Broadcast Media Africa has learnt that Chinese pay-TV operator StarTimes has said that its StarSat platform will continue operating despite the Independent Communications Authority of South Africa (Icasa) ordering it to shut down, reports Sunday Times.
This comes after Icasa issued a media statement on Friday announcing that it had ordered StarSat to wind up its operations for failing to renew its broadcasting licence.
On July 9, 2008, Icasa issued a subscription broadcasting licence to On Digital Media (ODM), StarSat’s parent company.
StarTimes owns 20% of On Digital Media, the maximum ownership allowed for a foreign company in a South African media business.
The licence was valid for fifteen years and 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 said.
“The legislation requires a licensee that holds an Individual Broadcasting Service licence to submit its renewal application to the authority no earlier than twelve months and no later than six months before the expiry of the licence.”
Icasa said that despite numerous reminders, On Digital Media submitted its licence renewal application on 10 November 2023, after the expiry date.
ODM attributed this 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.”
The broadcaster said that it had sought guidance from Icasa on addressing the regulatory challenges but “did not receive the necessary support.”
“The authority does not have the legislative or regulatory mandate to consider a renewal application for a licence that has already expired,” Icasa said.
“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.”
Icasa said it warned ODM on 30 October 2023 that it had decided to invoke this provision of the law.
“On 18 March 2024, the Authority decided that ODM should wind up its affairs and cease providing broadcasting services by 18 September 2024 and further inform its subscribers,” said Icasa.
“The authority once again urges all licensees to submit their renewal applications on time and in the prescribed manner,” it continued.
“This is a legal requirement so South African citizens are not denied access to communication services. Broadcasting services play a vital role in, amongst others, building social cohesion, enabling economic growth, and ensuring the dissemination of information, entertainment and education.”
However, despite Icasa’s instructions, StarSat has told the regulator that it does not wish to shut down since June.
“We can assure you and the public that On Digital Media/StarSat will not be closing its operations anytime soon,” said On Digital Media CEO Debbie Wu.
Wu said the company is liaising with Icasa on the way forward. She added that On Digital Media is exploring all the regulatory and legal issues surrounding its licensing.
