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Johannesburg - South Africa's main phone operator, Telkom, has applied for a licence to run a pay-TV service as it tries to diversify its revenues and challenge Naspers's decade-old pay-TV monopoly.
Public broadcaster SABC and state signal carrier Sentech also said they had made a joint bid for a licence and planned to launch affordable pay-TV services in Africa's richest economy.
Africa's biggest media company, Naspers, has a monopoly on pay-TV in the poorest continent with its more than 55-channel DStv network, but South Africa's communications regulator has invited bids for licences from other would-be broadcasters.
Thursday is the deadline for bids.
Telkom's 50%-owned mobile operator, Vodacom, already has applied for a licence and says it wants to roll out pay-TV on cellphones.
Telkom, which seeks new sources of revenue as its core fixed-line business faces competition, said on Thursday it had also applied for a licence to run satellite and cable pay-TV.
Entertainment services
Telkom chief sales and marketing officer Wally Beelders said: "Telkom... aims to stimulate and lift demand for entertainment services and act as a catalyst for the development of convergent solutions in South Africa."
Neotel, South Africa's second national operator, launched wholesale international telecommunication services on Thursday and said it planned to roll out retail services by the end of March next year in a bid to seize 15% of Telkom's fixed-line revenue.
Faced with competition, state-controlled Telkom has said it plans to expand into IT and media and wants to push into new markets in Africa.
Telkom said it would offer a seven-channel package featuring entertainment, 24-hour South African news, movie, sports, music, home shopping and education channels.
Pay-TV remains relatively expensive in South Africa, compared to offerings in Europe and the United States, and analysts say cheaper packages could attract a much-broader customer base.
Telkom said research showed 40% of South African households were willing to pay for satellite TV, adding that tariffs for the package would be "favourable to the majority of South Africans".
Telkom said it would team up with Videovision Entertainment - the production company behind the Oscar-nominated film Yesterday.
May have to trim prices
SABC and Sentech said the SABC would provide the content for its joint venture while Sentech would provide the infrastructure and technology.
Multichoice - which runs Naspers's DStv - contributes more than 70% of operating profit at its parent company. But analysts have expressed scepticism about whether rivals will be able to build up enough muscle to take on Naspers.
They do say, however, that competition may force Naspers to trim its prices, which could weigh on revenue.