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Sentech satellites
South African broadcasters say the tariffs imposed by the signal distributor – Sentech – are too expensive and unsustainable.
The broadcasters told the Independent Communications Authority of South Africa (ICASA) Committee in a virtual public hearing held on Tuesday that the methodology used to determine these tariffs needs to be transparent to all stakeholders.
ICASA held public hearings to allow stakeholders to provide input on draft Signal Distribution Services Regulations. These regulations are aimed at addressing market failures in the terrestrial signal distribution sector.
A call for more transparency in the determination of the signal distributions imposed on local broadcasters by Sentech. This was heard in the public hearings held by the ICASA this week.
The broadcasters submitted their written and oral presentations to ICASA, following the publication of draft Signal Distribution Services Regulations by the entity.
South African Broadcasting Corporation (SABC) COO Lungile Binza told the committee that the tariffs imposed on the public broadcaster are too high and transparency is required when tariffs are determined.
The SABC is paying Sentech around R20 million a month to service its debt of over a billion rand.
Binza says they have questions about the tariffs. “As we’ve indicated in the past, I mean the tariffs that are charged to the SABC are too high, they are unsustainable, they are anti-competitive, they are monopolistic. And yes, they are unregulated as well, and hence we are here. We’ve been here for the last four or so years in front of this commission, as we’ve indicated also in the past, that this cost is actually the second biggest cost within the SABC. It’s only second on the salaries bill. It’s even higher than our content, you know, cost, which is basically our core business.”
Medium waves
The committee heard, among other matters, the issue of phasing out medium waves and AM licences. Radio outlets, Primedia and Radio Pulpit have urged the signal distributor Sentech to continue providing signal distribution to medium and AM licenses.
The signal provider has indicated that it will be phasing out these services as they are operating at a loss. The radio outlet’s legal representative, Justin Limpitlaw, says this decision is a direct threat to the future broadcasting of these entities.
“Both Primedia and Radio Pulpit believe that there is a serious, indeed an existential threat to their respective am licences posed by Centex’s stance on the future of medium wave broadcasting. Sentech has publicly stated that it no longer wishes to provide a more medium wave services and is looking to phase out its signal distribution offering to am and medium wave broadcasting licencees.”
Compliance
Sentech CEO Tebogo Leshope told the committee that the organisation is concerned about the costs of compliance with regulations. Leshope says this is because currently, the organisation is providing medium waves and AM services at a loss to the entity.
He says the inputs from broadcasters are welcome; however, the entity has to find a financially sustainable solution in this regard.
“In the main, you know if you are providing a cost as a service at a loss or a particular product, then it becomes a loss leader within your portfolio of products. It is just rational for an entity to reconsider that we do make those sustainability. decisions on the basis that a particular product or a solution is not sustainable in that regard. We have channels to engage. I think if the particular concerned broadcasters are interested in ensuring that the entire cost of that particular service will remain covered for the commercial term, we can engage in that regard.”
E-Media, also emphasised the need for transparency from Sentech in its presentation to ICASA.
