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Three licences, eleven bidders

By Belinda Anderson, MoneyWeb, 7 November 2005
IT News Forum
Eleven consortia have submitted their bids for three regional radio licences, one in each of the ‘secondary markets’ of Limpopo, Mpumalanga and the North West Province.
 

The most fiercely contested of the licences is for Limpopo, with five consortia vying for this opportunity, compared with three for each of Mpumalanga and the North West Province.

Among the applicants are a number of high profile media names including Metro FM talk-show host and CEO of MSG Afrika Investment Holdings Given Mkhari, National Community Radio Forum CEO Nkopane Maphiri and Nail director Kenny Setzin, among others.

Mkhari and Maphiri are part of separate consortia bidding for the Limpopo license, while Setzin is part of two consortia, in separate bids for the Limpopo and North West licences respectively. He said the consortia consisted of the Norwegian radio professionals who originally helped set up P4 Durban and P4 Cape Town, as well as a company he had set up and other strategic radio partners and local partners, who were the biggest shareholders in each consortium. He believes a strong local content element will help make the regional stations successful.

Broadcasting and telecoms regulator Icasa said the applications would be available for inspection at its library from the beginning of this week. Interested parties can comment in writing to Icasa by 7 December, and the applicants have until 6 January to respond to such representations.

Asked how long the process of awarding the licences would be, Icasa councilor Lumko Mtimde said this would take “at least” six months, in the context of the public consultation process, which could include oral hearings. He said Icasa would work to ensure this was completed “as soon as reasonably possible”.

The licences are being offered by Icasa as part of broadening the radio market. But, this round of licences still falls under the current restrictive regime of ownership and control.

Icasa completed an extensive review of radio ownership and control, found it needed to open this market up to allow companies to own more radio stations and made submissions for amendments to the legislation to communications minister Ivy Matsepe-Casaburri in May 2004. These should have been tabled in parliament shortly thereafter, but this is yet to happen. Mtimde said Icasa would have to wait for further direction from the minister on these.

It will invite a second round of licence applications, for the more lucrative markets of Gauteng, the Western Cape and KwaZulu Natal, next year.

Mtimde said it had not yet set a specific date for the next round of invitations to apply, but this would be sometime next year.

For Limpopo, the interested consortia are Setzin’s consortium Radio Limpopo Consortium (Radio Limpopo), Maphiri’s consortium Twelve O’Twelve Consortium (Twelve O’Stereo), Sello Rasethaba’s Radio Mapungubwe Consortium (Radio Mapungubwe), Rawlingswood Investments (Capricorn FM), which Mkhari is involved with and the Limpopo FM consortium (Limpopo FM).

For Mpumalanga the applicants are M-Power Radio (M-Power FM), Mpumalanga Radio Consortium (1-FM) and Evening Star (Heartland Stereo).

For the North West licence, the applicants are the Platinum FM consortium (Platinum FM), North West Consortium (Radio North West) and Yired (YFM North West).

Applicants had to pay a R30 000 fee per application, and provide a detailed business plan and economic feasibility study, as well as detail about their capacity, expertise and experience, financial means and record in business.

Source:  http://www.moneyweb.co.za


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