MNet kept in check

Longstanding pay-to-view broadcaster MNet will have to share its multiplex space with etv, and not move onto its own real estate.

The Independent Communications Authority of SA (ICASA) this week released its finalised set of regulations governing the migration of analogue TV to digital. The regulations have had a long history and have been hotly contested by both broadcasters and telecoms operators.

In what was intended to be the final regulations published in the government gazette last year June, the regulator allocated a third multiplex for MNet, which would give the pay-TV broadcaster the opportunity to switch over and gain more channels.

However, the news was met with contempt from industry, and ICASA was dragged to court to rescind its allocation of a third multiplex to MNet. The regulator has now released its final documentation on the matter, showing MNet has been allocated 40% of Multiplex 2, with etv taking 50% and the rest to community broadcasters.

MNet will likely not be happy with the outcome, since it would have had access to 50% of Multiplex 3, with the rest being held open for a possible competitor. MNet would have had to switch from analogue to digital within a few months of the publication of the regulations to be allowed access to the space.

ICASA says incentivising MNet to perform what it calls a hard switchover would have meant that it could have freed up much sought-after spectrum that MNet is currently using for analogue broadcasting.

It could have provided at least a small amount of spectrum for telecoms operators to begin looking at services on what is called the digital dividend. Neotel seems to be the most interested in the spectrum; however, it is not clear whether the spectrum will be contiguous, or if there will be enough for a company to use for telecoms services.

MNet and etv also used different carriers, with etv contracting Sentech and MNet using Orbicom. This could prove to be a complication on a single multiplex.

While the regulator has not altogether given up on the idea of Multiplex 3, it seems unlikely that MNet will ever be offered access to it, if ICASA does go ahead and authorise a third broadcasting platform.

The regulator's decision document, which was published alongside the regulations, explains that the third multiplex was intended to provide access to increased competition in the market; however, too many people contested the issue, which it says is the reason it has dropped the option for now.

Almost all the submissions to ICASA, on granting MNet access to a third multiplex, revolve around competition issues. The broadcaster has long been a monopoly in the country and many newcomers are concerned that allowing MNet more channels than other broadcasters will only allow it to become further entrenched in the market.

ICASA now says it will deal with MNet's incentivised channels and competition issues in another document.

Local pay-TV newcomers, On Digital Media and Super 5 Media, still have not been given access to any multiplex, and will have to make do with their satellite services until the dual-illumination period is over.