Local pay-TV newcomer Super5Media has defended its broadcasting licence, saying it complied with all regulation and legislation to get it.
Speaking during an exclusive interview with ITWeb, Super5Media director Tian du Pisanie explained the company complied with all the stipulations of the Independent Communications Authority of SA (ICASA) when the licence was transferred into its name.
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 the local arm of 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.
The latest setback has once again halted its ability to produce a commercial product, with incoming competitor, On Digital Media, taking the broadcaster to court over possible licence discrepancies.
However, Du Pisanie says the company's licence is valid, because it stuck to the letter of the law during the application to have the licence placed into Super5Media's name.
Du Pisanie says that, while the licence wording at face value has changed, the actual licence awarded to Super5Media is essentially the same, meaning it didn't need a public process.
One of the most notable changes is the basic shareholding structure, where the Chinese company, Shenzhen, represents 60% of the company's BEE credentials, cutting out a 4% staff investment trust and 5% BBBEE shareholding stipulated by Telkom's submissions.
However, according to ICASA regulation, if there are any changes to shareholding, the company need only notify the regulator of that change. No public process is needed for any of the licensees if the shareholding changes.
Du Pisanie says the local arm of Shenzhen is a fully compliant BEE business.
As Telkom Media, the broadcaster applied for a satellite and cable licence, which would allow it to broadcast a service similar to MultiChoice as well as provide an IPTV solution. The original licence has a generic statement in terms of format. However, Super5Media's licence stipulates the format. According to Du Pisanie, Super5Media wanted to have the format stipulated on the licence, while the other broadcasters are happy to have a “technology-neutral” stipulation.
Super5Media's claim is confirmed by the broadcasting licence awards document, which indicates Telkom Media and, by implication, Super5Media applied for both a cable and satellite licence.
The wording of the licence would then not have to pass through public comment, since the actual licence conditions have not changed. It appears Super5Media is the only company licensed to provide broadcasting services across both platforms.
Super5Media's licence also states that a shareholder agreement, or similar document, needs to be submitted to the regulator. Du Pisanie says the company has complied with the condition.
Super5Media will contest the court application early next week, and hopes to begin working towards a commercial product as soon as possible. “We are happy to meet the obligations of the licence. All we want to do is bring competition and choice to South African viewers,” he notes.
ICASA has declined to comment on whether the licence was transferred with all the proper processes in place, saying only that the matter is now in the hands of the court. “We cannot say anything outside the court. Our formal response will be the one we present to the courts.”
Related story:
Pay-TV storm brews
Share