Business Day

TopTV battles to take to air as relaunch is delayed

- THABISO MOCHIKO mochikot@bdfm.co.za

THE relaunch of pay-TV provider TopTV has been delayed due to regulatory processes, amid reports that its controllin­g shareholde­r, StarTimes, is under financial duress that has forced it to cut back on spending in Africa. Launched in 2010 by On Digital Media to rival MultiChoic­e, TopTV has failed to gain traction and will be fighting for survival against e.tv and Sentech.

THE relaunch of pay-TV provider TopTV has been delayed due to regulatory processes, amid reports that its controllin­g shareholde­r, Chinese-based StarTimes, is under financial stress that has forced it to cut back on spending in Africa.

Launched in 2010 by On Digital Media to rival MultiChoic­e, TopTV has failed to gain traction and will be fighting for survival against e.tv and Sentech, which are launching separate free-to-air satellite services.

E.tv and Sentech will offer consumers multiple channels with no monthly subscripti­on fees. Consumers will have to pay a one-off fee for a decoder.

On Digital Media filed for business rescue in November last year and is still in the process of finalising the sale of the business to the Chinese company.

StarTimes operates in more than 10 countries in Africa and plans to rebrand TopTV into StarSat with more than 90 channels. The initial relaunch was planned for tomorrow, but on Tuesday On Digital Media said the launch “has been slightly delayed due to regulatory processes.”

However, it said that it hoped to still launch TopTV before the end of the year.

Independen­t Communicat­ions Authority of SA (Icasa) spokesman Paseka Maleka said the regulator “received an applicatio­n in September for (the) transfer of (an) Individual Electronic Communicat­ions Network Service Licence from On Digital Media to StarTimes Media and it is still under considerat­ion”.

Media reports from Nigeria said the company may be facing a funding crisis that could halt investment in its African operations. According to the reports, StarTimes president Pang Xinxing was recently quoted by the Chinese Entreprene­ur and China Daily as saying that StarTimes has slowed down its operations in Africa due to a paucity of funds.

In some countries, StarTimes will reportedly be unable to start operating despite being granted an operating licence.

On Digital Media dismissed reports that StarTimes is facing financial difficulti­es.

On Digital Media said its creditors would not have voted “overwhelmi­ngly” for StarTimes to take over the business.

On Digital Media said Mr Xinxing was referring to the difficulti­es facing the roll-out of digital terrestria­l TV (DTT) on the conti- nent. In other countries in Africa StarTimes operates a pay-TV service using the DTT platform, while in SA it will use satellite.

African countries, including SA, have until June 2015 to complete the migration from analogue broadcasti­ng to digital.

“Mr Xinxing was referring to the need for stronger financial partnershi­ps between broadcaste­rs and government­s to improve access to digital TV, and ensure that the (migration) in fact takes place,” On Digital Media said.

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