No pay-TV competitors yet
Telkom has been promising for the last six months or so that it will finalise the sale of its stake in Telkom Media – but so far nothing has happened. Instead, there is a lot of speculation about who the buyers might be.
The deal was expected to have been finalised last month, and with the rush to the holidays under way, it now remains to be seen whether the deal will be sealed even this year.
The latest speculation is that it could be concluded with a consortium that includes Shenzhen Media, a Chinese-based media company, which is unlikely to take more than 20 percent in the pay television provider because of the cap on foreign ownership in local media companies.
Telkom Media says on its website that although a foreign person may obtain an indirect interest through one of its controlling shareholders, no foreign person will directly or indirectly exercise control over the company.
"No foreign person will be appointed as a director of Telkom Media," it says.
If the Chinese-based firm is involved, it could probably find other ways to have control. As an established player, it may be able to provide some experience in running satellite and pay TV systems.
Whoever buys Telkom’s stake in Telkom Media will have to bring very convincing proposals to win over a market that has lost faith in the new pay TV providers.
The market has waited for two years for an alternative to M-Net and MultiChoice. When Telkom Media and On Digital Media eventually enter the market in the second part of next year, their presence is likely to be felt, probably in 2010 or 2011.
Business Report
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