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South Africa’s plans to create some healthy rivals to incumbent MultiChoice are in a mess. Last year South Africa’s TV regulator licensed a new batch of players to compete with MultiChoice, one of which was Telkom Media, a subsidiary of the Jo-berg listed local phone operator. Now it seems that Telkom Media’s enthusiasm has evaporated. It has emerged that Telkom Media intends to sell down its stake in the consortium it originally led (66%) to “the smallest stake possible”.

Instead, says Telkom’s CEO Reuben September, it will use the Rand 7.5bn (US$970 million) it had earmarked for the DTH satellite service to strengthen and expand its existing voice and data networks.

However, a spokesman said the Telkom board would discuss the issue of finding a replacement investor, and that the sale of Telkom’s stake would not compromise the planned launch this summer of the pay-TV system. The general speculation locally is that Telkom Media will hold onto about 10% of its holding, suggesting that it was looking for a buyer/s of some 50-55%.

The other new licence holders (On Digital Media, e-Sat, and Walking on Water) have also seen launch dates slip, and plans alter.


Source: Rapid TV News

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