TELKOM Media’s fate will be decided tomorrow when Telkom shareholders meet to vote on the closure of the pay-TV project.<\/p>\n
When it was awarded a pay-TV licence by the Independent Communications Authority in 2007, Telkom Media was widely touted as the company that would give Multi- Choice a run for its money.<\/p>\n
Telkom Media has eaten up R500-million in cash since the company was registered in July 2006. In March last year, Telkom announced its intentions to reduce its R7.2-billion shareholding in Telkom Media.<\/p>\n
Last month, however, the Telkom Group announced that an investor could not be found and that it would shut the venture .<\/p>\n
After an initial five subscription television licences were awarded by Icasa, only two have survived to create competition for MultiChoice.<\/p>\n
In September 2007, Icasa awarded subscription licences to Telkom Media, On Digital Media, e.tv’s e.sat, Walking on Water TV and MultiChoice.<\/p>\n
But e.sat soon bailed out, opting to air its n ews service on DStv.<\/p>\n
WOWtv is already in production of content. It is not a direct competitor to Multi- Choice due to its niche Christian targeting.<\/p>\n
Satellite operator ODM is expecting to launch in the fourth quarter of this year, and Vino Govender, its chief executive, says preparations are on track: “ODM has managed to raise sufficient funds to meet its business obligations. ”<\/p>\n
According to Dennis Smit, managing director of ICT research firm BMI-T, Telkom Media’s chances of finding a suitable investor evaporated with the onset of the global economic meltdown.<\/p>\n
He said: “We all hoped that they’d be a contender to MultiChoice, but nobody was going to invest in a speculative TV venture.<\/p>\n
“MultiChoice outplayed everyone by attending the Icasa hearings , listening to rival strategies, and implementing them . It was one of the major flaws of the process.”<\/p>\n
Govender said there would be enough competition in the market, despite Telkom Media’s closure.<\/p>\n