1. The Business Case for the DigiAnt
Poynting’s Quick Guide to Benefiting the Digital Migration in Africa

2. CONTENTS
1. Introduction p. 3
2. Scope for Antennas as part of the of Digital Migration in South Africa p. 3
3. Benefits of Digital Migration p. 4
4. Introducing the DigiAnt - Poynting’s contribution to the Digital Migration p. 5
5. Poynting’s Joint Venture with TEMIC p. 7
6. Introducing the DigiAnt in your country p. 8
6.1. The DigiAnt factory opportunity p. 8
7. Conclusion p. 9

3. 1. INTRODUCTION
At Poynting, we understand the African and specifically Sub-Saharan Africa vision for digital
connectivity. We understand that we are moving towards a society where Internet is a basic
human right.
We understand that people everywhere want and need access to educational content,
information and entertainment.
From our point of view, the telecommunications and broadcasting industry are passionate about
moving digitalization forward in Africa. However, this environment must be effectively and
efficiently managed to ensure continued investment.
By presenting our innovative and novel products and integration solutions, we are working towards
eliminating the entry barrier and ensuring lower costs, so that all the people of the African region
can have access to both telecommunications and broadcasting communications.
2. SCOPE FOR ANTENNAS AS PART OF THE DIGITAL MIGRATION
The Digital Migration is a ITU compulsory transitioning from analogue to digital technology
broadcasting. One of the main reasons for this is to free up more spectrum for telecommunications
and also to use the spectrum for broadcasting more efficiently with digital platforms.
The SADIBA Recommendation for a DTT Receiver Antenna:
 Should be an outdoor receiving antenna that is roof height
 This antenna should be a wide-band UHF antenna that can receive both ATV and DTT during
the transition
 Additional future frequency changes should also be accommodated for in the antenna
South Africa Market size:
 There are 12.2 million TV households in South Africa
 Roughly 5 million of these households will be subsidised to get set top boxes by the
SA Department of Communications
 4.5 million is the unsubsidized market

4. 3. BENEFITS OF DIGITAL MIGRATION
Customer benefits:
 Wider choice in TV and radio channels
 Improved picture and sound quality (depending on system settings)
 Enhanced information services
Industry benefits:
With the introduction of DTTB networks a new industry has arisen. A new industry producing:
 Pay TV services
 New transmitter networks
 New receiver devices
Employment benefits:
 Ultimately due to the fact that a new industry has arisen, jobs will be created in this new indus-
try to ensure roll out and continuous growth of Digital TV.
 Apart from this, the spectrum that becomes available for telecommunications will also have a
direct impact on the growth of the Telco industry including job creation.
Source: GSMA Sub Saharan Africa Mobile Economy Report 2013

5. 4. INTRODUCTING THE DIGIANT - POYNTING’S CONTRIBUTION TO THE DIGITAL MIGRATION
Tying in and understanding the wider benefits of digital migration, Poynting created this innova-
tive digital antenna for distribution in SSA and Africa.
The Product – DigiAnt
This nifty antenna is a novel design for use with digital terrestrial television. It assembles easily and
can be installed quickly using no tools to assemble. Simply unfold it to the open position and it is
ready to use.
What is in a name?
Horizontal Mounting
Vertical Mounting
Digi
= Digital
Ant
= Antenna and ‘ant’, the insect.
= Ants have 6 legs just like the DigiAnt

6. 10 Key DigiAnt Facts and Benefits
1. The DigiAnt is the first antenna of its kind in nearly 50 years.
2. The DigiAnt has been designed to pick up any UHF frequencies between 470-862 MHz which
ensures better signal for viewers.
3. Additionally, the DigiAnt is unique in that it is collapsible and can be packaged in a very
small box.
4. The packaging of the antenna is 10 times smaller than competitors, ensuring a huge reduc-
tion in shipping, storage and display costs.
5. Low cost to manufacture in comparison to competitors.
6. Easy to manufacture.
7. Relatively low capital investment vs traditional TV antennas
8. Almost 98% recyclable
9. 20 000 antennas fit into a 20 foot container versus roughly 2000 traditional antennas.
10. 200 000 antennas in a 100m2 warehouse vs 20 000 traditional grid antennas.

7. 5. POYNTING’S JOINT VENTURE WITH THE TSHWANE EAST MANUFACTURING INCUBATION CENTRE
(TEMIC)
Introduction
The migration to digital broadcast transmission technology has begun globally, with some countries
relatively advanced in their implementation. South Africa will be leading the global migration with
the most advanced technology in digital transmissions being produced at TEMIC.
SMMEs participating in the incubation programme will be well positioned to be involved in large
scale economic activity, actively contribute to the manufacturing of a local product that is a
world-class innovation.
Incubation
TEMIC will accelerate SMME development by providing the following support to small, medium and
micro enterprises over the three year incubation period:
 Technical and Business skills transfer
 Enterprise Development
 Supplier Development
 Marketing Opportunities
 Latest technology innovation exposure
 Local manufacturing capacity
Purpose
The purpose of the Incubation Centre is to demonstrate Digital Television Antenna manufacturing
machinery, equipment and technologies. The SMMEs will also be trained on operating and
maintaining the machinery and equipment. Most of the machinery sourced for the Centre
represents technology that lowers the cost of producing the antennas. By lowering the cost of the
capital equipment, SMMEs are therefore able to produce the antennas in smaller batches and at
lower cost than would otherwise have been possible. The lower cost capital equipment therefore
lowers the normal barriers to entry of potential business owners into this market.
The Incubation Centre will be able to provide an end-to-end solution to the mandatory
replacement of the digital antennas in the South African and African market.

8. 6. INTRODUCING THE DIGIANT IN YOUR COUNTRY
Introduction
We are sitting here with a phenomena where a huge number of digital antennas are required due
to the fact that the 2nd biggest means of electronic communication in the world is migrating from
analogue to digital technology.
Market size
Sub Sahara Africa
It is projected that sub-Saharan Africa will have 33.8 million DTT (both pay and free-to-air) homes by
2018, from 4.6 million at the end of last year, according to Digital TV Research Ltd.
The rest of Africa and ITU region
There are approximately 90 million television households in the region, including North Africa, with
this number expected to grow to 124 million by 2015, further data from Dataxis Intelligence and the
Television Bureau of Advertising adds.
6.1. THE DIGIANT FACTORY IN YOUR COUNTRY
We want to form local partners in the SADC countries to set up factories to manufacture the digital
antenna and in such a way contributing to the relevant country’s GDP. We believe that our contri-
bution will result in the increase of employment and the rise in GDP for the region. One of the ways in
which we want to ensure this, is through technology transfer.
Thus, an opportunity to invest in a factory for the manufacturing the DigiAnt in your country exists.
Key points to take into consideration:
 The DigiAnt is a registered trade mark and is the latest technology
 Factory capacity 1.5Million antennas per year.
 The factory takes 6 Months from date of ordering the machines to start production and 9
Months to reach full capacity
 Capex investment is roughly $1 Million
 Opex investment is roughly $120 000
 IP Royalty $0.90 per antenna
 Nearly 100% return on investment
 Net profit margin over project 10%
 Antenna selling price $8 - $10
Benefits of setting up a DigiAnt factory in your country:
 The longevity of digital antenna production is roughly 7 to 10 years. Thereafter the factory can
be used to make various different die cast products.
 The factory can be used as an incubation centre as part of further economic development.
 Job creation.
 Less import costs.

9. 7. CONCLUSION
The Digital Migration is a huge opportunity to create partnerships and employment opportunities.
In partnerships, we are looking forward to making Africa and Sub-Saharan Africa in particular a
thriving and dynamic region.
Contact us
Eduard Walker, | DTV Business Unit Manager
Phone: +27 12 657 0050 | Mobile: +27 83 425 9981 | E-mail: eduard.walker@poynting.co.za
www.poyntingcommercial.com