StarSat, the pay-television operator owned by On Digital Media (ODM), has vowed to fight communications regulator Icasa’s decision ordering the platform be shut down.
StarSat has continued trading, despite the Icasa instruction that it must cease operations by 18 September because it had not renewed its broadcasting licence.
TechCentral reported last month that StarSat, which was launched in 2008 as TopTV before an ownership change, had failed to renew its operating licence.
Icasa said in a statement on 20 September that ODM failed to renew the licence and suggested that as a result, the company would exit the market.
It’s not clear what the shareholding make-up of ODM looks like, and the company on Tuesday refused at a press conference to disclose this information, saying it would host another media event at which this would be made public.
The press conference was hosted by Pule Mabe, StarSat’s head of strategy and public affairs. Mabe, a former politician, was previously a national spokesman for the ANC.
China’s StarTimes Group previously bought a stake in ODM, believed to be 20%. It’s not clear if that stake has changed, although foreign companies are prohibited under the Electronic Communications Act (ECA) from holding more than 20% of the voting rights in a local broadcaster. StarTimes is active in pay TV in several African markets, including South Africa.
15-year licence
StarSat, as 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. It remains a minnow next to market leader MultiChoice Group.
In its 20 September statement, 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. ODM “failed to submit a licence renewal application within the required timeframe set by the ECA and related regulations”, Icasa said.
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“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.
“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.”
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],” Icasa said.
On Tuesday, at its press conference, StarSat reiterated again that it has no intention of exiting the market, despite Icasa’s instruction that it must wind up its affairs.
“In line with the regulatory framework, StarSat TV has been proactively engaging with the regulator to understand the operational parameters prior to submitting our licence renewal application, as stipulated by the ECA,” the company said in a statement.
“We must emphasise that StarSat TV has not been immune to the global impact of the Covid-19 pandemic. The crisis forced us to make various adjustments to our operations, including changes to our shareholding structure, which now require the approval of Icasa before any license renewal can proceed,” it said. It repeated an allegation that Icasa has “sometimes” been unresponsive in dealing with its requests.
“The consequences of abruptly ceasing StarSat TV operations would be dire, impacting not only our shareholders but also our employees, including a network of installers throughout the country, and hundreds of thousands of subscribers who rely on our direct-to-home satellite broadcasting services,” the statement said.
Inquiry
It added that it has “reached out” to Khusela Sangoni, chair of parliament’s portfolio committee on communications & digital technologies, “seeking mediation and a platform for constructive engagement with the regulator”. It has also asked for an “inquiry into the subscription television broadcasting landscape in our country”, without elaborating.
At Tuesday’s press conference, Mabe told journalists that StarSat is “not operating illegally” and wants to save the business so its hundreds of employees and contractors are not left without jobs. “We will use every legitimate and legal means” to ensure StarSat is able to continue operating, Mabe said. – © 2024 NewsCentral Media