Telkom Media granted TV license

Doubt surrounds S. African co. despite approval

By CHRISTELLE DE JAGER

JOHANNESBURG -- The Independent Communications Authority issued a pay TV broadcast license to Telkom Media on Monday, the second issued after On Digital Media was given its license on July 21.

But there is uncertainty about whether Telkom Media, a division of telco Telkom, will go on air.

The pair were among four bidders that regulator Icasa granted the right to receive pay TV licences to in October, to open up the South African market long dominated by MultiChoice.

The others were e.sat, which has since opted to become a content and channel provider for MultiChoice, and Christian broadcaster Walking on Water.

Telkom was expected to be the biggest competitor for MultiChoice with a proposed $1 billion investment and good communications infrastructure in place.

But it has since indicated it would cut its funding in Telkom Media to concentrate on expanding its digital telco business and could be looking for a buyer for all of Telkom Media or part of its shareholding.

Telkom Media CEO Mandla Ngcobo could not comment on a sale or say when Telkom Media might start broadcasting.

ODM is due to go on air in the second half of 2009.