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Dear Minister,
RE: On Why South Africa Needs Conditional Access
We write to you concerning the implementation of Cabinets decision of 4
December 2013 concerning conditional access/set-top box encryption.
Of particular relevance to your Ministry are the implications of the exclusion of
conditional access/set-top box encryption from the government manufactured
STB on competition in the broadcasting market economy, and the consequent
impact on both the national public broadcaster and the people of South Africa.
Minister, the delay in the commercial launch of the broadcasting digital migration
project for over seven years has enabled a subscription broadcasting service
licensee with significant market power to double its penetration into the South
African market to 5 million subscribers out of the 11 million TV-owning
households in the country. Our view is that in its opposition to the inclusion of a
conditional access system in the government manufactured set-top boxes, this
same licensee is campaigning to limit the ability of existing and, especially,
entrant broadcasting service licensees to compete fairly.
There is extensive evidence that new entrants in the South African Pay-TV
market will struggle to survive given the market dynamics precipitated by
the significant market share held by this subscription broadcasting service
licensee. The failure of On Digital Medias short-lived Top-TV subscription
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Yours Sincerely,
__________________
Sekoetlane Phamodi
Coordinator: SOS: Support Public
Broadcasting
______________________
Loren Braithwaite-Kabosha
CEO: South African Communications
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