On Digital Media (ODM), the operator behind StarSat, has vowed to keep its pay TV service operational despite the Independent Communications Authority of SA’s order to shut down amid failing to renew its broadcasting licence on time.
The pay TV platform said the closure would see a loss of about 600 jobs and about 500,000 subscribers would be denied a cheaper satellite.
“Despite the current challenges, StarSat will remain operational, and is committed to providing uninterrupted service to its users and business partners,” said the pay TV platform.
Icasa, on September 20, provided clarity to subscribers, members of the public and all relevant stakeholders, regarding StarSat’s imminent exit from the subscription TV market in South Africa.
Icasa said ODM held an individual broadcasting service licence for the provision of a Commercial Subscription Television Broadcasting Service (“I-CSTBS”).
It said the ODM’s licence was issued by the authority on July 9, 2008 for a 15-year period, which expired on July 8, 2023.
“ODM failed to submit a licence renewal application within the required time frame set by the Electronic Communications Act (ECA) and related regulations. 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.
“Despite numerous reminders, ODM submitted its licence renewal application after the expiry date on November 10, 2023. The authority does not have the legislative or regulatory mandate to consider a renewal application for a licence that has already expired,” said Icasa.
It said that, nevertheless, Section 15(2)1 of the ECA affords the authority the discretion to allow a licensee whose licence has expired to continue providing services for which it was licensed to wind up the licensee’s affairs and to protect its customers.
“On October 30 2023, the authority informed ODM of its decision to invoke Section 15(2) of the ECA. Subsequently, several letters were written to ODM requesting it to provide the following information, in line with the principles of procedural fairness as set out in section 3 of the Promotion of Administrative Justice Act, 2000 (Act No 3 of 2000):
“The amount of time it would require to wind up its affairs, a plan on how and when it will inform subscribers about the winding up of its services and reasons for the proposed time lines of winding up.
“No answer to these questions was received by the authority. Accordingly, on March 18, 2024 the authority decided that ODM should wind up its affairs and cease providing broadcasting services by September 18, 2024, and further inform its subscribers,” said Icasa.
The authority urged all licensees to submit their renewal applications on time and in the prescribed manner.
“This is a legal requirement, so that South African citizens are not denied access to communication services. Broadcasting services play a vital role in, among others, building social cohesion, enabling economic growth, and ensuring the dissemination of information, entertainment and education,” said Icasa.
In response, ODM, the licensing company of StarSat TV, said they acknowledge the statement issued by the authority.
“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,” said StarSat.
The pay TV service added that the Gauteng High Court recently dismissed an urgent interdict application filed by ODM to block the authority’s decision to cease its operations as of September 18, 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 the authority. 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.”
ODM said 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,” it said.
ODM said that further information would be provided as the matter unfolds.