Digital Migration

SA Companies Consider Legal Action After Digital TV Box Orders Are Suspended

Cz Electronics and Leratadima, two black-owned South African businesses have entered an arbitration process with Universal Service and Access Agency of South Africa (Usaasa). The two companies were set to provide Usaasa with decoders for South Africa’s digital TV migration program.

Usaasa opted to suspend the orders pending the outcome of the Constitutional Court case between Communications Minister Faith Muthambi and over encryption of terrestrial digital broadcasts. Cz Electronics and Leratadima, however do not believe that the outcome of this case should have any bearing on the setup boxes they have already manufactured for the boxes can be upgraded if should win the case.

The two setup boxes manufacturers have accused the government of failing to support black-owned business. However, the  CEO of Usaasa in a recent statement said that Usaasa fully supports the initiative, and as such all contracts would be halted until the Constitutional Court case is finalised.

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