Sentech in need of extra funding
ADSL South Africa (Broadband South Africa), 14 March
2007
Sentech is in need of extra government funding
if its 2010 Soccer World Cup dreams are to become a
reality.
It’s no secret that government’s promises to
Sentech in the past, in regards to much needed funding, have fallen on deaf ears. This fact in itself presents a
threat to Sentech’s dreams although there’s now a little bit of light shining at the end of the tunnel….
Trevor Manuel made it clear in his Budget speech last month that ‘he was setting
aside R3bn as a contingency reserve to cover both unforeseen and unavoidable expenditure as well as extra
allocations for several state-owned enterprises, which were yet to be finalised’ (Sentech seeks extra government
funding for 2010 broadcasts, Ensor, Business Day, 12 March 2007). In other words, one can assume that Trevor was
setting aside enough money to help Sentech for one.
Sentech should get the full R1,3bn it requested for the next financial year
“contingent on the approval of business plans and resolution of outstanding regulatory requirements” (Sentech seeks
extra government funding for 2010 broadcasts, Ensor, Business Day, 12 March 2007). So far it only received R146m.
‘The amount requested included R700m for the expansion of its broadband network’ (Sentech seeks extra government
funding for 2010 broadcasts, Ensor, Business Day, 12 March 2007). In other words, chances are good that Sentech
will receive all the funds requested, assuming their business plans are approved and that there are not outstanding
regulatory requirements.
The fact that government wants to use the 2010 Soccer World Cup as a platform to
market South Africa, may very well be the decisive factor in ensuring that Sentech does get the funding it
requires…
Is Sentech’s role in regard to the
World Cup really necessitating extra government funding?
Yes, Sentech’s important role in regard to the 2010 Soccer World Cup makes extra
government funding a necessity.
‘Sentech will play a crucial role in providing satellite communications and broadband
wireless coverage for the transmission of soccer matches and to ensure that SA meets its commitment to Fifa to
provide high-speed links with a high availability between soccer stadiums, the international broadcasting centre
and international gateways’ (Sentech seeks extra government funding for 2010 broadcasts, Ensor, Business Day, 12
March 2007). Also, ‘…another major task is to achieve the migration from analogue to digital broadcasting, a
process that is due to commence from November next year and be finished three years later’ (Sentech seeks extra
government funding for 2010 broadcasts, Ensor, Business Day, 12 March 2007).
In other words, if government fails to provide Sentech with extra funding, it should
not place its bets on a successful hosting of the 2010 Soccer World Cup.
ADSL South Africa (Broadband South Africa) hopes that government grasp the importance
of getting extra funding through to Sentech in time.
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