National Geographic, ESPN pay-TV provider challenges Icasa over expired licence

StarSat has announced its intention to continue operating, despite the Independent Communications Authority of South Africa (Icasa) having ordered it to cease broadcasting services by 18 September, putting hundreds of jobs at risk.

The satellite television operator said in a statement it was committed to providing an “uninterrupted service to its users and business partners”, indicating its determination to challenge the Icasa directive.

Icasa said StarSat’s parent company On Digital Media (ODM) had failed to submit its licence renewal application before the expiry date.

The regulator had issued ODM a licence on 9 July 2008 for a 15-year period which expired on 8 July 2023. Icasa said it did not have the legislative or regulatory mandate to consider a renewal application for a licence that had already expired.

This could lead to the exit of StarSat — which has offerings such as National Geographic, ESPN and BBC World News — from South Africa’s subscription television market.

ODM admitted to submitting its renewal application late, saying this was due to challenges in securing new investment, the introduction of a new shareholder agreement and economic pressures after 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.

Icasa said legislation required those holding individual broadcasting service licences to submit renewal applications to the authority no earlier than 12 months and no later than 6 months prior to the expiry of the licence. But, despite numerous reminders, ODM had submitted its renewal application after the expiry date, on 10 November 2023, the regulator said.

The pay TV platform said the wind-up process could see the loss of about 600 jobs and about 500 000 subscribers would be denied an affordable satellite service.

“Despite the current challenges, StarSat will remain operational and is committed to providing uninterrupted service to its users and business partners,” ODM said. It said the high court had dismissed an urgent interdict application to block Icasa’s decision but a review application was pending.

“In light of these developments, StarSat is both surprised and concerned by Icasa’s recent statement, particularly as legal proceedings are currently underway,” it said.

Besides job losses, the closure of the pay TV platform would disrupt the broader network of over 4 000 dealers and sales agents who rely on its operations, it added. MG