The Independent Communications Authority of South Africa (Icasa) hasn’t renewed StarSat operator On Digital Media’s licence, TV with Thinus reports.
Citing an insider, Icasa has given StarSat until 18 September 2024 to close down. However, no notices have been sent to staff, and StarTimes is still selling StarSat decoders.
Moreover, StarSat says it will not be shutting down.
For reference, Chinese pay-TV service StarTimes owns 20% of On Digital Media, the maximum ownership allowed for a foreign company in a South African media business.
In a letter sent to On Digital Media CEO Debbi Wu and its general manager for legal, risk, and compliance, Ronald Reddy, Icasa said it may issue a statement advising affected subscribers, content providers, and stakeholders.
“The regulator does not have the legislative or regulatory mandate to consider a transfer application and/or renewal application an expired licence,” TV with Thinus quoted Icasa as saying.
It also asked On Digital Media to provide it with a plan detailing how and when it will inform subscribers, content providers, and stakeholders of the winding up of its services.
Wu says On Digital Media is currently engaging with Icasa on the way forward, adding that it is exploring all the regulatory and legal issues regarding its licencing.
“We can assure you and the public that On Digital Media/StarSat will not be closing its operations anytime,” she said.
Wu said StarSat won’t provide further comment until the matter is finalised.
StarSat — originally called Top TV — launched in South Africa in May 2010, under the control of On Digital Media.
It entered into business rescue processes in 2012 after On Digital Media encountered financial difficulties.
While under business rescue, China’s StarTimes, which already operated several pay-TV networks on the continent, acquired a 20% stake in On Digital Media.
Top TV was then renamed StarSat in October 2013. At the time, its business rescue practitioners said they were in the process of concluding the implementation of its business rescue plan.
They said the plan was voted on and approved by creditors and shareholders on 30 April 2013.
StarSat exited business rescue in August 2016. However, despite its financial situation improving, StarSat was still struggling to retain customers and channels.
Source
mybroadband.co.za
