Icasa to probe SABC’s pay-TV hook-up

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  • CyberREPORTs
Publish date 06 July 2019
Issue Number 1789
Diary Legalbrief eLaw
Icasa will soon conduct an inquiry into regulations that compel pay-TV operators to carry the SABC’s free-to-air channels, and whether this should still be done for free. A Business Day report notes in 2008, Icasa introduced ‘must-carry’ regulations that force ...

Icasa will soon conduct an inquiry into regulations that compel pay-TV operators to carry the SABC’s free-to-air channels, and whether this should still be done for free. A Business Day report notes in 2008, Icasa introduced ‘must-carry’ regulations that force pay-TV companies to carry the SABC’s free-to-air channels – SABC1, SABC2 and SABC3 – to support universal access. However, the SABC argues that the rules have had a serious negative impact on potential revenue. SABC executives told MPs that without the legislative changes – such as the must-carry regulations and reduction in signal and distribution costs – the entity will have a cumulative net loss of R1.5bn from the 2019/2020 to 2021/2022 financial years. The broadcaster has crippling debt of almost R2bn, an enormous infrastructure maintenance backlog, and a huge and unsustainable wage bill. The SABC argues MultiChoice has benefited from the channels on DStv, claiming they are among the most watched. Icasa will conduct an inquiry into the must-carry regulations’ efficacy before deciding whether they should be amended. Icasa said the regulatory impact assessment emphasised its initial position in the regulations that the SABC would deliver the signal to the subscription broadcasting services at its own cost; and the SABC would incur the cost of broadcasting, that is the transmission costs, which include fibre contribution costs and satellite capacity costs.