• Latest

South Africa: Concerns Raised Over State Digital Infrastructure Company Proposal

November 1, 2024
Content Streaming: Explore How To Acquire And Retain Customers In A Crowded Marketplace At OTT Streaming Summit – Africa 2026, Cape Town, South Africa

Content Streaming: Explore How To Acquire And Retain Customers In A Crowded Marketplace At OTT Streaming Summit – Africa 2026, Cape Town, South Africa

November 13, 2025
Exploring The Next Frontier In Satellite Connectivity

South Africa: Vodacom Partners With Starlink For Internet Access Across Africa

November 13, 2025
Unlocking Africa’s Media Potential With AI

Google Teams Up With Cassava Technologies To Launch AI Revolution In Africa

November 13, 2025
UK’s Regulator Calls For Stricter Online Safety Measures To Combat Harmful Content And Protect Minors

Nigeria: Regulator Initiates Comprehensive Review Of Guidelines To Address Digital Risks

November 13, 2025
Connectivity And Convergence – Next Chapter For Broadcast Media In Africa

Côte d’Ivoire: SES Teams Up With Africa Mobile Networks To Transform Rural Communication

November 13, 2025
South Africa: Regulator Seeks Public Input On Second Draft Of National Radio Frequency Plan 2025

South Africa: Regulator Seeks Public Input On Second Draft Of National Radio Frequency Plan 2025

November 12, 2025

Nigeria: Govt Launches New Enterprise Content Management Platform

November 12, 2025
IHeartMedia And TikTok Join Forces: Launching New Podcasts And TikTok Radio In Strategic Partnership

IHeartMedia And TikTok Join Forces: Launching New Podcasts And TikTok Radio In Strategic Partnership

November 12, 2025
Eutelsat In Partnership To Secure Satellite Licence For HUSAT Programme

Eutelsat In Partnership To Secure Satellite Licence For HUSAT Programme

November 12, 2025
Kenya: StarTimes Launches Rembo TV With US$26 Million Investment In Local Storytelling

Kenya: StarTimes Launches Rembo TV With US$26 Million Investment In Local Storytelling

November 12, 2025
Broadcasters Convention Southern Africa 2025: Explore AI’s Impact On African Media

Broadcasters Convention Southern Africa 2025: Explore AI’s Impact On African Media

November 12, 2025

Telecom And Pay-TV Market Set For Steady Growth Amid Economic Challenges And Technological Advancements – Report

November 11, 2025
Thursday, November 13, 2025
Broadcast Media Africa
  • Home
  • News & Reports
    • Animation Content
    • Broadcasting
    • Broadcasting Right
    • Broadcasting Rights
    • Cinema Content
    • Connectivity
    • Content Distribution
    • Content Production
    • Content Regulation
    • Film Festival
    • Film Industry
    • Media Regulation
    • Mergers & Acquisition
    • OTT & Streaming
    • Pay-TV
    • Radio Broadcasting
    • Regulation
    • Satellite
    • Tech Features
    • Telecommunications
  • Industry Resources
    • Audio & Podcasts
    • Reports & Presentations
    • TV and Videos
  • Products & Services
    • Promo: Spotlight Service
  • Events
    • All Events
    • BMA Events
  • Join BMA Network
  • Login
Login
Join BMA Network
BMA
  • Home
  • News & Reports
    • Animation Content
    • Broadcasting
    • Broadcasting Right
    • Broadcasting Rights
    • Cinema Content
    • Connectivity
    • Content Distribution
    • Content Production
    • Content Regulation
    • Film Festival
    • Film Industry
    • Media Regulation
    • Mergers & Acquisition
    • OTT & Streaming
    • Pay-TV
    • Radio Broadcasting
    • Regulation
    • Satellite
    • Tech Features
    • Telecommunications
  • Industry Resources
    • Audio & Podcasts
    • Reports & Presentations
    • TV and Videos
  • Products & Services
    • Promo: Spotlight Service
  • Events
    • All Events
    • BMA Events
  • Join BMA Network
  • Login
Login
Join BMA Network
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
Share196Tweet123
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
    • Animation Content
    • Broadcasting
    • Broadcasting Right
    • Broadcasting Rights
    • Cinema Content
    • Connectivity
    • Content Distribution
    • Content Production
    • Content Regulation
    • Film Festival
    • Film Industry
    • Media Regulation
    • Mergers & Acquisition
    • OTT & Streaming
    • Pay-TV
    • Radio Broadcasting
    • Regulation
    • Satellite
    • Tech Features
    • Telecommunications
  • Industry Resources
    • Audio & Podcasts
    • Reports & Presentations
    • TV and Videos
  • Products & Services
    • Promo: Spotlight Service
  • Events
    • All Events
    • BMA Events
  • Join BMA Network
  • Login
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Policy.