USAASA BDM ProjectPresentation to Portfolio Committee

South African Digital TV System

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USAASA to subsidise DTH/DTT STBs and Antennae and theirInstallation

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Sentech

USAASA

SAPO

SABS

STB Manufacturers

CPE Installers

Retailers

All

DTPS Direct

BDM Value Chain

STB Value Chain

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USAASA OrdersSTBs/Antennae

Manufacturing ofSTBs/Antennae

Delivery to SAPOWarehouses

Distribution to SAPOBranches

Accredited Installers Fully InstalledSTB/Antenna

Approved HouseholdGet STB/Antenna

Role in BDM• USAASA’s role in BDM, Pre-Launch

– Appointing STB/Antenna (subsidized) manufacturers, through an open tender process

– Determining the Qualifying Criteria– Developing the process of subsidy applications and disbursements, in

line with the Qualifying Criteria and other Policies– Together with SAPO, managing the full rollout of subsidy management

systems– Appointment and training of installers (in partnership with FET

Colleges)– Determining STB order requirements and distribution thereof, using

statistical information and subsidy application patterns– Managing the ordering of STBs from approved manufacturers and

distribution thereof to SAPO warehouses

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Role in BDM (cont.)• USAASA’s role in BDM, Post-Launch

– Overseeing the application, distribution and installation value chain, as implemented through SAPO

– Managing the disbursement of funds to all parties involved

• Exclusions– Public awareness– Distribution of STBs from Post Offices to households (USAASA only

limited to oversight)– Maintenance and reverse logistics– DTT call center– The difference between approved 5.2 Million households and the

current 6 142 046 million households (The revised Statistics SA GHS of 2013 ) which amounts to R1 782 686 797.48

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Qualifying criteria

Proposal by USAASA

Income bracket Subsidy Level Number of Households

DTT DTH Percentage

0 – R1,500 100% (R0.00) 4 066 649 3 076 961 989 688 66%

R1, 5001 – R3200 70% (R210.00) 2 075 397 1 570 314 505 083 34%

Total No. of Households

6 142 046 4 647 275 1 494 771 100%

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Approved by National TreasuryIncome Bracket DTT Subsidy DTT (Price per HH) DTH Subsidy DTH (Price per HH)

R0 – R1 500 66% R238 (34%) 77% R242 (23%)

R1 501 – R1 999 36% R448 (64%) 57% R452 (43%)

R2 000 – R2 499 15% R525 (75%) 51% R515 (49%)

R2 500 – R3 200 0% R700 (100%) 29% R746 (71%)

Total No. of Households to be covered : 5 212 000

12.8 Million TV owning households in South Africa42.9 Million individuals have access to a working television

Revised qualifying criteria

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Project DeliverablesPre-Launch Tasks ** Period

Statistical Data Acquisition and Mapping Done

Subsidy Application Form Design and Printing (SAPO) Done

Appointment of Manufacturers * 90 Days

Develop (including Public Participation processes) Sliding Scale Qualifying Criteria and Subsidy Application Process

* 60 Days

USAASA/SAPO Service Level Agreement * 30 Days

9* Processes to run concurrently

Post-Launch Tasks (On-going)

Order STBs from appointed manufacturers

Oversee subsidy application and approval processes

Oversee distribution and installation of STBs in qualifying households

Facilitate payments to:• Approved manufacturers for fulfilment of STB + Antenna orders; and• SAPO for reimbursement of installers

Internal Processes to Ensure Delivery

• Appoint an external service provider to evaluate bids in the appointment of STB and Antenna manufacturers– Complete

• Appoint external audit firm to audit the evaluation - Complete

• Appoint an external service provider to assist in managing the overall implementation of the subsidy process– Complete.

• Source funding for the procurement of SAP– Awaiting National Treasury funding approval

• Publishing of Qualifying Criteria– To be published on 26 September 2014 in Government Gazette

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THE END

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