• Latest

South Africa: Concerns Raised Over State Digital Infrastructure Company Proposal

November 1, 2024
BMA Webinar: Broadcast Media Facilities Must Strengthen Reliability, Business Continuity And Disaster Recovery

BMA Webinar: Broadcast Media Facilities Must Strengthen Reliability, Business Continuity And Disaster Recovery

October 6, 2026

SABC And Sentech Compete For Parliament Broadcast Deal Amid US$96 Million Debt

October 6, 2026
Canal+ Gets Approval To Buy Pay-TV Group OCS and Orange Studio

Paramount And Warner Bros Discovery Merger To Trade As Skydance

October 6, 2026
“Shaka iLembe” The Programme Responsible For 16,000 Jobs In South Africa

M-Net Takes Final Shaka iLembe Season To Global Buyers As Zulu King

October 6, 2026
Zambia’s Parliament Pushes For Social Media Monetisation To Empower Content Creators

Morocco’s HACA Examines Social Media’s Growing Role In Political Communication

October 6, 2026
The Africa Channel Hosts International Emmy Semi-Final Judging In Johannesburg

The Africa Channel Hosts International Emmy Semi-Final Judging In Johannesburg

October 6, 2026
Broadcasters To Confront The Security Cost Of Moving Broadcast Operations Onto IP

Broadcasters To Confront The Security Cost Of Moving Broadcast Operations Onto IP

October 5, 2026

Regulator (ICASA) Withdraws OTT Inquiry Notice, But Regulatory Questions Remain

October 5, 2026
Cameroon Court Stays August CNC Sanctions, But Vision 4 Remains Off Air

Cameroon Court Stays August CNC Sanctions, But Vision 4 Remains Off Air

October 5, 2026

South Africa: Competition Commission Recommends Approval of MTN’s IHS Buyout

October 5, 2026
French Competition Regulator Opens Formal Case Against Canal+ Over Film Rights

French Competition Regulator Opens Formal Case Against Canal+ Over Film Rights

October 5, 2026
TV5MONDE Expands Global Reach Of Ivorian Drama ‘Castes, les amours interdites’

TV5MONDE Expands Global Reach Of Ivorian Drama ‘Castes, les amours interdites’

October 5, 2026
Tuesday, October 6, 2026
Broadcast Media Africa
  • Home
  • News & Reports
  • Resources
  • Services
    • Promo: Spotlight Service
  • Events
  • Community
No Result
View All Result
BMA
  • Home
  • News & Reports
  • Resources
  • Services
    • Promo: Spotlight Service
  • Events
  • Community
BMA
Join BMA Network
No Result
View All Result
Home Broadcasting

South Africa: Concerns Raised Over State Digital Infrastructure Company Proposal

November 1, 2024
Reading Time: 3 mins read
A A

In South Africa, the Portfolio Committee on Communications and Digital Technologies has expressed significant concerns regarding the establishment of the proposed State Digital Infrastructure Company (SDIC), following a detailed presentation from the Department of Communications and Digital Technologies (DCDT). This new state-owned entity, formed from a merger of signal provider Sentech and Broadband Infraco (BBI), aims to address market deficiencies in broadband access, particularly in rural and underserved areas of South Africa.

The SDIC is envisioned as a wholesale digital infrastructure provider striving to achieve universal access to affordable broadband and broadcasting services. It plans to combine Sentech’s wireless broadband network with BBI’s fibre network, creating a comprehensive national infrastructure supporting essential services in schools, healthcare facilities, and other government sites in rural areas.

The SDIC will be equipped with Electronic Communications Services (ECS) and Electronic Communications Network Services (ECNS) licenses to facilitate a smooth implementation. This will enable the entity to lease managed infrastructure to meet public sector connectivity needs.

A Joint Oversight Committee (JOC), consisting of senior leaders from Sentech and BBI, including their CEOs and CFOs, as well as officials from the DCDT, will oversee the SDIC. The JOC will direct the SDIC’s strategy and operations, while a Technical Committee will offer specialized support throughout the project’s development.

One of the SDIC’s primary goals is to consolidate state digital infrastructure assets, which could lead to more efficient resource use and a cohesive state-managed network. This initiative is expected to establish the SDIC as a common carrier, providing high-speed internet and last-mile connectivity to underserved communities and government facilities.

According to the DCDT’s presentation, the SDIC could significantly lower connectivity costs through economies of scale and fulfil the open-access policies promised by the Ramaphosa administration, enhancing infrastructure sharing between the public and private sectors.

Despite these potential benefits, members of the Portfolio Committee remain sceptical about the SDIC’s financial stability and operational viability. They are particularly concerned about how the inclusion of other state infrastructure—such as networks owned by Eskom, Transnet, Sanral, and Prasa—might affect the SDIC. Without integrating these assets, the committee fears the SDIC could adopt a fragmented approach, undermining its mission to reduce connectivity costs for impoverished areas.

Additionally, there are concerns about Broadband Infraco’s financial health, particularly its liquidity and solvency issues, which may pose challenges to the new entity’s sustainability without further funding beyond what has already been allocated under the SA Connect programme for fibre expansion.

Khusela Sangoni Diko, chair of the committee, urged Icasa (the Independent Communications Authority of South Africa) to expedite its market inquiry into the current ICT landscape. This inquiry is essential to determine whether establishing a state-owned digital infrastructure company remains necessary, especially given the market dynamics that have shifted since the original rationalization policy was introduced.

Diko emphasized the need to thoroughly examine the market structure to ascertain the government’s continued necessity for intervention in this sector. The Portfolio Committee’s recommendations reflect a desire for the DCDT to explore various options while ensuring that the formation of the SDIC is both financially sound and aligned with South Africa’s connectivity goals.

Share Tweet Post Email
Tags: BroadcastingIndependent Communications Authority of South AfricaSentech
Share201Tweet126
Previous Post

DRM Consortium And ATSC Forge Partnership To Enhance Global Digital Broadcasting Standards

Next Post

South Africa: Showmax Tops Mobile Data Savings Among Streaming Services – According To Reports

Publisher
-
Benjamin Pius
Publisher
-
Benjamin Pius

 About us

Our goal is always to keep industry stakeholders abreast of opportunities in technology and service innovations that are and will shape Africa’s broadcasting and media industry via quality news, information, intelligence and insight .

 Contact us

+44 (0) 207 712 1526
info@broadcastingandmedia.com
BSP Communications Limited
Level 37, One Canada Square
Canary Wharf
London, E14 5AB, United Kingdom

No Result
View All Result
  • Home
  • News & Reports
  • Resources
  • Services
    • Promo: Spotlight Service
  • Events
  • Community
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Policy.