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Sentech: Why we pulled out

Sep 18 2007 17:40 Finweek's Belinda Anderson

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Johannesburg - Sentech's pullout from the race for a subscription television licence just two days before regulator Icasa was due to announce the winners of its invitation to apply (ITA) last week left the market stumped.

CEO Sebiletso Mokone-Matabane now says it did so "for business reasons" upon which it would only elaborate in the next two weeks or so.

She said the state-owned signal distributor and multimedia licensee had not been pressurised by government to withdraw its application; for reasons of funding or the need to focus on its existing projects.

Some of these projects include ensuring the country's broadcasting readiness for 2010 and rolling out a national wireless broadband network.

It recently received approval for an initial R500m for this broadband network, subject to the finalisation of the business plan, but said the full project was budgeted to cost R4,4bn over 10 to 15 years.

Sentech's pullout from the ITA doesn't mean it won't continue to offer its Direct-to-Home Vivid satellite offering, which it does in terms of its multimedia license. This was awarded in 2002, before the promulgation of the Electronic Communications Act.

Mokone-Matabane said as far as it could understand, existing rights holders would be granted the same rights when Icasa converts their licenses to the new categories of licenses under the Act.

But, why then would Sentech need to have applied to the pay-TV ITA in the first place?

Mokone-Matabane says the ITA was initially issued under the old legislation, so it had been prudent for Sentech to apply.

So, Sentech, it seems, could decide to extend its pay-TV offering anyway.

The current satellite product carries three different offerings; the first being eight channels including SABC 1,2 and 3, the second being six channels including e.tv and SABC 24-hour news channel, and the third including 27 business radio and television channels for retail stores and government agencies.

Mokone-Matabane confirmed it could extend this if it wanted to, but said the company was currently very busy with the conversion from analogue to digital television, and with meeting its obligations to FIFA: "But, we're keeping our options open."

- Fin24

 
 
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