Satellite operator StarSat is prepared to return to court to prevent its platform being shut down after a directive by SA’s broadcast regulator.
The company is hoping to persuade the Independent Communications Authority of SA (Icasa) that shutting it down would lead to further destruction of SA’s media industry at a time when jobs cuts are on the cards at Naspers owned Media24, Independent Media, and Daily Maverick.
While such talks with the regulator are the first choice, the company is prepared to go to the courts to argue its case.
“As a last resort, we have not ruled out the possibility of urgently approaching the court once more to present further reasons why the continued provision of television broadcasting services by StarSat TV remains necessary and of national significance,” the company said on Tuesday.
The company’s licence, valid for 15 years, was issued in July 2008 and expired in July 2023. The company, which launched its service to compete with MultiChoice’s DStv, admits it submitted its licence renewal application to the regulator after the required deadline, doing so on November 10 2023.
According to the Electronic Communications Act and related regulations, the holder of an individual broadcasting service licence must submit its renewal application to the regulator no earlier than 12 months before and no later than six months before the expiry of the licence.
Business Day understands that shutting down StarSat would cost investors $25m (R433m).
Pule Mabe, StarSat’s head of public affairs and strategy, said the move could also jeopardise 600 jobs and affect the broader network of more than 4,000 dealers and sales agents, doing business associated with the company.
The company blames the Covid-19 pandemic for hitting its business and leading — at least to some extent — to the present situation.
“StarSat TV has not been immune to the global impact of the Covid-19 pandemic. The crisis forced us to make various adjustments to our operations, including changes to our shareholding structure, which now required the approval of Icasa before any licence renewal can proceed,” StarSat said.
“No lawmakers of previous generations anticipated a situation where movement restrictions would be imposed due to a health crisis ... legislation and related broadcasting regulations lacked the flexibility to accommodate such extreme circumstances. Consequently, many of the operational challenges we face today are a direct result of the lockdown’s aftermath.”
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