MTN SA has told the Independent Communications Authority of SA (Icasa) that a second digital migration may be necessary once the move from analogue to digital television broadcasting has been completed because of the fragmentation of the spectrum that will be freed up when analogue signals are turned off.

The operator also doesn’t want set-top-boxes to be subsidised by the Universal Service and Access Fund (USAF).

MTN says that as the “digital dividend” — the spectrum to be freed up by the move from analogue to digital broadcasting — becomes available, “it will be in small blocks scattered throughout the upper broadcasting frequency bands and there has been no plan on how to deal with that”.

The company says this fragmentation may render the vacated spectrum “unusable for communication purposes” and that due to the “scattered nature of the digital dividend spectrum MTN is of the view that a second digital-to-digital migration may be necessary”.

It also wants to see Icasa implement a “use-it-or-lose-it” approach to spectrum so that it is not stockpiled or squandered by operators or other entities.

According to MTN, prior to the Electronic Communications Act coming into force, broadcasters didn’t contribute to the USAF. It says the plan to use the fund to subsidise set-top boxes for as many as 5m SA homes is therefore misguided.

MTN says it has no problem with subsidising set top boxes, but it doesn’t want a telecommunications fund used for broadcasting activities. It says broadcasters predominantly contribute to the Media Development and Diversity Agency fund, and that the agency’s fund is “ring-fenced exclusively for broadcasting”.

The operator wants subsidies to come from sources other than the USAF. “With planning, allocation of the digital dividend spectrum prior to switch-off could be used to subsidise set-top boxes.”

It also suggests that the 800MHz spectrum be auctioned off before the migration process is completed, with the proceeds used for subsidies.

Icasa councillor Nomvuyiso Batyi says MTN wants broadcasters to “vacate” spectrum because it is “extremely eager to get access to more spectrum”, but that in order to do so broadcasters will need to subsidise a large number of SA citizens’ set-top boxes. Yet, she says, MTN is suggesting it isn’t willing to contribute despite the obvious benefits of expediting the process.

MTN says subsidising set-top boxes is “noble and necessary” but urges Icasa to consider the “opportunity cost” of using the USAF and says “broadband access is a paramount objective of the department of communications, which will need subsidies for rural development of networks”. This will be far more difficult if the USAF is depleted. It adds that this might make the government’s goal of 100% wireless broadband penetration by 2020 unattainable.

MTN also says it wants a special spectrum advisory group expanded to include all network licensees and not just signal distributors because all players are affected. It wants to be included in digital migration processes, including trials and roll-outs because of its vested interest in the process. — Craig Wilson, TechCentral