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Johannesburg - Beleaguered pay-TV group Super5Media, formerly known as Telkom Media, is still planning to launch in 2010 despite recent reports about retrenchments, a dispute with the regulator and shareholder upheavals.
Telkom Media received a pay-TV licence in August 2008. It planned to offer subscription-based television services via satellite, broadband networks and the internet. At the time, Fin24.com reported that Telkom's initial estimates said it budgeted on signing up at least 400 000 subscribers within 10 years.
However, Telkom sold its 75% stake in the company to China's Shenzhen Media in April, after which the name change took place. The sale has irked the Independent Communications Authority of South Africa (Icasa). The regulator is now investigating whether all conditions were met before it will issue Super5Media with a licence.
Business Report said on Friday minority shareholders were unhappy about consortium Shenzhen Media taking up Telkom's stake in the company.
Responding to the report, Super5Media spokesperson Chris van Zyl said he is unsure what minority shareholders VideoVision, WDB Investment Holdings and MSG Afrika would be unhappy about.
"Telkom SA indicated last year it wanted to sell Telkom Media. In April this year a buyer, Shenzhen Media, bought the company. This was good news as it meant that we could continue with our plans to offer an alternative pay-TV service into the South African market," Van Zyl said.
However, the minority shareholders and Icasa are more worried about the foreign ownership aspect than the actual sale.
Aspiring pay-TV competitor On Digital Media (ODM) also chipped in with a written response to Icasa in August, saying Super5Media did not follow the required process regarding its change in ownership.
However, Van Zyl said all the requirements were met.
"We have met all Icasa's requirements regarding the notification of the sale and transfer of shares in terms of a sales agreement between Telkom SA and Shenzhen Media," he said. "We are of the opinion that we have complied with all regulations in terms of the transaction and therefore have a licence to broadcast."
ODM and Icasa have also raised concerns around the foreign ownership aspect than the actual sale.
However, van Zyl said that as per broadcast regulations, the foreign ownership component in Super5Media is not more than 20%. This is reflected in the ownership of Shenzhen Media which comprises a 20% stake by Sino-Africa DG and Imbani Media (a local telecommunications company).
Super5Media announced last week it was retrenching about 50% of its staff as a result of ongoing uncertainty over its network licence, but Van Zyl said the company still plans to launch services early in 2010.
- Fin24.com