26 September 2024
The non-renewal of On Digital Media’s (ODM) licence, the company operating pay television platform StarSat TV, will have a significant economic impact and worsen unemployment in South Africa, according to the broadcaster.
This comes after the Independent Communications Authority of South Africa (ICASA) ordered StarSat TV to wind up its operations and discontinue broadcasting services by 18 September.
ICASA issued a statement saying despite many reminders, ODM submitted its licence renewal application after the expiry date of 10 November 2023, resulting in the current situation. In response, StarSat, which has been operating in South Africa for 15 years, said it is both surprised and concerned by ICASA's latest comments, especially given the ongoing legal processes.
“Over the past 18 months, StarSat has maintained consistent and comprehensive communication with ICASA. 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,” said StarSat in a statement. “Given ICASA's commitment to enabling economic growth, the potential loss of jobs is especially troubling. 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 rely on its operations. Beyond economic growth, ICASA is also committed to ensuring the dissemination of information, entertainment, and education to the public. StarSat plays a key role in this, providing quality content to over 500,000 subscribers at affordable rates. Its service offers a diverse range of programming that supports the informational and entertainment needs of South Africans."
Apparenrtly, owing to challenges in securing new investment in a competitive market, along with the introduction of a new shareholders agreement and the economic pressures following the COVID-19 pandemic, ODM submitted its license renewal application to ICASA later than the required deadline.
“Despite multiple attempts to seek guidance from ICASA officials to address these regulatory challenges, ODM did not receive the necessary support,” said StarSat.