StarSat, a Chinese-owned company that launched a direct challenge 15 years ago to MultiChoice Group’s DStv, has been ordered to shut down.

Communications regulator Icasa confirmed in a statement on Friday that StarSat, which was launched by On Digital Media (ODM) in 2008 as TopTV, failed to renew its operating licence, and suggested that as a result, the company is exiting the local market.

Update: See the statement below issued by ODM

However, the company’s website at starsat.co.za remains operational, and a call to the call centre number listed there was answered within seconds. When TechCentral asked an agent if it was still possible to sign up for the satellite-based service, the publication was assured that we could indeed sign up.

StarSat/TopTV attempted to provide a compelling alternative to DStv in South Africa but failed to gain much traction, especially in the absence of a comprehensive sports offering to rival MultiChoice’s SuperSport.

StarSat appears now to be controlled by StarTimes Group, a Chinese company founded in 1998 by Pang Xinxing that serves viewers in markets across Africa.

In its statement on Friday, Icasa said ODM held an individual broadcasting service licence for the provision of a commercial subscription television broadcasting service. This licence was issued on 9 July 2008 for a 15-year period that expired on 8 July 2023. But ODM “failed to submit a licence renewal application within the required timeframe set by the Electronic Communications Act and related regulations”, Icasa said.

“The legislation requires a licensee that holds an individual broadcasting service licence to submit its renewal application to the authority no earlier than 12 months and no later than six months prior to the expiry of the licence,” it said.

Expired

“Despite numerous reminders, ODM submitted its licence renewal application after the expiry date on 10 November 2023. The authority does not have the legislative or regulatory mandate to consider a renewal application for a licence that has already expired,” the regulator added.

Despite this, legislation gives Icasa the discretion to allow a licensee to continue to operate as it winds up its affairs so as to protect its customers. It said it did this last October and then wrote to ODM and requested further information, including how much time it needed to wind up its affairs and asked for its plan to inform subscribers of this.

“No answer to these questions was received. Accordingly, on the above-mentioned basis, on 18 March 2024 the authority decided that ODM should wind up its affairs and cease providing broadcasting services by 18 September 2024, and further inform its subscribers [of this fact].”

Seeking comment on Friday, TechCentral was told by a personal assistant to the management team at StarSat that no one was available to comment and that we should call back on Monday. – © 2024 NewsCentral Media

Update: StarSat responds

ODM, for StarSat, issued a statement late on Friday evening in response to Icasa. It admitted it had submitted its licence renewal application late but said it did not receive the support from the regulator it believes it should have.

StarSat’s full statement (lightly edited) is pasted below:

On Digital Media, the licensing company of pay-television platform StarSat TV, acknowledges the statement issued by Icasa dated 20 September 2024 regarding StarSat’s potential exit from the subscription market in South Africa.

Owing to challenges in securing new investment in a competitive market, along with the introduction of a new shareholders’ agreement and the economic pressures following the Covid-19 pandemic, ODM submitted its licence renewal application to Icasa later than the required deadline. Despite multiple attempts to seek guidance from Icasa officials to address these regulatory challenges, ODM did not receive the necessary support.

Furthermore, the Gauteng high court recently dismissed an urgent interdict application filed by ODM to block Icasa’s decision to cease its operations as of 18 September 2024. A review application is pending to address the substantive legal issues between the two parties once the court date is set.

In light of these developments, StarSat is both surprised and concerned by Icasa’s recent statement, particularly as legal proceedings are currently under way. Over the past 18 months, StarSat has maintained consistent and comprehensive communication with Icasa. Any suggestion that the company has failed to engage with the regulatory authority is incorrect, as extensive correspondence is evidence of its commitment to constructive dialogue.

Given Icasa’s commitment to enabling economic growth, the potential loss of jobs is especially troubling. This situation could jeopardise the livelihoods of more than 600 ODM employees and disrupt the broader network of over 4 000 dealers and sales agents who rely on its operations.

Beyond economic growth, Icasa is also committed to ensuring the dissemination of information, entertainment and education to the public. StarSat plays a key role in this, providing quality content to over 500 000 subscribers at affordable rates. Its service offers a diverse range of programming that supports the informational and entertainment needs of South Africans.

Despite the current challenges, StarSat will remain operational, and is committed to providing uninterrupted service to its users and business partners.

Further information will be provided as the matter unfolds.