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Sentech has not paid its licence fees

Paul Vecchiatto
By Paul Vecchiatto, ITWeb Cape Town correspondent
Cape Town, 19 Mar 2008

Sentech has not paid its licence fees to the regulator, the Independent Communications Authority of SA (ICASA), for the past five years and could owe as much as R40 million, a senior government source asserts.

However, the national signal distributor's CEO, Sebiletso Mokone-Matabane, disputes the amount and says the figure should be closer to R25 million.

She claims Sentech has asked for a review of its multimedia licence conditions, because it was initially granted without the ability to carry voice traffic.

"If one compares that to a VANS [value-added network service] licence that costs far less, then it is not equitable," Mokone-Matabane says.

However, two years ago, minister of communications Ivy Matsepe-Casaburri issued a policy directive allowing Sentech to carry voice.

The source, who refuses to be named, says the issue has been taken before National Treasury, because ICASA has to explain in terms of the Public Finance and Administration Act why it has a shortfall in its revenue received.

"Ordinarily, a regulator can say to a licence-holder that if the fee is not paid, then the licence is taken away. However, in this case there is very little the regulator can do, because Sentech is a state-owned enterprise with a strategic mandate," the source says.

It has been confirmed by ITWeb that ICASA and the National Treasury have discussed the issue, with Sentech having been party to some of the meetings. While the issue has not been resolved yet, Mokone-Matabane believes this will be achieved before the current licence conversion process is finalised.

"We have made provision to pay the licence fees, but not for as much as R40 million. We don't expect ICASA to wipe the slate clean, but we don't believe we should pay as much as that," she says.

Sentech carries the TV and radio signals for the SA Broadcasting Corporation, which has been encouraging consumers to pay their TV licences with the slogan: "It is the right thing to do."

Neither ICASA, nor National Treasury, would comment on the issue.

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