Local pay-TV newcomer On Digital Media (ODM) has filed an urgent interdict with the South Gauteng High Court, to prevent competitor Super5Media from launching until a review application is heard.
Speaking to ITWeb this morning, ODM head of regulatory affairs Dimitri Martinis said the decision by the Independent Communications Authority of SA (ICASA) to issue a licence to Super5Media did not follow due process.
“Our legal representative says the issuing of the licence was ultra vires [outside the proper regulatory process] and, therefore, essentially illegal,” he adds.
ODM's gripe is that 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.
The company has also filed a review application with the regulator in the hopes that Super5Media will face the same inspection as all the pay-TV licensees.
Telkom's legacy
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.
At the time, the regulator was assured by Telkom that all was in order, and ICASA only requested that all the transaction documentation be submitted and that Shenzhen's shareholder information should also be provided.
Martinis says this documentation has not been submitted and the lack of disclosure by Super5Media is part of the court application. He says the regulator also did not hold public hearings before it granted the licence to Super5Media.
While Super5Media has not yet responded to ITWeb's query on the matter, it has been adamant since the handover that it has followed all the relevant processes.
“Super5Media has been granted a pay-TV licence by ICASA to operate a commercial subscription television broadcasting service. As with other pay-TV broadcasters, Super5Media will comply with all stipulations of the Electronic Communications Act and maintains regular contact with ICASA in this regard,” the company noted in response to the granting of the licence in November last year.
“The company is pleased with ICASA's decision to grant the licence and is confident that it will provide pay-TV services within the first half of 2010 that will extend competition in the pay-TV market in SA and offer South African TV consumers more choice at attractive prices,” it said.
Not alone
According to Martinis, MultiChoice, e-sat and third new pay-TV licensee Walking on Water have all been listed as respondents in the pending court case. He says they did not intend to oppose the court action, which Martinis says means those companies support ODM's action.
The case will be heard within the next two weeks, and ODM hopes the outcome will see ICASA rapped on the knuckles for not following its own procedures.
Both Super5Media and ODM were expected to unveil commercial operations within the first half of this year. ODM has already revealed some details around its commercial offering, which includes packages ranging from R99 to R249.
The company also plans to introduce programming from Fox Entertainment and MGM, which would be new channels in the South African market. Martinis says further information about the company's programming plans will be released closer to the launch date.
Super5Media has been tight-lipped around its proposed commercial offering and the legal action may well set the company's timelines back further.
ICASA has not yet responded to ITWeb's query as to how it plans to defend the action.
Share