Altech threatens legal action over DTTV

ELECTRONICS COMPANY Altech has slammed government over its delay in choosing a digital television standard, and has threatened legal action if the Department of Communications (DOC) goes with the Brazilian offering.

However, earlier this year, the DOC controversially decided to review its initial decision, and looked into the Brazilian upgrade to the ISDB-T standard. Industry was concerned, as millions had already been spent on manufacturing facilities, and the review would set back migration by several years.

Altech - a division of the listed Altron group - has now warned government that it and other industry players may institute legal action to recoup the millions that have been invested in manufacturing facilities if government decides on ISDB-T. The two standards are not compatible and a change now will require more investment in infrastructure.

Altech, which is a significant player in the STB sector, warns that the delay in making an announcement is bad for the country, industry, economy and employment. DOC spokesman Tiyani Rikhotso says the department has yet to make a decision on which standard to use, and he could not indicate when an announcement will be forthcoming.

Altech CEO Craig Venter" rel=tag>Craig Venter says a change in the standard will set back the process of putting decoders into South African households by three to five years. He says industry has invested more than R700 million on gearing up for the switchover.

"The industry was shocked when the department said in May that it was considering a switch to the ISDB-T standard," says Venter. He explains that DVB-T is well-supported by the industry, because it will stimulate the local market.

However, adopting ISDB-T would reduce competition and South African manufacturers will "have to import skills and technology and turn our backs on what exists locally. This will stifle growth of the ICT sector," says Venter. The ISDB-T standard-based technology has to be imported from Brazil and Japan, with little or no opportunity for local innovation, says Venter. "Hundreds of millions of rands spent by broadcasters, signal distributors and manufacturers in SA on DVB-T equipment will have been wasted and staff will need to be retrained," says Venter.

Venter says Altech has spent millions in developing STB technology and can absorb these costs. However, iWeek`s sister publication, ITWeb, recently reported that at least two emerging manufacturers may have no choice but to close down if government opts for ISDB-T.

Altech says if government decides to go with the ISDB-T technology, Altech and other industry players will not hesitate to launch legal proceedings against government, not only to reverse the decision, but also to claim millions of rands spent on costs and wasted resources.

Venter says it is time business stands up to slow and ineffective government decisions, in its own interest and that of the broader public.