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Satellite television operator StarSat said it will continue broadcasting despite the Independent Communications Authority of South Africa (Icasa) on Friday saying it had ordered it to “wind up its operations”.
“Despite the current challenges, StarSat will remain operational, and is committed to providing uninterrupted service to its users and business partners,” it said.
This comes after Icasa on Friday announced that it had decided that the owner of the pay TV service provider, On Digital Media (ODM), should stop broadcasting by 18 September 2024. This would mean StarSat is no longer part of the subscription TV market in South Africa.
Icasa said StarSat had failed to renew its broadcasting licence.
“ODM’s licence was issued by the authority on 9 July 2008 for a 15-year period which expired on 08 July 2023.”
It added that ODM failed to submit its renewal application before the expiry date of 10 November 2023.
“The authority does not have the legislative or regulatory mandate to consider a renewal application for a licence that has already expired.”
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StarSat said it currently has 500 000 subscribers. Among the channels it provides are National Geographic, ESPN and BBC World News.
ODM admitted to submitting its renewal application late, but said it was because of challenges in securing new investment, the introduction of a new shareholders agreement and the economic pressures following the Covid-19 pandemic.
“Despite multiple attempts to seek guidance from Icasa officials to address these regulatory challenges, ODM did not receive the necessary support,” it said.
ODM also said although the Gauteng High Court dismissed an urgent interdict application to block Icasa’s decision, a review application is pending.
“In light of these developments, StarSat is both surprised and concerned by Icasa’s recent statement, particularly as legal proceedings are currently underway.”
Icasa said letter were sent to ODM to get information on the amount of time it needs to wind-up its affairs and how and when it will inform its subscribers. It said it didn’t receive any answers.
ODM disputed this, saying: “Any suggestion that the company has failed to engage with the regulatory authority is incorrect, as extensive correspondence is evidence of its commitment to constructive dialogue.”
It also warned Icasa that its decision could lead to the loss of jobs.
“This situation could jeopardise the livelihoods of more than 600 ODM employees and disrupt the broader network of over 4,000 dealers and sales agents who relied on its operations.”
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