Communications minister Solly Malatsi said the fractious relationship between the SABC and Sentech represents an “opportunity cost” given that funds spent on legal fees by the two state-owned companies could be redirected to helping both firms function better.
Speaking to the TechCentral Show (TCS) in an episode that will be published this week, Malatsi said a mediation process between the SABC and Sentech, attempting to find a way through an impasse over broadcasting signal distribution fees charged to the former by the latter, is ready to begin following the appointment of a mediator.
“For two entities that are under one department to be involved in a litigious battle just doesn’t sound right,” Malatsi told TCS. “To have a protracted legal deadlock over this is not in the best interest of anyone.”
TechCentral reported in September that Malatsi was appointing an independent mediator to help the companies come to a resolution over the SABC’s R1-billion in debt to Sentech for signal distribution fees, which the public broadcaster has previously labelled “unfair monopoly pricing”.
The companies have been embroiled in a battle regarding signal distribution fees since at least 2021, when the SABC accused Sentech of “monopoly pricing”. The matter was taken to the Competition Commission, which – after a two-year investigation – concluded that Sentech’s pricing was in no way unfair.
In a presentation to parliament last month, the department of communications & digital technologies said negotiations between SABC and Sentech were at “loggerheads”, with neither party willing to accept concessions from the other over payment of the outstanding fees.
Progress possible
According to Malatsi, however, recent engagements with executives from both entities suggest progress may now be possible. “The reception from the two entities has been really amazing because there is a commitment to getting the issue resolved.”
Asked about the future of Sentech, Malatsi said it’s “still going to play an important role” in South Africa’s broadcasting landscape, especially regarding the provision of services to local and community radio stations that are struggling to stay afloat because “they cannot afford their licensing and compliance” obligations.
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Malatsi said the proposed merger of Sentech with the state’s fibre operator, Broadband Infraco, “makes sense” and ought to “move with speed”, despite the companies being involved in different markets. “I think they can find each other in terms of their mandate. If you clearly reconcile what they are doing, the compatibility is there for them to function together,” he said.
Regarding the SABC, Malatsi said there is a need for a public broadcaster in South Africa, but finding the right funding model to make it sustainable is key to its survival. However, he said the SABC cannot be “solely dependent” on the fiscus and must find a way to be competitive in what is a “tough” and “constantly changing” broadcasting market. – © 2024 NewsCentral Media