International satellite radio provider WorldSpace is confident it will receive the licences required to provide full services in the South African market. The company has been in the region since 1998, but has been limited due to licence requirements.
In SA to address the Microsoft Government Leaders` forum, WorldSpace chairman and CEO Noah Samara says the Nasdaq-listed company will focus 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.
"In terms of our licence applications, we are in the process and have built a lot of goodwill with the Independent Communications Authority of SA. Of course these things don`t happen quickly, but we have had no indication that the licences won`t be awarded."
Although the company is in a quiet period and is unable to release figures or forward-looking statements, Samara has made it clear there is no discussion of deadlines for receipt of the licences. Its financial results to the end of December 2005 show that the local office delivered $1 million in customer revenues.
The company offers two bouquets to the local market. The gold bouquet offers 42 satellite radio channels at R535 for six months or R995 for 12 months, while the silver bouquet offers 15 channels at R300 for six months. Consumers require satellite radio hardware to receive its broadcasts.
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