State-owned companies Sentech and Broadband Infraco will be merged to create a new State digital infrastructure company, Minister Stella Ndabeni-Abrahams announced on Thursday.

The Communications and Digital Technologies Minister said her department was finalising the business case for the merger of Sentech, which provides signal distribution to broadcasters and Infraco, which owns a national fibre-optic network.

The announcement forms part of a number of institutional reforms that Ndabeni-Abrahams announced on Thursday, as part of government’s fourth industrial revolution (4IR) campaign.

Other reforms include prohibiting nonbroadband State-owned entities that self-provide broadband, such as South African National Roads Agency Limited, Passenger Rail Agency South Africa, Eskom and Transnet from entering the commercial broadband market. This, the Minister said, was to avoid the State from distorting a “well-functioning liberalised market”.

The department would also develop a model for “smart regulation”, which would include the amalgamation of the Independent Communications Authority of South Africa (Icasa), the Film and Publication Board and .ZADNA, as well as explore funding mechanisms for the new regulator.

The Communications and Digital Technologies department further planned to repurpose the State Information Technology Agency (SITA) to create a State IT company and it would accelerate the repurposing of the Universal Service Fund into a 4IR Fund.

On fast-tracking the roll-out of broadcasting digital migration, Ndabeni-Abrahams said that Cabinet had approved the delivery model that encompassed direct appointment of local decoder installers. The second phase would include the roll-out of integrated digital televisions, or IDTVs.

The department was exploring funding options to ensure the success of the project.

To implement the revised broadcasting digital migration model, Ndabeni-Abrahams also announced that an administrator had been appointed at Universal Service and Access Agency of South Africa (USAASA) for a period of 24 months.

An administrator has also been appointed for SITA for a 24-month period to lead the repurposing of the organisation into a new digital transformation agency to drive digitisation, innovation, localisation and supporting a capable State.

A digital skills strategy has been developed and would be presented to Cabinet for approval. A pilot programme has started with 1 000 students, who are being trained on data science, software development, cybersecurity, three-dimensional printing, drone piloting and digital content production.

Meanwhile, pending the merger with Broadband Infraco, four Sentech board appointments were made to fill vacancies, including the appointment of Malande Tonjeni, Lisa Tele, Mxolisi Tsika and Malizole Diko.