South Africa - Political opposition to government's DSO strategy
The political opposition party, Democratic Alliance, has called the government's DTT strategy to opt for locally manufactured receivers to be "misguided".
Last week, the government approved its plan to provide subsidies to low-income households. These subsidies will be used to purchase locally manufactured DTT set-top boxes.
However, according to the Democratic Alliance, it would be more cost efficient to import DTT receivers from foreign manufacturers. These set-top boxes are available for approximately half the cost of locally produced set-top boxes, R350 (€35) compared with R700 (€69).
The government has set aside R2.45 billion (€242 million) to subsidize approximately 70% of the estimated R700 (€69) cost of each locally manufactured set-top box.
In addition, the Democratic Alliance noted that the demand for DTT receivers will cease once analogue switch-off is completed in June 2015.