The SABC Says Sentech Is An Expensive Monopoly and Opts For Competing Signal Distributors
The SABC Says Sentech Is An Expensive Monopoly and Opts For Competing Signal Distributors. The SABC wants a government proposal that it be required to distribute its television programming exclusively through state-owned Sentech scrapped, warning that it’s already being disadvantaged by “monopoly” pricing.
“The SABC opposes the proposal to create a protected monopoly for Sentech as this is in conflict with the definition and role of the common carrier set out in the Electronic Communications Act (ECA) of 2005. While Sentech is required to carry public broadcasting services, no requirement exists for the SABC to exclusively utilise Sentech for signal distribution where competitive options exist. The SABC must retain the freedom to choose the best platforms for the SABC.” the broadcaster said in a summary of its submission, seen by TechCentral.
Sentech, a state-owned company, is a leading provider of electronic communications network services to the country’s broadcasting and communications industry. It provides broadcast transmission services to all SABC radio and television stations, commercial radio and TV stations, and over 150 Community radio stations country-wide on a daily basis. It also provides connectivity and infrastructure services to the retail, telecommunications and the public sector.
“Sentech currently has a de facto monopoly of the following three forms of distribution and transmission: a) analogue terrestrial radio transmission; b) analogue terrestrial television transmission; and c) digital terrestrial television (DTT) transmission. The tariffs in these categories must be regulated in line with the ECA and failure by the regulator to do so has exposed the public broadcaster to monopoly pricing,” it said
Sentech began as a technical division of the South African Broadcasting Corporation (“SABC”) responsible for signal distribution services of the Corporation. In 1992, the SABC corporatised the division as Sentech, a wholly-owned subsidiary of the Corporation. In 1996, the Sentech Act 63 of 1996 was amended, converting Sentech into a separate public company responsible for providing broadcasting signal distribution services as a ‘common carrier’ to licensed television and radio broadcasters converting Sentech into a separate public company responsible for providing broadcasting signal distribution services as a ‘common carrier’ to licensed television and radio broadcasters.
The summary also read that, “As more and more households migrate to the DTH platform, the cost per viewer of the DTT network becomes increasingly expensive as the network serves fewer viewers. The SABC supports the proposed principle of technology neutrality and continues to implement both DTT and DTH while at the same time driving down the costs of DTT, either through negotiation or regulatory intervention.”
Sentech Limited is operating in the broadcasting signal distribution and telecommunications sectors and reporting to the Minister of Communications and Digital Technologies.
