Wednesday, October 2, 2024

Unlicensed StarSat claims its not illegal, refuses to reveal shareholding


by Thinus Ferreira

StarSat which has been broadcasting unlicensed for over a year and failed to renew its licence, on Tuesday claimed that it is not operating illegally, with the Chinese-run pay-TV provider that said it would continue to defy South Africa's broadcasting regulator and stay on the air.

This comes as On Digital Media (ODM) that runs StarSat refuses to divulge its local and foreign shareholding, with an insider saying StarSat's claims of 500 000 subscribers and 600 workers are bogus.

South Africa's, the Independent Communications Authority of South Africa (Icasa), warned ODM multiple times in 2023 to renew its broadcasting licence in time, which the Midrand-based satellite pay-TV operator ignored and failed to do. 

ODM's 15-year broadcasting licence expired on 8 July last year and simply kept broadcasting without telling StarSat subscribers, installer agents, its staff, or local and international TV channel providers that it is operating without any valid licence.

By March this year Icasa told ODM it must shut down by 18 September and in advance of the shuttering date tell all its stakeholders, subscribers and channel providers that 18 September will be its last day on air.

The date came and went with ODM, the only traditional satellite pay-TV competitor to MultiChoice's DStv, defying Icasa's shutdown order and vowing to keep broadcasting despite losing an urgent court interdict against its shutdown order in the Gauteng High Court.

On Tuesday, at a hastily-arranged press conference, Pule Mabe who is now StarSat's head of strategy and public affairs and previously was national spokesperson for the ANC political party, claimed that "StarSat is not operating illegally".

During its business rescue under which the financially imploded TopTV became StarSat, China's StarTimes acquired a 20% share in StarSat, the maximum allowed by a foreign company in a local media business. 

On Tuesday ODM refused to provide the current shareholding structure and composition of StarSat.

"We are trying to recover on the two years that we have lost. During that period, our own shareholding at the level of StarSat got to be tampered with," Pule Mabe said.

He said StarSat is going to do roadshows over the next weeks with mobile operators "depending on where we get the right and best offer for our customers to launch fully our over-the-top (OTT) platform so that our people know that they do not only have to rely on satellite dishes for them to watch content".

After StarSat claimed it has 500 000 subscribers and 600 workers who will lose their jobs if the unlicensed StarSat is forced to shut down, an insider told News24 that these numbers are very likely overstated.

Meanwhile, TV channel operators and distributors including the SABC, e.tv, Warner Bros. Discovery (WBD), ZEE, The Walt Disney Company, AMC Networks International, the BBC, Bloomberg, NBCUniversal, Sky News, Trace Africa and others have not pulled their channels from StarSat and continue to supply their channel collections to the illegal pay-TV operator.

Icasa didn't respond to a media query earlier this week, asking whether it told channel distributors to stop providing their content to StarSat since it is unlicensed and was told to shut down.

Justine Limpitlaw, an expert in electronic communications law, told SABC News that "until a court sets aside Icasa's decision, Icasa is the regulator under the constitution".

"StarSat simply didn't apply in time and Icasa has therefore said to it you need to wind down your operations."