The Independent Communications Authority of South Africa (Icasa) has reportedly denied OnDigital Media’s application for licence renewal. OnDigital Media is the operator behind StarSat, the South African arm of StarTimes Media.
The regulator disclosed its decision in a letter to OnDigital Media, ordering the company to discontinue its operations by September 18, 2024. Reports indicate that Icasa didn’t state the reason for its decision or communicate the requirements for the South African pay-TV operator to obtain a new license.
Debbie Wu, OnDigital Media CEO, has assured customers and stakeholders that the company won’t shut down its business despite the shutdown order.
“We can assure you and the public that On Digital Media/StarSat will not be closing its operations anytime soon.”
Wu said the company is actively liaising with Icasa to reach a resolution.
An insider who spoke with TVwithThinus notes that the company, which is still selling StarSat decoders to new customers, has yet to notify its staff and its parent company, StarTimes.
Reports that the South African regulator had yet to renew StarSat’s licence surfaced in early June 2024.
Icasa claimed it sent a letter to Wu and Ronald Reddy, On Digital Media’s General Manager for Legal, Risk, and Compliance, Ronald Reddy, in mid-March, where it advised the company to inform subscribers, content providers, and investors of the impending shutdown.
“Take note that Icasa may publish a notice on its website and/or in the Government Gazette advising affected subscribers, content providers and stakeholders about the winding up of ODM’s broadcasting services “, the regulator warned.
Instructing On Digital Media to share its plan for notifying subscribers, content providers and investors, the regulator clarified that it doesn’t have the mandate to consider transfer or renewal applications for expired licenses.
Wu stated that the company is exploring all regulatory and legal avenues to renew its licence and prevent shutdown.
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If all that fails, “which we doubt will happen,” Wu assures the company will comply and notify all interested parties.”
Chinese pay-TV service StarTimes owns 20% of OnDigital Media, the maximum ownership allowed for a foreign company in a South African media business.
Reports suggest that competition in South Africa’s pay-TV market will take a hit If StarSat were to shut down, as it’s one of the top three players, including DStv and Openview.
