Mobile television frequency spectrum in SA will be dominated by Multichoice which was awarded 60% capacity, and etv with the remaining 40%.
This comes as controversy surrounding two invitations to apply (ITAs), issued by the Independent Communications Authority of SA (ICASA), left Multichoice and etv unrivalled in the application process.
In terms of the ITA, ICASA is required to conduct an auction for the successful bidders. However, it has been revealed that the second applicant, Super5 Media, withdrew its application in late August.
No reason has been given for the withdrawal, but Super5Media recently applied for a six-month extension to unveil its pay-TV services, and it is generally understood that the company's ability to get off the ground at all, is in question.
The first ITA disqualified three of the four applicants, leaving only one successful applicant - etv.
The authority today explained that since etv and Multichoice did not have competing bidders with respect to the spectrum they were bidding for, an auction could not be conducted in either instance.
As a result ICASA has decided to grant the radio spectrum frequency spectrum licenses for the purpose of providing mobile TV service in multiplex 1 to etv, for capacity of 40% and Multichoice for capacity of 60%
Process hurdles
The processes involved in the method of acquiring a licence have also been tainted in controversy. The first ITA was issued on 16 April, giving broadcasters only thee weeks to submit a full business plan, technical specification and have available the R70 000 application fee.
At the time, then ICASA chairman Paris Mashile explained that one of the applicants, the Mobile TV Consortium, did not have a broadcasting licence, which is a requirement for the application and that was why the authority disqualified it.
According to Mashile, MultiChoice did not submit its application to the regulator in time, also disqualifying it from the process.
Super5Media submitted its application on time; however, it did not bind nine of the 25 copies of its submission, making it ineligible to proceed with the process.
The authority then issued a second ITA on 28 May to which Multichoice and Super5Media responded. It is not know why the Mobile TV Consortium did not apply again.
ICASA noted that the applications had been successful and set the date for auction for 10 September.
However, the authority today announced that Super5Media had informed it on 27 August that it had withdrawn its application and declined to participate in the auction.
With Super5Media out of the running, Multichoice has been granted 60% of the available spectrum, with a mandate to deliver a Mobile TV service within 12 months.
Multichoice ready
Having been disqualified from the first ITA, Multichoice has in the meantime partnered with mobile operator Vodacom to deliver a 3G version of mobile TV.
The DStv Mobile service, unveiled at the beginning of August, provides subscribers with 11 channels for R59 a month or R19 a week.
However, analysts have criticised the offering. According to WWW Strategy analyst Steven Ambrose, the poled nature of 3G means that even when people can connect, the reception will be choppy.
“It is not the ideal technology for streaming,” he says.
At the time analysts noted that the offering would be of better quality in the multiplex 1 radio frequency spectrum. With most of the infrastructure already in place Multichoice will be ready to go ahead with a true mobile TV offering.
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