What will it cost?

This digital transition in broadcasting will be a costly process (both for Government and citizens) and it is currently unclear who will benefit from it or where the resources needed to make the transition will come from. Only a minority of African countries have started the policy work needed to create the transition and most of the discussion is focused on technical questions.

There are three different types of costs: 1) for existing organisations converting to digital production equipment; 2) for digital transmission equipment; and 3) for set-top boxes and digitally-enabled TVs. In production terms, some existing African broadcast companies are already largely creating programmes with digital equipment that outputs in digital format or have started a process of transition.

It is difficult to provide estimates for the cost of digital transmission equipment as the size of African countries varies enormously and few have yet started the process. However, one example is Uganda where Jacaranda Digital Broadcasting is spending US$2.5 million to reach 70% of the population.

In South Africa the Government has announced that it will spend US$300 million to provide a 70% subsidy to five million households. Although the South African Government has devised a subsidy scheme, most other Governments have focused on removing tax from cost of the box: this may lower the cost of the set-top box to US$20-30 depending on the volume of set-top boxes produced. This digital transition in broadcasting will be a costly process (both for Government and citizens) and it is currently unclear who will benefit from it or where the resources needed to make the transition will come from. Only a minority of African countries have started the policy work needed to create the transition and most of the discussion is focused on technical questions.

There are three different types of costs: 1) for existing organisations converting to digital production equipment; 2) for digital transmission equipment; and 3) for set-top boxes and digitally-enabled TVs. In production terms, some existing African broadcast companies are already largely creating programmes with digital equipment that outputs in digital format or have started a process of transition.

It is difficult to provide estimates for the cost of digital transmission equipment as the size of African countries varies enormously and few have yet started the process. However, one example is Uganda where Jacaranda Digital Broadcasting is spending US$2.5 million to reach 70% of the population.

In South Africa the Government has announced that it will spend US$300 million to provide a 70% subsidy to five million households. Although the South African Government has devised a subsidy scheme, most other Governments have focused on removing tax from cost of the box: this may lower the cost of the set-top box to US$20-30 depending on the volume of set-top boxes produced.