In an effort to recover outstanding payments owed to it, state signal distributor Sentech will shut off signal services to about 40 defaulting customers.
“The company is obliged to collect all amounts owing and it would be irresponsible to provide services without receiving payment,” says Sentech.
It adds that customers whose services will be discontinued until payment is made include mainly government departments and community broadcasters.
“In the past three weeks, Sentech has twice sent letters informing customers that the service would be discontinued, unless payment was made to settle outstanding amounts due to the company.
“Most of the customers ignored our letters and the subsequent reminders. All customers signed agreements with Sentech for the provision of signal distribution services or for equipment and bandwidth capacity.”
Sentech's PR and media manager, Nthabeleng Mokitimi, says an instruction for the suspension of about 40 customers was issued to Sentech's technical team yesterday, and teams are busy attending to the suspensions.
Last option
Mokitimi explains that these customers are behind on payments to the distributor and services to them will be shut down until payment is effected or payment arrangements are made.
She adds that the amounts owed by each customer vary, but - to date - a collective amount of R22 million is owed to Sentech.
“Some customers have made payments or entered into acknowledgement of debt agreements to restructure their payments.”
Mokitimi also says the money owed to Sentech could help it out of its current shortfall. Media reports say Sentech is expected to run out of cash by November.
“The company is facing hard times and is introducing various austerity measures to cope with the shortage of cash. In these circumstances, the company has decided that it is unable to continue to support customers who ignore our plea for payment and who have made no effort to settle their debts,” says Sentech.
It adds it is also considering the cancellation of contracts of defaulting customers, who do not settle their accounts by or before the end of this month.
In addressing the possibility of more customers having their signal shut off in the near future, Mokitimi says: “The decision to suspend service is the last and least preferred option. Sentech makes every effort to ensure that customers pay their accounts through various forms of engagement, communication and arrangements with customers.”
CapeTV arrears
Earlier this month, Sentech demanded R700 000 in arrears from community television broadcaster CapeTV.
Karen Thorne, CapeTV's station manager, says the station is now operating without a licence, since the Independent Communications Authority of SA decided not to renew it.
“And I am also waiting for Sentech to switch off our transmitter and take us off the air. “We operate on R5 million a year - about the same amount as the SABC spends on throwing a party - yet we have to pay the same signal transmission rates as the commercial stations,” Thorne says.
CapeTV has paid Sentech R700 000 for its signal transmission, but still owes it a similar amount.
“We have been paying it off as we are able to afford it. We were also led to believe by the Department of Communications that government would help community stations pay off their arrears.
“However, now they are saying they were only talking about community radio stations, but that is not why we had the meeting with them. It was about community TV stations,” Thorne adds.
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