Icasa to address challenges faced by new entrants into pay TV market

The Independent Communications Authority of South Africa (Icasa) is looking to address challenges faced by new entrants into the highly competitive market of pay television.

Six companies have been issued with licenses over the past nine years, of these, only two are operational, others are yet to start.

Multichoice's DSTV seems to be dominating the subscription television in South Africa and leaving others in the cold.

Legal Consultant Justine Limpitlaw says Icasa has finally realised that there is a serious problem in the television subscription market.

There has been a serious problem for over a decade now. DSTV got a head start and operated for a long time without a license ...

Justine Limpitlaw, Legal Consultant

Limpitlaw says that DSTV can't even be compared to StarSat. She says the figures are not even close in terms of market parity.

StarSat is nothing like the millions of house holds that DSTV has signed up. We talking huge monopoly player...

Justine Limpitlaw, Legal Consultant

Limpitlaw also mention that two years ago there was another round of licensing in which five more subscription TV operators were offered licenses and three turned them down. Their reasons were that it is impossible to start operating unless Icasa starts regulating the competitive environment.

If Icasa keeps licensing without changing the market, the barriers to entry in the market, without allowing for a level playing field it is clear that just licensing more operators is a failure

Justine Limpitlaw, Legal Consultant

She says Icasa needs to introduce regulations to force competitive environment in the subscription television market.

Listen to the full conversation below:

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