StarSat says it will continue to broadcast, despite Icasa ordering its shutdown

Pay TV platform StarSat will remain operational and is committed to providing uninterrupted service to its users and business partners, says On Digital Media (ODM), the licensing company of StarSat.

It was responding to a statement issued by the Independent Communications Authority of South Africa on Friday essentially shutting down StarSat services.

Icasa said it had decided that ODM should wind up its affairs and cease providing broadcasting services by September 18 and inform its subscribers. It said ODM’s licence was issued by the authority on July 9 2008 for a 15-year period which had expired on July 9 2023.

According to the authority, ODM failed to submit a licence renewal application within the required time frame set by the Electronic Communications Act (ECA). 

Despite numerous reminders, ODM only submitted its licence renewal application after the expiry date on November 10 2023, it said.

“The authority does not have the legislative or regulatory mandate to consider a renewal application for a licence that has already expired.” 

Icasa said the ECA afforded the authority the discretion to allow a licensee whose licence had expired to continue providing services for which it was licensed to wind up the licensee’s affairs and to protect its customers. 

In response to Icasa's decision, ODM said because of challenges in securing new investment in a competitive market, along with the introduction of a new shareholders agreement and the economic pressures after the Covid-19 pandemic, it had submitted its licence renewal application to Icasa later than the required deadline.

“Despite multiple attempts to seek guidance from Icasa officials to address these regulatory challenges, ODM did not receive the necessary support,” it said. 

ODM said the Gauteng High Court recently dismissed an urgent interdict application it had filed to block Icasa’s decision to cease its operations from September 18. 

“A review application is pending to address the substantive legal issues between the two parties once the court date is set,” it said. 

In light of these developments, it said, StarSat was both surprised and concerned by Icasa’s statement, particularly as legal proceedings were now under way.

It said it had maintained consistent and comprehensive communication with Icasa in the past 18 months.

“Any suggestion that the company has failed to engage with the regulatory authority is incorrect, as extensive correspondence is evidence of its commitment to constructive dialogue.” 

ODM said the potential loss of jobs was troubling.

“This situation could jeopardise the livelihoods of more than 600 ODM employees and disrupt the broader network of over 4,000 dealers and sales agents who relied on its operations.” 

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