E-Sat and On Digital Media (ODM) on Tuesday threw their hats into the ring of serious contenders for the money-spinning pay-TV licences, giving viable and credible presentations to the Independent Communications Authority of South Africa (Icasa) in Sandton.
After ten of the eighteen potential pay-TV operators were given the opportunity to bid for the valuable subscription broadcasting licences last week, E-Sat and ODM slimmed the chances of other eager applicants.
After the withdrawal of Worldspace and Multichannel Television earlier this week, it became apparent that there are only a handful of serious contenders left.
Although there is no clarity on how many licences will be divided by the regulator, MultiChoice, Telkom Media, ODM, E-Sat and Khetha Media seem to have the best proposals.
E-Sat presented a solid and well-researched submission, not leaving much to be questioned by the other applicants.
The only meaningful comment was made by ODM. In its cross-examination, it raised the question as to whether the alleged double function of staff employed by both e.tv and by E-Sat will not raise a conflict of interest.
ODM wanted E-Sat to provide it with clarification on these double functions as E-Sat is a sister company of e.tv and is not allowed to mix costs or staff between the two.
Marcel Golding, chairperson of E-Sat, replied that the personnel concerned “are all in management positions” and “that it would be only the senior managers who would oversee both companies”.
In addition, Golding said “there will be no cross-subsidiaries in costs and staff between e.tv and E-Sat”.
E-Sat are proposing a 21-channel pay-TV package that would focus on movies, sports and news. Although their funding was kept confidential, the financial muscle to back it is uncontested with shareholders like HCI and Venfin, which have a combined market capitalisation of R16,4-billion.
ODM also presented their submission on Tuesday, trying to impress the members of Icasa with its high-tech presentation on a wall of flat screens brought in for the occasion.
As ODM also pulled off a highly professional presentation, it was not all just glitter and glamour that was brought to the table. With a 40- to 50-channel service that will range in monthly price between R149 and R369 for a full offering, it made a sound proposal.
Together with its unique only-pay-for-what-you-want system, which will allow subscribers to create their own bundles, it will definitely make for an interesting provider.
The biggest point of concern in the submission of ODM was to do with its black economic empowerment (BEE) credentials. As certain BEE shareholders would only come on board once the licence is awarded, its credentials as applicant are substantially less.
The last days of hearings will have presentations from: Sentech on Thursday; Multichoice on Friday; African Spirit Trading 330 and Quantic TV Network on Monday; and Walking on Water Television and Telkom Media on Tuesday.