Frustrated electronics manufacturers say they are considering retrenching staff and are literally losing millions of rands in sunken costs, due to the delay in the implementation of digital terrestrial TV.
The manufacturers have been gearing themselves up over the past eight years to manufacture set-top boxes (STBs) needed to convert digital TV signals for display on older generation analogue TV sets.
Some 9.5 million households will have to convert to the new broadcasting system once the current dual-illumination period ends on 1 November 2011. More than half of those households, about five million, would require some form of subsidy to purchase the STBs that are expected to cost around R700 per unit.
However, the Department of Communications surprised industry earlier this year when it said it was now investigating the use of the Brazilian/Japanese ISDB-T standard, instead of the European DVB-T standard that was mandated by Cabinet two years ago.
“The delay has really been frustrating for us,” says Graham Meyer, CFO of Cape Town-based electronics manufacturer Tellumat.
“While we have not really been affected by the delay, because of our depth of business, we cannot realise the potential we have.”
Meyer won't say how much his company has invested into STB manufacture, but says a considerable amount of time and energy has been spent in ensuring it could meet tender requirements once they happen.
David Murray, CEO of Somerset West-based Elprom, says the delay and uncertainty surrounding the choice of standard has induced a significant amount of uncertainty in the industry.
