SouthTel Group’s planned video-on-demand service, called VOD:TV, which was first slated for launch in September 2011, will now only go live next year, a company spokesman says.

VOD:TV, when it is launched, will offer consumers a range of on-demand content, including the latest television shows and movies, delivered via satellite to a personal video recorder.

VOD:TV communications head Mika Chauke says the company has run a trial of the technology with 700 participants nationwide. “We’re gathering the findings from the trial, doing software and technical upgrades, and refining our business strategy.”

SouthTel hopes to launch VOD:TV within the next six to 12 months. “We’ve had to ask ourselves how we make this service relevant in this market,” Chauke says.

One of the challenges facing VOD:TV is the cost, and coverage, of mobile data networks.” Consumers will choose content for download using their cellular provider, with the content they request distributed using satellite.

“The company is regrouping but our core business strategy remains the same,” Chauke says. “The decoder will include a 3G card and a true return path, but we’re refining how we are going to launch while considering the South African consumer and existing offerings in the market.”

In August, the company hinted it would partner with a mobile operator. Many suspected MTN was the partner, but Chauke says VOD:TV hasn’t finalised any agreements with any of the mobile operators.

“We want to give consumers a choice; they should be able to transact using 3G without worrying about which operator they’re on.”

The 3G component of the decoder is essential for finding and downloading content. “The decoder includes a modem so you can log on to VOD:TV and download the content.”

SouthTel has already secured a number of contracts with Hollywood studios and other producers and distributors of content globally, Chauke adds. “Content is guaranteed. The challenge is to refine our strategy and take it to market.”

According to Chauke, VOD:TV will target “every person with a TV”.

“We’re aiming as wide as possible because, if you look at other players in the industry, everything is subscription-based. We’re targeting the top end who want on-demand services in addition to their existing subscription services as well as the low end who can buy the decoder and then buy content as they want it without any fixed, long-term costs.”

Chauke says SouthTel still has local and international backers of the project, but declines to name them.