Neil Bierbaum
Delays are expected in the issuing of new commercial radio licences in order to ensure the sale of South African Broadcasting Corporation stations.
The Independent Broadcasting Authority has been accused of intending to delay the licensing of new commercial radio stations in order to ensure the sale of the SABC radio stations at a reasonable price. According to George Kennedy, spokesperson for potential purchasers Solid Gold, there are “indications that the IBA is going to process the permanent community licences before taking applications for new commercial licences”. “There is no such priority — as yet,” says IBA councillor William Lane.
Solid Gold is preparing an offer for Highveld Stereo and Jacaranda which it would like to merge into one.
Other stations to be sold are Jacaranda’s offshoot Brfm, Radio Goudveld, Radio Oranje, Good Hope Stereo, Kfm, RPN, Radio Lotus, Radio Algoa and its offshoot Rmfm.
A spokesperson for another potential investor reports that buyers of the SABC stations would need some kind of protection and that delayed licensing of new commercial broadcasters would be one possible mechanism. However he added that “delaying the process could prejudice aspirant broadcasters who can’t afford the SABC prices”. IBA councillor William Lane countered that the approved purchaser will not necessarily be the highest bidder.
“It is up to the IBA whether there is any time advantage to purchasers of the SABC radio stations,” said Govin Reddy, chief executive SABC Radio. Lane added that, “The two operations will happen in parallel. We are certainly pushing for the sale of the SABC stations to go through as quickly possible but we are not favouring them over commercial broadcasters. There is no reason why both processes should not happen at about the same time. It’s all going to be rather transparent.”