The news:
- South Africa’s Independent Communications Authority (Icasa) has warned StarSat's parent company, On Digital Media (ODM), to halt operations following the company’s refusal to do so after failing to renew its broadcasting licence.
- Despite this, reports indicate that StarSat’s customer service agents have continued to reassure customers that the service is unaffected, leaving many confused about their subscription status.
In June 2024, Icasa instructed the pay-TV provider to shut down by September 18, 2024, a move that could impact 600,000 subscribers and 600 employees.
ODM has been operating without a valid licence since its expiration in July 2023. Despite the regulator's warnings, ODM has refused to close, continuing to broadcast and reassure customers that their services would remain unaffected.
The media company attributed the delay in renewing the licence to difficulties in securing investment, a new shareholder agreement, and financial challenges following the COVID-19 pandemic. The company also accused Icasa of not providing sufficient regulatory support.
Although ODM applied for renewal in November 2023 — four months after the deadline — Icasa rejected the application as it was beyond the legally allowed timeframe under the Electronic Communications Act (ECA).
Under South African regulations, a licensee must submit renewal applications no later than six months before expiry.
Icasa stated that while it can allow a grace period for companies to wind down operations post-expiration, ODM has not complied with the request for a closure plan. The regulator says it has sent multiple letters requesting ODM to outline a timeline for winding up and informing customers, none of which have been answered.
The ongoing dispute has raised concerns among StarSat’s customer base, some of whom are considering cancelling their subscriptions due to the uncertainty surrounding the service’s future.
Despite the legal and regulatory pressure, ODM remains defiant. CEO Debbie Wu assures the public that the company has no plans to shut down and is exploring legal avenues to address the licensing issue.
Icasa has confirmed that failure to comply will result in the forced shutdown of StarSat’s operations, potentially disrupting more than 600,000 subscribers who rely on the platform for their entertainment needs.
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This development intensifies the already competitive pay-TV market in South Africa, which is dominated by MultiChoice’s DStv.
