The department of communications & digital technologies has published a tender in efforts to mediate in the ongoing tariff dispute between the SABC and its signal distributor, Sentech.
According to a briefing document, the main purpose of the mediator will be to reach a settlement agreement between the two state-owned companies, including stipulations as to how future tariffs will be set.
“There has been an ongoing tariffs dispute between the SABC and Sentech, which started in the 2020/2021 financial year and resulted in the SABC lodging a complaint with the Competition Commission,” said the document.
“The SABC was dissatisfied with the outcome of the commission’s investigation and filed the matter with the Competition Tribunal for consideration. The parties are currently working at resolving the issues among themselves, outside of the tribunal process, wherein the services of a mediator are required.”
Despite the commission’s findings that there was no evidence to support the SABC’s contention that Sentech’s fees – or any of the increases in the fees between 2018 and 2021 – were excessive, the SABC has maintained its stance that the company imposes “monopoly pricing”.
Industry experts have expressed similar concerns, noting that Sentech’s fees where it does not enjoy a monopoly – in satellite, for example – are much lower compared to what it charges for terrestrial signal distribution.
As of 31 March 2024, the SABC’s debt to Sentech stood at a staggering R1-billion, with the SABC refusing to pay unless rates are renegotiated. To address the impasse, communications minister Solly Malatsi in September called for the matter to be resolved through mediation.
Reliant on the SABC
Sentech was separated from the SABC in 1996, the idea being that it would become a service provider not only to the public broadcaster but also to commercial television and radio stations across the country. Yet it is still reliant on the SABC for almost half its revenue.
The SABC, meanwhile, faces its own existential crisis. In the year to 31 March 2025, the broadcaster made a R198-million loss. Despite this being a big improvement on the R746-million loss of the previous year, pressure from falling advertising revenue and competition from streaming rivals has placed the SABC’s finances under severe strain.
Read: Malatsi intervenes after Sentech threat to cut SABC transmissions
According to the tender document, other requirements in the mediator’s scope of work include:
- Preparing a non-disclosure agreement for all parties to sign that will ensure the confidentiality of all mediation proceedings;
- Convening meetings between the SABC and Sentech to reach consensus on all issues; and
- Should the parties fail to reach an agreement, the mediator will have the authority – and must exercise it – to make final ruling on the matter.
The communications department will hold a compulsory briefing session on 1 August at 11am at its offices in Hatfield. The deadline for applications is 12 August. – © 2025 NewsCentral Media
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