Copies of the pay-TV licence granted to Telkom Media and subsequently transferred to Super5Media show several changes that have not been passed through public comment.
This week, Super5Media and the Independent Communications Authority of SA (ICASA) will face the South Gauteng High Court, over possible process discrepancies in the licensing of the Chinese-owned pay-TV applicant.
Super5Media started out as Telkom Media, with the fixed-line giant being the primary shareholder in the operation. The company changed hands in the middle of last year, with Chinese broadcaster Shenzhen Media buying out Telkom's share.
There has been confusion around the transfer of the licence and the company has faced many setbacks since it changed hands.
Legal challenge
At the end of last year, local pay-TV would-be competitor, On Digital Media (ODM), filed an urgent interdict at the court to prevent Super5Media from going ahead with its commercial launch. ODM hopes the court will grant the stay, which will allow it to proceed with a review of Super5Media's licence application.
Super5Media has been mum on the issue, only saying it will contest the court action. “Super5Media has opposed this frivolous and opportunistic application. We will reserve any further comments until the court has ruled,” says Super5Media director Tian du Pisanie.
ODM says all other pay-TV hopefuls were put through rigorous scrutiny by the regulator, having to submit extensive documentation on funding and shareholders, while Super5Media was awarded the licence based on Telkom Media's submissions.
Gift of the giver
It has now emerged that the licensing conditions stipulated in the licence granted to Telkom Media show various changes when compared to the copy granted to Super5Media. These amendments have not been passed through public comment.
One of the most notable changes is the basic shareholding structure, where the Chinese company, Shenzen, represents 60% of the company's BEE credentials, cutting out a 4% staff investment trust and 5% BBBEE shareholding stipulated by Telkom's submissions.
Super5Media also has a special condition tagged, requesting shareholder agreements or a similar confirmation document needs to be submitted to the regulator, to make sure there are no conflicts with the Electronic Communications Act.
ICASA has not confirmed whether the company has submitted these documents; however, accounts indicate they have not reached the regulator's archives, or its offices.
More for less
ITWeb has all the new pay-TV licence stipulations in hand, except for those concerning the third player, Walking on Water, which seems not to have yet been awarded its licence. Walking on Water's Web site indicates it is ready to roll, as soon as the regulator comes through with the licences it has agreed to grant.
ICASA noted last year that there are questions about the religious-themed broadcaster's business. The regulator did not indicate what these issues might be.
It also appears that Super5Media's licence is the only one that stipulates the platforms it can broadcast from. MultiChoice, ODM, and Telkom Media's old licence all hold the same information for the format, simply saying: “The licensee is licensed to provide a subscription service aimed at the general public and niche markets.”
However, Super5Media's licence stipulates its broadcasting options. “The licensee shall provide satellite and cable broadcasting to its subscribers.”
It is also been authorised to provide “at least” 40 channels on satellite and the same number on cable at the time of its launch.
An industry watcher, who has asked to remain anonymous, says this most likely means the other broadcasters have not been given the option to provide cable-based services. The most likely use for a cable service will be IPTV.
More trouble
ITWeb queried ICASA on the matter last week; however, it has yet to respond to the queries.
Both Super5Media and ODM were expected to reveal a commercial service in the first half of this year. However, the pending legal application may put a halt to Super5Media's release dates.
There are some indications that the company may also face action from the Commission for Conciliation, Mediation and Arbitration following a spate of retrenchments last year. However, the company has not confirmed possible labour action.
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