WorldSpace withdraws licence application

By Leon Engelbrecht, ITWeb senior writer

Johannesburg, 12 Jul 2007

WorldSpace, the satellite radio broadcaster, has withdrawn its application for a subscription broadcast licence in light of a "policy determination" made by communications minister Ivy Matsepe-Casaburri in her budget vote speech in May.

"We have withdrawn our licence application," says WorldSpace Southern Africa MD Hamza Farooqui. "It is clear to us, based on the minister's policy directive, that a more permanent solution has to be found. We are working with the Department of Communications and ICASA to finalise this solution."

Speaking in Parliament, on 24 May, Matsepe-Casaburri made specific mention of WorldSpace. "You may remember that WorldSpace was started in 1990 by Noah Samara, a son of Africa, to promote information affluence by using a new satellite-based infrastructure," she said.

"The objective of WorldSpace is to ensure programming to the portion of the world's population that lacks adequate radio reception and programme choice and that wants high-quality news, knowledge and entertainment at an affordable cost.

"I have taken the policy decision that, in recognition of the innovative and unique service provided by this initiative, it is in the interest of our country and continent that the services of WorldSpace, provided from South African soil, should not be discontinued. Accordingly, ICASA is requested to consider the continuation of this service under the current arrangement until a long-term solution has been found," the minister added.

Meanwhile, at ICASA

Nearly two months have elapsed since the speech. Asked for a progress report on WorldSpace, ICASA spokesman Sekgoela Sekgoela said the authority was awaiting details on the content of the policy directive, one of several announced by the minister in her speech.

"ICASA is still waiting for the final directive from the communications ministry with regards to the WorldSpace saga and only then will ICASA be able to communicate the way forward," he said in a written response.

But the Department of Communications says this could take some time, as the WorldSpace policy determination is subject to public comment. Although the deadline for submissions passed on 6 July, the responses must still be collated.

Department spokesman Albi Modise says the submissions will inform the process going forward. The minister also needs to take advice from the state law advisor, he adds, and she must take due cognisance of existing legislation.

Remains hopeful

Farooqui says WorldSpace owns its own infrastructure, a differentiator from other satellite broadcasters who rent. "Our business needs to be looked at differently."

He adds that the company remains committed to the South African market and is keen to provide additional services.

The company has been in the region since 1998, but its business has been limited by regulatory ambiguity.

Samara last year said the Nasdaq-listed company was focusing on developing the South African market as a foothold into the African continent.

"We have been running a fairly modest market trial period and honing our products to get the content structure accurate. We expect a large subscriber yield from the market, but we are waiting [for the licences] to roll-out services," he told a Microsoft Government Leaders' forum a year ago.

The company offers two bouquets to the local market. The gold bouquet offers 42 satellite radio channels, while the silver bouquet offers 15 channels. Consumers require satellite radio hardware to receive the subscription broadcasts.