Telkom Media has welcomed the start of hearings by the Independent Communications Authority of South Africa (Icasa) to grant new satellite pay-TV licences for broadcasters, saying it will extend competition and offer TV consumers more choice at attractive prices.
The Icasa hearings into satellite and cable subscription broadcasting kicked off in Sandton on Monday.
In a statement, Telkom Media also applauded the transparency of the licensing process. “Allowing new pay-TV licences will foster much-needed competition in the subscription broadcasting market,” said CEO Mandla Ngcobo.
“Awarding new licences at a time when technology is changing the way we receive and use information indicates government’s appreciation of the importance of improving access to information.
“The digital divide is still very real. Accommodating additional forms of less expensive pay TV, as well as IPTV and other mobile platforms to disseminate information, is vital for our young democracy.”
Shareholders in Telkom Media include Telkom, Anant Singh’s Videovision Entertainment, MSG Afrika Media and WDB Investment Holdings. Ngcobo said Telkom Media has an “arm’s-length relationship” with Telkom and will not receive any preferential treatment, and that access to infrastructure will be competitive and something all service providers can solicit.
Recent appointments to Telkom Media include Jimi Matthews as head of news and Hannelie Bekker as head of general entertainment.
Ngcobo, who has a legal background, was previously Telkom’s chief of corporate affairs. Matthews was former head of news at e.tv and South African Broadcasting Corporation TV. Bekker moved from head of programming at SABC3 to Videovision Entertainment in 2005.
The company plans to target the middle market with a low-price satellite pay-TV offering of approximately R100 per month, excluding value-added tax.
“We believe we could penetrate some 25% of the total population currently underserved, which represents 40% of the country’s television-owning audience. Currently, pay TV serves only 11% of the higher-income television-owning population, 9% of total TV-owning households. This will boost the media economy linked to pay TV and develop innovative forms of interactive content and services to benefit all participants,” said chief strategy and operations officer Rikus Matthyser.