa has experienced a VOD boom, with a number of new service
providers entering the market. FrontRow, which has since been rebranded as VU,
was launched in December 2014 by MTN in partnership with Discover Digital;
ShowMax was launched by Naspers in August 2015; ONTAPtv.com was launched in
September 2015 by PCCW Global, and January 2016 saw US VOD giant Netflix
extend its offering to include South Africa. As competition in this space rises, the
challenge of available and reliable broadband to support such services persists.
What is more, the current number of consumers willing to engage in the market for
local VOD services remains limited.

SA’s digital TV migration programme to begin 2 October

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Communications minister Faith Muthambi will kick off the digital migration process for consumers on Friday, 2 October, when she begins the household registration process for set-top boxes for residents inside the Square Kilometre Array (SKA) area.

The process will begin in the community of Keimoes (Kai Garib municipality) in the Northern Cape, TechCentral reports.

“This is a very important milestone in the digital terrestrial television migration project. This means that households with television sets in the SKA area will now receive fully subsidised set-top-boxes once they have completed the registration process,’ said Muthambi in a statement.

Government intends on providing as many as 5 million free set-top boxes to poorer households as part of the long-delayed digital migration project.

The department of communications identified the SKA area of the province some time ago as the place where the digital TV programme will begin.

“We have set ourselves the target of concluding the migration from analogue to digital here in the Northern Cape by 1 January 2016,’ said Muthambi.

“Analogue television transmissions interfere with the signals received by the SKA telescope and for that reason analogue television transmissions in this area will be replaced by digital transmission from 1 January 2016. As this is a compulsory switchover, all households in the area qualify for a subsidised decoder.’

Households in the districts that form part of the SKA radio telescope must visit their local Post Office branch from 1 October to apply for a subsidised television decoder.

Towns around SKA area in the Northern Cape include Brandvlei, Britstown, Calvinia, Carnavon, Fraserburg, Groblershoop, Kakamas, Keimoes, Kenhardt, Loeriesfontein, Marydale, Nieuwoudtville, Pofadder, Springbok, Sutherland, Vanwyksvlei, Victoria West and Williston, the department of communications said.

Source: TechCentral

Vodacom gets “go ahead’ to buy Neotel

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More than a year after Vodacom made an all-cash, R7bn offer to buy Neotel, the Competition Commission has recommended that the deal be approved — but has also imposed a number of stringent conditions, including a two-year prohibition on the use of Neotel’s spectrum and requiring a commitment by Vodacom that it will invest billions in fixed-line infrastructure.

The approval from the Competition Commission comes after the Independent Communications Authority of South Africa (Icasa) also gave Vodacom the green light to buy Neotel.

The commission is aware that the planned transaction will substantially lessen competition in the mobile services market, but has decided to approve it regardless.

“Vodacom is the market leader in mobile services markets and the additional spectrum from Neotel will result in spectrum concentration effects that will likely consolidate Vodacom’s dominant position,’ the commission said.

“The acquisition will confer first-mover advantages to Vodacom relating to network speed, capacity and mobile offerings,’ it added. “Vodacom will not be constrained by other competitors as they are unlikely to match its offering. These factors taken together will likely lead to reduced choice and higher prices for customers in the absence of effective constraints on Vodacom.’

It said, too, that the merger is likely to have a significant impact on the structure of the South African mobile market and future competitive dynamics. “To address the concerns arising from the proposed merger, the commission recommended that some structural and public interest conditions be imposed, to which the merging parties have agreed to.’

The first agreement is that Vodacom will not directly or indirectly use Neotel’s spectrum for offering wholesale or retail mobile services to any of its customers for a period of two years from the approval date or 31 December 2017, whichever is earlier.

“The two-year deferment period is intended to give an opportunity to policy makers to address the spectrum challenges in the industry,’ the commission said.
“It is the commission’s view that such a process may be concluded within two years as there are indications from the relevant government departments that plans are underway to introduce and implement relevant policy.’

In addition, Vodacom has agreed to invest R10bn in fixed-line infrastructure over the next five years.

“Within Vodacom’s five financial years following the approval date of the merger by the Competition Tribunal, Vodacom shall commit to R10bn investment in fixed network, data and connectivity infrastructure, which will include all capital investments and long-term commitments, additions and upgrades in transmission, national long-distance fibre, backhaul, connectivity and in the development of value-adding services,’ the commission said. “At least 50% of the committed investment amount will specifically comprise investments in all fixed network elements required to enhance services to homes and enterprises in South Africa, including the development of value-adding services.’

Furthermore, Vodacom will, within a period of 24 months following the approval date, ensure that the value of shares in its share capital held by black economic empowerment shareholders will increase by an amount of R1.4bn, being the value attributable to Neotel in terms of the merger multiplied by 19% (being the current empowerment shareholders’ direct shareholding in Neotel).

The commission said, “Should the value of the BEE obligations imposed by Icasa in terms of the Electronic Communications Act exceed the value set out above, then the obligations imposed by (communications regulator) Icasa will apply.’

Vodacom must also not retrench any of Neotel’s employees as a result of the merger.

“This merger will change the South African mobile network and fixed line industry significantly. We’ve taken due care in our analysis and recommendation to protect competition now and in the future, but the success of these conditions is predicated on the relevant government departments and Icasa promulgating necessary policies and allocating spectrum for the benefit of the whole country. The conditions also contain unprecedented investment commitments that will go a long way in improving telecommunications services in South Africa’, said commissioner Tembinkosi Bonakele.

Vodacom has welcomed the commission’s recommendation, saying in a statement that the deal will “ultimately result in increased investment in communications infrastructure and the accelerated roll-out of broadband connectivity in South Africa’.

Source: TechCentral

MultiChoice brings in the cash for Naspers

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MultiChoice, which owns DStv, M-Net and SuperSport, has turned in another strong financial performance for the year ended 31 March 2015.

JSE-listed media giant Naspers revealed in its annual results, published on the evening of 29 June, that its video entertainment segment (formerly its pay-television segment) generated annual revenues of R42.4bn — up by 17% on a year ago, despite tough economic conditions in MultiChoice’s main market, South Africa.

However, investment in infrastructure and expansion in Africa meant trading profit contracted by 6%, falling to R8bn from R8.5bn in the year before. Development spend increased by 31% to R2.4bn, Naspers said.

“Subscriber growth across the African continent remained robust,’ it said. “Some 727 000 (satellite TV) customers were added, bringing the subscriber base to almost 8m.’

The group’s digital terrestrial television (DTT) network is also now “substantially in place’, with MultiChoice operating in 11 countries and 114 cities across Africa.

“The DTT base more than doubled, closing at 2.2m customers,’ Naspers said. “Kenya is one of the first African countries to make the transition to digital as the analogue switch-off roll-out began in January 2015.’

But the group warned that competition from international online players, including Netflix, Amazon and Google, is “increasing’. TechCentral reported previously that Netflix will launch in South Africa before the end of 2016.

“MultiChoice is investing in its online offering, expanding its delivery platforms and improving products and services. The DStv Explora personal video recorder is a significant differentiator and became Internet-connected in November 2014,’ it said.

“Our “TV everywhere’ strategy gained traction with the launch of DStv Now. Connected services allow customers access to a greater selection of entertainment on their tablet or smartphone — anywhere, anytime. Home movie rentals were made available to all DStv customers through BoxOffice, the video-on-demand service, which is now available in 11 African countries. Average monthly rentals tally around 600 000.’

The group said it is focusing on producing home-grown content tailored to audiences in markets such as Nigeria and Kenya. It spent R2bn in South Africa on local sport and other content.

MultiChoice signed deals with Eutelsat and Intelsat to bolster backup satellite capacity. It also invested in a second broadcast site to ensure uninterrupted viewing — for example, to deal with inclement weather conditions at its Randburg, Johannesburg headquarters that can affect broadcasts.

Source: TechCentral

e.tv loses battle over TV encryption

TechCentral
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The high court in Pretoria has dealt a huge blow to free-to-air broadcaster e.tv, stating, amendments to South Africa’s broadcasting digital migration policy, gazetted in March, will remain in force.

“The court has affirmed the amendments to the broadcasting digital migration policy that was gazetted on 18 March were in the best interest of the public,’ communications minister Faith Muthambi said on Thursday, 25 June.

“The ruling by the north Gauteng high court will now allow the digital migration process to progress and be concluded as soon as possible so that the benefits can be realised,’ the minister said.

E.tv spokesman Vasili Vass confirmed that the broadcaster had lost the case, but said it hadn’t yet had a chance to study the judgment and could not say whether it intended seeking leave to appeal.

The judgment is a significant victory for both Muthambi and for DStv parent MultiChoice, which is vehemently opposed to government providing subsidised set-top boxes that use an encryption-based conditional access system. The pay-TV broadcaster has argued, among things, that doing so would amount to unfair competition.

E.tv, on the other hand, is strongly in favour of the use of such a system in the set-top boxes, arguing that it is needed to prevent the “ghettoisation’ of free-to-air television in South Africa.

It has argued previously that encryption is necessary to ensure free-to-air broadcasters can get access to the latest and best international content.

Muthambi’s decision not to require encryption in the set-top boxes was a reversal of an earlier cabinet decision.

At the time that e.tv brought the legal action against Muthambi, its chief operating officer, Mark Rosin, said: “E.tv considers it essential that it be able to encrypt its broadcast signal primarily because this would prevent non-compliant set-top boxes from receiving digital broadcast signals, thereby ensuring a uniform and reliable viewer experience. Without a fully conformant platform, broadcasters such as e.tv would in the future likely be unable to provide broadcasts in high definition.’

MultiChoice welcomed the high court judgment. “This is good news for South Africa. We can now start the journey of migrating from analogue to digital, with all the benefits that digital migration will bring,’ it said.

Source: TechCentral

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