STAATSKOERANT, 24 JANUARIE 2014 No. 37261 10.2.2 Broadband Investment Domestic investment has been strong with Telkom, Neotel, Vodacom, MTN, and Cell C investing billions of Rands in infrastructure. Other organisations such as Dark Fibre Africa, Metrofibre Networx, and Dimension Data have also made notable investments. Some municipalities have invested in fibre and microwave telecommunications including eThekwini, City of Cape Town, City of Tshwane, City of Johannesburg, Ekurhuleni, Nelson Mandela Bay, Manguang, and uMhlatuze. There have been some policy and policy-related moves to foster investment in telecommunications, particularly in broadband. The Department of Communications is finalising the Broadband Policy. The policy indicated that governments in other countries have substantially increased public funding to invest in the building of national broadband networks. According to the BMI-T report (2013), some of the main reasons for the poor level of investment in electronic communications and therefore in broadband includes lack of effective competition for fixed local broadband access and absence of regulatory incentives and obligations, amongst other things. 10.2.3 Broadcasting Sector The PwC report has predicted the following: A positive growth for broadcasting in South Africa for the next five years particularly in television. The advertising market in the next five years is set to increase at an 8,6% compound annual rate, rising to an estimated R41,2 billion in 2016 from R27,2 billion in 2011. Total television advertising is projected to increase at a 7,8% compound annual rate to R14,6 billion in 2016. The overall subscription household universe is growing rapidly. The number of subscribers to pay-TV channels rose by 700 000 in 2011, the largest single-year increase in South African pay-TV history. Between 2008 and 2011, the subscription household base nearly doubled. The availability of popular sports on pay-TV has proven to be a major lure. The industry, according to the Stats SA Report on the SA Post and Telecommunications, (2010), accounts for 5% share of the total post and telecoms revenue. Investment in the industry is overwhelmingly local, with about 58% of it representing historically disadvantaged groups. The early promising entrance by foreign investors seems to have fizzled out. Discounting China Star Times' impending investment into On Digital Media's TopTV, foreign ownership of broadcasting services, both radio and TV is standing at 1,3% and 6,2% respectively. Sentech continues to dominate the terrestrial market. Pay-operators prefer to lease spare satellite capacity from foreign firms. The introduction of Freevision satellite by Sentech has added a mix to signal distribution on free-to-air. Thirty percent (30%) of local ownership is still a requirement for any infrastructure licence. 75 This gazette is also available free online at www.gpwonline.co.za 79