On Digital Media asks Icasa for licence transfer
PAY-TV and adult entertainment provider On Digital Media has pleaded with the Independent Communications Authority of SA for the transfer of its broadcasting licence to Chinese investor StarTimes. This would ensure the company survived and could implement its business rescue process, the company said. On Digital Media, which launched TopTV in 2010, filed for business rescue three years ago.
PAY TV and adult entertainment provider On Digital Media has pleaded with the Independent Communications Authority of SA (Icasa) for the transfer of its broadcasting licence to Chinese investor StarTimes.
This would not only ensure the company survived but also see the implementation of its business rescue process, the company said.
On Digital Media, which launched TopTV in 2010, filed for business rescue three years ago as it found it difficult to compete with rival MultiChoice.
StarTimes executive consultant and former On Digital Media CEO Eddie Mbalo said yesterday the failure to transfer its individual electronic communications network services licence could lead to job losses.
He said it would result in the company being unable to raise the capital needed for the business. Another consequence of not allowing the transfer of the licence would be the loss of all competition in the sector, said Mr Mbalo.
This emerged yesterday during public hearings held by Icasa.
MultiChoice and e.tv are opposing On Digital Media’s transfer bid. Although e.tv submitted written comments opposing the deal, it was not part of the hearings.
In its written submission, e.tv asked that Icasa investigate the regulatory implications of the business rescue plan as a whole and not consider the licence transfer application in isolation.
MultiChoice described On Digital Media’s attempt to transfer the licence as “ill conceived”.
On Digital Media shareholders, including the Industrial Development Corporation, agreed to sell the firm to StarTimes, which has rebranded TopTV into StarSat.
But to finalise the business rescue process, On Digital Media wants its licence to be transferred to StarTimes SA.
Mr Mbalo said StarTimes believed the application for a transfer was legal and justified. He said the company met black shareholding requirements of 30%.
MultiChoice is adamant the company does not meet the black ownership requirements of at least 30% and that if the application is approved, it could successfully have the decision reviewed.
Approving the application would circumvent and undermine the regulations, said MultiChoice’s legal counsel.
StarSat provides adult content channels that were subject to court proceedings last year after some organisations challenged Icasa’s decision to grant permission for the broadcaster to include the channels in its packages.
Mr Mbalo would not say how many clients the firm had, but said it had maintained its numbers.