MultiChoice calls public broadcaster ‘ irrational’
An impact assessment will be conducted on the contentious regulations that allow pay-TV operators to carry the SABC’s free-to-air channels for free.
This in the wake of MultiChoice’s opposition to the public broadcaster’s calls for operators to pay for the service. In 2008 the Independent Communications Authority of SA (Icasa) introduced “must carry” regulations, compelling pay-TV companies to carry the SABC’s free-to-air channels – SABC1, SABC2 and SABC3 – in support of universal access.
MultiChoice says it’s irrational for the public broadcaster to now require its DStv bouquet to pay to carry the three channels as they are already freely available. But the SABC argues MultiChoice has benefited from the channels on DStv, claiming they are among the most watched.
In a letter to Icasa in 2017, SABC chairperson Bongumusa Makhathini said the “must carry” rules had “a serious impact on the SABC from a potential revenue point of view”.
The public broadcaster has been looking to unlock new revenue streams in a bid to remedy its dire financial situation. Icasa spokesperson Paseka Maleka said the regulatory impact assessment will determine if the “must carry” regulations have fulfilled their intended objectives, looking at economic and non-economic factors. “Icasa has issued a questionnaire requesting data from interested stakeholders that will assist in making a decision whether or not to review the regulations. Interested stakeholders have until 26 October to [reply],” said Maleka.
In a letter to Icasa, Makhathini said the regulations “zero rate” the SABC channels and created a “noncommercial negotiating environment”.
The regulation seemed to have been drafted on the basis that the “must carry obligation” was an onerous one for subscription broadcasters, which would be “doing the public broadcaster a favour” by carrying its channels.
“The SABC will demonstrate that, on the contrary, the SABC ‘must carry’ channels have commercially benefited MultiChoice Africa at the expense of the public broadcaster,” said Makhathini. MultiChoice had written to Icasa taking issue with being singled out by the SABC. It also said it was “disingenuous” of the SABC to raise a nine-year-old issue out of the blue. MultiChoice SA chief executive Calvo Mawela said the “must carry” regulations were to ensure as many people as possible had access to the SABC channels, “which is [SABC’s] mandate anyway”.
“I cannot comprehend the SABC’s position. As you know, nobody has to pay to receive the channels except for the TV licence. Our carriage is to make it easy for our subscribers to access the channels without the need to put up an aerial to receive the channels,” said Mawela.