Troubled pay-TV start-up Super5Media has requested a fourth licence extension from the Independent Communications Authority of SA (ICASA).
The broadcaster was initially set to become operational in June last year, but applied to ICASA for an extension to September 2010.
In September, Super5Media requested another extension, based on the reasoning that its application for an Individual-Electronic Communications Network Service (I-ECNS) licence to self-provide had yet to be finalised by the authority.
Super5Media intends to provide its own signal distribution for its pay-TV service.
At the time, ICASA conceded it had been in the process of deliberating Super5Media's application for an I-ECNS licence, but intended to make its decision known in “a week or two”.
The authority was, therefore, confident Super5Media would launch its services well within the six-month extension period.
However, in March the company was granted another six-month extension by the authority. There was no word from the company as to why it needed the extra time.
This pushed its go-live date to around September this year, but this will not materialise.
Careful deliberation
ICASA spokesperson Paseka Maleka says Super5Media's licence is still valid. However, the licensee has not yet launched its subscription broadcasting services.
“The authority received a letter from Super5Media on 2 August 2011 requesting an extension for a further six months.”
Maleka notes that the request for an extension preceding this one was for a 12-month period, but ICASA only granted the company six additional months from March.
“The council of the authority will, therefore, deliberate and decide on whether Super5Media warrants any further extension, depending on good cause shown as provided for in the standard terms and conditions.”
It is not known why the broadcaster is requesting another extension. Muhammad Lockhat, a director at Super5Media, says the company cannot comment at this stage.
Give up?
Orders for customised set-top boxes (STBs) for pay-TV service providers take between nine and 12 months to prepare from first engagement with a manufacturer, says Bertus Bresler, who heads up Reunert's STB project.
He adds that Reunert has not had any engagement with Super5Media for ordering STBs. Altech, the majority provider of STBs in SA, also says it is not engaged with Super5Media on a commercial level.
Satellite company Intelsat, which provides capacity to MultiChoice, says it has had some engagement with Super5 previously, but has not heard anything from it for a while.
Meanwhile, WWW Strategy MD Steven Ambrose says there is no room in the pay-TV market for another player.
“It also may not make economic sense as a new player would have to invest heavily in marketing and infrastructure.”
Managing sales director for Africa at Intelsat Rodney Benn agrees, saying there are hefty costs to consider when entering this market, especially if one hopes to compete with the likes of MultiChoice. This includes everything from monthly bandwidth costs, to marketing and print productions like DStv's “Dish” magazine.
“I believe Super5 are going through the motions in the hope of an investor or purchaser coming to save the day,” says Ambrose.
Left behind
Super5Media has had a tumultuous start, with regulatory and shareholder trouble holding back its initial plans to bring a new service to local TV viewers.
The company has also been the subject of media reports suggesting it had gone into liquidation.
Meanwhile, competing pay-TV provider TopTV turned a year old in May and continues to grow in the market, with its only competition being established player MultiChoice.
The newcomer signed up 200 000 subscribers seven months after becoming operational.
Super5Media hopes to come to market with three offerings, including Internet services, IPTV and a satellite service.
The company has long maintained that its licence is the only one that allows for IP-based services.
It had hoped to bring its own product to South Africans soon after the release of TopTV, with the aim of keeping the market equal.
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