Two years down the line from starting the process of opening up competition in the pay-TV space, the Independent Communications Authority of SA (ICASA) conditionally granted five licences for individual commercial subscription broadcasting services.
This comes after protracted hearings that took place in July last year, after ICASA published an invitation to apply for licences in February 2012 in accordance with the Electronic Communications Act (2005).
Close-T Broadcast Network Holdings, Mindset Media Enterprises, Mobile TV, Kagiso TV and Siyaya have now been given three months to comply with ICASA's conditions. These generally relate to confirmation of equity ownership, funding requirements, further research, confirmation of local content and programming content agreements - although imposed conditions are specific to each applicant.
Industry pundits previously expressed doubt as to the prospects for other pay-TV players in a market dominated by Naspers-owned MultiChoice. They say ICASA dropped the ball years ago - and may not be able to set things straight and introduce competition to the pay-TV market at this stage.
Marketing analyst Chris Moerdyk says MultiChoice is way ahead of the two-man pack. "I don't believe ICASA can do anything to create competition with MultiChoice. It has handed out licences left, right and centre in the past and none have actually come to fruition."
Moerdyk refers to a move by ICASA about six years ago, when it tried to open up the market by awarding ECNS licences for more pay-TV providers to enter the market alongside MultiChoice. Initially, 18 companies applied, but the number was whittled down to just five companies - Walking on Water, ODM, e-SAT, Telkom Media and MultiChoice Africa - after others withdrew.
Asked if ICASA believes SA has a competitive pay-TV landscape, the regulator's spokesperson Paseka Maleka said it was the authority's intention to foster competition within the pay-TV market.
In February, ICASA announced it would carry out an inquiry into premium content in a bid to open up SA's monopolistic pay-TV market.
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