BDM State of Readiness Portfolio Committee on Communications 27 – 28 November 2012

Acknowledgements USAASA would like to thank the Portfolio Committee on Communications for affording the opportunity to make this presentation

Discussions Role within BDM Overview of the STB Subsidy Programme USAASA’s Plan of Implementation Progress to Date Considerations Conclusion

Role within BDM

USAASA’s Role within BDM Section 82(5) of the ECA: The Agency must manage the Universal Service and Access Fund (USAF) in accordance with provisions of this Chapter (Chapter 14) Funding from the USAF approved by Cabinet for subsidies to poor TV-owning households towards the cost of a Set-Top Box (STB), Antenna and Installation USAASA is therefore required to manage the disbursement of subsidies to poor TV-owning households

Overview of the STB Subsidy Programme

STB Subsidy Programme Approvals A subsidy level of 70% towards the cost of an STB per household for a total of 5 Million poor TV-owning households A subsidy level of 100% towards the costs of an antenna/dish and installation for these poor TV-owning households A subsidy level of 100% towards the cost of an STB, dish and installation for all households within the SKA affected area

Qualifying Criteria

Eligibility Eligible households are those that meet the following criteria: – Ownership of a Functioning TV set – Applicant must be a South African Citizen – A combined household income equal to or below R3,200 – Households that depend on either: Child support grant; Old-age grant; or Disability grant – Households that are already covered by the SABC’s Concessionary TV License

Proof of Eligibility The following proof is required when applying for subsidies: – TV Ownership: SABC TV License, if not, the applicant will be required to apply for a TV license – South African Citizenship: Green Bar-Coded Identity Document – Household Income: Payslip or a letter from the employer with a stamp from the SAPS or Commissioner of Oaths; Affidavit from SAPS as proof of source of income; or Bank statement for persons with bank accounts – Dependency on Social Grants: Confirmation of social grant status from Social Services – Concessionary TV License: As issued by the SABC, will also be verified with the SABC

Applying for Subsidies The following are steps to be taken by households in applying for a STB subsidy: – Application form to be filled out and submitted at a SAPO branch, with all relevant documentation – The information is captured in electronic format and a receipt is given to the applicant – Applicant’s information is verified and the outcome communicated to the applicant – If qualified, the applicant will be informed to collect STB from a SAPO branch – On collection, the applicant pays the balance (30%), receives their STB (together with antenna) and given an installation voucher – A local installer is immediately informed of the transaction and actioned to go install the STB

Applying for Subsidies – On installation, if satisfied with the installation, the applicant will sign the voucher and hand it back to the installer – The installer will receive payment from a SAPO branch on presentation of a signed voucher

Progress to Date

Signed MOU USAASA signed an MOU with DOC, SAPO and SABC – USAASA will manage the ordering of STBs from appointed manufacturers and payment of subsidies through SAPO – SAPO will be managing the application and logistics processes – DOC to manage the process of training and accreditation of installers – The SABC will be crucial in the applications for TV licenses (where required) and verification

System + Database Development Relevant business rules have been defined, which has enabled SAPO to commence development of the system and database required to manage processes Application form design and printing services have been procured through SAPO SAPO is already gearing their warehouses to receive and distribute STBs

Conclusion

Ending Remarks The partnership between USAASA, DOC, SAPO and SABC has enabled to the STB Subsidy process to be leapfrogged to the stage where it is almost ready for launch On launch of DTT, the four parties will be fully ready for the majority of possible eventualities

Thank You