Communications regulator Icasa has rejected all five applicants, including the Gupta-controlled Infinity Media Networks, that were seeking new free-to-air television broadcasting licences in South Africa.

The licences, if they had not been rejected, would have led to the first new competition in free-to-air television since the launch of e.tv in 1998.

Icasa acting chairman Rubben Mohlaloga said it is “regrettable” that the authority was forced to reject all five applicants for failing to meet the requirements set down in the invitation to apply and in applicable legislation.

“After careful consideration of each application … it is with great regret that the authority has taken the decision to reject all applicants for noncompliance,” Mohlaloga said.

The applications were rejected on a number of grounds, including foreign shareholding, ownership by historically disadvantaged individuals, corporate status and finances.

In response to a question from TechCentral, Mohlaloga played down the likely impact of Icasa’s decision on the success of digital terrestrial television (DTT) in South Africa. A greater choice of channels available to consumers is regarded as one of the means of getting consumers to switch from old analogue broadcasts to digital services.

“As we say, it is regrettable we have not been able to license this time around. But it is still our desire to license the multiplex (broadcasting spectrum),” Mohlaloga said.

“We want competition and investment in the sector. With or without these licences, DTT will still happen. We have just authorised channels for the SABC and M-Net, which hopefully will make the DTT platform more attractive,” he added.

Applicants for the new licences included the Gupta family’s company Infinity Media, which sought to launch the ANN7 24-hour news channel nationally on a terrestrial signal. ANN7 is currently only available on MultiChoice’s DStv platform.

Another applicant was Hola Media, one of whose principal backers is Liquid Telecom, the pan-African fibre telecommunications firm controlled by Strive Masiyiwa’s Econet Group.

The other applicants were Medo Investments, Rubicon Investments and Change TV Network.

Icasa said it will provide detailed reasons for rejecting the five applications soon. It said, too, that it plans to issue a new invitation to apply. It did not say when this will happen.