Telecoms2.09.2009

New Pay-TV provider blames ICASA for launch delay

On Digital Media (ODM) was announced as one of the country’s successful pay-TV applicants by the Independent Communications Authority of South Africa (ICASA) in September 2007.  At the time ODM said it was planning to launch its “unique digital satellite pay-TV offering in the second half of 2008.” 

Other providers like Telkom Media also planned commercial services for 2008 but, despite promises of bringing much needed competition to the local pay-TV market, not a single newly licensed operator made good on their promises.

When ODM was officially issued with a pay-TV broadcast licence by ICASA in mid-2008, the company announced that it was planning to launch commercial services in the second half of this year.  This also did not happen.

This year ODM came in with new deadlines stating that it was planning a commercial launch in the last quarter of 2009, but this date has again been moved back to the ‘the end of the first quarter 2010’.

According to ODM CEO Vino Govender ICASA is to blame for the delayed launch.  “The latest projected launch date is towards the end of the first quarter 2010.  The major setback has been the issuance of our uplink license, and although this has now been issued we have lost about 4 months due to this delay.”

ODM Chief Technology Officer Frans Lindeque previously explained that it is difficult to set a launch date when the company hasn’t received a license from ICASA to handle the uplink itself instead of paying a service provider to do it.

According to ODM ICASA has issued them with a test license with a view to issuing the official license at the end of September. This will allow the company to move forward with vital technology decisions which will impact on the release date.

ODM is planning to target lower-income customers with ‘specifically tailored packages that suit a subscribers’ viewing needs’.  Prices are likely to range from R149 to R349 depending on the level of choice required by a subscriber.

According to Govender no official announcement has yet been made regarding which channels ODM will offer. “ODM has secured many channels, the channel names will be disclosed closer to launch. We need to keep our powder dry in this regard,” says Govender.

In May this year Telkom sold its 75% share in Telkom Media to a Shenzhen Media consortium.  Telkom Media, which is likely to be known as Super5 Media in future, was contacted for feedback regarding its plans, but the company did not reply to requests for information.

Pay-TV launch delay – who is to blame?

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