Thinus Ferreira
More than half a million StarSat subscribers could soon turn into
bricks with 600 workers losing their jobs after the pay-TV operator failed to
renew its broadcast licence but with a defiant StarSat operating illegally without a licence saying it’s not abiding
by a shutdown order and will continue its service.
On Digital Media (ODM) was supposed to shut down last week
Wednesday but defied an order from the Independent Communications Authority of
South Africa (Icasa), after it was warned for months to cease operation by 18
September.
The Independent Communications Authority of South Africa (Icasa) warned the public and industry on Friday after StarSat failed to shut down, about StarSat's "imminent exit from the subscription television market".
Icasa tells TVwithThinus that if the Chinese-run On Digital Media (ODM) refuses to shut down, Icasa will shut down the Midrand-based pay-TV operator.
Meanwhile, many of StarSat's half a million customers are wondering whether they should cancel debit orders which will be going through at the end of the month saying they're not getting answers to their questions from the company as customers, with staffers and installing agents who are also in the dark.
ODM's StarSat is the only South African competitor for MultiChoice's DStv in the pay-TV sector, but admits that it failed to renew its broadcast licence within the allowed timeframe.
Icasa told StarSat in March that it should notify StarSat subscribers that it's going to close down and will stop broadcasting by 18 September 2024.
In June, after Icasa told StarSat that its licence was not renewed, CEO Debbie Wu denied that StarSat would be shutting down and told TVwithThinus in response to a media query "We can assure you and the public that ODM/StarSat will not be closing its operations anytime".
StarSat, which started as TopTV, dragged Icasa to court, contesting its shutdown order from the regulator, trying to obtain an urgent court interdict.
The Gauteng High Court didn't grant ODM application for an urgent court interdict.
In the meantime ODM makes it seem as if nothing's wrong with StarSat and continues to broadcast, selling StarSat decoders and dishes, and taking payments and customers' money although its signal could be cut.
When StarSat's customer service number was called last week daily including Saturday, the phone was answered by people who kept saying nothing was wrong.
According to Icasa, ODM's 15-year broadcast licence expired on 8 July 2023.
ODM failed to submit a licence renewal application within the required timeframe set by the Electronic Communications Act (ECA) and related regulations," Icasa says.
"The legislation requires a licensee that holds an Individual Broadcasting Service licence to submit its renewal application to the Authority no earlier than twelve 12 months and no later than 6 months prior to the expiry of the licence."
"Despite numerous reminders, ODM submitted its licence renewal application after the expiry date on 10 November 2023."
Icasa says it sent several letters to ODM requesting a plan on how and when it will inform StarSat subscribers about the winding up of its services. Icasa says ODM failed to provide any answers.
"On 18 March 2024 Icasa decided that ODM should wind up its affairs and cease providing broadcasting services by 18 September 2024, and further inform its subscribers."
ODM, in response to a media query, admits that the company "submitted its license renewal application to Icasa later than the required deadline", but claims Icasa was unhelpful.
According to StarSat, its licence renewal application was done late "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".
On Digital Media says "Despite multiple attempts to seek guidance from ICASA officials to
address these regulatory challenges, ODM did not receive the necessary support".
China's StarTimes holds a 20%-interest in ODM, the maximum allowed for a foreign company in a South African media business.
The satellite pay-TV operator says that although the Gauteng High Court dismissed its urgent application for an interdict to block Icasa's shutdown order "A review application is pending to
address the substantive legal issues between the two parties once the court
date is set".
SarSat says if it has to shut down it would "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".
More than 500 000 StarSat subscribers will lose the pay-TV service.
"Despite the current challenges, StarSat will
remain operational, and is committed to providing uninterrupted service to its
users and business partners."
Icasa told TVwithThinus if StarSat doesn't shut down soon the operator will take steps to ensure it shutters.
TVwithThinus contacted several TV channel distributors to hear whether they've removed their sets of TV channels provided to ODM's StarSat bouquets after Icasa's shutdown notification.
The SABC, e.tv, Warner Bros. Discovery, ZEE, The Walt Disney Company and AMC Networks were contacted, with ZEE that haven't yet responded.
Mmoni Seapolelo, SABC media relations manager, said "The
SABC has noted a media statement issued by Icasa on 20 September regarding
this matter and is awaiting a further direct engagement with the
regulator".
Jorja Wilkins said eMedia had no comment.
Jared Stokes said Disney has nothing to share but will notify about updates.
A spokesperson for AMC Networks International in the United Kingdom that supplies channels like CBS Justice and CBS Reality to StatSat said they "are
closely monitoring the developments and will be taking appropriate actions as
necessary".
Warner Bros. Discovery (WBD) says "WBD only became aware of the situation concerning StarSat's
license when Icasa made the public announcement on Friday, 20 September 2024".
"We are aware of StarSat's public statement and await further information from
StarSat regarding its operations and next steps with Icasa."
"As the situation is still developing, we are closely monitoring any updates from
StarSat and Icasa to understand the potential impact on our channels and, most
importantly, our subscribers. We
will provide further updates as to any impact on our channels as soon as we are
able to."
