/ 13 December 1996

The licence race is on

Contenders for Gauteng’s only medium wave licence are eagerly awaiting the IBA’s decision, reports Jacquie Golding-Duffy

THE Independent Broadcasting Authority (IBA) faces a tough decision as the time draws near for it to award the single medium wave (MW) licence up for grabs in Gauteng.

According to an IBA representative, the licence for Gauteng will be awarded – along with all the new Cape Town and Johannesburg FM and MW licences – before the end of February.

The contenders for the sought-after commercial MW licence are Punt op Mediumgolf, which will follow an Afrikaans talk radio format; World Sport Radio, which promises 24-hour sport coverage; and New Radio Consortium, which will provide news and information covering a range of topics including business, sport and politics.

Punt op Mediumgolf is backed by Boland Financial Services, which will have a shareholding of 30%, says consortium representative Andre Coetzee. The other shareholders include Gensec, which is Genbel Securities (30%); Henbase, a consortium of founding members and interested parties (20%); Mnyama, a group of 200 professionals from previously disadvantaged communities (10%); and Nozala, a black women-led empowerment grouping (10%).

The two key women in the group are Nozala chair Salu Hlongwane and colleague Lerato Phalatse, director of programme co- ordination for the Gauteng provincial government. The women are integral to the consortium’s pitch as they realise that the IBA is keen to see as many women as black partners being represented.

“We believe that the black empowerment groupings are indicative of the listeners and will represent listeners’ needs,” says Coetzee. He adds that Punt op Mediumgolf “will endeavour” to make more shares available to Nozala once the radio station has proved to be a viable business.

He says listeners need to be empowered and since Afrikaans has been depoliticised, it is a much-sought after language medium as it is currently not used exclusively on any commercial radio station.

“If we get the licence, it will be the first commercial radio station in another official language other than English. In Durban there are two applications for a Zulu-language- based radio station, which is also a move away from English being the sole official medium .”

Coetzee argues that advertisers penetrate their target markets much more effectively when advertising in a listener’s home language. With Afrikaans being one of the 11 official languages, he argues that media planners are likely to be pleased at the opportunity to advertise in a niche market.

The target market, according to the consortium’s application, is “Afrikaanses”.

In its written application, Punt op Mediumgolf states: “Afrikaanses like to laugh. From the Afrikaner Yuppie in his BMW to the old boere-omie on his Deutz tractor. Humour is an integral part of the culture and language … and they often laugh at themselves.”

The radio station aims to be bold enough to tackle controversial issues and hopes to add a breath of fresh air for the new Afrikaans generation. Planned radio personalities include former mineral and energy affairs minister Pik Botha and well-known comedian Solly Philander. There will be very little music and much time devoted to discussion.

Punt op Mediumgolf has also applied for an MW licence in Cape Town.

World Sport Radio also boasts women representatives and several black empowerment partners. They propose to offer a “unique format” of live sporting events targeting sport fundis.

Lorne Maclaine of World Sport Radio says the consortium applying for the Gauteng MW licence consists of Moribo Investments, Gauteng Newspapers (a division of Independent Newspapers Limited), Anglovaal, World Sport Radio cc, the National Sports Council and the Communication Workers’ Union (of which some members are IBA employees).

Moribo Investments is the leisure and entertainment arm of Thebe Investment Corporation, and the backers of Moribo are mining house Anglovaal and Gauteng Newspapers, owner of The Star.

Backers of the sports council and communication union are Meseli and Nedventures. The former is a commercial bank attached to Thebe Investments, and Nedventures originates from banking facility Nedbank.

Maclain says the format of World Sport Radio will include live commentary and sports talk 24 hours a day with sport reports, results and interviews.

“It will be 30% live commentary and 70% sports talk. Listeners will have access to every major sporting event locally and internationally.”

He argues that niche radio is common in the United States, specifically sports radio, and it will also be in line with fashionable new stations mushrooming in Europe.

A survey of 400 listeners revealed that 80% would support a radio station dedicated to sports, while seven out of 10 advertising agencies displayed support, says Maclaine.

The station, he says, is viable, with fewer than 150 000 listeners making it a low risk venture.

“If the IBA is objective, then I do believe they will make the right decision. The regulator has recommended we have disadvantaged groups and women represented and we have met its criteria.

“On our board of eight members, four are women. Also, the National Sports Council is not allowed to profit from the radio station and will therefore plough the money back into communities allowing for real empowerment to take place … something the IBA wants,” argues Maclaine.

New Radio Consortium (NRC), the third applicant for the MW licence – which includes M&G Media, owner of the Mail & Guardian – plans to call its station G-Talk. At present, no women are involved in the radio station, but NRC has set aside shares, currently in the name of G-Talk nominees, for female representation in its ownership structure.

Other partners in the NRC include Kagiso Trust Investments, the financial arm of Kagiso Trust; Durban Videovision Enterprises, Anant Singh’s multi-faceted company with its main focus on the production and distribution of feature films; and Publico Limited, a company listed on the Johannesburg Stock Exchange for 10 years with a substantial interest in specialist publishing. Also involved in the consortium are leading local entertainer Johnny Clegg and Nedbank Investment Bank.

In its submission to the IBA, the NRC states that it hopes to fill a gap in the radio market with a product which is firmly Afrocentric.

The NRC adds that its station will provide “tightly packaged news” and information on a wide range of topics. It promises to be a fast-paced, progressive and energetic station, providing the “sound of the metropolis – an urban area which is uniquely Africa and yet a multicultural melting pot”.

The consortium says it envisages a station that will make everyone “feel good to be African”.

The output of the station will be strongly local and the BBC Africa Service will be used as a news and current affairs source. The programming will be made up of a maximum of 25% Africa Service material and the rest will be local news with a distinct Gauteng flavour.

The consortium, in its written submission, says Afrikaans is catered for by Afrikaans Stereo and Radio Jacaranda and the white English market is catered for by SAfm and Radio 702. There is, therefore, a gap where black listeners are not catered for.

“Talk radio is a very important and powerful format. It would be extraordinary if Gauteng, the engine-room of the entire sub- continent, did not have a talk station aimed at those who are fuelling that engine – the young, black go-getters who are shaping the new South Africa,” says an NRC representative.