The ongoing dispute between the South African Broadcasting Corporation (SABC) and Sentech is set to be addressed through mediation. The Communications Minister, Solly Malatsi, is taking steps to appoint an independent mediator to help facilitate negotiations between the two entities. The primary issue at hand is SABC’s outstanding US$56 million debt to Sentech for signal carriage.
The Department of Communications revealed that the minister has prioritised resolving the tariff dispute between SABC and Sentech. The department will engage an independent mediator, and the terms of reference for this mediation process are currently being finalised in collaboration with both entities.
One of the main concerns for the SABC is the possibility of Sentech shutting off its transmitters, which would impact the broadcaster’s ability to reach its audience. This potential scenario emphasises the critical nature of resolving the ongoing disagreement.
The history of the dispute dates back to at least 2021, with the SABC accusing Sentech of monopolistic pricing for carrying its terrestrial broadcasting signals. Despite the SABC’s claims, the Competition Commission’s two-year investigation concluded that Sentech’s pricing was not unfair. However, industry experts have expressed skepticism regarding these findings, highlighting the significant disparities in signal distribution fees depending on the distribution method.
As negotiations between the two parties have reached an impasse, the Department of Communications stressed the potential consequences of a transmitter shutoff. They highlighted that such an action could result in audience and revenue losses for the SABC and hinder the government’s universal service objectives.
The staggering US$56 million debt the SABC owes to Sentech has significant implications for both entities. The public broadcaster’s inability to service the monthly repayments, which amount to about R55 million excluding VAT, further exacerbates the situation.
The appointment of an independent mediator reflects a proactive approach to addressing this longstanding dispute. Resolving this issue is crucial for ensuring the continuity of broadcast services and safeguarding the interests of both SABC and Sentech.
