StarSat has introduced its intention to proceed working, regardless of the Unbiased Communications Authority of South Africa (Icasa) having ordered it to stop broadcasting companies by 18 September, placing lots of of jobs in danger.
The satellite tv for pc tv operator mentioned in an announcement it was dedicated to offering an “uninterrupted service to its customers and enterprise companions”, indicating its dedication to problem the Icasa directive.
Icasa mentioned StarSat’s dad or mum firm On Digital Media (ODM) had didn’t submit its licence renewal software earlier than the expiry date.
The regulator had issued ODM a licence on 9 July 2008 for a 15-year interval which expired on 8 July 2023. Icasa mentioned it didn’t have the legislative or regulatory mandate to think about a renewal software for a licence that had already expired.
This might result in the exit of StarSat — which has choices similar to Nationwide Geographic, ESPN and BBC World Information — from South Africa’s subscription tv market.
ODM admitted to submitting its renewal software late, saying this was as a consequence of challenges in securing new funding, the introduction of a brand new shareholder settlement and financial pressures after the Covid-19 pandemic.
“Regardless of a number of makes an attempt to hunt steering from Icasa officers to deal with these regulatory challenges, ODM didn’t obtain the mandatory help,” it mentioned.
Icasa mentioned laws required these holding particular person broadcasting service licences to submit renewal functions to the authority no sooner than 12 months and no later than 6 months previous to the expiry of the licence. However, regardless of quite a few reminders, ODM had submitted its renewal software after the expiry date, on 10 November 2023, the regulator mentioned.
The pay TV platform mentioned the wind-up course of might see the lack of about 600 jobs and about 500 000 subscribers can be denied an inexpensive satellite tv for pc service.
“Regardless of the present challenges, StarSat will stay operational and is dedicated to offering uninterrupted service to its customers and enterprise companions,” ODM mentioned. It mentioned the excessive courtroom had dismissed an pressing interdict software to dam Icasa’s resolution however a evaluate software was pending.
“In mild of those developments, StarSat is each shocked and anxious by Icasa’s latest assertion, significantly as authorized proceedings are at present underway,” it mentioned.
In addition to job losses, the closure of the pay TV platform would disrupt the broader community of over 4 000 sellers and gross sales brokers who depend on its operations, it added.