Attention: Hon.

Faith Muthambi
Minister of Communications
26 January 2015
Dear Minister,
RE: On Why South Africa Needs Conditional Access
We have written to you and your predecessors on this matter before, with
hopes of further engagement that would bring clarity and closure to the issue.
We do not need to belabour the urgency with which the broadcasting digital
migration project must be launched and concluded. With the June ITU
deadline looming, and no hopes for an extension, every day that goes by
without your and government taking the right decision on conditional access
and launching DTT compromises the future of free-to-air (FTA) television.
Minister, you stand at the cusp of achieving what none of your predecessors
has been able to do. Contrary to what satellite subscription broadcasters, who
have no stake in terrestrial broadcasting may say, conditional access is
central to securing a stable and competitive broadcasting environment that
offers diverse and affordable services for the benefit of all the people of South
Africa.
We have outlined some of the benefits of conditional access for FTA
terrestrial broadcasters and the public at large in our previous letter to you (to
be found at this link). A conditional access system in the government

manufactured set-top boxes (STBs) is crucial for the success of FTA because
without conditional access:
1. FTA broadcasters and the majority of TV-owning households in South
Africa will not be able to access current high-definition (HD) content
that can compete with that offered by established subscription
broadcasting services. Currently, because we do not have an
encryption service such as that conditional service offers, FTA
broadcasters and viewers are denied such content because they
cannot protect it from signal piracy. This content is thus only available
to well-established subscription service providers, maintaining a defacto monopoly in the broadcasting market-economy. In advancing and
securing a pro-conditional access position, you and government would
be introducing a sorely-needed pro-competitive measure into the
broadcasting environment for the benefit of the people of South Africa.
2. Users of FTA terrestrial subscription services will not benefit from a
uniform standard user interface to ensure that everyone has uniform
quality of service in operating their STB. Linked to this is that STBs will
not be addressable, which means that users will not have the benefit
of receiving personalised messages, in the language of their choice, to
be supported in resolving whatever problems they might experience
with the quality of their signal or the STB itself. By not advancing and
securing a pro-conditional access position for us all, you would be
undermining five years of your own valiant advocacy in Parliament for
uniform quality of broadcasting services for all the people of South
Africa most especially the rural poor.
Minister, 13 months ago, even your predecessor and government recognised
the importance of conditional access in the government manufactured STBs.
Some of the benefits that informed Cabinets decision of 4 December 2014
which provided for the inclusion of conditional access included:

Ensuring that the government subsidy is used productively.

Because, with conditional access, government manufactured
STBs will be addressable, and they can be protected from theft
and unauthorised use remotely.

Stimulating the local electronics industry and create jobs.

There are already a number of companies in South Africa which
have developed their own STB design, and more will follow if the
sector is not compromised by interference from cheap, non-

compliant imports which will cause problems for both users and
service providers.

Reducing prospects of the South African market being flooded by

cheap STBs that are not fully functional.
South African companies will be best placed to manufacture
STBs for use in the South African market because they will be
authorised to support the conditional access software.
Encryption will prevent the flooding of South Africa with cheap
foreign imports because these will not be able to unscramble
encrypted broadcast signals.

Reducing the extent of monopolisation and encourage competition by

creating space for new players in the pay television market without
unfairly benefitting from the government subsidy.

We believe that Cabinets decision in this regard was the correct one, and we
depend on you to ensure that it is fully realised by your finalisation and
gazetting of the Broadcasting Digital Migration Policy to this effect. We attach
at this link our position on conditional access supporting Cabinets decision for
your further reference.
Minister, let us not allow the undoing of the great efforts that have been put
into improving the lives of our people. Please act now to ensure the inclusion
of conditional access in government manufactured STBs, which remains a
critical step in moving South Africa forward into the digital era.
Yours sincerely,

____________________________
Sekoetlane Phamodi
Coordinator